Sage Chief Technology Officer Klaus-Michael Vogelberg talks about the role chatbots, collective intelligence and blockchain will play at start-up and scale up enterprises in 2017
Sage, the market leader in Cloud accounting software, has predicted that chatbots, collective intelligence and blockchain are some of the big technology trends that will change the way entrepreneurs run their businesses in 2017. Sage Chief Technology Officer, Klaus-Michael Vogelberg, said: “As every business – big or small – is transforming more or less intensively into a tech-enabled business, today’s entrepreneurs should be on the lookout for the opportunities these technological developments can bring to their business.”
Vogelberg sees six major trends in 2017 that could make a big difference to the way business builders will work in 2017 and beyond.
Trend #1: Chatbots and autonomous interfaces
Autonomous interfaces such as chatbots or digital agents will become increasingly common on different devices and user interfaces which entrepreneurs use to manage and control their businesses. These interfaces will dramatically change the way that humans and computers work and interact with each other. While, in the past, people used a keyboard or mouse to interact with their PCs, they will gradually start talking with their systems or using gesture control such as hand, head or eye gestures to interact with them.
The user experience will not only become more convenient but also more enjoyable – these systems will work autonomously and have self-learning capabilities. Eventually, software could act without user intervention, or ask a certain question only once and use this information for all further activities.
In June 2016, Sage launched the first accounting chatbot, PeggTM. Pegg acts as a smart assistant that allows users to track expenses and manage finances through messaging apps such as Facebook messenger and Slack. Pegg hides the complexities of accounting and lets entrepreneurs manage finances through conversation, making the process as simple as writing a text. By digitising information at the point of capture, it takes away the hassle of filing receipts and expenses, eliminating the need for paper and data entry.
Trend #2: Artificial & collective intelligence
According to Vogelberg, artificial and collective intelligence is another major trend to look out for, even for smaller companies. With mushrooming data volumes being generated by all sorts of sensors and devices on the one hand (see trend #6), and computer power and special analysis software and intelligent agents becoming increasingly affordable and powerful on the other, companies need to find ways to extract knowledge from today’s wealth of Big Data.
Sage’s Klaus-Michael Vogelberg therefore advises SMEs to “team up”. “If small and medium-sized enterprises join forces and – while considering their corporate data protection policies and personal rights laws – share, for example, computer power and data with other companies in a structured and systematic manner, they could profit from this collaboration by receiving a better and larger data pool and superior data intelligence. Similar to crowdsourcing mechanisms, this enriched data pool would enable companies to better understand how customers behave, what they need, what to offer them and the business areas to invest in.”
Trend #3: Blockchain – or how to create trust in the digital age
According to Sage, business builders should also carefully analyse if, and how, the new blockchain technology could impact their current business models. Particularly all those industries which work as intermediaries between two parties – such as lawyers, notaries, or real-estate or financial brokers – could be affected by this new, innovative approach.
Bookkeepers and accountants might also be affected in the way they do business in the future, as blockchain has the potential to eliminate a significant part of the workload – such as checking and booking transactions, transferring money or paying invoices – handled by these professions today.
Why could this happen? Blockchain organises transactions of digital assets between two parties in a radically new way. Instead of using middlemen or intermediaries such as banks, notaries, state authorities or trading platforms to legitimise the exchange of certain assets – such as digital properties, digital trading goods, digital contracts, or even financial transactions via digital currencies such as Bitcoins – blockchains allow individuals to transfer these assets in a direct, safe, secure, and immutable way between each other.
A decentralised, distributed ledger, essentially an asset database shared across multiple participants, combined with crypto-economic algorithms serve as the technological basis of a blockchain. All participants of a blockchain (so called nodes) have access to the distributed ledger, which contains an inventory of all the relevant digital assets.
All parties within this network have their own identical copy of the ledger. Any changes to it are applied to every copy in a matter of minutes or even seconds. Thus, the system is transparent and creates trust among all nodes without the need for legitimisation by any other third party authority.
Trend #4: Revolutionizing the movement of money The way people use money and transfer their payments from one account to another has already changed dramatically: at the frontend, in-app payment solutions nowadays enable users to effortlessly make one-click payments and purchase goods via mobile devices or websites. This functionality is already available in many apps today. But at the backend, systems such as accounting software are less user-friendly and less integrated.
For example, companies currently have almost no possibility to make one-click invoice payments or easily manage their financial transactions between partners, suppliers and their bank with a fingertip.
In 2017, more and more new solutions will allow companies to establish an end-to-end payments value chain with their suppliers and customers. These new solutions enable ubiquitous anytime anywhere, immediate and omni-channel payments and will be fully integrated into the financial accounting systems of tomorrow’s enterprises. All parties, such as e-commerce platforms, banks, fin-techs or partners, will profit from open API standards which will be used for creating new services and enable seamless, fully-automated processing of payments and financial transactions.
At Sage Summit in July 2016 Sage announced its partnership with US Bank, a technical example for this paradigm change in payments. The HYPERLINK "https://smallbiztrends.com/2016/07/sage-partner-us-bank-cash-flow-statement.html" AP Optimizer for HYPERLINK "http://www.sage.com/us/sage-live" Sage Live that Sage built in partnership with U.S. Bank marks a first truly digital accounting and payment solution that enables start up and scale up businesses to manage their cash flow through dynamic integration with customers. AP Optimizer is integrated in Sage Live and determines for example the best time to pay bills and the best method for payment to optimise cash flow in near real-time, and then carries out the payment.
Trend #5: Platform-based infrastructure
In 2017, more and more SMEs will replace their stand-alone, on-site software systems with integrated, cloud-based software solutions that operate on global Cloud platforms such as Salesforce.com who are offering their users access to a wealth of business apps and integrated services. Moreover, companies will also benefit from mobile-app platforms such as the one operated by the Apple Mobility Partner Program.
“The big benefit of these platforms is that they give even smaller companies access to innovative business software solutions and services which these companies would not have been able to afford five years ago. To some extent, these types of cloud platforms are democratising the way in which companies gain access to state-of-the-art apps and smart and scalable technologies,” says Klaus-Michael Vogelberg.
“They allow business builders to discover new ways of working and give them the infrastructure needed to receive every kind of data from partners or the Internet of Things, analyze it, and then – in a “citizen developer” style – create something new and productive,” the Sage CTO says.
Trend #6: Internet of Things will create new services and job profiles
Small and medium-sized enterprises should be on the lookout for new possibilities that emerge with the realisation of the Internet of Things. Multiple data streams originating from all sorts of sensors built into e.g. machines, cars, mobile and immobile goods, clothes or even human beings (e.g. for medical monitoring purposes) will result in a true treasure trove of data, thus creating all sorts of new services.
SMEs should think about how to use these data streams to grow their business: Mechanics will develop new services such as predictive maintenance for all sorts of technical infrastructures. Logistic companies will optimise e.g. the navigation of their truck fleets by using traffic data from many different sources including smart city data from traffic lights, streets or other vehicles.
Concierge services will develop all sorts of surveillance services with the realisation of new smart home technology. Retail companies and shop owners might connect to smart home devices such as refrigerators or Amazon-style dash buttons to supply customers automatically and predictively with goods and services. Mobile medical care services will innovate their work with the assistance of all sorts of new devices e.g. to improve their support of elderly people living alone at home.
Early last year Sage demonstrated its partnership with TomTom telematics which enables Sage Live customers to keep track of vehicle journeys, and feed data into the accounting process in real time.
In summary, Sage Chief Technology Officer Klaus-Michael Vogelberg said: “In 2017, every business will need to start thinking of itself as a technology business. To stay competitive, they will need to grasp the opportunities that this development brings with it and change almost every aspect of today’s more or less traditional ways of working.
The good news is that this technology means that we believe that very soon, business admin could become completely invisible, as easy as messaging a friend, or even completely automated, as machines learn like humans. This will empower entrepreneurs to stay focused on building their businesses, driving growth in the economy and contributing to their communities – not basic admin.’
Strategic partnership offers inherent benefits of global knowledge, African insights, and local expertise and commitment
Minet Group and Africa Lighthouse Capital today announced that they have received regulatory approval and fulfilled all requirements to acquire Aon’s shareholding in Aon Botswana, and consequently will begin the process to rebrand to Minet Botswana.
Minet Group is a well-known and trusted pan-African risk advisory firm and Aon’s largest Global Network Correspondent and has been rapidly expanding its African footprint since 2017 through the acquisition of operations from global professional services firm Aon in Kenya, Lesotho, Malawi, Mozambique, Namibia, Tanzania, Uganda, and Zambia. Minet has been delivering world class products and services across Africa for over 70 years.
Africa Lighthouse Capital (ALC) is a leading Botswana citizen-owned private equity firm focused on investing in Botswana companies and propelling them into regional champions, with over BWP 500 million in funds under management.
The new entity will be rebranded to Minet and will inherit deeply rooted respect by its clients for their innovative and locally relevant solutions, responsiveness, and efficient processes. Furthermore, it shall have the benefit of consistency in leadership and staffing, with Barnabas Mavuma, previously Managing Director of Aon Botswana, continuing to lead the business as the MD supported by the local management team.
“The addition of Minet Botswana to our growing African network affirms our belief in the great opportunities for growth that Africa offers, driven by rising consumer demand, huge investment in infrastructure and quick adoption of new technology,” says Joe Onsando, CEO at Minet Group.
“This transaction significantly adds to the diversity and skills base of our team and will have a positive impact on the range of products and services we provide. Our Correspondent agreement with Aon gives us access to global expertise and data driven insights and uniquely positions us to deliver risk advisory solutions that reduce volatility, thus driving improved performance for our clients. This is a very exciting time to be Minet in Africa.”
“The significantly increased Botswana citizen shareholding effected by this transaction gives rise to an exciting era of local market focus and growth for Minet Botswana,” says Bame Pule, Founder and CEO of Africa Lighthouse Capital. “We intend to work with Minet Botswana’s local management team to further localise the business in terms of product development, while at the same time investing in local skills development and business development. We look forward to this exciting journey, which will result in a significantly enhanced service offering for Minet Botswana’s clients.”
Consequently, and similar to the other members of the Minet Group, Minet Botswana becomes an Aon Global Network Correspondent, retaining its access to Aon’s resources, technology, and best practises, combined with the benefit of independent, local agility. This transaction furthermore significantly increases local shareholding, enabling operations to become even nimbler and better positioned to unlock new and existing growth opportunities.
Clients of Minet Botswana will experience continuity of product and service delivery standards in the short term. In the near future, they can expect an enhanced offering that combines agility with technology and product innovation, tailormade for their specific needs.
Together, Minet and ALC bring a sound understanding of local market conditions, strong governance, and an established track record in the region. These qualities, combined with Aon’s global capabilities and expertise, will bring clear benefits for clients.
This transaction vastly increases citizen ownership with shareholders who are going to be active in the business. The transfer of equity interests in Botswana to investors with local and regional expertise, presence and commitment will allow the businesses to move quickly in line with market movements, and to introduce products that are tailored to the local market.
“Minet’s commitment and drive to incessantly adapt to changing market conditions, and to innovate to meet the unique insurance demands of the African continent, while maintaining the high standards customers have come to expect – Onsando concludes – will continue to grow and give Minet a powerful competitive edge within the African market”.
French President Emmanuel Macron received 21 Heads of state and government officials from Africa during the recent summit on the Financing of African Economies that focused on Africa to take full advantage of the tectonic shifts in the global economy and the call for a joint effort for financial and vaccination support for the continent.
President Emmanuel Macron stressed that “Most regions of the world are now launching massive post-pandemic recovery plans, using their huge monetary and fiscal instruments. But most African economies suffer the lack of adequate capacities and such instruments to do the same. We cannot afford leaving the African economies behind.
We, the Leaders participating to the Summit, in the presence of international organizations, share the responsibility to act together and fight the great divergence that is happening between countries and within countries.
This requires collective action to build a very substantial financial package, to provide a much-needed economic stimulus as well as the means to invest for a better future. Our ambition is to address immediate financing needs, to strengthen the capacity of African governments to support a strong and sustainable economic recovery and to reinforce the vibrant African private sector, as a long-term growth driver for Africa.”
For her part, International Monetary Fund (IMF) Managing Director Kristalina Georgieva highlighted that “there is urgency to focus on financing Africa. Last year, the pandemic-caused recession shrank the GDP of the Continent by 1.9 percent – the worst performance on record. This year, we project global growth at 6 percent, but only half that 3.2 percent for Africa.” Adding that Africa needs to grow faster than the world at 7 to 10 percent to meet the aspirations of its youthful populations, and become more prosperous and more secure.
Georgieva revealed that the price tag on the shot is estimated to be “$285 billion through 2025. Of this $135 billion is for low-income countries. This is the bare minimum. To do more – to get African nations back on their previous path of catching up with wealthy countries – will cost roughly twice as much. These are large numbers. They may seem out of reach. But to quote Nelson Mandela: impossible until it is done.”
The main areas of interest to achieve this include; first, end the pandemic everywhere, 40 percent of the population of all countries is targeted to get vaccinated by the end of 2021, and at least 60 percent by mid-2022.
Second, bilateral and multilateral developmentfinancing grants and concessional loans ought to go up. Over the last year, the IMF have swiftly ramped their financing for the Continent, including providing 13 timestheir average annual lending to sub-Saharan Africa. And are working to do much more. The IMF has also received support to increase access limits so they can scale up their zero-interest lending capacity through the Poverty Reduction and Growth Trust.
The IMF has also devised exceptional measures. Their membership backs an unprecedented new allocation of Special Drawing Rights (SDR) of $650 billion, by far the largest in their history.Once approved, which is intended to be achieved by the end of August, it will directly and immediately make about $33 billionavailable to African members. It will boost their reserves and liquidity, without adding to their debt burden.
Over the course of the last year, the IMF has built experience in facilitating the on lending of SDRs – thus managing to triple their concessional lending capacity as a result.
The Third being, actions at home. According to Georgieva “a crisis is an opportunity for transformational domestic reforms that increase domestic revenue, improve public services, and strengthen governance. For instance, digitalization can improve tax administration and revenue collection, and the quality of public spending. And with radical transparency, Africa can tap into new sources of finance – such as carbon offsets.
There is ample scope for countries to encourage private investment, including in social and physical infrastructure. New IMF research, published today, highlights that domestic and international investors could provide at least 3 percent of GDP per yearof additional financing by the end of this decade.”
Reforms of international taxation can also support Africa’s growth. For a long time, the IMF has been in favor of minimum corporate tax rates to reduce the race to the bottom and tax avoidance. And they strongly support an international agreement on digital tax, something France has been a leading voice for. It is important to secure fair distribution of tax revenues, so they can contribute to closing Africa’s financial gap.
Georgieva called on to each and every one to step up. Reminding the attendees that from history they are all familiar with what a shock of this magnitude can do if not countered forcefully and effectively.
De Beers’ Group, the world’s number one diamond producer by value, this week attributed the downfall of its sales for the fourth cycle week to the second wave of the Covid-19 variant (B.1.617.2) which was first discovered in India.
Diamond trading conditions have been hit by the Covid-19 crisis in India which is a major cutting and polishing centre for the world’s diamond trade.
The outbreak of the new variant has led to a humanitarian crisis with 280, 284 fatalities of the disease reported.
The London headquartered company said the sales in its fourth cycle fell to $380m (about P4.1 billion) down from $450m (about P4.8 billion) in the third cycle though it was higher than the fifth cycles of last year when the group shifted only $56m (P600 million).
De Beers emphasized that they continued to implement a more flexible approach to rough diamond sales during the fourth sales cycle of 2021, with the Sight event extended beyond its normal week-long duration.
The De Beers group Chief Executive Officer (CEO), Bruce Cleaver said the company continues to see robust demand for diamond jewellery in the key US and China consumer markets.
“However, the scale of the second wave of Covid-19 in India, where the majority of the world’s diamonds are cut and polished, has led to reduced midstream capacity and subsequently lower rough diamond demand, during what is already a seasonally slower time of year for midstream purchases,” said Cleaver.
Meanwhile Botswana health officials have confirmed the new Covid-19 variant in Botswana. The Ministry of Health and Wellness -through a press statement- informed members of the public that the variant (B.1.617), was confirmed in Botswana on 13th May 2021.
According to Christopher Nyanga, spokesperson at the Ministry, this followed a case investigation within Greater Gaborone, involving people of Indian origin who arrived in the country on the 24th April 2021.
Moreover the World Health Organization (WHO) recently announced that the Indian Covid-19 variant was a global concern, with some data suggesting that the variant has “increased transmissibility” compared with other strains.
The India variant (B.1.617.2) – is one of four mutated versions of the coronavirus which has been designated as being “of concern” by transitional public health bodies, with others first being identified in Kent, South Africa and Brazil.
Nevertheless when speaking at Bank of America Global Metals and Mining conference, Anglo American Chief Executive Officer, Mark Cutifani said the company portfolio is increasingly tilted towards future enabling products and those that need to decarbonise energy and transport in order to meet consumers’ needs – from home appliances, electronics and infrastructure, to food and luxury goods.
“We see material opportunity for Anglo American to continue to set itself apart in terms of the performance of our diversified business, further enhanced through sector-leading 25% volume growth over the next four years, led by copper and the platinum group metals,” said Cutifani.
“Most importantly, as the supplier of such critical materials, it is the duty of our industry to ensure that in everything we do, we act responsibly and deliver enduring value for our full breadth of stakeholders, including our planet.”