The 2013 International Conference on Business Innovation and Growth

 

Keynote Address: Alan Boshwaen

 

“Challenges and Opportunities for Business Development”

31 July 2013

 

Programme Director;
Deputy Vice Chancellor Academic Affairs, Professor Totolo;
Government Officials;
Chief Executive Officers;
Representatives of Higher Education Sector and Research Institutes;
Delegates and
Ladies and gentlemen.

 

I thank you for the opportunity and the privilege you have accorded me to address the 2013 International Conference on Business Innovation and Growth under the theme ‘Challenges and Opportunities for Business Development’.

This gathering provides a platform for academia, policy makers, and the business community to interact, identify opportunities and formulate responses to the real life challenges we face in the business environment.

I would also like to acknowledge the Faculty of Business and its leadership for arranging the conference and thereby creating this important platform for interaction with some of us at the coal face of running enterprises in Botswana. Indeed I also recognise the honour that you give to my organisation the Botswana Innovation Hub being a relatively new organisation. I believe you recognise the dynamism and the potential it holds.

My understanding is that during the conference you will hear from others including Dr Matome of the Local Enterprise Authority and Mr Pele Moleta of Botswana Post. You will also have an opportunity to deliberate on a number of academic papers covering disciplines such as Management, Finance and Accounting, Marketing, ICT, and Business Innovation among others. 

At the Botswana Innovation Hub we continuously strive to create a mutually beneficial link with our leading university, the University of Botswana. This model of creating a Triple Helix which embraces the government policy makers, academia represented by yourselves, and the business community is embedded in our philosophy as we proceed with the implementation of the Botswana Innovation Hub vision. Indeed we continue to host a number of monthly networking events called Innovation Cafes involving some of your members of interesting topics such as indigenous knowledge commercialisation, Intellectual Property and youth entrepreneurship.

Ladies and Gentlemen, the BIH was first conceived in 2008 to what must have been a subsequent baptism of fire being the severe economic recession that started in the developed World and eventually arrived in Botswana in late 2009. BIH was established under the National Excellence Strategy which proposed a three pronged approach being economic diversification, job creation and moving the country towards a knowledge-based economy.  

The baptism of fire that I referred to earlier, was the major constraint brought by the recession that limited the government’s ability to continue the roll out and funding at the levels originally envisaged in the initial project plans that had been formulated before the recession. 

In order to meet this critical challenge BIH was formulated into a company that could embrace a private sector driven approach and optimise all efficiencies. This has included creating opportunities to attract local and international private capital to supplement the government’s investments in the company.  This entailed the setting up of BIH as a company able to transact autonomously which process was completed in 2011 including the appointment of a Board of Directors made up of members of government, business and academia to ensure sustained oversight and robust governance.

Some of the major obstacles that had to be confronted urgently as I recall included a fundamental reassessment of the business prospects of the new company in the wake of the global recession. In addition the funding model to operationalize the hub and the strategies and tactics had to be substantially re-examined. In addition as luck would have it, the new organisation then had to contend with major litigation on procurement processes, which was only resolved fully early last year.

Ladies and Gentlemen, despite these fundamental challenges and uncertainties I’m pleased to say today that we have responded effectively to our challenges and we have now put in place a solid foundation and a demonstrable record of practical achievements.

We believe we are at the forefront of business innovation in Botswana and to this end our major strategic goals are as follows;

·      We are well into the process of developing Botswana’ first integrated Science and Technology Park at a strategic location near the Diamond Technology Park and SSKI Airport

 

·      We believe that this location will be a major business precinct and national asset to be used in attracting innovative companies and institutions to establish themselves, to develop, and to compete in the SADC and global markets.

 

·      The major levers we have put in place to attract them include high quality internal infrastructure such as street lighting, uninterrupted power, and superior ICT connectivity. The Park infrastructure was completed in 2012 and we are now into the development phase of this enterprise.

 

·      Furthermore following a cost rationalization exercise we chose to conduct on the project BIH will now also be in a position to breaking ground next month, September 2013 in building three centerpiece buildings which we commonly refer to as the ‘Iconic, buildings of the Park. These will provide auditorium, video and tele-conferencing facilities enabling superior and efficient modern communication between people located in the hub and other parts of the World for business and academic collaborations.

 

·      These buildings will house premises that are not only available to large international companies but also to relatively small startup ventures to encourage maximum interactions and collaborations.

 

·      In addition government has legislated a range of special incentives being;

 

o   A concessionary 15% for qualifying innovative companies from Botswana and outside to setup in the hub

 

o   The eligibility for the same companies to import specialized skills and personnel under a special dispensation meant to encourage technology transfer

 

·      One must highlight that BIH continues to work with government role players to make access to these incentives a more seamless and efficient process.

Ladies and gentlemen we realise that, innovation is the act of creating new, unique or exceptional value for the customers and the organisation.  We also note that innovation is not really a sector but an enabler to building business competitiveness at the firm level (micro) and economic competitiveness at the national level (macro). Therefore any innovation that is to deliver tangible value must meet the customer need in a new way and an innovative organisation must find and evolve a relevant business model and service offering to its customers and stakeholders.

In localising this philosophy we at the BIH, continue to consult widely and look at the most relevant and impactful areas to focus on and build partnerships around. We aim to build a continual conversation with our stakeholders.

In this regard, let me highlight the areas we focus on as an organisation to fulfil our mandate.

We act as a catalyst in the development of the ICT industry and support the development of innovative local content, skills and job creation. We are all aware that we have a significant number of ICT graduates from various institutions including UB. Let me illustrate our continuing work with some practical examples;

·       We have entered into an agreement with Microsoft Corporation this year to pioneer the delivery of a new technology that they have been researching and developing in the last five years called TV White space. This new technology once approved by the regulator will enable the delivery of broadband connectivity through unused television spectrum signals in areas of the country that currently lack electricity at a much lower cost than current providers. We believe that once the initial pilot sites are underway in Botswana this will serve as an example of relevant innovations and technology transfer that also promotes social and business inclusiveness and access to new customers who are currently not provided for – the so called “opportunities at the bottom of the pyramid.”

 

·       Furthermore another example of relevant innovation is that we are now working with government to automate and create a customized online store that will be accessible to public servants and government sponsored students that aims to promote innovative content, internet usage and electronic commerce.

In the area of mining technologies we aim to attract high value innovative activities and technology transfer that adds value to the key minerals being mined in Botswana such as diamonds and coal. To this end we are already working with some of the leading entities to establish in the BIH and create new ventures such as diamond jewellery manufacturer using precision engineering techniques or intending to transfer new technologies for power generation from existing coal resources.

In the Biotechnology area we seek to apply new technologies to develop commercial products through partnerships with research institutes and industry led ventures. We are working with the Ministry of Health and its international research partners to establish cutting edge laboratories as part of the BIH for research focused on a centre of excellence for HIV/AIDS and advanced TB and malaria research. These laboratories will from the onset seek accreditation from SADC and other bodies. We do believe these laboratories will enable cost efficiencies in that very specialised and expensive equipment will be available to the widest possible catchment of users and enable samples which are currently sent abroad for testing to be done locally. I commend this innovative to the members of UB with an interest to join the special reference group of experts constituted for this endeavour. Innovation is not all about technology transfer we have existing collaborations with leading academics in UB who are interested in working on commercialising Botswana’s indigenous knowledge such as medicinal herbs and edible wild fruits into new products that could be consumed locally or exported.       

As we live in a globalised world, some of the new business models have to respond to the most pressing global concerns, therefore we have an opportunity to take the lead in facilitating sustainable business solutions to waste, water, energy and traffic problems commonly referred to as green innovation or clean technologies. We strongly believe that on the back of these emerging problems new businesses and new funding streams will emerge that will also require academic research underpinnings relevant to Botswana, and business entrepreneurship.

Ladies and gentlemen to drive this exciting agenda requires a focused, strategic roadmap with strong project management and execution and clear priorities and we continue to leverage on international partners to enhance our capacity as an organisation and the necessary technical expertise to drive effective interventions. We have therefore not sought to create a resource intensive internal structure while we find our feet and the route to sustainability.

This is clearly an important issue in these times when resources continue to be severely constrained and our stakeholder being the government and the tax paying public emphasise getting “the biggest bang for the bucks spent.” It is however an opportunity clearly for innovation and experimentation. History teaches us that progress comes with experimentation and calculated risk taking and perhaps may I suggest going against the cultural norm, if one is truly convinced.  Experimentation with new business models will require us to embrace some level of calculated risk taking and court the possibility of failure.

 “I can accept failure. Everybody fails at something. But I can’t accept not trying. Fear is an illusion.” – Michael Jordan  

Ladies and gentlemen to conclude let me recap on our journey of innovation and the lessons so far learnt;

·       It is important to build the resilience against unanticipated external shocks such as what we experienced when the global economic recession

 

·       It is important to continually frame a relevant business model and service proposition through a continual dialogue with clients, customers and shareholders

 

·        We strongly recognize and acknowledge the central and overarching role that government plays through focused strategies such the hubs

 

·       The adoption of new technologies even if they are developed elsewhere can go a long way in strengthening our ability to innovate and create relevant solutions. We should not be afraid to go into the world and emulate from the best.

 

·       In a time of severely constrained finances a phased practical  approach to implementation coupled with experimentation and room for failure is advisable.  

Let me take this opportunity to thank you for having allowed me an audience. The Botswana Innovation Hub looks forward to collaborating with many of you in the important work of our country. 

I thank you.

His Honour The Vice President Dr. Ponatshego H. K. Kedikilwe

His Honour The Vice President Dr. Ponatshego H. K. Kedikilwe

"Science and Techology Parks have long been recognised as a proven tool to foster science and technology based businesses and institutions. Therefore, based on a feasibility study and the recomendation of the Business and Economic Advisory Council (BEAC), the Government of Botswana decided to establish the Botswana Innovation Hub (BIH) as one of the major efforts to diversify the economy, create jobs, and develop the country towards achieving the ideals of Vision 2016."

Team Tandabala - National Winners of Imagine Cup 2013

Botswana Innovation Hub (BIH) in collaboration with Microsoft Innovation Centre (MIC) hosted the Botswana leg of the Imagine Cup 2013 in April earlier this year. Tandabala, a three man group of Botho University software engineering students emerged the champions of the local competition and will represent Botswana at the Imagine Cup 2013 finals in St. Petersburg, Russia later this month.

The Imagine Cup is the world’s premier student technology competition where eligible students are invited to use their imagination and passion to create technology solutions for problems facing the world today. The competition allows innovative students from all over the world to take one of a kind, ground breaking app idea from concept to market with Microsoft resources.

BIH Chief Executive Officer Alan Boshwaen hosted a farewell ceremony for Team Tandabala on Friday 5^th July. Speaking at the ceremony, Boshwaen emphasized that innovation is not just about developing new technologies and practices but that such innovation must create commercial or social value. He said if such concepts remain mere ideas in a laboratory, they are not true innovations and reiterated BIH’s role in, “the process of taking ideas right through to the market or society resulting in economic output or social impact.”

 

Speaking at the same platform, MIC Manager, Patel Barwabatsile said although the competition is an annual event, this was the first time it was held in Botswana. He went on to congratulate Team Tandabala for their achievement. “We are happy for Tandabala for emerging winners from the twenty groups that registered projects on line for this competition,” he said.

BIH CEO Alan Boshwaen (Second from right) with Team Tandabala, the National winners of the Imagine Cup 12013 (L-R) Givemore  Mvumba,  Kabelo Bolaane and Mpho Ben Motsamai. On the far right is MIC Manager Patel Barwabatsile

 

Tandabala’s submission was a design of a friendly pension payment system called ‘Tandabala’. The scheme focuses on social security payment for old age pensioners from age 65, World War veterans and destitutes. Old age pension fund is a social initiative by the government of Botswana to meet the social, economic and physiological needs of the elderly, war veterans and the destitutes.

The Imagine Cup competition gives participants the chance to break new ground, solve tough problems facing the world today, and maybe even turn ideas into a business. The competition also allows participants to learn new technological skills and test themselves against the brightest students around the world.

Over the past ten years, more than 1.65 million students from more than 190 countries have participated in the Imagine Cup. Joining the Imagine Cup community connects participants with other whip-smart creatives from all over the world to share ideas, have fun, and be there when the next big thing is unveiled.

Team Tandabala departed for Russia on Sunday 7^th July and are expected back home on Saturday 14^th July, 2013.

BIH, Microsoft Partnership Ushers in New Technologies

Botswana Innovation Hub (BIH) continues to make bold strides towards the economic development and competitiveness of the country by forging partnerships that create new scientific and technological business opportunities and adding value to existing companies. Commenting on the company’s efforts to attract innovative companies and institutions to set up in the Hub, Chief Executive Officer Alan Boshwaen said, “The Company has moved beyond the phase of setting up and is now creating synergies with similar organisations across the world.” He said technology and science research based companies across the world are showing great interest in setting up in Botswana to take advantage of the Hub.

Boshwaen was speaking at a Press Conference to introduce Microsoft General Manager for Africa, Fernando De Souza and launch the Microsoft 4Africa initiative which seeks to actively engage Microsoft Corporation of the USA in Africa’s economic development and improve the company’s global competiveness. The 4Africa initiative builds on the BIH, Microsoft Corporation collaboration which has seen the establishment of Microsoft Innovation Centre (MIC) within BIH. MIC was officially launched by His Honour the former Vice President Lt. Gen. Mompati Sebogodi Merafhe in December 2011 with the objective to develop advanced ICT expertise and innovations in Botswana and systematically facilitate technology transfer to enhance ICT content creation and job creation. 

Through this smart partnership a localised Global Microsoft Initiative aimed at empowering young people around the world with relevant ICT skills that enable them to be employable and to start their own businesses was recently launched in March 2013. The Youth Empowerment pilot program is a BIH and MIC collaboration that includes the Department of National Internship Program and is aimed at facilitating internship opportunities and providing specialized skills training for the interns.

Speaking at the press conference, De Souza said, “Microsoft has more than 20 years of doing business in Africa and as the world awakens to the promise of Africa, Microsoft has risen to the challenge and wants to invest in that promise. The company launched the 4Africa initiative as a way of helping create jobs and enabling further collaboration through technology, in order to accelerate intra-African trade and investment and support Africa’s emergence as an increasingly relevant and influential global market force.”

He said, “Earlier this year, the company launched the 4Afrika initiative as a multi-year investment in the African continent. The initiative has three core pillars of focus – innovation, world-class skills and access. These pillars were chosen because they were the common focus areas of the majority of African governments looking to accelerate economic development.”

The 4Afrika Initiative is an effort through which Microsoft will actively engage in Africa’s economic development to improve its global competitiveness. It aligns the company’s growth to that of the continent, by empowering every African with a great idea for a business or an application and to turn that idea into a reality which in turn can help their community, their country, or even the continent at large.

De Souza said the BIH, Microsoft collaboration is continually exploring dynamic new ways of extending and building on the partnership to maximize its potential impact and in adopting world innovations that are relevant to local needs. “In this regard, we are working out the fine details of a new three way pilot project partnership that will involve the globally renowned University of Pennsylvania (UPenn) in the United States of America. The new pilot program shall create efficient low cost communication using a new technology called Dynamic Spectrum Access through free TV channels (Spectrum). The free TV Spectrum is called “White Space” and the solution is commonly known as TV white space broadband,” he said.

Fielding questions from the floor, Boshwaen informed the media that TV white space facilitates delivery of broadband access to places that currently lack electricity and telecom network deployment. He said key national stakeholders such as Botswana Communications Regulatory Authority (BOCRA) who are critical to the successful implementation of this initiative and have been consulted to ensure full alignment.

De Souza sited instances where the 4Afrika Initiative has been introduced with projects designed to drive one or more of the core pillars. In Kenya and Tanzania, the initiative introduced TV white spaces pilots together with those governments and local Internet service providers (ISPs), to deliver high speed broadband access to sparsely populated rural areas, to campus environments, to home users and to small medium business owners.

In Kenya, the aggressive goal set by the government, which the initiative is actively working to help achieve with TV white spaces, is to get 80% of the population connected to high speed Internet within the next 2 years.  

In Egypt and South Africa, the initiative created “App Factories” which are staffed by paid student interns and designed to accelerate the creation of relevant apps for Africans, by Africans. More than 400 apps have been created to-date, and the interns are cranking out approximately 90 new apps every month.

Microsoft has also introduced the 4Afrika Academy, a training program targeting Microsoft partner community and government leaders to help them get the skills they need to take their businesses and legislative agendas, respectively, to the next level. In the months since launch, more than 1100 people across 14 African countries have already been trained.

Microsoft is also running 4Afrika DevCamps which are week long training sessions for developers to help them learn how to build an app or a business on the Microsoft platform. DevCamps have ran in Kenya, Ghana, Rwanda, Tunisia and Nigeria to-date, touching around 1100 developers, and plans are afoot to accelerate this with 2 DevCamps a month in various countries on the continent.

These projects and many more have all been designed to help Microsoft deliver on three big commitments the company made at launch, that is, through 4Afrika, in the next three years Microsoft would deliver tens of millions of smart devices into the hands of young Africans; help 1 million African SMEs get online to improve their competitiveness and train hundreds of thousands of Africans with skills for entrepreneurship and employability.

Boshwaen said he was happy that the Microsoft 4Africa initiative will be accomplished in the framework of the BIH mandate of attracting