Wednesday, June 19, 2013

Ditec Mobile Claws Its Way Up The Mobile Technology Value Chain


Gary Griffiths, CEO of Trapit, a virtual personal assistant for Web content, observes that, “Since the birth of Silicon Valley and IBM’s System 360 nearly a half-century ago, the narrative in the technology sector has been a bare-knuckled brawl of younger, smarter, and more aggressive competitors grabbing market share from the once nimble behemoths who subsequently allowed creeping sloth and bureaucracy to overshadow the technology and business chops that put them on top in the first place.”

Griffiths analysis of a scenario where, “Money is shifting exclusively to the new, young scrappy technology startups in the enterprisemarket,” is replicated right here in Botswana and while the local plot is not necessarily of the David toppling Goliath mould, Thatayaone Dichaba’s Ditec Mobile narrative bears testimony to the local script of young tech savvy entrepreneurs who are taking the country to the next level of economic development. Dichaba is a trailblazer who was quick to notice the emerging trends in the mobile phone industry and moved in quickly to occupy a niche in the embryonic mobile phone ecosystem. His story of hard work, dedication and perseverance makes an interesting and inspiring read.

Thatayaone Dichaba

Born in Tamasane, he was enrolled for elementary and primary school in Palapye but later relocated to Selibe Phikwe where he completed his primary education at Tebogo Primary School. He proceeded with his junior secondary education at Meepong and went on to complete his senior high schooling at Selibe Phikwe Senior Secondary School. Dichaba later pursued a Mechanical Engineering Technician course at the Polytechnic followed by Computer Science at the University of Botswana.

Upon completion of his studies, Dichaba joined job seeking brigade and landed a job in a friends company where he sold his labour as a web developer for two years. In all this time, the innate entrepreneurial spirit, creativity and tendency to imagine new solutions and finding opportunities for profit or reward had remained latent until sometime in 2003 when the lure of self-employment and chance to make money compelled him to resign from his day job. At this point of his life, Dichaba had married his wife Kutlwano Dichaba and the charm of unlimited possibilities if one is successful in business and the security of having a trustworthy and caring partner to share the load compelled him to take the financial risk as an entrepreneurial couple. “Going into business with my wife as co-owner and co-manager of the commercial enterprise has its emotional and financial rewards and strengthens each other’s commitment to and enjoyment of both the business and personal sides of the partnership,” he says.

Dichaba had earlier in 1998 registered a sole proprietor business and used it to apply for a youth grant. He was given P20 000 with which he bought two advertising billboards. Unfortunately business did not take off as this was a relatively new concept then and had not yet caught the business community’s imagination as a powerful marketing platform. He therefore decided to retrace his steps back to IT where he did networking, general support and web design. The IT business yielded much better results and as the business grew it allowed the couple to incorporate an Adverting subsidiary that deals mostly with branding tools to join the IT subsidiary that does networking and support in the Dichaba Group of companies.

It was during this time that Dichaba developed a habit of dismantling old and broken down mobile phones and putting them back together again. Soon he immersed himself passionately in his new found hobby, investing time and money heavily into the project before he realized the drain it had coursed to his finances. “I love gadgets, I love mobile phones and I continued to assemble phones late into the night at home, unaware of the huge financial hole I was burrowing into my savings and even blowing my Credit Card to finance the hobby. Soon I was taking bank loans to support the hobby and before long I was falling into arrears and ended up in deep trouble with the banks. It was only then that I realized that this was serious and it’s amazing how my financial woes also made me realize my hobby’s business potential,” he says.  

Despite his financial predicament, the 2005 chance discovery of the hobby’s business potential coupled with his proficiency in the use of technology, his knowledge of emerging industry trends and desire to grow his business portfolio, prompted Dichaba to knock on the Citizen Entrepreneurial Development Agency’s (CEDA) office for help. Although the funds were ultimately released after an elaborate and compelling business proposal, the timing was terribly wrong as he was in very bad shape financially with Deputy Sheriffs and debt collectors frequently knocking on his door in pursuit of his mounting debts and at times threatening to attach the businesses assets, but the entrepreneurial couple persevered and against all odds they ultimately honoured their debts and went on to establish Ditec Mobile within the Dichaba Group.

Ditec Mobile is a 100% citizen owned mobile phones design company. “Through research and observation, we realized that, there was a huge gap between feature phones (low end handsets) and smartphones,” he says. He explains that price had locked out the low end segment of the market from accessing the technological advancements in the mobile phones such as WAP (internet).”Pioneer I was developed to close this gap,” he says, “It was a good handset that ran on a very good platform, it had WAP, MMS (Picture Messaging) and other functionalities available in most high end mobile phones. The only challenge was that it had battery problems but we have since upgraded it to Pioneer III, which is very stable.”

Ditec Mobile’s formative years were touch and go with the business barely keeping afloat but thanks to hard work, dedication and perseverance, today the company has grown to be one of the leading experts in the design, development and customization of mobile devices. Representing the latest in Mobile Technology, Ditec Mobile offers a full range of exceptional mobiles each with something unique and outstanding catering to a variety of needs and preferences. The company’s innovative designs and high end specifications combined with portability and affordable prices are ideal for mid-range customers. The company’s custom made smartphone's run on mobile operating system and are manufactured under one of the largest ISO Registered designer house in Asia, with over 10 years’ experience in handsets and Telecommunication gadget manufacturing and a workforce of approximately 3000 stuff, over 50% of which are qualified Engineers.

Dichaba believe that any technology no matter how good becomes irrelevant if it doesn't solve or address existing problems. “Our handsets are different from existing handsets in that they are highly specked handsets targeting specific segment in the mobile market. They are also competitively priced so that those who could not afford features previously found only in high end handsets can now enjoy them.” He emphasizes that their handsets also have an opportunity for value adds such as the opportunity for software developers to come up with relevant applications tailor made for the local environment.

Asked about the common refrain that Botswana’s limited market constrains local commercial enterprise, Dicahba explains that, “Botswana has one of the highest mobile penetration rate in Africa at over 90%, when you look at the average mobile penetration rate of African countries which stands at 65% you see a massive opportunity of a market that there, ready to be served. So our target market is low end segment of Africa. Our products are mostly export oriented. At the present moment we are working on preparations for the launch of our products in other markets, we have partnered with local companies in various countries as distributors and most of the advertising cost of the products will be borne by them.”

On who their competitors are, he mentions well established companies in the likes of Huawei, ZTE, Samsang, and Nokia. He goes on to say, “Mobile business is not only technology driven but is also very capital intensive, you cannot develop a technology and be on the lead without your competitors catching up with you. We are always improving our products, as I mentioned earlier, we have improved Pioneer I and the upgraded Pioneer III includes Bluetooth, calendar, WAP, and longer battery life.”

He said their biggest obstacle was doubt. “We meet with a lot of resistance from people who do not believe that a fellow African can also produce a handset. We have managed to work at this over time and we are beginning to notice a thawing of the frosty reception we’ve been getting as we have signed major contracts,” he says.  He mentions financing as another major challenge. “As I said earlier on, this is a very highly capital intensive project and it has been quite a challenge to convince our financiers that we are the right people to partner with,” He says. He mentions that they got the finance to produce the first prototype from CEDA and was grateful they are still working with them.

He said technology was a fast evolving phenomenon and that one always has their finger on the pulse if they are not to be left behind. “We are thankful that we haven’t really been affected by the current economic meltdown and that research actually shows that mobile penetration rate in Africa will average 85% by 2015. People continue to use mobile phones regardless of the current prevailing economic conditions,” He states.

Dichaba says, while they are currently only designing the phones, they plan to ultimately move into manufacturing and hopes BIH will facilitate the next phase of the development of Ditec Mobile. “I think working with BIH, well help us position our company well for export, as production of goods and services that meet global standards is part of their mandate and being a member of the hub comes with benefits such tax exemption or reduction. This will help us cut our costs and avail funds for the critical research and development of our products,” he says. 

 


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