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.