Is Africa ready for Google? PDF Print E-mail
Written by Al Kags   
Wednesday, 13 June 2007

In a groundbreaking move, Google has employed its first African, Joseph Mucheru to help set up its Africa operations in Kenya.

Clearly serious about setting up shop in Kenya, Google aims to achieve three things with the move: First, to optimise the use of its applications in Africa, to make Google maps (and earth, I believe) more useful in Africa and to work on Google advertising further to ensure that Google ads are better monetized in Africa.

Mucheru: "Google understands that bandwith is an impediment and will purchase international bandwidth so that locals don't have to pay the current considerable premium they are."

I should like to hear more about this for sure. Coupled with the fact that my favorite ministry, the Ministry of Information and Communications, headed by the indomitable duo, Mutahi Kagwe and Dr. Bitange Ndemo is working extra hard to get fribre optic connection in East Africa through Kenya by mid 2008, we are in for interesting times.

However, we need to accept, Africa, that the largest impediment to our development is our cultural outlook - not the traditions and customs but the way we do business and our openness to new concepts. I recently had a meeting with a government official with regard to accessing some of the records that they have, digitizing it at my own cost and sharing the digital data with them for them to develop its use by wider sharing it. Amazingly, his first reaction was "absolutely not." Why? Because it is not done in government. When we got over that, we found that there is a huge fear with regard to what the information will be used for.

The same is true for business leaders in Africa. Fears such as "if I have a blog and allow people a free hand to comment on my views, how can I protect myself?" My position is that you only need to protect yourself from obsene and crude remarks but not as a recent executive asked me, from critisism. In fact, if your staff thinks that you are afraid of critisism, then you need to actively change that.

Of course information can be misused and so can the free use of applications such as the comments section of your blog. Of course a nicely elaborate Google Maps and Google Earth can be misused by say, terrorists. But then, that cannot stop us from developing. Cars can be used as getaway cars in bank robberies and the like, but that does not stop us from developing them?

If your business is to develop, then sharing information and interacting with a wide community is the way to build it in the new era. Its the only way to be ready for the likes of Google and Multiple Choices.


Al Kags
About the author:
Al Kags, the founder of the Desturi Trust writes prolifically on Kenyan and global matters. He is the programme officer at the Kenya ICT Board. He publishes a poetry anthology, the Quarterly Colour Series and the Al Kags blog here .




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written by aeichener , June 14, 2007
Africa is ready for Google, no doubt.

But are Kenyans ready for email? Experience says: no. They aren't. A case of behaviourally rooted functional computer illiteracy. We at KenyaImagine have sadly experienced - and are experiencing - it again and again and again. It is so predictable.

If a Kenyan answers your email, s/he has either been abroad too long, and thus picked up dangerously good habits, or has a kaburu with a whip standing behind him/her.

Alexander
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written by mmnjug , June 14, 2007
Its great that Google has seen it fit to come to Africa. What i know for sure is that this should have happened years ago. Africa is beyond being ready for Google. Congratulations to Mucheru for the post. What would interest me most is to see their google maps for Kenyan towns being more detailed.
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written by mmnjug , June 14, 2007
My question is, will Google be situated in Kenya or South Africa?

click to http://assidous.blogspot.com
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written by Nekessa , June 15, 2007
Africa is ready for Google, no doubt.

But are Kenyans ready for email? Experience says: no. They aren't. A case of behaviorally rooted functional computer illiteracy. We at KenyaImagine have sadly experienced - and are experiencing - it again and again and again. It is so predictable.

If a Kenyan answers your email, s/he has either been abroad too long, and thus picked up dangerously good habits, or has a kaburu with a whip standing behind him/her.

Alexander


It is more complex than that. Admittedly, Kenya should take advantage of email et al. Its as Al puts it: fear of the unknown and change. When in college, in the states, I worked as a tutor on campus. Older students (40 plus) really had trouble with technology- emails, et al.

Government agencies need to embrace technology especially now that their actions are under more scrutiny from their citizens. And they need to remember that they work for us!
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written by bankelele , June 15, 2007
I think they should work [with schools, instiutions, governments] to get more content online - local stories, local stuff for google maps, things in local languages.

Everyday we are told that Africans need to write/tell their own stories to the world. But the stories are already written - just not online yet, from folk tales, local magazines, cultural lifestyle tales.
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written by Al Kags , June 15, 2007
Hi, in response to this, They'll be in Kenya.
My question is, will Google be situated in Kenya or South Africa?

click to http://assidous.blogspot.com
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partially ready
written by alfred , June 17, 2007
Most of our technological equipment are outdated and unreliable. Software and web content developed using current platforms will really not work well with our old equipment.

Kenyans are innovative people, but the government is letting us down!!
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re: partially ready
written by aeichener , June 17, 2007
Software and web content developed using current platforms will really not work well with our old equipment.


A typical problem with bad web designers, indeed.

Alexander
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re: partially ready
written by pndiangui , June 17, 2007
Most of our technological equipment are outdated and unreliable. Software and web content developed using current platforms will really not work well with our old equipment.

Kenyans are innovative people, but the government is letting us down!!


Really?
What has the government got to do with the 'hardware' tools. I thought they zero-rated most of the computer hardware.
Now this blame-game is even bad than the poor web design services. Its not only a lazy , and do nothing altitude but a failure to understand the role of government in enterprise development.
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Its a big bonus - but what wil
written by chiefouko , June 18, 2007
I think talking about googles presence in Kenya is like talking of development being how tall buildings are in a city.

Look at google as a business and compare how many small businesses have grown due to association with google... also, keep in mind that googles revenue has been generated mainly by advertisement not because of break through technology.

Google is still playing catch up in terms of technological leadership with many of its technology competitor and its only through acquisition (coz they have the money) and association that they gonna come up to a level companys like Microsoft, Red hat, IBM etc are.

However, since the world is moving towards Web Operating systems, google could jus be the company to watch in this sector. How that will benefit Kenyan net shops and kenyan businesses will remain to be seen but can only be positive.
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Depends on your paradigm
written by pndiangui , June 19, 2007
Chief
Google is a Technology company but doesnt shy away from sharpening the media side of it because that is how it monetizes its technology.
Is Time Warner a media company or a TV Networks technology provider?
Notice the vertical integration required for Time Warner to access its money in say through CNN. The competencies needed to deliver News in real-time from differrent world locations boils down to the abiity to possess potent TV Network assets. The model adopted by Time Warner however is to monetize this capability through the end product of the value chain -which is the Real-Time news rather than say selling consulting services of how to build TV Networks.

Going back to Google (And I have seen the CEO of microsoft Australia brumble something about Software as an advertising channel, though it too appears pretty foreign to him , probably just a manifest of Microsoft's desperateness to copy the portent Google monetization strategy), it is a leader in Search technology, it has acquired technology companies with web-based software capability as it builds its organic competence around this area. It has horned its skill in monetizing search technology through non-traditional means. It has proved its ability to execute even when under diffcult circumstances. Thats why I think they can deliver on web-applications. The first shot that they have fired which might have gone un-noticed to many players (not to microsoft though) , its the free offer for University students in Kenya and Rwanda using Google Apps. These are the ones who will be the trend setters in these African countries. When they are comfortable using Google Apps to do their college assignments , you can be assured they will lobby for its adoption when they themselves start taking positions of influence their respective industries.
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Web apps the killer
written by pndiangui , June 19, 2007
A sound strategy of web applications and especially the overall concept of delivering software 'as a service' could become a core competence that Google can build in order to conquer part of the African region's software marketshare. The 'boxed', annual licensed software from Microsoft, including business and office applications (such as the currently known Word, Excel, pdf etc) and even complete operation systems are way overpriced in these particular markets.

I might be forgiven of thinking of them as the Motorola cell phones of the mid 90's (cumbersome in weight and highly over-priced; one was going for Ksh. 250,000 then).

A pre-paid model of delivering web-based applications would be a killer-app for Google in the African regions and especially as soon as cheap Broadband will bring in the much needed synergies to allow for the seamless access to such applications via web browsers.
For example, a Google accounting software could be delivered securely over the web as a complete service required by such potential customers as small micro-finance institutions, Saccos or small tour operators, who would have to pay nothing in outlay investments for this piece of software in terms of initial licencing cost or of expensive server hardware infrastracture. By pricing it (as pre-paid ongoing solution) around say 100 Kenya Shillings a month, this would seriously impact on the SAGE, QuickBooks or other non-branded Kenyan small software makers targeting this particular market. These small market players would actually serve Google as 'customisers' or industry specific 'value-adds' while Google provides them a robust platform to re-sell their 'customised' value added solutions in the same pre-paid Model via Google.

It's a classical thing of the mobile phones versus the land-lines in the African continent and how the later have been loosing ground due to huge initial cost outlays for cables associated with delivering a voice application in every home on 'assumed post-paid' basis, compared to a single mobile Telco tower that delivers the voice applications to hundred of thousands on a pre-paid basis.

The most interesting aspect in comparing this concept to Google's strategy in Africa is that the mobile phone owners do not have to own the mobile communication software or the towers that deliver this voice functionality. They just sit down with their mobile devices to browse and access the functionality of the mobile communication software application from Safaricom, paying for it as a service to talk or send SMS on a pre-paid basis.

In fact Google has been a leader for such models in its current search technology. Search technology is itself a complex set of mathematical algorithms hosted in Google's servers. The role of this technology is simply to provide an information search function of published information/data in the World Wide Web. Google delivers this to us for free, without the user having to pay for it per search; more so this sophisticated technology is not 'boxed', we don't have to pre-pay for it, not to 'own' it , in fact we access it for free.

This has made the product popular with many people. Google however has monetized this technology through advertising rather than selling it to us as an annually licensed 'boxed' World Wide Web search system or even on a pre-paid basis.

Using the field of web-applications, Google could position itself strategically in Africa, as a potential market to be provided with such a new technology paradigm, leveraging on the millions unable to afford the 'boxed' applications of the corporate Global North. It will be interesting to see the monetizing model they will pursue for these web-based business aplications and operation systems.
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Media company or IT Company
written by chiefouko , June 19, 2007
Pndiangui..

Assumed future functions of Google is not what am talking about; the point here is what we do with current Google applications, apart from advertisement and research we realy have nothing to benefit from Google.

But future technology is gonna be enjoyed by those ready for it and I bet your Kenyan businesses are not ready to spend money on technology.
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which google applications?
written by chiefouko , June 20, 2007
Apart from google earth, gmail, google search engine and google desktop, which other tech inovations do you know that are pioneered by google?, none!!. But how do they generate wealth coz none of the above web apps is being sold?, Advertising and research.. is their main and probably the only source of wealth. How come they are a technology company with very little technological services to offer or sell?

The difference btwn IT technology companies and Media companies is that IT companies generate wealth from technological inovations and not advertisement and research where bulk of googles money comes from.

Anyway i think google is overated and its gonna burst soon unless we see major changes in web technology.
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A business model
written by pndiangui , June 20, 2007
Chief
A business model depends on how you want to monetize the Technological value you have created.
I think we have gotten used too much in the 'Kiosk' business models that are the traditional (Give me that kilo of sugar I pay you cash), that we fail to see the diffrrent business models that can be used to monetize Technology and complete the value creation process. And I say Value because Technology by itself is nothing where it doesnt create value.
This is a huge subject and has received very little attention in business circles.Infact the only person who in my view has tried to investigate this area and atleast theoresize it in a way that future technology commercializers can understand it better like they do cashflow analysis, is Universtiy of Carlifornia Berkley prof. Henry Chesbrough. I say this because unless you appreciate this principle you cannot be able to see Google's opportunities the way I am seeing them.
Of-course the market has overvalued Google, but thats wall-street with investors trying to get a slice of the pie , hence pushing the valuation multiples of Google relative to its future cashflows at an all time high.
The Google Desktop , is just the begginning, and if you cant see the convergence happening between Media, Telco and IT , then you need to probe deeper. Today Telstra is starting to recognize itself and actually see itself as a Media company. This will also start happenning with Safaricom and many others, as they start implementing 3G technology, VOIP and other myriad technologies to come. This convergence is inevitable , and Google's strategy is to be at the heart of this convergence because it is where value will be created by those with a superior technological enabling environment.This value creation during convergency, will need a shift from those 'kiosk' business models in the monetization of Technology value. That's the way nt docommo has made headways over other Telcos during the so much hyped 3G technology in Asia and Europe, while others eneded up with low-subscribed expensive 3G networks. Technology for its sake will not cut. Ask sun-microsystems the inventors of Java and they'll have a long story to tell.
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You looking at the wrong pictu
written by chiefouko , June 21, 2007
As much as its true that googles business model has contributed to its success... it doesn't deny the fact that their is no technological break through that google can readily feed the market (especially African market) of technology users.

Its actualy funny u mention telstra and 3G coz am currently working with telstra on this transformation. One thing i wanna correct you on this, 3G is not a technological invention of telstra, telstra mainly wants to bring its infrastructure to a level that it can better use 3G tech. This doesn't mean that telstra intends to become a media company either even though 3G will be used mainy by Media companys, its aim is to make itself one of the best if not the only provider of this technology.

About Sun-microsystems not sure if you intend to convey the message sun systems is not benefiting from Java, if so, thats not true. Infact they have got a very good and trusted IT market. Users of sun tech rarely switch but other users do switch to sun tech.

Technoloy wise PLEASE NOTE that Sun-microsystems is a Goliath and Google is the David.
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written by ck@google , July 01, 2007
Bwana Ndiangui,

Well articulated comments. We could use a voice like yours in Google Nairobi.
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written by aeichener , July 02, 2007
Bwana Ndiangui,

Well articulated comments.


Definitely not. Which is the problem.

Alexander
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Monetizing technology
written by pndiangui , July 02, 2007
Am also having some touches with the Telstra transformation project and my main point is; Telstra is seeing the CONVERGENCE of Media and Technology. The content provisioning and the infrastracture for easiear access are becoming more blurred. Hence the synergies it is driving out of its ownership of Sensis and I am sure they are on the look-out of another Media provider for acquisition.
Now, Sun-Microsystems has continued to grossly underperformthe S & P index for along time. You can see their EPS (Earnings per Share) is on the Red , at -0.05 -meaning it is running into losses. You see Investors look at the P word today and in the long term because thats one of the most critical dimensions of seeing through the bottom-line in relation to the sustainability of a firm (Its not the only one though but it is critical in assurring Employees that they'll get paid, bills will get paid and investors will take something home for having offered you some money inform of Equity to create that particular technology). Technologists look at the 'fancy' stuff. The 'Java', the 'Servers', the 'wi-max' etc etc, and that too is important but it has to be value-driven, and our defination of 'value' in the Technology world and the business world needs to be synergistic.
What I am saying is that we need to see both and that can only happen if we pay attention to the business model that defines how a piece of Technology creates value. And value is a function of Utility and demand.
So to me Google's apps , is strategic in African market. Today it might not be in place, but a 'playing-field' has to be created before the game begins. Google understands that , and setting up the African Office is like buying into a real-option that has a maturing period of the time Broadband becomes a reality and the current Kids in High school/University driving literacy levels high in Africa start becoming crucial decision makers. These are people who will not have been locked into the mindest that web-apps mean insecurity.
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Mucheru Interviewed
written by pndiangui , August 11, 2007
The new Google lead in Kenyan office was interviewed here and he seems to suggest Google Apps are major drivers in Google's Africa strategy.
I would actually commend Google for such smart move.
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