SHOOTING FOR THE
STARS HOW YOUTUBE PLANS TO KEEP ADVERTISERS HAPPY WITH ORIGINALS LIKE KEVIN HART’S NEW WHAT THE FIT? SHOW “YouTube—that’s how I got my international fan base up.”
KEVIN HART
comedian and actor
TOP SA WOMEN IN BUSINESS 2017 The movers and shakers
succeeding at both entrepreneurship and life
R35.00
AUGUST 2017 FASTCOMPANY.CO.ZA
16014 7
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CONNECTING A CONTINENT
Inside Africa’s fast cities getting ahead through tech innovation
What is IoT all about? The Internet of Things (IoT) is the internetworking of physical devices, vehicles, buildings, and other items — embedded with electronics, software, sensors, actuators, and network connectivity that enable these objects to collect and exchange data.
Logistics optimization
Cloud and Services + Platform
Factory optimization
Smart grid
Integrated operations centre
Smart Factory
Smart City Intelligent medical devices
Home energy management Traffic flow optimization
Comms network optimization Hospital optimization
Smart Highway Smart Hospital Automated car system
Connected ambulances
Intelligent digital signage
Connected traffic cameras
August 2017
C OVER S T ORY
24 STARS IN ITS EYES
As YouTube fends off advertiser complaints—and aggressively recruits A-list stars such as comedian Kevin Hart and singer Katy Perry—CEO Susan Wojcicki is under pressure to transform the streaming giant from an unruly adolescent into a dominant grown-up. Inside her plans to satisfy all stakeholders— and a billion-plus viewers. BY HARRY MCCRACKEN
Ready to roar YouTube hopes to increase its numbers—advertising sales and subscriptions—by providing fresh content such as Katy Perry’s upcoming live-streamed special. (page 24)
2 FASTCOMPANY.CO.Z A AUGUST 2017
Contents
SP E C IAL FEATURE S
KNOWLEDGE IS POWER
Cities, particularly those on the African continent, will have to get smarter about transforming the lives of their inhabitants—faster. Technological innovation is one way in which cities can get ahead. Fast Company SA looks at the tech developments shaping Africa’s urban future. Begins on page 60
WONDER WOMEN
The more than 20 000 women who marched to the Union Buildings in 1956 in protest against the pass laws have paved the way for increased gender equality and enabled ladies of all walks of life to rise to leadership positions. It’s no longer a man’s world. Meet our top South African female entrepreneurs who are slaying it in business and in life. Begins on page 72 F EAT U RE S
40 THE CASE FOR CHANGE
How the right business strategy can enable digital transformation to address stakeholder needs and growth aspirations BY MICHAEL O’CARROLL
52 IT’S A MUD, MUD, MUD, MUD WORLD Once dominated by extreme athletes, obstacle-course company Tough Mudder is extending a hand to fitness enthusiasts around the world BY NICOLE LAPORTE
Art credit teekay
The pride of Africa Melanie Hawken aims to positively impact 1 million women entrepreneurs through her Lionesses of Africa organisation. (page 72)
DECEMBER 2016/JANIARY 2017 FASTCOMPANY.CO.Z A 3
Contents
N E XT
16 FOR ALL THE WORLD TO SEE
You’re a brand, whether you like it or not. It’s time to take control of your online presence. BY TACITA MCEVOY
44 FROM FAD TO FAVOURITE
Why innovative trends need to be unique, credible and simple in order to stand the test of time BY JACQUES DU BRUYN
48 PEEL APPEAL
How fruit-and-vegetable processor Baldor is transforming food waste into a big business BY ADELE PETERS
68 THE FUTURE WILL BE AUGMENTED Why Facebook, Google, Snap and dozens more love AR—and what’s coming next BY DAN TYNAN
C REAT I VE C ON VERSAT I O N
32 FULL MARKS FOR BUSINESS ACUMEN
How former teacher and principal Robin Booth has made property investment as easy as ABC INTERVIEW BY SIPHOSETHU NINI
Change is the new norm Innovation should be the result of the right business strategy that enables digital transformation. (page 40)
4 FASTCOMPANY.CO.Z A AUGUST 2017
REGULARS
REGULARS 08 FROM THE EDITOR 10 THE RECOMMENDER 12 SAVING IS IN FASHION
The Mna Nam smart banking bracelet is as good for your future as it is for your look
80 THE GREAT INNOVATION FRONTIER Young entrepreneurs in Africa face something of a perfect storm, so how do we push our under-30s into the big leagues? BY MILLS SOKO
84 FAST BYTES & EVENTS 88 THE BRAINS TRUST How marketing agencies can help their clients become ‘fluent in tomorrow’ through forming a creative collective BY LYNN MADELEY
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No article or any part of any article in Fast Company South Africa may be reproduced without the prior written consent of the publisher. The information provided and opinions expressed in this publication are provided in good faith, but do not necessarily represent the opinions of Mansueto Ventures in the USA, Insights Publishing or the editor. Neither this magazine, the publisher or Mansueto Ventures in the USA can be held legally liable in any way for damages of any kind whatsoever arising directly or indirectly from any facts or information provided or omitted in these pages, or from any statements made or withheld by this publication. Fast Company is a registered title under Mansueto Ventures and is licensed to Insights Publishing for use in southern Africa only. 6 FASTCOMPANY.CO.Z A AUGUST2017
THE DIGITAL ENTREPENEUR Join MTN Business for a Digital Entrepreneur Masterclass in Durban on 15 August 2017.
Mobile is the new business place for entrepreneurs but it is also digital in nature. Mobile is the heart of any business, connecting people and businesses from anywhere in the world. From this, The Digital Entrepreneur Masterclass is born. It is the first of its kind, bringing together movers and shakers of the small business ecosystem in South Africa. Focusing on you, the entrepreneur in enabling and empowering your business to the next level with technology. You will gain insights into how technology enables your business to achieve operational efficiency, cost control and management. You’ll also have the opportunity to interact with experts in business, funding, incubation and management.
15 August 2017, 9AM Olive Conference Centre, Durban RSVP By email to: marketing@mtnbusiness.co.za Follow us #digitalideas
From the Editor
A more connected city—a fast city— works for its people.
FAST AND FURIOUS The pace of technological advancement in Africa is increasing. A shift from the Dark Continent to the shining modern landscape is becoming evident. It’s brimming with possibility. Strong foreign investment, a driven (cheaper) workforce crying out for employment or making their own, relative political stability, a market primed for tech uptake, and increased globalisation are elements impelling Africa forward into the next generation. Recent stats point out that no part of the planet is urbanising faster than sub-Saharan Africa. The continent’s population of approximately 1.1 billion is expected to double by 2050. More than 80% of that growth will occur in African cities. Several countries already enjoy the benefits of advancing technology. Chief among these is South Africa; the Western Cape in particular has seen stronger initiatives toward becoming ‘smart’, including the provincial government last year launching 50 free public Wi-Fi hotspots in partnership with Neotel in Cape Town (these have subsequently increased). The topic of high data prices has been well-documented. Service providers should remember that cheaper connectivity essentially means greater connectivity: with all inhabitants being able to harness the power of the Internet and The Internet of Things. A more connected city—a fast city—works for its people. 8 FASTCOMPANY.CO.Z A AUGUST 2017
In this, our Fast Cities edition, we look at some of the continent’s top urban centres that are innovating to ensure Africa doesn’t lag behind the rest of the planet. Technological advancements will enable better approaches to solving the continent’s many challenges and, ultimately, progress. On another note, our cover feature goes behind the scenes at YouTube and CEO Susan Wojcicki’s plans to outmanoeuvre TV, satisfy home-grown creators, placate advertisers and entertain its billion-plus viewers—with the help of A-listers such as comedian Kevin Hart, talk-show star Ellen DeGeneres and singer Katy Perry, among others. It’s big and it’s here to stay. And it’s simply about adapting. So, read on and become part of the conversations. Above all, live and learn.
Evans Manyonga evans@fastcompany.co.za @Nyasha1e
Your home at your fingertips AUTOMATION We install Smart Automation solutions that give you complete control of your home, including lighting, appliances, locks, entertainment, irrigation, CCTV and more from wherever you are. We also add voice control devices to your setup.
HOW WE WORK We offer our clients a choice between preselected packages that will cater for basic automation requirements with an option to top up from our shop. We also provide full consultation to advise homeowners of the most suitable solution for their houses.
SECURITY We improve your security by installing locks, motion and door sensors, or security cameras as well as linking your alarm—all controlled and monitored from the palm of your hand, wherever you are.
SAVE We combine energy monitoring, geyser control, sensor technology and innovative automation to facilitate savings on your energy bill.
“I made a Goodbye Routine in my SmartThings app that turns off all the lights and turns down the thermostat at the touch of a button”
E info @ africanha.com X www.africanha.com G 060 641 7848
The Recommender What are you loving right now?
Musgrave Pink Gin
Spending time with the girls, catching up, is by far my favourite pastime. Recently on such an occasion, our beverage of choice was Musgrave Pink Gin. The packaging was enticing, feminine, elegant and sophisticated. I love the idea of its 11 signature botanicals, celebrating distinct top notes of cardamom, African ginger and Grains of Paradise—tamed slightly with a dash of perfume and a splash of romance. Venessa Lees Owner, director, Expose Marketing
Dota 2
This competitive game of action and strategy ( Defense of the Ancients ) is played both professionally and casually by millions of passionate fans worldwide. Players pick from a pool of more than a hundred heroes, forming two teams of five players. Radiant heroes then battle their Dire counterparts to control a gorgeous fantasy landscape, waging campaigns of cunning, stealth and outright warfare. It can be compared to chess on steroids, with infinite depth and complexity—which is why I love playing the game. Crous “Santa” Roode Professional Dota 2 player, Goliath Gaming
10 FASTCOMPANY.CO.Z A AUGUST 2017
Berg River Canoe Marathon
How to make the finest cognac
The first step is harvesting the grapes from the Cognac region in southwest France. Then there’s the wine-making, the double distillation in Charentais copper pot stills, the ageing in French oak barrels, and the blending. Each house has its unique method of distillation. Martell distils clear wines, with all sediments and impurities removed for fine eaux-de-vie. The cognac is aged in lightly toasted fine-grain oak barrels to encourage wellbalanced aromas. During blending, the cellar master creates a perfect harmony from the complex palate of flavours. Etienne Cassuto Brand manager, Martell Cognac
Paddlers are put to the test over four intensive days, through a total of 240km from Paarl to Velddrif on the West Coast. And as it takes place in the middle of the Cape winter, there’s the added challenge of harsh conditions. So why do I do it? Because each time I tackle this monster, I learn more about myself. Christopher Baird Business unit director, eComplete
Screen Time
Our pick of the most download-worthy travel apps currently on the market
Hopper www.hopper.com
Tripit www.tripit.com
If you’re a frequent traveller or business flyer, this super-handy app can automatically scan your emails and compile all your travel plans in one master itinerary—it’s your very own PA! The free version is great for most average people planning a trip, but the business upgrade will make things much easier for professionals.
Waze www.waze.com
Waze is a GPS navigation app that draws from its active community of drivers to create the most up-to-date and accurate road data. It functions in the same way as Google Maps (Google actually bought it a few years ago), but users can easily access information about road hazards, traffic or accidents. If you’re navigating an unfamiliar city and aren’t sure where the traffic hot spots are, this app is the best you can get—and it’s free.
Hopper is different from other flight-booking apps, in that it not only enables you to check for flights but also tells you when to buy a ticket and how to get the best price or the biggest savings. Once you’ve searched a flight, the app will let you know whether to wait or buy. If it’s best to wait, it will send you a notification the moment the price drops. The app is able to do this thanks to an archive of billions of flight prices which, its creators say, gives 95% accuracy in predictions. VoiceMap voicemap.me
A tour guide right on your phone! The app uses your location to play audio automatically and includes offline maps. Or you can choose from stories by journalists, novelists, guides and passionate locals, then listen while you walk through the areas of interest around the world. There are also local routes in Hermanus, the Cape Winelands, Newtown and the Donkin Reserve in Port Elizabeth, among others, to get to know your own city better.
Flapp www.travelstart.co.za
This new locally developed app from Travelstart gets you the cheapest and fastest flights across multiple airlines both locally and internationally, and allows you to book and pay for your flight—even two hours before departure— plus any additional services such as flexi tickets or insurance. Download it for free and save your passenger data and payment details. After you’ve booked your flight, you’ll receive an e-ticket via email. AUGUST 2017 FASTCOMPANY.CO.Z A 11
Fast Company promotion
How to get your happily-ever-after Your life goal is not a phrase, it’s a number. Let Resolution Circle help you find yours.
As CEO of a tech incubator, I meet many young, budding entrepreneurs. They walk through doors and into boardrooms with great confidence in their business ideas. Why shouldn’t they, right? They believe they’re destined for greatness, that they’re on a quest to find their princess called ‘Success’ and live happily ever after with her. This story plays itself out in popular culture. But it’s really just a story. Often, when entrepreneurs have a new idea, they exist in the space of ‘just that idea’. Until they sit down with someone else, they cannot explain—and at times, not even know—what they should do to turn their idea into a product or service. Along their journey, they also have to slay the dragons of evil critics, funding treasure keepers and all manner of hardships. If you’re one of the many young budding entrepreneurs with a business idea, it may be a product or service fit for you. In this case, may you have many more; may you enjoy the process of creating those ideas and may some, if not all, your ideas be successful. That’s not where the story should end, with a happily-ever-after. In fact, your story shouldn’t even begin with an idea. It ought to begin with a person. You. The entrepreneur. And perhaps, more importantly, with your goals. As an entrepreneur, do you have a number? This may seem odd, but the number implied here is a proxy for an end goal, translated into a value. This number defines a journey, a life. Seasoned entrepreneurs will tell you “I want to be rich” is not a goal, but “R2 million in a year” is. Your number indicates the extent of your dreams—the conquest you’re setting for yourself. It informs the type of business
12 FASTCOMPANY.CO.Z A AUGUST2017
(or businesses) that will get you there, and how many steps you’ll need to take in order to get there. If your number is small, you should consider a 9-to-5 job—it’s certainly easier. However, if your number is massive, you’ll probably need more than one product or even more than one business to get you there. The number also offers a glimpse into the kind of business you’ll need to build, the type of organisation it should be, your team, your reach (e.g. local, national or global). In effect, this number becomes your goal. It defines your quest. So, what is your number? This question troubles people. And really, I’ve met very few people who have this number at hand. Admittedly, I’m one of those troubled by it too. Because how can you live a life without knowing where you’re going? The answer is based on your life goals. Not the car you want to buy next year, or your failed new year’s resolutions or bucket list. The number is derived from what you want people to write on your tombstone. The things you want to achieve by the time you’re 60, 70 or older (the definition is known to shift). Sir Richard Branson said it well: “Above all, you want to create something you’re proud of.” Life goals are critical and, really, they’re worth fighting for. From taking blows that leave you bleeding, to enduring hardships and, most importantly, standing up again and again to fight. If your goals aren’t worth fighting for, they won’t sustain you in what’s to come. A product or service is just one of the things forming part of a successful business. Remember, a business is just one tool you can use to achieve your life goal. Don’t get stuck on an idea—get stuck on your goals and ways in which you’re going to achieve them. If one goal doesn’t work out, learn from it, regroup and start over. This is the theme of the first few sessions I have with new entrepreneurs at Resolution Circle. I ask them what their number is, then together we determine their goal. These sessions may end with the entrepreneurs changing their
Your story shouldn’t even begin with an idea. It ought to begin with a person. You. The entrepreneur. And perhaps, more importantly, with your goals.
focus, their business plan, or even their product or service so that it aligns with their number, their life goal, their happily-everafter. Only then do we expose them to our range of on-site services including research, patenting, licensing agreements, prototyping and facilitating access to funding. I’ve had the privilege of witnessing firsthand how highly qualified individuals take their idea through the commercialisation life cycle within our dedicated high-tech research and development space. But that only happens when their story starts with a number. Professor Willem Clarke CEO, Resolution Circle www.resolutioncircle.co.za
AUGUST 2017 FASTCOMPANY.CO.Z A 13
The Future is Social
FOR ALL THE WORLD TO SEE You’re a brand, whether you like it or not. It’s time to take control of your online presence. BY TACITA MCEVOY
Poor Generation Z and Alpha; for most of them, their online brand starts from day one in hospital, in mom’s arms as she smiles for the Facebook and Instagram post. #newborn #babygirl #instababies. . . Before you even know your name, your online brand has already been kick-started. Most of us have zero control over how, or if, we build our digital brand. That short bio on your company’s website, your name on a conference attendees list, that online family tree to which aunty Audrey added you—there’s no avoiding it! What we can do is take some control and craft our brand to start benefiting our work and personal lives. If you need more convincing, just think: Do you really want your colleagues, family, friends and frenemies telling your story for you, for all the world to see? Take your online brand into your own hands. Here are five tips to get you from a zero to the hero you want to be known as online.
14 FASTCOMPANY.CO.Z A AUGUST 2017
1. AUDIT AND CLEANUP TIME Before you get too overwhelmed, take stock of where you stand. Google yourself and see what comes up. Brace yourself, you may be shocked to see that old MySpace profile or your mention of coming third in the high school science fair; don’t forget to look through Google Images, too. Make a list of the shockers you want removed or get pushed down in the rankings. After your audit, it’s time to clean up. Contact the sources of the mentions you want removed if you’re unable
to do it yourself. Don’t forget to go through your social profiles from the very beginning and delete any incriminating photos. While you’re doing this, it’s also worth changing your social media privacy settings so that your personal photos are not auto-matically visible to the public.
2. BE YOURSELF—EVERYONE ELSE IS TAKEN Now that you’re pretty squeaky clean on the search engines, what’s next? Before you think
Are you funny, professional, academic, analytical, conversational or controversial? The key is to keep it consistent throughout all your online communication
what your skills and strengths are, you can build your brand around them and become a thought leader in your industry.
3. CHOOSE YOUR VEHICLE Blogging, tweeting, vlogging, podcasting . . . the list goes on and on. It can be tricky when having to choose a medium to express and promote your brand. If you’re new to the personal-branding game, there are a few basics to tick off:
of updating, posting and sharing, there’s an important exercise you need to do first: getting to know your brand and how you want to be perceived to the world. This can be quite daunting if you’re a private person. Here are some questions to help you get started:
tailor your personal brand accor-ding to your dream: You could be working at a coffee shop, but your personal brand is a fashion blogger and designer. Taking control of your brand is believing you can be whatever you want to be.
What do you do, or what do you want to do? Even though you may not be in your dream job, you can decide what you want to do and
What is your brand voice? Are you funny, professional, academic, analytical, conversational or controversial? The key is to keep
it consistent throughout all your online communication— be the most authentic you, and don’t change per medium or audience. What is your competitive advantage? What skills and strengths do you have to stand out from the crowd? People with strong personal brands are clear about who they are and maximise their strengths. Once you know
Social media: To truly catapult your brand, you need to dive head first into social media—but you can pick your poison. Twitter is great for starting and jumping onto conversations around industry topics and current affairs; but you really need to be all-in with Twitter, because a tweet now and then won’t get you far. Facebook is a better avenue if you want to share industry news and information around your business or what you do. Plus, if you have a business page, you can put ad spend toward your content and really reach a more defined target audience—this is probably one of the best ways to get your brand out there quickly. When you think of an online résumé, you immediately think LinkedIn, as it’s a powerful tool you can use to build your personal brand quickly and is highly favoured by the Google search algorithm. LinkedIn has
AUGUST 2017 FASTCOMPANY.CO.Z A 15
Next
The Future is Social
all the personal branding tools available, from showcasing your work history to gathering recommendations to publishing articles on LinkedIn Pulse. We can’t forget about Instagram and SnapChat, either. Remember that some influencers are so good at building their personal brands that they make a career from endorsing products to their network. The modelling industry is also changing, as some agencies are doing away with the traditional Z Card and sending clients their models’ Instagram profiles— which means the more followers, the more bookings.
time editing. That’s fine, but take time each day getting some sort of content out there—a tweet, a short blog post—as it all adds up.
Content creation: If you had to answer the question, “How do you build an awesome personal brand online?” in two words, the answer would be? Content creation. The key to separating yourself from everyone who has a LinkedIn profile and blog is consistent content creation. How often do you need to push out content? People who are serious about building their brands do weekly vlogs and on a daily basis update their social profiles with relevant content relating to their ‘why’. Some people don’t like to do off-the-cuff videos and want to spend more
16 FASTCOMPANY.CO.Z A AUGUST 2017
Your hub: Social media profiles are fantastic tools to build your brand, but a personal website is a great hub to consolidate your content and express yourself in any way possible. Even if you don’t get to building your hub straight away, it’s worth buying a domain name that will represent your brand— this can be your name or what you do. Visit GoDaddy.com and spend some time seeing what names are available; a .com is always going to be first prize.
4. NETWORKING, NETWORKING, NETWORKING ‘It’s not what you know, it’s who you know’ has never been more relevant than when it comes to your personal brand. Associating yourself with thought leaders within your industry will elevate your brand. You can do this by tapping into a conversation on Twitter, connecting on LinkedIn, or sending them an email to meet up over a coffee. Once you make a personal connection, even over
one coffee, you’ll feel more comfortable engaging with their content and asking for feedback around yours. Even better would be to secure a mentor who has perfected his or her personal branding strategy. Learning what has worked for others could eliminate a lot of trial and error, so research the personal branding gurus. Check out American serial entrepreneur Gary Vaynerchuk— he’s killing it when it comes to personal branding.
5. IF YOU NEED HELP, GET IT Back to blogging, tweeting, vlogging, podcasting and snapping—it sounds like a lot of work! You may have a passion for business but not for social media or blogging, now what? Well, your brand is your best investment to guarantee future earnings. If you need to get an assistant, techsavvy friend or agency involved
to help build your brand, it’ll be worth every penny. Begin small with a ghostwriter to start producing content, and a designer to conceptualise the look and feel of your brand. If you don’t have the resources to get help, don’t let that hold you back—just start. Your first blog post may not be perfect, or you may stutter in that first video; but you’re getting your message out. Don’t mind the haters! Not everyone’s going to like your content, and those haters have definitely not done a vlog before. It takes guts. Now you may be thinking: I don’t want to be branded, put up a politically correct facade, or delete that Facebook photo from that night out I don’t remember—well, you don’t have to. The beauty is, you have control over how much or how little you want to share, but we all have a voice and something to share with the world. And that’s what your personal brand is all about.
Tacita McEvoy is the founder of the Cape Town–based digital marketing agency Social Media Now, and a partner in the accelerator/incubator Idea Camp.
Next
Wanted
SAVING IS IN FASHION This season’s most coveted accessory is as good for your future as it is for your look
For National Savings Month in July, Sanlam joined forces with world-renowned designer Laduma Ngxokolo to create a world-first piece of wearable tech, Mna Nam, which effortlessly combines fashion with function. Conceptualised with the King James Group, Mna Nam is a limited-edition wrist accessory with an embedded QR code that links to a digital savings wallet accessed on one’s mobile phone. So whether you’ve skipped your third cup of coffee for the day or just feel like rewarding yourself, you can actively save that money— instantly—by diverting it into the wallet. Yegs Ramiah, CEO of Sanlam Brand, says: “Mna Nam presents a beautiful, stylish solution that contributes toward improving South Africa’s poor savings culture. At Sanlam, we want to equip people with the tools and knowledge necessary to save for a better tomorrow.” Ngxokolo’s traditionally inspired aesthetic combines seamlessly with smart-tech capabilities, taking wearables into the financial sphere. “In the future, designers will most probably be scientists: people who perceive opportunities for real-impact innovations that make people’s lives better,” he says. “A design has to make sense and solve a problem to become iconic.” Ngxokolo recently completed a master’s degree in material futures: a course that blurs the lines between design, science and technology. For Matt Ross, King James Group executive creative director, Mna Nam is an example of African ingenuity. “In Africa, we have our own set of challenges, and we’re known for reengineering technological tools to solve them. Wearable tech is very expensive and out of
Eye-catching innovation Laduma Ngxokolo’s traditionally inspired design combines seamlessly with the smart-tech QR capability of the Mna Nam bracelet.
reach of most—but not if you innovate on an existing platform. So, we took a widely used virtual payment app, WeChat, and flipped its primary purpose of easy spending into easy saving. Then we coupled this with an object of real beauty to be worn on the wrist and created by the country’s most forward-thinking designer, to make saving top of mind and aspirational.” Sanlam has had widespread success from its past National
Savings Month social experiments: One Rand Man, One Rand Family, which showed how fast one’s money disappears to consumables that are actually a waste of money; and Conspicuous Savers, in which South African celebs Pearl Thusi and Cassper Nyovest ‘conspicuously’ showed the public how they were saving money. See www.mnanam.co.za for details on how to obtain the Mna Nam.
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By Harry McCracken Illustration by Max-o-Matic
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Art credit teekay
GUTTER CREDIT TK
TO OUTMANOEUVRE TRADITIONAL TV—AND SECURE GOOGLE’S FUTURE— YOUTUBE CEO SUSAN WOJCICKI MUST SEAMLESSLY SATISFY HOMEGROWN CREATORS, RISKAVERSE ADVERTISERS, HOLLYWOOD CELEBRITIES, AND THE VIEWERS WHO WATCH 1 BILLION HOURS A DAY
YOUTUBE SHOOTS FOR THE STARS
SUSA N WOJ C IC KI HAS T RA NS F O R M ED YOUT UB E — B U T S H E I SN’T D ONE Y ET. What’s Working 1
YouTube is catering to its most passionate fan groups. Wojcicki has pushed the company to tailor services for some of the most popular ways people use YouTube, creating dedicated apps for kids, gaming enthusiasts and virtualreality early adopters. 2
Outside the Jacob Javits Convention Center on New York’s far West Side—where YouTube is hosting the Brandcast, its annual presentation to advertisers—fans crush together behind barriers. Young and mostly female, they hover giddily on this chilly May evening, angling for a glimpse of the YouTube stars who are making their way down a red carpet toward the entrance. One fan clutches a sign that reads i’m cold, but it’s worth it. Inside, the cavernous hall is filling with 2 800 ad-industry insiders, video creators and members of the press who will soon sip wine and nibble popcorn as the streaming-video giant debuts a slate of original series. They will be entertained by indefatigable Late Late Show host James Corden, who will perform a splashy number (“YouTube: The Musical”) alongside dancing T. rexes and a Pikachu. Katy Perry—her hair in a new blond buzz cut—will tout her upcoming live-streamed special and return to end the event with a concert. But even the surprise appearance of the world’s most successful comedian, Kevin Hart—the star of an upcoming funny fitness show on YouTube—isn’t the evening’s most memorable moment. That comes when YouTube CEO Susan Wojcicki stands alone onstage in a purple dress, issuing something you normally wouldn’t expect to hear at a bash like this: an apology. For the previous two months, YouTube had been beset by controversy in the wake of newspaper investigations that discovered brand advertising being paired with videos featuring terrorist and white-supremacist rhetoric (and thereby funding their creators). AT&T, Johnson & Johnson, L’Oréal and reportedly as many as 250 other advertisers suspended campaigns. YouTube was able to quiet the unrest by installing new machine-learning technology to better identify questionable content—it said it was able to realise a 500% improvement within weeks—and offering marketers more finely grained controls for specifying where their messages will appear. It also allowed
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YouTube generates revenue from more than just advertising. Red is a premium service that’s ad-free and costs $9.99 (R130) a month. YouTube offers Hollywood movies and TV shows to buy or rent (just like Amazon), and YouTube TV provides 40 broadcast and cable channels for $35 (R450) a month. In October 2016, Google acquired the influencer marketing firm FameBit to help YouTube match brands and stars. 3
YouTube is building a deep slate of original programming. Wojcicki has quietly undertaken the most ambitious content initiative in YouTube history. She has funded dozens of Red Originals, which target YouTube’s core audience of teen viewers—a market that’s been underserved thus far by Netflix and Amazon. The programming is often created by some of YouTube’s most successful producers and features homegrown stars. 4
YouTube is now a mobilefirst experience. Wojcicki has pushed significant user-interface enhancements
designed with smartphone or tablet consumption in mind, such as double tapping on the video to fast-forward and rewind 10 seconds, and embracing vertical video once Snapchat popularised it. The result: Mobile views now exceed desktop ones.
SI X WAY S T HE V IDE O GI A N T I S P OIS E D TO DOMIN AT E T HE F U T UR E , A ND F OUR T HING S T H AT C OUL D DE R A IL I T
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“There’s something very human about YouTube,” says CEO Wojcicki, referring to both its charms and its perils.
YouTube’s rebuilt algorithms have led viewers to watch 1 billion hours of video a day. YouTube is optimised for what it calls “watch time”, which encompasses what users view, how long they tune in, the length of their overall YouTube session, and so forth. Together, these signals help YouTube algorithms decide which videos a user is most likely to watch shortly after they’re posted and which will lead to the longest overall viewing period. 6
YouTube has built a modern, global studio system. Creators can access full production facilities called YouTube Spaces in nine entertainment hubs including Tokyo and Toronto. YouTube enables HDR video and 360-degree audio and video, and mobile live-streamers can even broadcast 360-degree video in 4K resolution. Wojcicki has also made a big bet on virtual reality, amassing hundreds of thousands of immersive videos.
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YouTube’s relationship with its creators remains fraught. In exchange for the reported 45% cut it takes from ads that run against videos, YouTube has added more tools and services including human support, community moderation, and a non-video feed to interact with fans. But creators still feel like they have trouble communicating with the company. YouTube algorithm adjustments can radically impact the popularity of a channel, and those changes haven’t always been relayed effectively. The company overcorrected in the wake of the brand-safety controversy, decimating revenue for news and politics programming. 3
YouTube’s bid for the living room remains elusive. Wojcicki has led two overhauls of its TV app since taking over, and she’s succeeded in getting the likes of Comcast to embrace it. A year ago, she reported that living room watch time had doubled year over year, and YouTube TV’s well-reviewed bundle of broadcast and cable networks could improve that further. The company says TV is its fastestgrowing screen. For the overwhelming majority of YouTube users, though, the service remains a mobile or computerbased experience. 4
Needs Work 1
Groomer: Veronica Sjoen
YouTube needs to rebuild trust with advertisers. This March’s revelations of advertisements monetarily supporting (and appearing to tacitly endorse) hateful content led to a vocal brand backlash. Although the hubbub has quieted down, it’s prompted changes to how YouTube supports the brands that buy spots. There will be more pressure to deliver better, more transparent viewing metrics and to continue to create tools that let marketers control where their ads appear.
Photograph by David Black
YouTube is the biggest music streamer in the world— and that’s the problem. With an estimated 800 million people consuming music on YouTube, according to a music trade organisation, the service dwarfs Spotify, which has 100 million registered users (half of whom subscribe). Although YouTube touts that it paid out more than $1 billion (R12.9 billion) to the music industry in 2016 (from advertising) and it’s doing more to spotlight emerging artists on the service, overall, musicians and labels complain that it’s not enough given YouTube’s might, especially as Spotify cuts more favourable deals with the industry.
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backlash could drag down Alphabet’s performance. Wojcicki’s boss, Google CEO Sundar Pichai, simply says she “has always been someone who could do pretty much anything.” Since joining Google in 1999, she helped create AdWords, the system for auctioning off space for text ads that turned Google into one of history’s most efficient profit machines; she grew the company’s advertising efforts from $400 million (around R5 billion) in 2002 to $55 billion (R711 billion) in 2013; and she had the foresight and persistence to persuade Google to acquire YouTube in 2006 for the then-controversial sum of $1.65 billion (over R20 billion). Wojcicki is “as nice as she seems”, says YouTube VP of engineering Scott Silver, “but she doesn’t ever give up.” Even at its current size, Wojcicki tends to talk about YouTube as if it’s just getting started. “Our goal, really, is to take this amazing technology, continue to grow it, make it available to all people around the globe, across all platforms, and for all creators,” she tells me. She’s so matter-of-fact about it, one can lose sight of the audacity of her ambition. She pauses for a beat, then allows, “It’s a big mission.”
third-party firms to audit where clients’ ads show up. Even so, it’s clear that marketers expect humility from YouTube about the whole affair, and that’s what Wojcicki gives them. “We apologise for letting some of you down,” she tells the crowd calmly, in an even tone that sounds natural, genuine and not overly rehearsed. The ad-placement kerfuffle was intensely embarrassing for YouTube, but it nonetheless reinforces how different the service remains from traditional television—which is the other part of Wojcicki’s message to the audience tonight. “YouTube is not TV, and we never will be,” she says. From Wojcicki’s perspective, the differences are, in fact, advantages. TV in its conventional form is among the most micromanaged, focusgrouped businesses on the planet. YouTube, by contrast, is varied and authentic, even slightly anarchic. “We really value the role that YouTube plays in the ecosystem for freedom of expression,” Wojcicki tells me during a conversation a week before Brandcast. “We take that incredibly seriously. We want to make sure we’re enabling all these voices to be heard.” Old-school TV viewing still boasts an awesome 1.25 billion hours a day of watch time in the United States, but Wojcicki states that 18- to 49-year-olds, TV’s most ad-friendly demographic, watch more YouTube on mobile devices during prime time than they do any broadcast or cable network. The service also recently passed 1 billion hours of daily watch time worldwide, prompting Netflix CEO Reed Hastings to confess to pangs of “YouTube envy” during an earnings call in late April.
N ERDS VS J OC KS
YO U T UB E CR E ATOR S A ND S AV V Y B R A ND S H AV E M A DE T HE V IDE O PL ATFORM THEIR PL AYGROUND. NOW, T V-LIK E CONTENT FROM HOLLY WOOD P R O S H A S T HE M C OMP E T ING F OR T HE A UDIE NCE ’ S AT T E N T ION.
ONLY ON YOUTUBE:
Webs & Tiaras
Dude Perfect
Lego
Casey Neistat
Grown-ups in comic-book and princess costumes perform surreal silent-movie vignettes, the latest genre innovation taking root among the service’s creator class.
Bros work together to create Rube Goldberg–like trick shots or play golf in a hurricane, marrying sports and comedy in a way ESPN or Comedy Central never could.
The toy maker showcases clever fan creations such as a Beauty and the Beast tribute, as well as its own work, one of many brands turning marketing into entertainment.
The ur–video blogger returned to YouTube in 2017 after a break and continues to redefine the diary format, shooting footage from drones and electric skateboards.
YouTube sits at the white-hot centre of the global evolution of the entertainment and advertising industries, at the precise moment the boom in mobile video consumption affects how half a trillion dollars per year are divvied up among TV, digital and other media. For YouTube’s owner, Google— and Google’s parent company, Alphabet—the stakes are enormous. It wants YouTube to dominate like Google does with display ads and search marketing. Research firm eMarketer estimates that YouTube netted around $5.6 billion (R72.4 billion) worth of advertising sales in 2016—only 9% of Google’s total but up 30% over the previous year. Alphabet doesn’t disclose YouTube’s financial results (including whether it’s turning a profit), but regularly cites its contribution to revenue growth—something it did during its investor call for the first quarter of 2017, dispelling analysts’ warnings that the advertiser
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It’s a Friday afternoon in March at YouTube’s headquarters in San Bruno, California, and Wojcicki is hosting this week’s instalment of YouTube Fridays, the company’s all-hands meeting. Standing behind a lectern bathed in light, she helps direct the event. Ten new recruits— “NewTubers”—get their official welcome, and there are presentations by staffers including an engineer who demonstrates how YouTube uses Google Brain AI technology to predict what a user will want to watch next. Wojcicki wryly shares her account of attending the Oscars for the first time the previous weekend (as a guest
Opening spread: Illustration source images: Shutterstock (DeGeneres); Jeffrey Mayer/Getty Images (Hart); JB Lacroix/Getty Images (Seacrest); Noam Galai/Getty Images (Perry, Singh); Nina Prommer/EPA/Redux (Cannon); Celine Grouard (Rhett & Link); Joel Arbaje (Gorgeous); Billy Farrell/Shutterstock (Neistat); Gabriel Olsen/Getty Images (Higam)
of producer Harvey Weinstein), which culminated in her guiltily eating a cheeseburger at the Vanity Fair after-party even though she’s a vegetarian. In addition, there are, naturally, videos, including a new Samsung commercial featuring YouTube star Casey Neistat, and the whole thing segues into a concert by Matt Jaffe and the Distractions, a local rock band with an active YouTube presence. Wojcicki instituted the weekly ritual shortly after arriving as CEO in 2014, hoping to encourage the company—already the rare startup that wasn’t screwed up by the big enterprise that acquired it—to become even truer to itself. “It’s a challenge to build a brand within a company,” she admits. YouTube, like Google, is largely driven by engineers. But it also serves a vibrant community of creators and media companies. To really understand their concerns, Wojcicki says, “we need to learn how to think like an artist. Like a publishing house. Like a label.” This is why videos are featured at YouTube Fridays. It’s why the meeting ends with a concert. And it’s perhaps why Wojcicki, a mother of five who does not generally seek the spotlight, took the time to attend the Oscars.
time YouTube was throwing money around Hollywood six years ago, two sketch-comedy performers, Abbi Jacobson and Ilana Glazer, were creating a series of micro-comedies on the service; Comedy Central later hired the duo to bring Broad City to its network, where its fourth season will begin in August. Daniels has been intent on not letting homegrown talent get away. She’s developed vehicles for YouTubers such as comedian/ rapper Lilly “IISuperwomanII” Singh and the popular Korean pop group Big Bang. These series, movies and documentaries run on YouTube’s Netflix-ish Red service, which charges users $9.99 (R130) a month for this premium content (and also includes ad-free viewing). In 2017, 30 new series and movies will debut on Red, which is currently available only in the US, Australia, Korea, Mexico and New Zealand. This experience of fishing where the fish are, as Daniels puts it, also informs her new initiative funding original programming for YouTube’s
“She has an incredible balance,” says VC John Doerr of Wo jcick i’s strengths. “She’s aggressive . She’s calm.”
MAINSTREAM ENTERTAINMENT:
Coachella YouTube has exclusively livestreamed the immensely popular annual music festival the past two years, including shooting 360-degree videos.
‘Lost’ pop culture From unaired TV pilots and longforgotten shows to scores of film noir movies, YouTube offers 24/7, on-demand access to a museum of film and television.
Forging deeper bonds with the creative community definitely helps explain why, in 2015, Wojcicki recruited Susanne Daniels to spearhead original content. The veteran network programming executive can take credit for developing such youth-friendly programmes as Buffy the Vampire Slayer, Dawson’s Creek and MTV’s Broke A$$ Game Show. Before Daniels’s arrival, YouTube’s history of funding its own shows was checkered at best. In 2011, YouTube spent $150 million (R1.9 billion) to commission channels from A-listers like Madonna, Tony Hawk, Deepak Chopra and Jay Z. All of them fizzled. In a cruel irony, at the same
The morning after
Best.Cover.Ever.
YouTube brings together last night’s most popular late-nightTV segments, all of which can be watched without enduring the surrounding fluff.
Ryan Seacrest’s new singing competition pays homage to the YouTube tradition of kids posting song covers in hopes of getting discovered (e.g. Justin Bieber).
ad-supported service. There will be shows from native performers such as comedians Rhett McLaughlin and Link Neal, whose Good Mythical Morning is already YouTube’s most popular daily show with nearly 100 million views a month, which will now expand to a 22-minute format. But the stars that Daniels and company have recruited are also already proven YouTube draws. Kevin Hart’s stand-up clips and late-night appearances garner high traffic, and Ellen DeGeneres, who will produce a behind-the-scenes look at her TV programme, drives one of YouTube’s top channels, thanks to highlights from her talk show. Katy Perry’s six-year-old “Firework” video is edging in on a billion views, and her upcoming livestreamed album-release special will seek to expand upon the spectacular view-counts for her greatest hits.
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Part of YouTube’s appeal to mainstream creators is its adoption by a generation of viewers for whom YouTube, Amazon and Netflix are the new ABC, CBS and NBC. As James Corden explained at the Brandcast, what makes The Late Late Show work was his epiphany that the programme could be divided into highly shareable, fun-size entertainment. “I realised that I didn’t have to make a show for any time slot, because we had the Internet,” he told the audience. “And more than that, we had YouTube.” Corden does this as adroitly as anyone: Adele’s appearance on his “Carpool Karaoke” bit, featuring her renditions of Spice Girls and Nicki Minaj songs, was YouTube’s most viral video of 2016, with more than 155 million views. (By comparison, his TV show has averaged 1.34 million viewers in its 12:37 a.m. time slot this season.) In fact, the late-night wars, the hottest time-slot competition in television, are now effectively being waged on YouTube. Clips from Corden, Jimmy Fallon, Jimmy Kimmel and Stephen Colbert have been viewed more than 16 billion times in aggregate, according to video-technology company Zefr. This new reality helped inspire YouTube TV, a R450-a-month streaming service for phones, tablets, PCs and TVs, which offers more than 40 live broadcast and cable channels from the media companies behind ABC, CBS, Fox and NBC: the same stuff you may be watching on Comcast if you weren’t perusing YouTube videos. Wojcicki unveiled YouTube TV last February at an event at the Los Angeles production studios that it built for creators, located in a 3 700m2 former Hughes Aircraft plant that still has a helicopter parked outside the front door. “There’s no question that millennials love great TV content,” she says, teeing up the announcement before a grid of 36 screens that cycle through clips of such mainstays as Modern Family, Keeping Up With the Kardashians and college basketball. “But what we’ve seen is they don’t want to watch it in the traditional setting. They don’t want to watch it sitting in the living room with their families, waiting for their favourite show to come on. Younger generations want to consume TV the way they’re used to consuming TV content online.” In other words: They want to watch it like YouTube. When Wojcicki and two of her lieutenants—product chief Neal Mohan and Robert Kyncl, the former Netflix executive who has overseen YouTube’s content and business operations since 2010—spell out the details of the service at the event, they don’t address why YouTube doesn’t have deals with Time Warner (CNN, TBS and so forth) and Viacom (MTV, Comedy Central). Later, Kyncl says that recreating a cable lineup simply was not a priority. “Our content offering isn’t as complete as the one you can get with your cable or satellite subscription,” he cheerfully concedes when I speak with him in his office, a mini museum of media history featuring such artefacts as a vintage announcer’s microphone, Beatles LPs and Snap Spectacles. “We think that the older generation will gravitate toward their traditional way of subscribing to TV, and the younger audience will be happy with the offering that we have. That’s my thesis. We’ll see what ends up being the truth.” YouTube TV launched in April in five US cities (New York, LA, Chicago, San Francisco and Philadelphia), entering an increasingly crowded market of sub-R1 000, cable TV–like services delivered via the Internet. AT&T/DirecTV, Hulu, Sling and Sony PlayStation have only slight variations in channel lineup and pricing—and rumours persist that Apple will soon join the competition. YouTube hopes to differentiate itself by creating a better user experience than its rivals’, with features like a cloud DVR with unlimited storage and a search engine that’s smart enough to understand not just show titles but also concepts such as ‘history’ and ‘superheroes’. In its first seven days, the mobile
“This is w here the grow th is,” says Wojcick i. “It ’s w here the nex t generation want s to be.”
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data-analytics company Apptopia reported that 147 300 people downloaded the YouTube TV app—a relatively promising start if they’ve actually gone on to sign up. (Sling, which has been in the market for two years, reportedly has more than 1 million subscribers.) For now, YouTube TV is a solid rough draft. Although the service mixes conventional TV programming with YouTube Originals available on the Red subscription service, such as Lazer Team and other youth-oriented movies and series, it’s barely begun to integrate YouTube’s virtually infinite cache of entertainment, news and how-to information, much of which could satiate the desire for any missing cable channels. In addition, its ad experience still mirrors what you’d see on cable TV rather than taking advantage of YouTube’s signature user control and variety of commercial formats. Indeed, the networks are currently controlling the ads, not YouTube. “We obviously have a lot of experience with innovative ad products,” says Kyncl. “We can bring that whenever our partners are ready.” Wojcicki points out that YouTube itself reflects more than a decade of learning and technological advances. YouTube TV just needs time to develop. Ask Wojcicki about YouTube’s attitude toward monetising its business, and she sounds like a startup founder. “We’re focused on getting the users to YouTube and happy with the experience, and keeping that growing, with the belief that the advertising will continue to come,” she says. “Because advertisers go where the users are.” Given her central role in bolstering Google’s overall ad revenue, though, she has put a lot of effort into making ads both more effective for marketers and appealing to users. That’s included a migration away from formats that feel like, well, TV commercials in favour of ad units that are unique to YouTube, including six-second ‘bumper’ spots. “It’s amazing the way you can tell a brand story in a short amount of time,” Wojcicki says. The service plans to phase out unskippable 30-second ads by 2018. These moves represent yet another chapter in YouTube’s history of ad innovation, which began in 2010 when the company started to let viewers bypass many spots after the first five seconds and only charge advertisers when someone didn’t fast-forward. No YouTube ad initiative has been more important to the company than Google Preferred. Launched in 2014, three months after Wojcicki’s arrival as CEO, the programme allows companies to target ads to the top 5% of YouTube videos in categories such as beauty and fashion, music and comedy, based on a proprietary algorithm involving total audience and passion level among viewers. It’s engineered to give big marketers brand-safe content that speaks, especially, to 18- to 34-year-olds—allowing YouTube to compete for TV dollars (and charge more like networks, too). Thanks to Google Preferred, during last year’s upfronts—the ad-buying season when networks presold $18.6 billion (R241 billion) worth of commercials— YouTube was able to “negotiate side by side with the
TV networks rather than being dealt with after the TV discussions were done,” says Tara Walpert Levy, Google’s VP of agency and media solutions. “That speaks to the breakdown of the silos between TV and [digital] video.” This erosion of boundaries has implications for the advertising industry. As 2016’s upfronts approached, media-buying firm Magna Global agreed to spend $250 million (R3.2 billion) of its clients’ money over five quarters on YouTube ads. “The initial reaction was one of disbelief on the part of some of our TV partners,” recalls David Cohen, Magna’s CEO for North America. “They thought it was negotiation [tactics] as opposed to real and substantive. When we went to the upfronts and actually had less money to spend, it was clear. It made networks hungrier for the business.” That was 2016. The 2017 upfronts took place less than three months after YouTube’s ad-positioning woes began, reminding marketers that embracing YouTube isn’t as simple as shifting dollars from one budget line to another. Google Preferred was designed specifically to shield advertisers from controversy, and yet a renegade creator like PewDiePie—the YouTube superstar whose failed comedy sketch featuring two guys carrying a sign that read death to all jews initiated the trouble—presents risks that simply don’t exist on conventional TV. That said, the ad business overall appreciates that YouTube is neither antiseptic nor bland. Marketers promoting an R-rated horror film, for instance, are far less skittish about the content accompanying their ad than the marketer of baby shampoo. In fact, Rob Norman, chief digital officer at GroupM, the world’s largest media buyer, says he doesn’t know of any instances of movie studios—among the biggest spenders for both YouTube and TV advertising— pulling campaigns in the wake of the dustup. Although networks such as Fox and NBC have publicly trashed YouTube and its rival Facebook as being too risky for TV dollars, there are signs of recovery: Cohen notes “the vast majority of clients that had paused Google activity are now back and live.” Johnson & Johnson, one of the highest-profile brands to have sidelined its YouTube campaigns, is returning to Google Preferred. Just as important, it also grabbed the sponsorship of Best. Cover.Ever., a new YouTube singing competition hosted by Ludacris and created by Ryan Seacrest’s production company. “We knew immediately we wanted to be the exclusive sponsor,” Jeff B. Smith, North America company group chair, says in a statement to Fast Company. If Ryan Seacrest–produced content isn’t brand-safe, nothing is. The ad controversy has obscured a longer running, more intractable issue that Wojcicki has yet to solve: keeping the service’s community of creators happy. This constituency has chafed at a number of real and perceived slights, but now fears burning out in the effort to keep pace with the Hollywood talent it’s increasingly competing against for viewers’ (and YouTube’s) attention. The company “wants longer videos, more videos, more frequency,” says Jim Louderback, a partner at the
VC firm Social Starts and former CEO of streaming TV network Revision3. YouTube’s algorithm is rewarding that kind of content, particularly if viewers respond to it. Consequently, some high-profile YouTubers fret that the service is turning against them. Last December, Matthew Patrick, whose gaming channel has more than 8 million subscribers, funnelled his angst into—aptly—a YouTube video. “Practically none of YouTube’s organically grown creators can stay on this treadmill 365 days a year,” he said in a voice-over. “But you know who can? Large companies with hundreds of employees who are already used to 24-hour news cycles.” While he spoke, an animation showed YouTubers tumbling off a treadmill while anthropomorphised logos for Today, Ellen, The Late Show and The Tonight Show jogged gamely onward. YouTube’s artistic community has long grumbled about the company taking a reputed 45% of revenue from ads placed on their videos. Now, as the company fiddles with the levers on its platform to reduce the chances of ads showing up where marketers don’t want them to, some good-citizen video uploaders, from news commentators to wrestling fans, have seen their views and revenue fluctuate wildly—an effect they describe as the “adpocalypse”. “It’s been tough for the creators, too,” Wojcicki acknowledges. While she isn’t budging on YouTube’s share of ad revenue, it has greatly expanded its customerservice system for creators, with email support available to all and dedicated phone reps for those with 100 000-plus subscribers. A new feature called Community allows creators to share items other than videos—such as text, GIFs and polls—with their fans. Wojcicki has also expanded YouTube’s global network of lavishly equipped production facilities. There are currently nine of them, known as YouTube Spaces, located in cities from LA to Mumbai. Creators with at least 10 000 subscribers (who number in the hundreds of thousands) have free access to soundstages, editing workstations, 360-degree cameras—everything they need to ramp up the ambition and production values of their videos. YouTube has grown so pervasive and familiar that it’s easy to lose sight of the unique value at its core. Burnie Burns, co-founder of Austin-based Rooster Teeth, which produced the YouTube original sci-fi comedy Lazer Team and its upcoming sequel, still remembers being dumbstruck almost a decade ago by what the service offered: “They completely changed the game in terms of the ability to monetise video with pre-roll advertising. That did not exist earlier.” “You have all these people whining and complaining,” adds a cappella singer Peter Hollens, who performs popular renditions of songs from “The Sound of Silence” to “Let It Go” in harmony with other YouTubers or multiple recordings of himself. “When in the history of mankind have you been able to have free worldwide marketing on a platform?” Not to mention distribution, hosting and promotion. Hollens isn’t utterly dependent on YouTube ads for his livelihood: Fans make ongoing pledges to pay for his videos via crowdfunding platform Patreon, which he calls “a quintessential part of my growth income”. But without YouTube, he would never have built the following that supports him there. (Patreon was itself co-founded in 2013 by Jack Conte, a popular YouTube musician who struggled to make a living purely through ad revenue; Fan Funding, YouTube’s own donation feature, floundered and was recently replaced by a new attempt called Super Chat.) Wojcicki insists she wants to hear what’s on creators’ minds, even when they’re disgruntled, and no matter what the venue. Sometimes they reach out to her directly on Twitter; sometimes one of her kids will watch a video, encounter a gripe, and relay it. A day before Brandcast, she held a summit for creators in New York. “We have to run this delicate ecosystem between the viewers, the creators and advertisers,” she says. When I visit her office at Google’s Googleplex headquarters in Mountain View, California (where she works one day a week), Wojcicki doesn’t start our conversation with her perspective on creators or marketers. Rather, she proudly shows me a small sculpture that her 9-year-old daughter made for her. Fashioned from Tinkertoys and cardboard, it’s emblazoned with slogans such as “Fairness is for everyone,” “Don’t go backward, go forward,” and “I see the future in your eyes.” High expectations follow her wherever she goes. hmccracken@fastcompany.com
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Next
Creative Conversation
“ IT’S LIKE A LIGHT BULB COMES ON” How former teacher and principal Robin Booth has made property investment as easy as ABC Interview by Siphosethu Nini
Top results Booth says his company Capital Partners has solved some of the real challenges for both amateur and pro property investors.
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Qualifying as the only South African male preschool teacher in 1996 proved to be the first of many achievements that Robin Booth would get under his belt. Passionate about solving problems, he went on to attain further achievements in the field of education: from the teachers’ lounge to the principal’s office, opening his own school in 2005 (and selling it five years later). Booth founded the Synergy Schooling Approach, which demonstrates how easily personal and academic excellence can be achieved when a teacher uses skills in boosting self-esteem and developing the child’s internal motivation for success. He also has his own website where he gives moms and dads intelligent solutions to their everyday parenting challenges. In 2001, Booth built his home by himself, setting a solid foundation for what would be a great venture eight years later. Today, he’s one of the biggest property dealers and investors, operating both locally and in the US through his company Capital Partners. What inspired you to choose teaching as a career? At a core level, I’m a great problem solver; when I find solutions to any type of challenge, I love sharing those solutions with others such that their lives are enriched and more fulfilling. I chose the preschool age range to specialise in, because in those formative years, for a child it’s never about learning content but more about learning to be human. The things I taught them would last a lifetime and create the foundation for their life-long success and fulfilment. What was your approach in opening your own school? The quality of our learning about academics, ourselves and life is deeply connected to the relationships we have with the people around us. In business, what creates success is the quality of the team and the communication within the team. Ninety-nine percent of people will recall the class in which they learnt the most as the one with a dynamic and passionate teacher who had a respectful attitude toward the learners. In my school approach, all our teachers were highly trained life coaches and experts at empowering learners, while at the same time using their internal motivation to challenge their own learning. What would take three weeks to cover in a traditional school was covered in one day by our learners. The best thing about this approach is that it’ll never be outdated, as it taps into the core of our striving to unlock our best potential. Why did you then decide to sell the school? Perhaps my greatest learning curve in this process and in business is that I can solve a problem in just a few weeks, but can spend a lifetime trying to convince people that the solution works. I was tied to the day-today tasks of running a school. I decided it was time to move away from this and focus more on the sharing of our experiences and insights on a global scale. The school was a non-profit organisation; the vision was a successful coming together of teachers, pupils and parents to create
The home Booth himself built over three years—with architecture that was ahead of its time.
something meaningful that would impact everyone. The school was then turned into a private school after I sold it, and the new owners reverted to the old methodology. A few months later, I asked them to change the name so they could create what they wanted, while my brand could be safeguarded. In 2001 you started building your own house, which eventually took three years to complete. How was that experience? That was a crazy experience, but it gave me valuable insight into building and development. I worked every day with my own
“Successful investors are not limited to a country’s borders. A good deal is a good deal no matter the location, as long as you’ve done your due diligence.”
hands for three years, and learnt everything from first-hand experience because I did everything myself: carpentry, cabinet work, tiling, shuttering and welding. At that time, we were pushing the boundaries of modern residential home building, using steel beams, cantilevered columns with huge glass panels, and offshutter concrete walls. Now that style is common. It was really fulfilling, especially when the TV show Top Billing wanted to do a prime-time story on the house. What have you done your own way to ensure you always stay ahead of the game? I value the ability to reinvent myself. Our traditional school system indoctrinates us into believing we are static, and that we choose a career for life, and that we must spend our childhood preparing for adulthood. Our own beliefs are the things that limit us from achieving and experiencing more. In my companies, we challenge the status quo and that’s why we continue getting asked to be keynote speakers at conferences and at the annual GIBS Career Expo for more than 2 500 of South Africa’s top students.
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Next
Creative Conversation
How does the South African property business compare to that of the US? The fundamentals of property and business in any country are the same. What vary in each country are the market, the regulations and the people. You’ll find that successful investors are not limited to a country’s borders. A good deal is a good deal no matter the location, as long as you’ve done your due diligence. Are there different risks involved in investing in big developments or single ones, family or commercial residences? There’s only one big difference between all these: your belief system. Henry Ford said, “Whether you think you can, or you think you can’t— you’re right.” This isn’t about skills or expertise. The first time I did a big development I was honest with myself about what I didn’t know, and then got people who were experts to support me. But I believed I could, so I went ahead and did it. Know thyself, be thyself, and then go get it! How do you go about coaching and mentoring investors for business and property investment? The most important thing about mentoring and coaching investors and businesspeople is understanding their natural path to wealth and success. Although there are many different paths to wealth and success, we can put these into eight different categories. Most people fail in business because they’re following a path to wealth that doesn’t work for them. So with me, they first do a 10-minute online test and once they know and understand their results, it’s like a light bulb comes on for them. Then I coach and work with them to develop strategies that get them to their financial dreams and to having fulfilling lives. It’s incredible to watch! Tell us more about your company Capital Partners. What differentiates it from other property businesses out there? We’re doing what no one else is, having solved some of the real challenges for the everyday, “The first time I did amateur investors as well as the a big development pros. We’ve found a way for foreign I was honest with investors to buy real-estate property in the US with up to 90% finance, myself about what without needing a credit history, I didn’t know, and without needing to prove income, then got people at interest rates between 3% and who were experts 4%, with no transfer or closing to support me. But costs—all within five days, at no I believed I could, risk. On top of that, we get that so I went ahead property tenanted and managed and did it.” for the investor by the best national property group in the area, and then ensure all legal and tax compliances are set up and completed. All of this is totally legal, transparent and compliant. We’ve solved perhaps the biggest stumbling block and challenge all investors have in wanting to grow and profit from investing in real estate. It’s actually difficult to believe at first. So you ensure property buyers/investors get the best deals? If we’re not willing to buy it for ourselves and our own portfolio, then we wouldn’t offer it to anyone else. This is important, because we’re also investors, so we know how to evaluate and provide what investors are
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30 SECONDS WITH...
Robin Boot h FAVOURITE QUOTE?
“If I keep doing what I’ve always done, I will keep getting what I’ve always got.” FAVOURITE BOOK?
“The notebook that has my name on it, constantly inviting me to create the life I want.” FAVOURITE DESTINATION?
“That place in my heart and soul that lights up and makes me feel like shouting into the wind. It’s a bit like kitesurfing a big wave towering overhead, and every ounce of my focus and attention is alive right in that moment.” FAVOURITE TECH GADGET?
“The 3D printer. This is going to allow us to colonise Mars, print new body organs if ours fail, and print houses to fill up the housing shortage.” HOW DO YOU UNWIND AND RELAX?
“Surfing big waves, or going kitesurfing and coming out the water having given it my all, or doing some serious CrossFit.” BIGGEST INSPIRATION?
“I love reading books by people who have believed they can do it: from Ernest Shackleton, to Nelson Mandela, to Elon Musk.” BEST MOMENT OF YOUR LIFE?
“That light-bulb moment when I was 28 years old and realised I could create a belief system that focused on the empowering of the new, as opposed to the fear of the past and unknown.”
looking for. Creative problem solving is the strength of this team, and the solutions we’ve created totally redefine what makes a good deal. As we are the ‘good teacher’, we don’t have to sell ourselves to the investors, or get them to trust us—they can see for themselves how great the deals are. They can take ownership of the process from the start, and remain in control at all times. How has having a business coach influenced you as an entrepreneur? I’ve known my business coach JT Foxx for a few years now, and I’m still continually learning from him and his other coaches. His insights into marketing and branding are incredible, and these have really paved the way for our growth. He has shaped the way we negotiate deals and create joint-venture partnerships, and the way we place importance on relationships. We couldn’t have taken this company to the next level without his coaching. Any projects in the pipeline? What can we expect from you in the near future? Three weeks ago, I paid R1 300 for a house in Florida that was worth R1.5 million. Fully financed, already tenanted, and all expenses and finance costs paid by the rental income—and with no risk to me at all. We’re so excited by this model of investing that we’re buying property deals like this for ourselves and are now sharing them with other investors. No one out there has done this before. Here in South Africa we’re in the process of developing apartment blocks of between 100 to 200 units, and we also cater for short-term house flipping and developments. Our main drive in all our deals is to bring the concept of ethical investing to the table. As investors, we feel that as we’re creating wealth and success for ourselves, we can share with other people so they can do the same for others.
BANK BORROW SAVE
Build a dream or build an empire?
EARN INSURE We would love to come along for the journey.
standardbank.co.za/whatsyournext Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). Moving Forward is a trademark of The Standard Bank of South Africa Limited.
Fast Company promotion
Independent women How the Standard Bank Incubator helps women entrepreneurs build sustainable businesses
Despite the tough economic conditions in South Africa, women entrepreneurs play a huge role in boosting the country’s gross domestic product to a steady position. An increasing number of women are starting businesses and creating employment opportunities across all major sectors of the economy—a reality that’s evidenced by the number of women attending the structured business development accelerators held at the Standard Bank Incubator. During last year, 70 women had benefited from the programme held at the incubator. The number of female entrepreneurs attending workshops for small to medium enterprises at the incubator has nearly tripled in 2017. To date this year, approximately 120 women have either completed their structured course or are currently signed up on a programme of these businesses. Entrepreneurs who have honed their skills at the incubator, and who had initially employed around 200 people, have added another 136 new jobs to their companies.
Aiming for high growth It’s results like these that continue to motivate the Standard Bank incubator to develop programmes that deliver powerful content to entrepreneurs. One of these is the new HighGrowth Accelerator Programme co-sponsored by Liberty. It brings together women from all sectors who will be taken through a highgrowth-focused 12-week course designed to boost their ability to attract customers in what is a challenging and competitive market. The incubator has strategically partnered with Tumi Frazier, founder of the Tumi Frazier
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An increasing number of women are starting businesses and creating employment opportunities across all major sectors of the economy
Academy, on the women’s High-Growth Accelerator Programme. Frazier is a highly acclaimed South African businesswoman who has worked with organisations across African, American and European markets. Known for combining psychology and coaching disciplines with business consulting skills, her clients range from medium to large corporations, universities and schools. Running concurrently with this programme is the Women In Technology Accelerator, which has a total intake of 25 women who already have businesses in the tech space. With Liberty and the support of reputable brands such as Microsoft, the emphasis of the Women In Tech Accelerator is to grow small, competitive tech companies into successful suppliers to major corporations. Jayshree Naidoo, head of the Standard Bank Incubator, notes the remarkable impact of having so many women participating in a programme driven by technology—which is commonly seen as a male-dominated industry. This programme
works against the perception that South African women don’t regard tech as a serious career option; in fact, surveys have revealed that 66% of girls interviewed while still in school say they would like to have careers in technology. However, post-matric research shows that only 4% of those initially interviewed actually enter careers in the field. “This situation is changing rapidly. The level of interests in our programme is indicative of the fact that women are ready to challenge the status quo in the tech space,” says Naidoo. The incubator also runs the Lioness of Africa Accelerator second cohort in 2017. The programme will continue until August, culminating in a showcase of all the businesses in this cohort and the Women In Tech cohort. The programme in partnership with Lioness of Africa is concerned with increasing the numbers of women participating in Africa’s economies. The programme is also co-sponsored by Liberty. Amanda Khoza, who heads Transformation and Inclusion at Liberty, notes that the key to successfully assisting entrepreneurs, and particularly women, so that they can benefit from these hands-on programmes, lies in
creating effective partnerships and networks. “At Liberty, and working in conjunction with the Standard Bank Incubator, we have identified women who we believe will benefit from the structured programmes we offer. To provide delegates with as much value as possible, we create partnerships with women in various sectors who have the expertise to provide dynamic insights and inspire others; these women participate fully in the programmes and mentor women who are walking the challenging path into creating sustainable businesses of their own,” she adds. According to the latest Global Entrepreneurship Monitor report for South Africa, entrepreneurial intentions have decreased compared to 2010, and are 3.6 times lower than the African average. Women seem to be the most impacted during 2014—they were 2.6 times more likely to start a business out of opportunity—but in 2015, this figure decreased to 1.6 times. “It is with this strategy that we are able to help curb some of these challenges,” says Khoza. “We are proud of this programme, as it is set to provide much-needed support for female entrepreneurs on the continent. Part of our role as corporates is to enable change in our communities and accelerate inclusive growth for our economy by addressing unemployment.” The success of all the programmes held at the incubator is measured by the ability of the attending cohort of entrepreneurs to access new markets, create more job opportunities, secure new business and being better equipped to grow their business to their full potential. By achieving these measures, not only will the programmes be validated but the economy as a whole will improve. Beyond this programme, Liberty Life has made strides with its blue Skies Enterprise and Supplier Development Programme, an initiative targeted at existing and potential suppliers of the insurance giant. This programme is now working closely with the Standard Bank Incubator to provide targeted growth opportunities to various groups including youth women, education and township businesses. “Essentially, this programme exists to develop the small businesses that form part of our procurement chain,” explains Khoza. “We work with these companies to develop them from small businesses into growing enterprises.” She continues: “Entrepreneurship is frequently thought of as an economic advantage, and entrepreneurs need to be developed and motivated in order to grow; however, not enough has been done to nurture this process. It will require collective efforts from business and government to provide meaningful change for our society to truly be sustainable and thrive. We are hoping our partnership with the Standard Bank Incubator will allow us to expand our reach and ultimately add more value to entrepreneurs.”
To the next level On May 9 this year, 10 women entrepreneurs who are determined to make a difference in the delivery of education competed for their share of R1 million to help them take their businesses to the next level. Their efforts were rewarded by the Londvolota Enterprise Development Trust, which was established by General Electric. The women pitched to an adjudication panel, and the top three were announced at a cocktail event at the GE Africa Innovation Centre in Johannesburg. These top three entrepreneurs are now part of the Standard Bank Incubator’s High-Growth Accelerator Programme, which will run over a year.
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Fast Company promotion
Londvolota Enterprise Development Trust Top 3 winners with Jayshree Naidoo - Standard Bank Incubator, Kefilwe Morobane - Giving Wings (winner), Fatuma Abdullah - Akiki Dolls (winner), Jay Ireland - GE Africa CEO, Fulufhelo Ramulifho - Careers for a Powerful You (winner).
The remaining seven entrepreneurs will be given opportunities on the existing accelerators and development programmes through the incubator in Rosebank. “The Standard Bank Incubator was selected as a partner for Londvolota Enterprise Development Trust, as it has a strong record of developing women through tailored programmes that deliver high impact. The incubator places the entrepreneur at the centre of our development approach to ensure long-term, growth, sustainability and access to markets” says Naidoo. “The only common factor among all 10 entries in the Londvolota and Standard Bank judging process is the dedication of the women involved. All are socially aware and are committed to playing a role in the development of the youth, and focused on using innovative educational programmes to achieve their goals.” The top three entrepreneurs include Kenyan-born Fatuma Abdullah,
“We are committed to grow entrepreneurs through the Standard Bank Incubator across the continent.”
director of Akiki Distributors which makes and distributes an Afrocentric girl doll. Abdullah uses the doll to teach and entertain children, while her carefully authored books help them navigate their growth journey. The second entrepreneur is Fulufhelo Ramulifho, who owns and runs C4U: a goals-based training academy set to empower and teach youth how to create work by offering training to high school learners, school leavers and unemployed young people. And the last entrepreneur, Kefilwe Morobane, owns and runs Giving Wings: a communications and training company that develops effective communicators with leadership and entrepreneurial skills.
Let’s Lean In
Standard Bank is also the proud sponsor of the Lioness Lean In Breakfast events on the African continent. These women’s networking sessions—named after Sheryl Sandberg’s book—feature three or four women who share their business journeys with other women entrepreneurs. Incredible women who have been on this platform include Edith Venter, Stephina Zwane and Kefilwe Morobane. The Lean In sessions take place monthly and every other month in Johannesburg, Cape Town, Durban and Mozambique, with other provinces and African countries to follow soon.
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The future is here— are you ready? Standard Bank presents the first Singularit y Universit y Summit to highlight the impact of AI, robotics, blockchain and other exponential technologies
The future is undoubtedly digital, and businesses from manufacturing to financial services are applying cutting-edge technology to facilitate positive changes in the lives of customers. As such, the learning never stops as every sector throughout the world strives to be the first to invent the latest innovation that matters. At Standard Bank, we’re committed to driving positive change in Africa and, so, drive the new technologies that will encourage it. Our mobile traffic, after all, is growing 100% a year as branch volumes decline by 15%. The challenge for banks globally is to align new offerings with rapidly changing demand patterns, and to improve levels of customer engagement. This is no different in Africa, where the ongoing ability to study consumer behaviour will become even more critical to future growth. We’re very excited about matching innovation to customer needs. For instance, we have applied robotics software to our digital account origination, among others, as we look to leverage the power of AI to radically improve systems across numerous business segments and work to digitise a host of mission-critical processes. We’re also continually adopting new customer-centric solutions that range from new apps to contactless banking solutions, as we see an increasing need to employ world-class technology that will drastically bring down the time it takes to conduct banking tasks. For some time now, we’ve anticipated a very near future where smart automation will be the new operational advantage—and, while there is a clear rise in consumer demand, banks will need to build things people want.
It’s little surprise then, that we’re bringing you Africa’s first Singularity University Summit: a twoday international event in Johannesburg that will highlight the impact of AI, robotics, blockchain and other exponential technologies—not only in finance but in the similarly critical sectors of security, healthcare and design. To be held on 23 and 24 August, the summit invites the public, government officials, entrepreneurs, investors and non-government organisations to explore the various ways in which current and potential future innovations can tackle the world’s greatest challenges. Participants will have access to advanced technology, expert-led debates and discussions, and theories of best practice in a variety of fields. Summit speakers include Ramez Naam, a computer scientist and award-winning author; Raymond (Ray) McCauley, scientist, engineer and entrepreneur; Adetayo Bamiduro, co-founder and CEO of a crowdsourcing mobility platform for motorcycle taxis in Africa; and Dan Barry, a former NASA astronaut. As Africa’s largest bank by assets, we are fully aware of the challenges and opportunities the changing technological landscape brings, and we will not stand still when it comes to driving digital innovation. Africa is our home, and we drive her growth. Support for education and innovation at major events like the Singularity University will advance our own thinking, and ultimately assist in finding solutions to futureproof banking in Africa.
The challenge for banks globally is to align new offerings with rapidly changing demand patterns, and to improve levels of customer engagement.
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THE CASE FOR CHANGE
HOW THE RIGHT B U S I N E S S ST R AT E GY CA N E N A B L E D I G I TA L T R A N S F O R M AT I O N TO A D D R E S S STA K E H O L D E R NEEDS AND GROWTH A S P I R AT I O N S BY MICHAEL O’CARROLL
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When embarking on an enterprise digital transformation journey, does technology enable this business transformation or does it start with strategy? Enterprise executives have common business transformation aspirations: introduce new cloud solutions, find efficiencies in processes, increase margin, retain talent, capture and analyse data, innovate to avoid disruption, and find new value. A mammoth task exacerbated by the fact that the digital world reinvents itself every few months, making it hard to keep up. Directing funds to an isolated ‘innovation leader’ to help solve these challenges has often led to a nominal return. Even empowering CIOs to open firewalls and deploy new cloud solutions won’t, in isolation, realise the envisaged executive business transformation needs. Enterprises are now seeing the necessity to begin their digital transformation journey from the heart of organisation—from its vision, values and strategic priorities. For example, understanding which new cloud solutions will best align to what the organisation wants to achieve, how it wants to operate; and who it wants to attract into the business, is the starting point. Then group strategy needs to become agile. Gone are the days when a four-year strategy stays constant. A corporate vision will keep teams looking forward, but strategy needs to become nimble—and so do the leaders governing it. If technology is the laggard to strategy, then where’s the starting point? Start with the business case for change: Which problems do the material stakeholders need solved in order for the organisation to grow? Solving material issues will realise new value for the organisation and its stakeholders (staff and customers), which is basically the core definition of ‘innovation’. However, when an enterprise aims to drive change from an isolated ‘innovation function’, it often fails to generate the envisaged value. If it’s defined as the business case for change to grow new value for shareholders, then it gets the right level of executive support, focus and adoption. Once the business case is defined, then review the organisation’s structures and processes that are enabling or inhibiting the desired outcomes for change, followed by an agile roadmap to address issues, as well as set up quick-win projects and a programme plan for business transformation (including new technology). The business case for change needs to be focused and agile. There are always myriad problems to solve within an organisation. Having a prioritised list of focus areas that business analysts can help map end-to-end enhancements will help isolate what to change. Then aligning emerging technology trends to these issues can guide the innovation cycle. The Internet of Things, drones, beacon technology, chatbots and machine learning are all buzzwords, but which ones are most relevant to the prioritised areas of change? If mapping in-store customer shopping experience is a critical need for a retail business,
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then focus on how beacons can help map and enhance this experience. If large distribution warehouses can’t monitor and manage stock quickly enough, then perhaps take a deep dive into how indoor drone technology can use vision applications to solve this issue. If large quantities of data need to be analysed on a real-time basis to manage a cyberthreat, then which API (application program interface) has the power and speed to manage such queries? A priority list of projects aligned to the business case for change will help realise an outcome and demonstrate the ongoing value of the business transformation programme. The case for change should also consider the desired magnitude of change: Is the executive aiming for incremental change (innovation), or will the organisation strive for more radical disruptive interventions? Knowing the magnitude defines the extent of support, size of projects and funding required; one can’t launch breakthrough disruptive products with a small team and no budget. If the board wants radical change, then they should be prepared to support more radical interventions across the organisation. Executives can, at times, also be surprised that they have to change old ways to support a radical transformation. Strategy sets the tone and magnitude for change, but leaders also need to allow interventions in the way the company operates and engages it people and customers. Otherwise, little will change. If the case for change includes the need to transform and enhance internal collaboration, then a new cloud solution— like Google’s G Suite collaboration apps— could be an option to which to transition. However, if the organisation is looking to collaborate and innovate, then it also needs to review existing culture, values and creative spaces (innovation hubs). It’s not just about a new technology; it’s also about values that drive entrepreneurial behaviours, supported by creative physical spaces where teams can collaborate and experiment with the new technology. It’s about finding a sweet spot between multiple business transformation projects across the organisation’s structure, processes, people, spaces and technology that will help realise the intended case for change. One can’t forget that it’s a digital world, slowly being led by digital natives (irrespective of age) working from anywhere and collaborating online through virtual communities. Enterprises need to accept and enable teams to be based anywhere. If staff can share data across secure applications, like Google Drive, and collaborate on shared files, then they don’t really need to be office-based or even in the same country. Talent pools can reach across the globe and bring value into regional projects. Some social collaboration platforms are even starting to replace email systems, with teams jumping online to get a quick answer rather than typing an email. It’s the power of a cloud operating model. None of this change can be achieved without a strong change management programme bringing leaders on board, mobilising training programmes, and communicating the vision for change. Enterprises have historically undervalued the need for an adequate change management programme, but are now seeing the benefits of
enhanced engagement and alignment with internal teams. Formal business transformation teams and project management offices should be established to transition the enterprise onto and beyond new technology. A standard change management methodology will not only streamline projects but also bring a common experience to teams as the organisation shifts to a new way of operating. Change is the new norm, but it’s exhausting for staff, so a standard approach to business transformation projects can set expectations and ease the pain of change. Whether it’s about introducing new entrepreneurial values or new processes or new cloud solutions, a critical part in realising the intended benefits are post-deployment adoption programmes. Once the new values or cloud solutions are launched, what are the 12- to 18-month adoption programmes to embed a new way of working? Funding, executive endorsement and resourcing often dry up on the launch date, which basically allows teams to fall back into the old way of working. Large business transformation projects should be backed by equal energy and funding, pre- and post-launch. Achieving the case for change within a large organisation obviously needs strong leadership endorsement, which includes a close relationship between the CIO, CEO, CFO and an emerging role: the CDO (chief digital officer). The CDO needs to be a transformational leader who understands the digital world, who thinks like a digital native, and has a presence within the executive committee of the organisation. While the CIO and COO work to maintain and optimise current systems and processes, the CDO and CEO strategically plot how technology, people, process and strategy need to change to meet changing stakeholder demands and business growth aspirations. One could argue that a CDO role, in a digital world, has the power to create a new way of working that can enable the creation of new value—which is essentially innovation. Even with executive endorsement and an empowered CDO, the enterprise can only go so far on its own. Collaborating with external parties can help the broader transformation programme and brand, whether this is with a large technology company like Google, or with smaller emerging startups that can help solve some of the critical problems the organisation faces. A collaboration programme with emerging startups will not only help influence the culture within an organisation but perhaps could be a way to filter and find future business acquisitions. External collaboration is an effective way to disrupt dominant logic that’s stifling the way people think or how the organisation is perceived in the market. Strategy is the evolutionary start to digital transformation; however, new technology has the power to disrupt and break old processes—which can influence the design of the future organisation. Innovation, in turn, is the result of the right business strategy that enables digital transformation, which addresses material stakeholder needs and growth aspirations.
CHANGE IS THE NEW NORM, BUT IT’S EXHAUSTING FOR S T A F F, S O A S T A N D A R D APPROACH TO BUSINESS T R A N S F O R M AT I O N PROJECTS CAN SET E X P E CTAT I O N S A N D E A S E T H E PA I N O F C H A N G E .
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Michael O’Carroll is associate director of digital transformation at PwC South Africa.
We know Africa! The new African Indy, is an exciting print and digital brand dedicated to bringing you African voices from around the continent - for a global audience. Africa's stories, told by Africans.
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Visit us on www.africanindy.com or ask for a copy of the newspaper at your nearest retailer. Adrian Ephraim - Editor Email: adrian.ephraim@inl.co.za
Next
Brand Aid
FROM FAD TO FAVOURITE Why innovative trends need to be unique, credible and simple to stand the test of time
GUTTER CREDIT TK
By Jacques du Bruyn
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Next
The first step ever taken by Homo sapiens was probably in the general direction of a congregation of sorts. Humans have always gathered around things that matter to them: religion, ideology, food, family, technology, recreation etc. As civilisations grew, however, it became more complicated. Today, humans mostly live and gather around cities, the most densely populated spaces in the world. People move from far and wide to live in urban areas—the big lights draw them like moths to a flame. But beneath the surface it’s more than that. It’s ambition, it’s the furthering of self, it’s survival. For centuries, travellers and globetrotters have been drawn to the magical cities of the world. When we see that a fashion brand is from New York or Paris, there’s a sense of brand gravitas. Cities also validate religions: Nashville is the city of American gospel music; Mecca is the holy city of Islam; Jerusalem is the holy city of Judaism and Christianity alike. Cities carry identities: Rio is for parties, Rome is for history and art, Amsterdam is for flowers. Wherever we’re from or whatever our story, cities have influence over us. Today we have figurative cities as well, concepts around which humans gather. They could be trends and fads, or they could be long-standing. The ‘big lights’ of the fidget spinner have inspired humans to congregate around the idea that spinning an oblique object will somehow balance their chi. How long will this city last? Some cities last forever, like Jerusalem; others, like Troy, get destroyed. Is Jerusalem still standing because it’s founded on deeply religious grounds? Did Troy fall because it was nothing more than a fidget spinner? I’d like to
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Brand Aid
coin these fads and trends around which people gather the “fast cities”, because they come and go. On the other hand, the ideas, products and concepts that last are the “slow cities”, because they endure over time. In the last decade, technology has developed exponentially. Google CEO Eric Schmidt recently stated that we now create as much information in two days as we did from the dawn of man through 2003. That’s remarkable! That means humans are congregating online more than ever before. Here are some of these ‘fast cities’ to look out for as we enter the second half of 2017:
WORDS The older folk always disagree with pop culture’s bastardisation of their precious language. In 2016, we saw the use of words like woke (aware), lit (really nifty) and bae (love interest). Somehow these words caught on and pop culture used them. Look out for the new words, the new ‘lit’ lingo, that’ll start emerging on social media and even in brand advertising.
TECHNOLOGY We’re noticing more and more how smart devices are becoming
integrated into our daily lives. The Internet of Things is speeding up, and we’re realistically looking at owning self-driving cars in the next five years. Our homes, our devices, our cars are very soon going to be speaking to one another and feeding data to the interwebs. The rate of change is exponential—today’s technology is outdated tomorrow.
PERSONAL VIDEOS There’s a lot of disposable content on social media, with everyone having something to share through Facebook, Instagram
easier. I’m sure we can expect similar products from similar social networks. With the skyrocketing popularity of fads like fidget spinners and popsockets, don’t be surprised when a street vendor soon flags you down at the intersection with a completely new gadget.
or WhatsApp stories. But what we’re seeing more and more of, especially in 2017, is the rise of the personal video: individuals broadcasting ideas, thoughts and opinions to the world. When blogging became a thing, everyone started blogging—but only the ‘true bloggers’ have kept at it. It’ll be interesting to see whether the personal video lasts and whether the broadcasters will keep it up.
GADGETS Last year Snapchat released its crazy sunglasses with a built-in camera to make taking photos
● It’s obvious these ‘fast cities’ are still growing, and the number of people congregating is picking up pace. If you’re familiar with the innovation adoption curve, you’ll know it’s divided into five levels of adopters: the innovators, the early adopters, the early majority, the late majority, and the laggards. The innovators will congregate first, as they’re most drawn to the lights of the ‘fast city’. They’re charismatic and will, as author of Ideavirus Seth Godin says, sneeze the idea of why they’re congregating onto others, which in turn creates a snowball effect. They’re the influencers. What, then, is the anatomy of a ‘fast city’? What makes something a fad? The Oxford Dictionary defines a fad as “an intense and widely shared enthusiasm for something, especially one that is short-lived and without basis in the object’s qualities.” Humans congregate around a fad because they’re defining themselves within
With the skyrocketing popularity of fads like fidget spinners and popsockets, don’t be surprised when a street vendor soon flags you down at the intersection with a completely new gadget.
relation to their peers. Defining a ‘fast city’ is somewhat grey, because no one really knows how a fad starts. But here’s what I think makes up the anatomy of why people congregate and why the sneezers will join in: It’s about relatability; humans want to date and they want to relate. Humans want to be where other humans are, because that’s how we survive both physically and emotionally. Congregating around a fad or an idea happens because we have a need to relate. If that guy is doing it, then it must be right. We validate our choices through others. It’s about FOMO—we have a severe fear of missing out. We’re curious, and we want to know what it’s like. Therefore we congregate. We try it out. We want respect, we want to be liked. We therefore congregate so that we are seen to be in the ‘zone’ where everything is happening. This could all be true for a literal city as well. Why does the world want to experience New York or Rio? They don’t want to miss out on what people are sharing about these cities on social media (again, FOMO). They want to be seen as being in the places that matter. The psychology between the role that physical cities play in the history of
humans and their movements, and the figurative ‘fast cities’ that attract us, is actually very similar. If this psychology is true, the concept, idea or product that’s labelled a ‘fast city’ has to be unique. This plays directly into the human nature of wanting to try something new. If we’ve tried something before, heard of it before or felt it before, there’s no way we’re going to get excited about it. It’ll only survive the first week if it’s unique. The ‘fast city’ also needs to show some kind of credibility from the outset. No one’s going to turn their head and give it a try otherwise. But this doesn’t mean it has to be credible at the core to become a fad. Take, for instance, the balance bracelets that came out three or so years ago. Every store was selling them, and athletes honestly believed they improved performance. But no one uses these balance bracelets anymore, simply because they actually don’t work. Lastly, the concept of the ‘fast city’ needs to be simple: easy to understand, explain and talk about; it needs to be easy to share. Why does all this matter? The psychology of attraction is important. But the psychology of prosperity is imperative. Some cities we merely visit; others we live and grow in. Businesses can take note here, because money can be made from ‘fast cities’, almost like tourism. But lasting prosperity comes from offering a product or solution that creates long-term value as well— a ‘slow city’. Use the principles of ‘fast city’ attraction: concrete, credible and simple. But when you have people’s attention, show them that the product’s roots can be sunk into the soil, and that there’s a future for it.
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Next
World-Changing Idea
PEEL APPEAL How fruit-and-vegetable processor Baldor is transforming food waste into a big business By Adele Peters Photograph by Kevin Van Aelst
Every week, about 450 000 kilos of produce are plucked from farms all over the country and delivered to Baldor’s 16 000m2 facility in the Bronx, where it is washed, chopped and packaged before being trucked to grocery stores and restaurants. In the past, the trimmings—carrot peels, strawberry tops, onion skins and so forth—were brought to a landfill and composting facility, amounting to 150 000 pounds (68 000kg) of waste per week. That changed when Thomas McQuillan, Baldor’s director of food service sales and sustainability, realised what he was throwing away. “I looked at the product and said, ‘It’s food,’ ” he recalls. “ ‘We need to treat it as food.’ ”
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Hidden value Baldor and its clients have come up with inventive ways to use scraps. Haven’s Kitchen, a café in Manhattan, sweetens turmeric tea with pineapple rinds. Baldor turns dehydrated vegetables into gluten-free bread products.
Now, after launching a major waste-reduction initiative, the company no longer trucks anything to the dump—essentially producing zero organic refuse. Vegetable leftovers are bagged and offered to chefs for use in stocks or sauces. Fruit odds and ends are sold to juiceries, which use them for cold-pressed drinks. Scraps that aren’t suitable for human consumption (such as sweet melon rinds) are made into animal feed. Anything that falls on the floor of the facility or arrives rotten is processed through a “waste-towater” machine, which turns food into a slurry that can safely go down the drain. Baldor, which began as a New York City fruit stand in the 1940s, is also blending scraps into entirely new products that it then sells in grocery stores under its private label, Urban Roots. The items contain what’s known as a dry vegetable blend: a mix of 20 different vegetables that have been dehydrated and crushed into a flour-like consistency. It can take the place of wheat in certain recipes, while upping the nutrient
density. Baldor has already introduced gluten-free croutons and breadcrumbs that incorporate the mixture, and stuffing will follow within the next year. The changes aren’t just good for the environment—they have also provided a significant boost to Baldor’s bottom line. In addition to saving money (hauling waste to the landfill used to cost the company about 10 cents/R1.20 per 450g), the company is also generating new revenue: Certain scraps, such as carrot peels, are selling for as much as 30c/R3.80 per 450g. “There’s a huge profit potential there,” says Katy Franklin of ReFed, a non-profit that helps corporations reduce food waste. “It makes financial and social and environmental sense to be addressing this. The biggest hurdles are awareness and training—figuring out the right processes and establishing partnerships.” The partnership part is especially important, since someone has to actually buy Baldor’s food-waste products. Many high-end chefs are excited about the idea, both because it’s good for
“I looked at the product and said, ‘It’s food. We need to treat it as food.’ ”
the environment and it challenges them to be creative. Adam Kaye, who oversees the kitchens at renowned NYC restaurants Blue Hill and Blue Hill at Stone Barns, uses the tough cores of lettuce heads in salads or marinated as a side dish, and incorporates the pale inner leaves of celery hearts into spices or stocks. “We talk about the nose-to-tail approach to butchery—you use everything on a pig,” he says. “[We need to] apply that same approach to vegetables and the whole farming system.” Next, Baldor is planning to take a hard look at the pallets and boxes it uses to deliver products to its customers. Supermarket-style produce boxes are typically made out of waxed cardboard, which isn’t recyclable. Baldor’s McQuillan is working on alternatives, and in the meantime the company’s packaging is used multiple times rather than just being discarded. “Part of the [goal] is recognising that we can do things differently,” he says. “All companies should want to glean the greatest value possible out of their assets. We really need to make a change now.”
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Fast Company promotion
A full productivity stack How GTconsult can help your business collaborate better while continuing to grow typically on a proactive basis and under a subscription model. Here is what GTconsult can do for your business: GTconsult is fast establishing itself as the consultancy of choice that focuses on clients’ feedback and desires to improve their business. Technologically driven, it provides bespoke productivity solutions that leverage off collaboration software. The brainchild of accomplished technological experts Bradley Geldenhuys and Craig Tarr (who are still key stakeholders in the company), GTconsult believes tech could be implemented more effectively by offering clients a full stack of products, services and powerful tools for automation, collaboration, education and support. These are great individually, but even better when used together. And that’s where GTconsult can assist—whether your business deals in finance, telecommunications, fashion, industrial or media. From its roots in Cape Town, the company ventured out to the rest of South Africa with branches in Durban and Johannesburg. But with clients growing rapidly in key global destinations, GTconsult opened an office next door to the Microsoft campus in Redmond, Seattle, as well as in London. GTconsult’s motto is “Everything SharePoint,” and its team of certified consultants, architects designers and infrastructure and cloud experts cover all clients’ SharePoint needs. Business acumen and strategic planning capabilities are bolstered by a number of key staff members holding MBAs from respected tertiary educational institutions.
Managed ser vices A managed service provider is a company that remotely runs a customer’s IT infrastructure and/or end-user systems—
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The A Tea m : you r friend ly neig h bou rhood prod uctivit y exper ts Everything done at GTconsult is with the client in mind; solutions are crafted to specifically assist at every step of clients’ collaboration journeys, depending on their requirements. The specialised A Team gives clients the flexibility to temporarily expand their own teams on demand, permanently dedicate time to internal requirements on a month-to-month basis, and ultimately ensure a successful collaboration journey.
Everything done at GTconsult is with clients in mind; solutions are crafted to specifically assist at every step of the clients’ collaboration journeys, depending on their requirements.
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Re st ea sy wit h t he Um lind i tea m on t he job With GTconsult’s Umlindi team at their side, clients have the confidence and ability to rely on their collaboration platform as a business-critical tool. By leveraging the helpdesk to support their internal IT team, clients will ensure customer confidence in their platform.
To Share (is the) Point As accomplished tech experts, directors Bradley Geldenhuys and Craig Tarr are well-poised to offer GTconsult clients the right tools for automation, collaboration, education and support.
GTconsult is a Microsoft Gold partner for Cloud Productivity, Collaboration and Content, and recognised as a key Microsoft business partner. It has been awarded Nintex Premier Partner status for three years in a row, and is consistently a finalist in the Microsoft Partner of the Year Awards and the Nintex Partner Awards. And if that weren’t sufficient proof of its expertise, GTconsult is also a Gold Content and
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Collaboration Partner; has achieved partnership credentials in SharePoint Deployment Planning Services; and is an active member of the prestigious BusinessCritical SharePoint Programme. But GTconsult does not keep its knowledge and understanding of IT between its own four walls: The company prides itself on giving back to the community, with team members regularly speaking at SharePoint
Saturdays and Information Worker community events. Clients can be assured that each project is undertaken with a deep passion for technology. Central to GTconsult’s service offering is showcasing credibility across all client touchpoints and then closing with a level of professionalism that gives clients peace of mind that their every business need has been taken care of.
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MUD
GUTTER CREDIT TK
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MUD
TOUGH MUDDER, THE OBSTACLE-COURSE COMPANY THAT PUTS REGULAR PEOPLE THROUGH ALMOST COMICALLY EXTREME CHALLENGES, IS TRYING TO CLEAR ONE OF THE BIGGEST HURDLES IN BUSINESS: SCALING FROM ONE-HIT WONDER TO GLOBAL PHENOMENON By Nicole LaPorte
Photographs by Justin Maxon
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I T’S J U S T B E F O R E M I D N I G H T O N A S A T U R D A Y I N A P R I L, A N D H U N D R E D S O F M E N A N D W O M E N I N W O R K O U T G E A R A N D R U N N E R S’ HEADLAMPS ARE STANDING IN THE MIDDLE O F A N O P E N F I E L D I N F A I R B U R N, G E O R G I A, ABOUT 20 MILES SOUTHWEST OF DOWNTOWN A T L A N T A. D E S P I T E T H E H O U R, T H E Y’R E T O T A L LY W I R E D, S H A K I N G O U T T H E I R L I M B S
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Tough Mudder Central Texas, which took place on May 6 and 7, 2017, and is depicted throughout this story, is renowned among participants as one of the messier courses of the 130 events that the company will stage this year.
and bobbing nervously in place. One guy has a pink mohawk. Another looks like an ex-marine. A group of young women in Lycra shorts and tank tops give off a more corporate vibe. What unites them is a shared desire to complete an eight-hour obstacle race, produced by the Brooklyn-based company Tough Mudder. The Toughest Mudder, as this event is called, kicks off at midnight and involves gleefully sadistic challenges such as the Augustus Gloop (in which competitors have to climb up a plastic shaft as water pours down) and Electroshock Therapy (where participants run through a gauntlet of dangling electric wires). Also, there’s mud. One thousand hectares of it. Sean Corvelle, the night’s spiritual leader and emcee, leads the group in three rounds of “HooRAH!” and then asks everyone to raise their right hand to recite the Tough Mudder pledge, a creed that a number of athletes have tattooed on their bodies: “I understand this is a race. But not an excuse to be a selfish jerk. I will uphold the Tough Mudder values of teamwork and camaraderie. I will help my fellow competitors complete the course. And I will not whine. Losers whine. . . .” When the last words are chanted, Corvelle booms, “All right, let’s get ’em outta here! Mudders, here we go!” The racers whoop and howl and charge off into the darkness. Me? I’m nearly 4 800km away in Los Angeles, watching the event unfold via Facebook Live, pumped up on pain killers and muscle relaxants after a back injury kept me from boarding a plane to Atlanta 24 hours earlier. But being a spectator isn’t so bad. This is quite a spectacle. Tough Mudder began seven years ago as a wacky activity—a 16- to 20-kilometre mud run with 20 cheeky obstacles to conquer—offering average working people Monday-morning bragging rights. Tens of thousands of viewers are streaming this markedly longer and more elaborate weekend event on Facebook, while tens of thousands more watch on Periscope, Twitch, and Snapchat. Observers chime in with “Go get ’em” and “Wish I were there”, which flicker down my screen by the second. Some boast about staying up all night, as if it’s their own extreme challenge. For a sport that requires participants to sign a death waiver, Tough Mudder has always put having fun first. Often described as a cross between Burning Man and an Iron Man, the event promises free beer for finishers and has tattoo artists at select events to ink the Tough Mudder logo on people’s skin—something the company claims 20 000 people have done. Today, though, Tough Mudder itself is facing a hurdle. The company is no longer a scrappy, twoperson startup housed in a Brooklyn warehouse,
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but a sophisticated event producer and media property that generated more than $100 million (R1.2 billion) in 2015 and will put on 130 global events this year. The obstacle-course business in general—which is led by Tough Mudder and archrival Spartan Race—has plateaued after years of rapid ascension from 2010 to 2014. Tough Mudder knows it needs to devise growth strategies as innovative as its events. CEO Will Dean is pursuing a range of options, from establishing Tough Mudder as a new global spectator sport via its relationship with CBS, to developing it into a mainstream fitness brand. But he must also maintain its die-hard cult following. “Ultimately, businesses have to adapt,” says Dean. “The pace of change is faster and faster, and you have to stay ahead of that.” After all, only losers whine.
E V E R Y Q U A R T E R , D E A N , a polished 36-yearold Brit who could pass for Prince William and Harry’s older brother, reviews Harvard Business School case studies with Tough Mudder’s mostly millennial employees. The ritual is a fitting nod to the company’s genesis: Dean started working on the idea while pursuing an MBA at HBS. A recent favourite explores Porsche’s decision to launch the Cayenne, its first SUV. Dean found the 2011 study apt because Tough Mudder is at its own “strategic inflection point”, he says, speaking in the business school patois he favours, even as he selfconsciously dismisses it as marketing parlance. “When Porsche did that, the 911—the classic Porsche roadster—was still the 911. The company [was] just targeting a different demographic.” Right now, nearly half of the participants who run a Tough Mudder are between 21 and 30. Their average annual income exceeds $80 000 (just over R1 million), and they pay approximately $150 (almost R2 000) to take part. Many hail from Silicon Valley (where techies are as intense about working out as they are about work). But over the past few years, Dean has begun expanding Tough Mudder’s event roster to appeal to new types of customers. He introduced the Mudder Half, a 8km version of the obstacle course, along with a new 5K version, which will debut this August in Nashville, and a 1.5km Mini Mudder designed for kids ages 7 to 12. To attract super-hard-core elite athletes—and keep them coming back—Dean and his team have established a competitive, timed option known as Tougher Mudder, as well as the eight-hour endurance contest Toughest Mudder. These events are bundled together into weekend-long pain festivals. In November, the best Mudders will descend upon Las Vegas to participate in a 24hour World’s Toughest Mudder. Confused? You’re
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not alone. During an appearance on a recent episode of Obstacle Racing Media Podcast, Nolan Kombol, Tough Mudder’s senior director of product, needed a good 15 minutes to explain the differences among all of the races. Dean argues that there’s a progressive logic at work, in that one event naturally leads to another. “We’re genuinely trying to get people to live healthier lives and challenge themselves,” he says. “The hope is that they do the half, enjoy that, and come and do the full. And then they challenge themselves to do other things. Imagine if someone walked into a gym and a man said, ‘I’m very sorry, but this gym is only for people in very good shape.’ ” Returning Mudders are now bestowed with a special status—Legionnaires—and receive course privileges including obstacle express lanes, and headbands that denote how many races they’ve completed. The strategy protects the company against criticism that Tough Mudder is a “one and
Toug h Mudder ex ploits “ the power of the ex perience to bring people together,” says a researcher w ho’s studied w hy people par ticipate.
done” experience, says Scott Keneally, director of Rise of the Sufferfests, a documentary about the obstacle-race phenomenon. “Without having metrics and it being timed, I think people feel they’ve done it and they can move on.” Although Tough Mudder says that its advanced formats are drawing repeat customers, this claim cannot be confirmed independently because race times are not posted. In Georgia, there were 500 people in the Toughest race and 27 in the Tougher wave. It’s unclear how many ran the Tough Mudder and Mudder Half courses, though the company states it averages 10 000 participants per event.
E V E R Y M O D E R N B R A N D that inspires intense passion—from Apple to Nike to SoulCycle to WeWork—has a spiritual underpinning. Dean believes Tough Mudder can similarly fill his customers’ lives with rituals. As he sees it, Tough Mudder races “are the pilgrimage, the big, annual festivals, like Christmas and Easter, if you use Christianity as an example. But then
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we also have the gym, which becomes the local church, the community gathering hub. You have the media, which is a little like praying. Then there’s the apparel, which is a little like wearing your cross or your headscarf or any other form of religious apparel.” Tough Mudder has long delivered epiphanies to its most devoted adherents. As Dean writes in his forthcoming leadership memoir It Takes a Tribe (due out in September), Tough Mudder is designed to offer release for “adults who spend half their lives sitting in a grey carpeted cubicle staring at a screen, or stuck in traffic, or who measure their weekdays in back-to-back meetings and PowerPoint [presentations].” In addition, he believes Tough Mudder’s success is rooted in its debut in the wake of the 2008 global financial crisis when people were looking for more control in their lives. The race weekends are also profoundly social. Tough Mudder exploits “the power of the experience to bring people together,” says Rebecca Scott, a lecturer at Cardiff Business School in Wales who co-authored a study on what motivates people to do Tough Mudder. “Historically, we would commune around products we could purchase.” Tough Mudder’s
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If Toug h Mudder isn’t lim ited by the length of the race, the free beer at the finish line, or even the mud itself, then w hat defines it?
storefront where it sells products and streams exclusive videos. Bull produces weekly training videos for Facebook starring Tough Mudder personalities Coach and E-Rock, two muscly chatterboxes; the company also works with the digital media company Livestream to offer live Internet video of many event weekends on Facebook and its own site. “They’ve recently started to embrace the athletes,” says Amelia Boone, a three-time World’s Toughest Mudder winner who works as an attorney at Apple and who appeared on the CBS production chronicling the event that aired on Christmas Day 2016. While CBS’s coverage focuses on competition, its sister network CW Seed, a millennial-skewing streaming service, tells uplifting personal stories, profiling unlikelier Tough Mudder competitors such as a woman battling body dysmorphia and a female soldier suffering from PTSD. By focusing much of the content on individual participants, Tough Mudder is able to forge emotional connections with viewers even if they don’t have a friend who’s done it. Before the event in Georgia, Tough Mudder posted videos of a double amputee and Army vet named Noah Galloway as he prepared for the challenge. Then on the live feed, he was featured scaling Everest 2.0, a slippery half-pipe. The onlookers cheered.
origin story emanates from this shared sense of purpose. When Dean—a dedicated athlete who admits to becoming uncomfortable and unfocused if he takes too many days off from running or hitting the gym—participated in a triathlon while still in his twenties, he needed help pulling down the back zipper of his wet suit as he transitioned from swimming to cycling. He asked fellow racers for help and was stunned when no one offered any: They didn’t want to add precious seconds to their time. From the outset, Dean understood the power of social media to help him spread the gospel. He found participants for the first Tough Mudder in 2010 via Facebook ads, and finishers have always received photos of themselves sloshing through the muck or plunging into an icy lake, perfect for being converted into profile pics and piquing curiosity and inspiring envy among their friends. Tough Mudder has also created videos to share the humorous side of its brand, lampooning its expansion efforts via Baby Mudder and Puppy Mudder spoofs. Such organic marketing is now being superseded by what Jesse Bull, Tough Mudder’s SVP of content, calls a “360 degree” approach. A partnership forged with Amazon in May gives the brand a digital
THE EVENT VIDEOS and relatable stories inspire people to realise they could participate themselves, which is even more important as Tough Mudder expands internationally to locales where extreme athletic challenges may not be as common as in the US. In May, the company launched its first event in China; it was a more achievable 5K course. Attitudes toward fitness aren’t the only obstacle to overcome. Last December, Tough Mudder debuted in Dubai. In most ways, the event was the same as a Tough Mudder weekend in, say, St. Louis, but with two notable exceptions: There was no beer, due to Islamic restrictions on alcohol, and no mud, because it’s the desert—there was only sand. Dean, who participated in the Dubai race, says it was “fun, though on the downside, my calves absolutely killed.” If Tough Mudder isn’t limited by the length of the race, the lack of timed results, the free beer at the finish line, or even the mud itself, then what defines it? When I ask Dean, he says Tough Mudder provides an opportunity for people to work together to achieve a common goal—a concept that resonates in today’s politically polarised world. After all, there’s simply no way to scale a slippery 6m high wall without someone pushing your butt over it. laporte@fastcompany.com
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Knowledge is power
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A CITY-BY-CITY LOOK AT THE TECH DEVELOPMENTS SHAPING AFRICA’S URBAN FUTURE BY LEVI LETSOKO
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T H E U N IT E D N AT I O N S F O R E C A S T S T H AT, B Y 2 0 5 0, T W O -T H I R D S O F THE GLOBE WILL LIVE IN M E T R O P O L I TA N A R E A S . C I T I E S , P A R T I C U L A R LY THOSE ON THE AFRICAN C O N T I N E N T, W I L L H AV E TO GET SMARTER ABOUT TRANSFORMING THE LIVES OF THEIR I N H A B I TA N T S — FA S T E R . TECHNOLOGICAL I N N OVAT I O N I S O N E WAY I N W H I C H C ITI E S CAN GET AHEAD. FAST COMPANY SA EXPLORES THE MOST EXCITING I N IT I AT I V E S C O M I N G O U T OF AFRICA’ S TOP CITIE S .
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As the world moves rapidly toward an era of automation in almost every aspect of daily processes, the success of an improved city is measured by how quickly it adapts to this constantly changing environment. Development in mobile technologies, digital currencies, crowd services and automated systems is the yardstick for determining how close a city is to being termed ‘smart’. There’s still much work to be done in Africa to build connected communities. The World Economic Forum’s Global Information Technology Report for 2015 ranked only six subSaharan Africa countries in the top 100 list of tech adopters: Mauritius (45th), Seychelles (74th), South Africa (75th), Rwanda (83rd), Kenya (86th) and Cape Verde (87th). “The world is entering the Fourth Industrial Revolution,” stated the following year’s report. “Processing and storage capacities are rising exponentially, and knowledge is becoming accessible to more people than ever before in human history. The future holds an even higher potential for human development as the full effects of new technologies such as the Internet of Things, artificial intelligence, 3D printing, energy storage and quantum computing unfold. . . The future of countries, businesses and individuals will
Nairobi is one of the continent’s largest techno hubs, commonly known as the Silicon Savannah of Africa.
countries such as South Africa, part of Yenko Taxi’s strategy is to employ drivers who are already in the taxi business. Amid the 2016 cholera outbreak, and very limited financial backing for the health sector, Ghana has formed strategic partnerships to deal with these challenges. Healthcare services in Accra recently received a major boost when health tech multinational GE Healthcare, Ghana’s Ministry of Health, Bouygues Bâtiment International construction company as well as the US Government joined forces to revamp the Greater Accra Ridge Regional Hospital and improve facilities with various high-end medical equipment. As a result, the hospital is now equipped for a full continuum of care across radiology, maternal and infant care, cardiology and surgery care. US ambassador to Ghana Robert P. Jackson said the opening of the newly renovated hospital “marks an important milestone in the history of healthcare—not only in Ghana but in West Africa. I am particularly impressed with GE’s focus on building capacity: incorporating local partners, local management and local know-how. The GE team in Ghana believes that good public-private partnerships are the most important drivers of sustainable healthcare systems.”
NAIROBI, KENYA
depend more than ever on whether they embrace digital technologies. And many of those who stand to gain the most are not yet connected.”
ACCRA, GHANA According to a 2016 economic report, Ghana’s gross domestic product is just over $42 billion (R544 billion), and its capital city is the centre of economic activity. Accra is one of the most progressive cities on the continent, so it’s no surprise that international tech companies find the Ghanaian market appealing for their investment goals. Huawei, which launched its first operational office in Accra during the mid2000s, has widened its interests by delving into retail franchising. The company opened its first official retail store in the city, trading in a wide (and in some instances, exclusive) range of products. A notable partner in the telecommunications sector in Ghana, Huawei is looking to get a tighter hold on the general consumer market through this latest outreach. Technology is challenging traditional public transportation all over the world, and Ghana is no different—homegrown innovators are competing commendably with international companies entering this market. In response to Uber’s domination, a new service called Yenko Taxi was launched in Accra. The app is designed to help passengers locate safe and secure transportation around the city, by automatically allocating safety-measured vehicles for routes regularly used by the target market. To avoid the type of turf conflicts experienced by Uber in
Commended for its high number of young innovators, Kenya has attracted much attention from organisations looking for fertile ground to seed their investments. A low crime rate and vigilant policing are only two of the qualities that entice investors to the East African country. Just like its African neighbours, however, Kenya still experiences high levels of unemployment due to many reasons. “In Nairobi, most people have more than one source of income. The ‘side hustle’, as Kenyans refer to it, is a norm. Because of high unemployment levels, people are often forced to create their own sources of income,” explains Natasha Moret-Qubu, a South African–born MBA student at Nairobi’s Strathmore University. The launch of iHub in 2010 provided a home for Kenya’s tech community, enabling developers and entrepreneurs to connect and work on ideas together. It soon became Africa’s best-known incubator. In December last year, it was announced that iHub would launch its Africa Innovation Fund to engage, support and promote entrepreneurs across the continent. iHub chairperson Kamal Bhattacharya said, “The role of the iHub going forward is to become the best African support system for ICT–focused tech entrepreneurs and individuals who aspire to create great companies that tackle some of our biggest challenges.” Says Moret-Qubu, “Nairobi is one of Africa’s largest techno hubs with fast Wi-Fi, easily accessible from almost everywhere in the city (malls, shops, airports and homes). It’s commonly known as the Silicon Savannah of Africa.” She believes this mass Internet connectivity is possible due to the low cost of data. “For the price of 1GB in South Africa, one can get 3GB in Kenya at a much faster speed, as 4G and 4G+ is widely available; fibre for home and office use is also much cheaper than in most African countries I’ve been to.” Kenya was the first African country to explore the opportunities offered by mobile money, with the launch of Safaricom’s M-Pesa in 2007. The platform is still leading the
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Kinshasa has undergone very impressive changes on its journey toward urbanisation.
mobile money market due to the convenience it provides, and has completely transformed the country’s economy. “M-Pesa is one of Kenya’s biggest success stories; people use this platform to pay for transactions, and it’s approved by most vendors. What this means is that people don’t need to have either bank accounts to transact, or carry large amounts of money around,” adds Moret-Qubu. Despite cryptocurrencies having been met with much scepticism in Africa, bitcoin is impressively worming its way into the Nairobi market thanks to Kenya’s pursuit for technological superiority. There are several local bitcoin pioneers in the country, and the key highlight of last year’s Dot Finance Africa conference in Nairobi was the discussion centred around bitcoin and blockchain as disruptive technologies. Also in 2016, there was a substantial increase in peerto-peer bitcoin trading in Kenya, particularly on LocalBitcoins.com. There are currently three bitcoin businesses headquartered in Nairobi: the startup BitPesa, the bitcoin and blockchain accelerator hub BitHub.Africa, and the bitcoin advisory firm UmatiBit.
KINSHASA, DRC In its efforts to become a city to watch in Africa, Kinshasa has undergone very impressive changes on its journey toward urbanisation. The city made international headlines in 2013 when it first introduced humanoid robots to regulate traffic on its chaotic roads. The 2.5-metre tall automatons (dubbed “Robocops”) are solar-powered and equipped with cameras that transmit collected data to the relevant departments. These departments then make the necessary recommendations on how best to respond to traffic situations at any given time. The initiative has been so successful that other African countries are looking to import these robots that have revolutionised traffic management. The Democratic Republic of the Congo was previously recognised as one of the major producers of coffee on the continent. Over the years, however, the commodity experienced a slump—only to be revived recently by a new generation of farmers. This sudden resurgence in the coffee trade inspired US tech entrepreneur Daniel Jones to establish the startup bext360 and a kiosk-like
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robot that works like a sophisticated scale. It allows coffee buyers to analyse the quality of and weigh a farmer’s product right out in the field, using optical sorting to check for perfect or spoilt beans in a batch. Buyers and farmers can then immediately negotiate a fair price through bext360’s mobile app. The app as well as its cloud-based software employ blockchain technology from Stellar.org to create a record of the beans’ origins, the price paid and by whom. bext360 will not only offer better transparency in the Kinshasa market but could also transform the global coffee supply chain. Still in the advanced prototype stage, bext360 is already attracting worldwide attention—it was showcased at the 2017 TechCrunch Sessions: Robotics in July at MIT—and has raised $1.2 million (more than R15.6 million) in venture funding. Jones plans to introduce the first fully functional units later this year in Kinshasa.
SOUTH AFRICA JOHANNESBURG In his State of the City Address earlier this year, City of Joburg Executive Mayor Herman Mashaba touched on the vital issue of increased support for SMEs, saying the City needs to “create an enabling environment for businesses, especially small businesses, to flourish and thereby become employers of our people. . . There is no doubt that one of the key elements for reversing unemployment within the City relates to our ability to make it easier to set up businesses.” The JoziHub was created to bring startups from various industries, such as IT and online media, under one roof.
Through its relationships with strategic partners—including Google for Entrepreneurs, Internet Solutions, and Silicon Cape Initiative— JoziHub provides mentorship and other forms of assistance to startups in order to help them navigate through their growth phase. Setswana for ‘new beginnings’, the Tshimologong Precinct was opened in September last year in Braamfontein to incubate startups, commercialise research, and develop high-level digital skills for students, professionals and unemployed youths. “We hope that transforming Braamfontein into Africa’s premier technology hub will inspire new talent, create jobs, and lead to an economic renaissance,” said Professor Barry Dwolatzky, director of the Joburg Centre for Software Engineering, who envisioned and set up the precinct. The Hack.Jozi Challenge, a competition for Joburg-based startup entrepreneurs, aims to foster skills, innovation and entrepreneurship in digital tech. It was established in 2014 when the City of Joburg executive mayor at the time, Parks Tau, announced that a hackathon would be launched to encourage citizens to create innovative ideas through digital formats to solve some of the city’s challenges. City of Joburg Department for Economic Development and Tourism executive director Ravi Naidoo has said a city needs to be innovative and that, economically, the City of Joburg wants to ensure the best ideas take root—as it’s the most ICT–intensive city in South Africa, owing to spend and businesses in this sector. Another notable development in Johannesburg is the creation of the Steyn City Parkland Residence on the edge of Sandton—introducing a new and unique dimension to modern city living. “A city like no other; centred on people not cars,
offering access to a multitude of lifestyle activities, in a safe and secure environment,” says the brains behind the property, Douw Steyn. Apart from its integrated worldclass security systems, a top-of-the-range fibre network for high Internet speeds, off-grid solar power, and every conceivable urban amenity within reach, Steyn City “is fulfilling the inherent need within people for human interaction. We are giving people the opportunity to ‘take back their suburbs’, . . . a place where everyone truly knows your name.”
TSHWANE Tshwane has taken practical measures to establish itself as a smart city by using technology to bridge the gap between city administration and residents. Since its 2013 inception, the online platform www.e-tshwane.co.za has enabled residents to be in direct contact with the City, providing the means to carry out transactions online and lodge complaints about services rendered. It also has an Investor Portal where interested parties can engage with the City’s economic department to propose investment projects. High data costs mean many South Africans have limited access to the Internet, furthering the inequality in cities. The City of Tshwane and Project Isizwe have begun to bridge this digital divide by bringing free Internet access to those who need it most—more than 2 million citizens thus far. TshWi-Fi is the biggest deployment of its kind on the continent, with over a thousand Wi-Fi hotspots (TshWi-Fi Free Internet Zones) across Tshwane, making it the most connected city in Africa. The project is bettering the lives of South Africans by digitally empowering learners, thinkers, entrepreneurs and innovators. Tshwane is home to mLab Southern Africa, a mobile
The City of Joburg wants to ensure the best ideas take root, as it’s the most ICT–intensive city in South Africa.
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Cape Town was the only African urban centre to be ranked among the world’s top tech cities by global property giant Savills.
tech accelerator that assists early-stage technology startups find their feet in the competitive mobile app ecosystem. “When our youth are empowered with the right skills to innovate and create solutions, they unlock the opportunities for new businesses that will drive our economies forward. This is why we support these young innovators, founders, next-generation coders and digital creatives,” states the mLabs website. To support skills development, mLab offers various programmes through its own code academy as well as those of its partners which include Intel, Google Developers, Qualcomm and NASA, among others.
CAPE TOWN
Geeks On a Plane tour to Africa, organised by venture fund and seed accelerator, 500 Startups. A number of small business owners, investors and executives travelled to Cape Town to learn about high-growth technology markets and explore cross-border opportunities, and to hear from 10 local tech startups. Cape Town leads the South African race in embracing digital currency. The Blockchain Academy, the first and only one of its kind in South Africa, was opened in 2015 at the Bandwidth Barn in Woodstock. It was established by founder of Bitcoin Payments & Bitcoin Events, Sonya Kuhnel—one of the first women involved in bitcoin in the country. “When I first started in the bitcoin space, I encountered significant resistance toward digital cur-rencies from individuals and businesses in South Africa,” she said. “The level of understanding of bitcoin and its underlying technology, the blockchain, proved to be a real challenge and I realised I would have to first educate the marketplace before there would be any significant uptake of the digital currency and the cutting-edge technology behind it.”
DURBAN
Like other African cities, Durban is putting in much effort into discovering local tech talent, as SMMEs are key drivers Earlier this year, Cape Town was the only city on the African continent to be of economic growth, innovation and job creation. ranked among the world’s top tech cities in the Tech Cities 2017 report by global The Hibiscus Coast SmartXchange MICTe SMME property giant Savills. These 22 global centres are at the forefront with their Incubator, the first of its kind in KwaZulu-Natal, was thriving and growing tech industries, and “at the top of global shopping lists for launched last year in Port Shepstone (with plans to tech companies looking for space in which to locate.” Coming in at number 22, launch three more at Newcastle, Richards Bay and the report found that the Mother City has the fastest growing economy in the Pietermaritzburg). SmartXchange is funded by eThekwini country; has some of the best Internet networks in Africa; has an average 12% Municipality to provide enterprise development services growth in property values year-on-year; boasts more than half of all venture to SMMEs in the media, information commu-nication capital funds; and is home to 60% of all South African startups. technology and electronics sector. “We are an innovation In March, tech experts from the Cape Innovation and Technology Initiative‚ node and a business incubation centre,” says CEO Jonathan Silicon Cape and Wesgro (the Western Cape’s investment and trade promotion Naidoo. “Our premises include some of our strategic agency) travelled to Singapore and Tokyo to sell the city as a tech hub. “Cape partners, test lab facilities, SMME Town’s unparalleled infrastructure base‚ financing facilities, graduated world-class universities and vibrant “ C A P E T O W N ’ S U N P A R A L L E L E D small businesses, and SMMEs environment have given the region a that are currently within the competitive edge to reach beyond other INFRASTRUCTURE BASE‚ programme. It’s about creating hubs on the continent‚“ said Silicon Cape WORLD-CLASS UNIVERSITIES an environment that stimulates director Alexandra Fraser. It has become “Africa’s largest startup scene”, according A N D V I B R A N T E N V I R O N M E N T innovation, attracts new ICT projects into the region, and to Wesgro CEO Tim Harris, with a number HAVE GIVEN THE REGION A supports local SMMEs.” The of co-working spaces—such as Bandwidth is looking to cultivate Barn‚ Spin Street House and Workshop C O M P E T I T I V E E D G E T O R E A C H incubator a very competitive technology 17—and a Wi-Fi lounge on top of Table Mountain where‚ on Table Top Tuesday‚ B E Y O N D O T H E R H U B S O N T H E ecosystem to produce startups that can compete at a continental and entrepreneurs can meet and work for free. C O N T I N E N T.” even international level. This trip was followed by the first-ever
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Tech Forward
THE FUTURE WILL BE AUGMENTED Why Facebook, Google, Snap and dozens more love AR—and what’s coming next By Dan Tynan
Illustrations by Brian Stauffer
“If you take one thing away from today,” Mark Zuckerberg announced in April from the stage of F8, Facebook’s annual conference for developers, “this is it: We’re making the [smartphone] camera the first augmented-reality platform.” Facebook had already begun adding camera effects to its apps, letting users overlay objects, animations and filters on their images—an unabashed knockoff of Snapchat’s popular AR-powered Lenses. With a new open platform where developers can create their own effects, art and 3D games, Facebook is betting that it can
In his sights Facebook’s Zuckerberg, at this year’s F8 conference, is making AR a top priority.
become the go-to destination for AR experiences, a WeChat-like repository of third-party appswithin-its-apps. After years of dormancy, the hype around AR is ratcheting back up. Beyond Facebook’s augmented ambitions (which include, down the road, a wearable device), there’s Google’s four-year-old Glass, Microsoft’s HoloLens and the mysterious, well-funded Magic Leap—along with a rumoured device from Apple. According to market research firm CB Insights, 49 AR companies have secured equity financing deals since last autumn—a 75% increase from the year before. They’re all vying to dominate a future where the separation between the physical and the digital is wafer-thin, and you won’t need a keyboard or a touchscreen to navigate it. “Augmented reality is the next mobile computer, the next OS, the next social platform,” says Ori Inbar, founder of Super Ventures, a VC firm specialising in AR. “The smartphone is dead; it just doesn’t know it yet.” What pieces of this hyperbole may actually prove out? Here’s our
three-part guide to how AR will actually unfold.
Our phones will be the g a t e w a y—f o r n o w For the better part of a decade, developers have been promising to use smartphone cameras to enhance our perspective on the world. In 2009, Yelp introduced its Monocle feature, annotating users’ camera lenses with ratings for local businesses; a spate of similar apps followed, but none gained any significant traction. It was rainbow-vomiting millennials who pushed the technology into the mainstream, with the introduction of Snapchat’s addictive, selfieenhancing Lenses in September 2015. By the following August, Pokémon Go had 100 million downloads, as people peered through their smartphones to hunt for Charmanders and Squirtles in habitats across the globe. The ability to replace your nose with a dog snout or capture a Jigglypuff lurking outside your favourite café may appear frivolous, but it’s actually profound—a clever way of easing
consumers into AR, without calling it that. Snapchat now has a promising advertising platform with its sponsored lenses, which can be tied to specific locations. Niantic, the developer behind Pokémon Go, created a hit that has generated an estimated R12 billion-plus in revenue. In the current rush to create the next big AR app—from multiplayer games to more practical applications like interactive travel guides and shopping assistants—success may ultimately depend on the formula these two companies laid out: social interaction grounded by superior location intelligence. At the same time, smartphones are growing more sophisticated. Since 2014, Google has been developing its Tango platform that gives mobile devices spatial awareness. Late last year, Lenovo released the $500 (R6 400) Phab 2 Pro, the first Tango-enabled smartphone. Using multiple cameras and advanced, motiontracking sensors, the Phab 2 creates 3D maps from two-dimensional images. Train the phone’s lens on your living room, and Tango will know the lamp is 200cm to the left
of the couch. You can then use a Tango-optimised app from e-commerce giant Wayfair to see how a (virtual) coffee table looks between them. Lowe’s Home Improvement has a similar app, along with one that allows customers to use the phone’s camera to navigate its stores. Such efforts are early, and their executions fairly crude. Lenovo’s embrace of Tango is more of a proof of concept than a groundbreaking device. But that may change quickly. The second Tango-enabled phone, the Asus ZenFone AR, landed in July in the US. And according to rumours, the upcoming iPhone 8 will also sport a depth-sensing camera to enable AR apps. Notably, Apple typically waits until a technology is mature—and consumers are ready—before incorporating it into a flagship product. “Once the iPhone has that [camera],” Inbar contends, “it will become a de facto standard.”
Wearables will be refined in the workplace Despite the success of Snapchat and Pokémon Go, no one believes the future of AR consists of staring into smartphones, chasing mythical creatures. That’s because the phone is a less-than-ideal interface. “Let’s say you walk into a supermarket that’s enabled with augmented reality,” says Tuong Nguyen, principal analyst for research firm Gartner. “How many times during your shopping trip are you willing to take out your phone? How long are you willing to hold it up?” The biggest hurdle for AR, Nguyen says: “It needs to be built into the glasses I’m already wearing.” Today, there are some 50 AR headsets in production—from basic eyeglasses that can display 3D images to $20 000 (R230 000) industrial-strength helmets from maker Daqri. But none are small, cheap or elegant enough for mass appeal. So for the next few years,
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Just as the Internet and mobile changed the tech landscape, AR has the potential to create new giants. AR devices will be found primarily in work environments, where their cost and appearance don’t matter as much. ABI Research projects that the AR market will grow to $96 billion (R1.2 trillion) by 2021, with 60% of that going to industrial and commercial uses. Google Glass, for example, has found a home on the factory floor after failing to take off among consumers. Boeing uses Glass to display technical diagrams to workers assembling electric wire harnesses for aircraft, leaving their hands free to perform tasks. (When you’re cutting assembly time by 25%, no one calls you a Glasshole.) And it’s not just Google Glass: Med-tech startup Scopis has made a HoloLens app to guide surgeons through spinal surgery. At Minneapolis’s Mortenson Construction, contractors can don a Daqri Smart Helmet, walk through a 3D model of a hospital under construction, and see where the plumbing will be routed before it’s actually in place. Widespread industrial use won’t just change the way we work; it will inform future consumer-facing products. Just as industrial workers use AR to summon remote assistance during complicated manoeuvres, homeowners who want to retile their bathrooms may one day turn to a pair of glasses for virtual walk-throughs and diagrams.
AR will surround us In the meantime, AR is continuing to pop up in everyday devices. If your car’s rear-facing cam shows you a squiggly red line as you’re about to back into a tree,
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Tech Forward
you’re using AR. Smart mirrors are being rolled out at Sephora stores to enable virtual makeup testing, and at Neiman Marcus to let shoppers change the colour of their outfits or try on prescription glasses. In the same way that ‘adaptive cruise control’ and ‘lane-change assist’ are leading us toward fully autonomous cars, AR will be insinuated into our lives one feature at a time. Augmented features are also likely to seep further into inexpensive wearables, as seen in Snapchat’s video-capture Spectacles and wireless earbuds like Apple’s AirPods. Doppler Labs has already released its Here One smart earbuds, which let you amplify certain frequencies and filter out others—augmenting your aural reality. CEO Noah Kraft sees a future where AR exists naturally in your ear. “Say you’re walking down the street and all of a sudden Siri pops into your head and says, ‘Hey, your next meeting is running 15 minutes behind,’ ” he says. “In our world, that doesn’t distract from what’s going on around you.” Still, bringing the sophistication and reliability of industrial applications to a device that fits seamlessly into our daily lives is a daunting task. The technical challenges are steep, and it’s unclear whether the public will embrace yet another wearable (and if the content will be good enough to convince them to). Nonetheless, Apple is reportedly plunging ahead, as are Google, Facebook, Microsoft and many others. For tech firms, getting skin in the AR game may simply be a matter of survival. Just as the Internet and mobile radically changed the tech landscape, AR has the potential to create new giants while humbling old ones, says Piers Harding-Rolls, director of games research for IHS Technology, a London-based research firm. The future will be augmented. But by the time it happens, we may not even notice.
E Y E OF T HE B E HOL DE R How will people use augmented reality? It may be easier to list the ways they won’t. Here are a few applications in the works, from the silly to the sublime.
Ink-free tattoos
Not sure about that new tat? The InkHunter app lets you create a preview anywhere on your body before you make a more permanent mistake.
Engaging ads
For the new Jamie Foxx–hosted Beat Shazam game show, Fox created AR-enabled billboards throughout New York that conjured a 3D Foxx on viewers’ phones.
Virtual salons
Sephora, L’Oréal and CoverGirl offer instore displays and mobile apps that let you see how makeup will look on your face without having to apply it.
Roadside assistance
Smart windshields, which project information on where you are and where you’re headed, are becoming more common as automakers and startups alike find new ways to bring them to drivers.
Classroom aids
Microsoft is working with ed-tech company Lifeliqe on HoloLens-based curricula, such as a virtual tour of the human circulatory system.
Remote medicine
Startup Proximie allows experienced surgeons to view operations remotely and provide AR instructions to physicians performing them.
Seeing-eye humans
Aira makes smart glasses for blind people which send a video feed to a customerservice agent, who can tell the user what’s around her.
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WOMEN HOW THE TOP FEMALE ENTREPRENEURS IN SOUTH AFRICA ARE SLAYING IT IN BUSINESS AND IN LIFE BY EVANS MANYONGA
AUGUST 2017 FASTCOMPANY.CO.Z A 67
SA TOP WOMEN IN BUSINESS
AUGUST IS WOMEN’S MONTH IN SOUTH AFRICA. THE MORE THAN 20 000 WOMEN WHO MARCHED TO THE UNION BUILDINGS IN 1956 IN PROTEST AGAINST THE PASS LAWS HAVE PAVED THE WAY FOR INCREASED GENDER EQUALITY AND ENABLED LADIES OF ALL WALKS OF LIFE TO RISE TO LEADERSHIP POSITIONS. THIS IS NO LONGER A MAN’S WORLD—AS OUR SELECTION OF ENTERPRISING BUSINESSWOMEN SHOWS. The Global Entrepreneurship Monitor notes that more than 126 million women entrepreneurs are starting or running new businesses in over 67 economies globally, including South Africa. Not only do they have to lead and inspire their staff, and ensure their company continuously innovates to stay ahead, but many also have to make time for family responsibilities. Fast Company SA interviewed a few women from diverse sectors to get their thoughts on what it takes to succeed in entrepreneurship, who has been their greatest influence, how they have overcome challenges, and their insights on building the world’s next generation of top female business leaders.
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LY N E T T E N T U L I Founding director, CEO, Innate Investment Solutions
After already having made a name for herself in the property development industry, Lynette Ntuli was appointed general manager of The Pavilion shopping mall in Durban at the young age of 24. This gave her the necessary skills to start her own business, Innate Investment Solutions: a property, asset management and infrastructure advisory firm that helps companies optimise their property portfolios. Ntuli admits she has had to work hard to prove herself in the male-dominated property sector. “You can only imagine how white males, who had been in the industry twice as long as I had been alive, felt now that I was the client.” The World Economic Forum Global Shaper and international speaker is also the founding director of Ignite SA, a media platform that aims to advance skills and entrepreneurial development. How did you get into business—what was your biggest motivator? Property was not a career I chose—it chose me. And in choosing me, it opened my mind and ideas to realise I could use the skills and experiences I’d been privileged to collect in my corporate career, not only to change our own fortunes but to change the world and communities around us. How has your background influenced who you are today? I grew up in Umlazi Township, south of Durban, and was raised by smart, wise and fun parents in a family of girls. I was born to a professional and an entrepreneur, so education, careers and business were all important issues in our household. We saw all these worlds at work, and being heavily influenced by my father and his job, I always knew I’d be an entrepreneur someday. What are some of the hardest challenges you’ve had to overcome? The stalling of the funding process on a key account sounded a rude but
necessary alarm bell for me a few years ago. In spite of a background and experience in handling finances, understanding ratios and returns, I realised that in my own business I’d need to go back to the drawing board and fully understand and restructure three areas: our business model, pricing, and sustainable expansion and scale. The three areas are daunting for any organisation, and I believe even more so for a small firm with limited capital and resources to rely on. And while I know myself to be very capable of grasping new concepts very quickly, the world of finance and business modelling for many a female entrepreneur is still largely intimidating and closed off. I’ve since learnt that the battle of cash and capital flow is ongoing, and it’s an exercise that you don’t overcome but rather become more adept and stronger at managing and overcoming. Has your gender ever influenced the way you do business, or have been perceived? Yes, all the time. Two facts that won’t change is that I’m a woman, and our experience of business, relationship building, planning and execution is vastly unique. Many boardrooms are only really starting to warm to the idea of our existence as women in the space in 2017. As a young, black and female entrepreneur in a fairly untransformed industry across gender, race, ownership and wealth, it’s not only important that we progress and do well in the sector, but also that we transform the spaces we find ourselves in. It’s the only way we can become the norm, as opposed to the exception, in the mainstream economy. Who has been your biggest influence? I’m influenced, inspired and guided by a number of people, some of who I’m privileged to work with, and who mentor
and guide me; others whose way of being in the world of business is a practice worth emulating to achieve results and success. What are your thoughts on the current business landscape in South Africa? Exciting, empowering and taxing! The experiences we’ll gain and the conversions we must make under the current constrained conditions are priceless. Reading between the threads of the web of the current public and private sector exposés is also fast becoming an essential business science in South Africa. It’s also fairly important to read so well that you can make up your own mind about how the world of business works, where all these tiny dots and shifts intersect and what it all means in relation to your business and the economy. Understanding and unpacking complexity and advanced ecosystems is also where the next wave of opportunity, solutions and markets lie. What are your business interests? Innate Investment Solutions creates solutions: from developing retail, commercial and transport nodes, to devising strategies on asset optimisation and deploying revenue-generating infrastructure and solutions. My job primarily entails developing and closing on new opportunities, managing projects and the resources deployed to deliver them—and watching the till. I also spend a fair amount of time on research, reading and studying trends, new products and solutions. Any advice for aspiring women entrepreneurs? Keep your standards as high as your heels. Be clear about what you need and want. Collaborate and delegate as often as you can. Don’t allow fear and disbelievers to derail you from achieving your goals and chasing big, scary targets and assignments.
“ Keep your standards as high as your heels.”
SA TOP WOMEN IN BUSINESS
MELANIE HAWKEN Founder, CEO, Lionesses of Africa
Lionesses of Africa public benefit corporation is a global organisation dedicated to advancing the continent’s women entrepreneurs. Melanie Hawken is on a mission to positively impact 1 million of these African entrepreneurs, the most underserved on the planet, by 2018. Her powerful online community is rapidly scaling to help realise the startup dreams of all Africa’s women—because
when they thrive, so does the continent. “Lionesses of Africa is where today’s successful women entrepreneurs from across the African continent get the chance to send the elevator down to the next generation of young women who will follow in their footsteps,” she says. How did you get into business—what was your biggest motivator? I’ve been an entrepreneur most of my life. My real passion, however, and my biggest motivation in life, is making a difference to the lives of others and the world we live in. It’s why I became a social entrepreneur in the first place, and how Lionesses of Africa as an organisation was born. Today, I’m able to harness this experience and expertise to build a powerful online network of women entrepreneurs committed to sharing, inspiring and connecting with one another for accelerated success. How has your background influenced who you are today? To some extent, everyone’s background influences them on some level or another; after all, life, as they say, is a journey. For me, travelling, living and working independently from a young age taught me to think and act like a truly global citizen. I see the world with a different lens today, a world where I can bring all my experience to the table and help make a difference.
“ Send the elevator down to the next generation of young women”
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What are some of the hardest challenges you’ve had to overcome? As a social entrepreneur, I’m constantly obsessed with impact, and scaling Lionesses of Africa to meet the big goals we’ve set for ourselves if we’re to
make the difference we want to see in the lives of Africa’s women entrepreneurs. Some of the hardest challenges have been encouraging major companies and organisations to help us with funding to keep growing, keep innovating, and keep delivering solutions to the women entrepreneurs in our network who need our help. Has your gender ever influenced the way you do business, or have been perceived? Yes, but I made sure it never held me back in my entrepreneurial life. I spent many years living and working in the Middle East, which is a tough environment for any woman in business, and certainly was back in the early ‘90s. I travelled to countries and cities across that part of the world where simply being a woman in business was a rarity, and where overcoming long-held preconceptions about gender was part of the job. Although it was very challenging, it taught me many great lessons about the importance of overcoming perceived gender stereotypes through strong relationship building and changing attitudes through results. Who has been your biggest influence? I’m fortunate to meet and talk to some of the most inspirational and successful women entrepreneurs each day. There’s also a new set of role models, women who have built some of the most successful businesses on the African continent and globally over decades and who have moved into more high-impact advocacy and philanthropy roles. In recent years, my dear friend Margaret Hirsch, cofounder of the incredibly successful Hirsch’s Homestores in South Africa, has become a constant source of inspiration and motivation.
What are your thoughts on the current business landscape in South Africa? There’s no doubt South Africa is going through a difficult phase again, both politically and economically. If the country is to fulfil its considerable potential in the world, it needs to harness the full potential of women and proactively support the growth of women’s entrepreneurship. A recent McKinsey Global Institute report finds that over R156 trillion could be added to global GDP by 2025 by advancing women’s equality. That’s a huge contribution to economic growth and development, particularly when you consider women entrepreneurs reinvest up to 90% of their revenues back into family and community. What are your business interests? My core business interests are firmly concentrated on taking Lionesses of Africa closer to achieving our mission of supporting and empowering 1 million women entrepreneurs in Africa by 2018. We aim to do that by expanding our community reach across the continent and the Diaspora; by creating innovative new communication platforms and tools to help get them sharing, inspiring and connecting with one another; and by constantly looking to partner with smart organisations and companies that will give these women access to global markets. Any advice for aspiring women entrepreneurs? Don’t wait for that ‘perfect’ moment to turn your idea into a business reality, because perfect doesn’t exist for most of us as entrepreneurs. While you wait for perfect, someone else launches with a similar idea and beats you to the punch. Just take that leap!
LY N N M A D E L E Y CEO, Havas Southern Africa
Lynn Madeley leads a team of marketing and communications specialists on a wide range of brands in southern Africa and beyond. She was also an event equestrian who competed internationally, and is now a qualified riding coach. Madeley related that it was at a course at Wharton Business School that she heard Dr Charles Dwyer say that EQ (emotional intelligence, a person’s ability to empathise with others) is critically important to the success of business, and must be embraced. “Recognising the importance of EQ has also taught me the difference between managing and leading. Managing is about telling people what to do; leading is about getting people to volunteer to do what you need them to,” she added. How did you get into business—what was your biggest motivator? I was an athlete with a keen interest in marketing. Like many good things, I fell into it because riding horses didn’t make enough money and being in marketing was more lucrative. Over the years, I got more interested in building businesses than winning gold. How has your background influenced who you are today? My father was a successful businessman and he really built my work ethic. He was an incredibly hard worker. I began learning about business from him when we would sit down at dinner, or he would come home from insane business trips with incredible stories. What are some of the hardest challenges you’ve had to overcome?
“ It’s tough out there, but we need to lean on that pioneering spirit.”
One boss was my biggest challenge! I worked for him for three years and he just hated me. It was the first time I hadn’t been the golden girl, and those three years taught me more about leadership, humility and being on the ‘other side’ than any other situation I’ve been in. I’m eternally grateful for that experience, though. Has your gender ever influenced the way you do business, or have been perceived? No. I don’t care about gender. I don’t focus on it, and I believe a lot of people use it as an excuse. Be good at what you do and you’ll be rewarded. What are your thoughts on the current business landscape in South Africa? It’s tough out there, but we need to lean on that pioneering spirit. When I first came to South Africa (I’m originally from England), I fell in love with the saying, “Boer maak ‘n plan.” It’s such a great can-do attitude. What are your business interests? I listen to podcasts in the car all the time. Mostly I focus on leadership and technology. At a time when the world and particularly our industry is in massive flux, it’s important to have a point of view and guide the organisations you lead through the changing landscape.
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business has grown from strength to strength, due in no small part to her extensive knowledge. How did you get into business—what was your biggest motivator? Having been involved in innovation for many years, I wanted to create a brand using my surname and family story. I was also motivated by the need to have a stronger global presence, travelling between Africa and Europe. How has your background influenced who you are today? I grew up with an entrepreneurial father who was innovative and constantly adapting to new opportunities. This definitely influenced me. But my years in the corporate side of FMCG [fast-moving consumer goods] also taught me so much and prepared me for what I am doing now. What are some of the hardest challenges you’ve had to overcome? South African systems are entrenched, very unadaptable, very masculine; overcoming the barrier to entry requires tenacity, commitment and bravery as a woman. The world of alcohol is one of these difficult industries. So your gender has influenced the way you do business, or have been perceived? We live in a very sexist country and business world, so issues of not being taken seriously, being patronised or being spoken down to are all part of doing business in South Africa. I try to rise above it, ignore it and carry on. My product design and marketing approach is perhaps more enhanced by my femininity.
“I think our femininity is a huge advantage.”
S I M O N E M U S G R AV E Creator, Musgrave Gin
Musgrave Pink Gin is the first of its kind on the market in South Africa. It received the 2016 Michelangelo International Wine & Spirits Gold Award (while the Musgrave Gin won silver), making it the only gold-winning gin on the continent. As the granddaughter of Maurice Boon Musgrave, the original founder of Musgrave Crafted Gin, Simone has taken over where he left off—successfully differentiating her offering from the 70 or so craft gins currently in the country. Travelling the world, Simone would taste a variety of food and beverages, tracking the trends and trying to predict which new products could revolutionise the industry. She noticed the craft trend shifting between categories, with the most popular being gin, so she returned to home shores to find her ‘niche in pink’. It was from here that her
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Who has been your biggest influence? There are many by whom I’ve been influenced. My father was a strong figure, as well as some of the leaders I’ve encountered on my corporate journey. What are your thoughts on the current business landscape in South Africa? The gin business has shown great possibilities. In the last two years, about 50 gins have popped up since my own product launched, and entry into many industries is much easier than in the rest of the world. I advise all young people to be positive, because there are opportunities in Africa and South Africa. What is your vision for the company? Growing Musgrave into an African luxury brand and possibly identifying new innovations that fit in with our brand vision. Any advice for aspiring women entrepreneurs? I think our femininity is a huge advantage. The key is to tap into it and use its power, while having the right motivation behind your dream.
J E N N Y KO U W E N H O V E N Founder, Lume Beauty Atelier
Jenny Kouwenhoven’s passion for beauty began with the example set by her mother—a goddess in her own home, a woman who always looked her best. As Kouwenhoven made her way through a successful career in modelling and later with Air France, her love for beauty evolved into something deeper: the unwavering faith in unconditional self-love, and the harmony of mind, body and soul. This led to Lume Beauty Atelier. Located on the ground floor of the Capital Mirage complex in Cape Town’s trendy De Waterkant quarter, this luxurious spa and wellness studio offers an array of treatments for skin, nails and hair as well as hairstyling, cutting and colouring. The team comprises the best in beauty talent, who use the world’s leading products that have been carefully sourced to provide a balance between nature and science. “My vision is to create a new beauty experience in Africa,” says Kouwenhoven. How did you get into business—what was your biggest motivator? I’ve been a model in the past, so I’m aware of the importance of one’s appearance. I wanted to pass on this knowledge. I wanted to create a beautiful place dedicated to well-being and beauty. My children are also my greatest motivation and inspiration. How has your background influenced who you are today? Growing up in Paris, I was exposed to many fabulous fashion elements that I still incorporate in every aspect of my life. My mom always looked gorgeous, with perfect hair and makeup. She taught me that being well-dressed is a form of respect to others. What are some of the hardest challenges you’ve had to overcome? I found the business mindset in South Africa very different from the international market, and that was a big challenge. Has your gender ever influenced the way you do business, or have been perceived? No, because I believe there’s no difference between a male and a female when conducting business. Of course, I portray myself in a feminine manner. However, this does not make me any lesser than a male. Who has been your biggest influence? Victoria Beckham, because she balances work and motherhood successfully.
“ There’s no difference between a male and a female when conducting business.”
What are your thoughts on the current business landscape in South Africa? The current South African market is not easy to break into; however, with the correct business system in place and utilising expert advice, your target market can be reached successfully, thereby attaining progressive business growth. What are your business interests? As an owner of a beauty atelier, my core business interest is sharing my knowledge about grooming, wellness and overall well-being with the South African market. Any advice for aspiring women entrepreneurs? Don’t be afraid to follow your dream and vision. Surround yourself with specialists in the preferred industry for in-depth training and consulting —this will drive your vision successfully.
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“Somehow as women we don’t always nurture each other”
SANDI DEKKER Founder, CEO, myUTOPIA
“I believe life is all about balance–but with the demands and pace at which we live, something always gives.” This is what led Sandi Dekker to create a unique premium lifestyle space specifically for yoga, Pilates, barré classes, foam rolling and dance at The Pavilion in Cape Town’s V&A Waterfront. Incorporating 5-star facilities, everything has been designed to help people effortlessly fit wellness into their busy life. It’s a haven to which they can escape for a moment of welldeserved downtime. How did you get into business— what was your biggest motivator? I wanted to create a space for busy people who try to pack so much into a day and so often give up on their own personal time to fit in meetings, appointments and just life. I wanted everything to be easy and accessible so people could maximise their time. I also wanted to create a special space for women so that they could collaborate, motivate and encourage. We’re
all born with these maternal instincts, but somehow as women we don’t always nurture each other. I have an enormous passion to create a foundation and mostly to leave a legacy. How has your background influenced who you are today? My parents were extremely hardworking and did the absolute best that they could within their means. I’ve had to work really hard for everything, and nothing has come easily. I’m filled with gratitude for this, because essentially: easy come, easy go.
males; even in my home today, males outnumber females. So for me it’s just never been a thing. I do remember working in a sales environ-ment and a male colleague saying the only reason my sales were so good was because I wore a short skirt! I formed a close relationship with the pants suit for a month, just to drive home a point.
What are some of the hardest challenges you’ve had to overcome? The hardest challenge has always been balance. I’m really an all-ornothing girl and I constantly have to remind myself to balance it all.
Who has been your biggest influence? My husband; he’s a compulsive entrepreneur to the core, my sounding board, my devil’s advocate and my hero. My uncle was chairperson of Simba, and although in retirement today, I still love bouncing my ideas off him—he just has that solid, grounded wisdom.
Has your gender ever influenced the way you do business, or have been perceived? I grew up in a household full of
What are your thoughts on the current business landscape in South Africa? I believe this country has so much potential. We have the
best of everything on offer and a colourful, layered landscape. If we can stand up as a nation to say no to corruption and not accept anything less than what we believe in, the possibilities are endless. What are your business interests? The health industry is such an incredible space. It also gives you such an incredible landscape to incite change and to make a difference. I’m trying to work with the notion of support and effort to help people be the best version of themselves. Any advice for aspiring women entrepreneurs? The first step is to close your eyes and visualise how you want your business and your life to look. Think about it in great detail and imagine everything exactly how you want it to be. You now have the outcome, so put the plan together and make it happen!
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N O N TO KO Z O M A D O N S E L A Head of marketing, Personal and Business Banking, Standard Bank
Nontokoza Madonsela felt the spirit of entrepreneurship from a young age, which has turned her into a champion marketer. She has worked in various marketing positions at four of the largest South African multinationals: Standard Bank, BAT, Coca-Cola and South African Breweries. Madonsela is also the founder of SPA88, a high-end wellness boutique based in Parkhurst, Johannesburg, which has been modelled on urban hideouts along London’s and New York’s fashionable high streets. How did you get into business—what was your biggest motivator? The love of problem solving and the art of marketing. How has your background influenced who you are today? In a big way, from a very young age, I was always entrepreneurial. There was a time when I made and sold popcorn out of our front yard in the township. My mom hated it, because she said it attracted strangers to our house—but I was innately curious and creative, and wanted to see what my little business could do. What are some of the hardest challenges you’ve had to overcome? The challenge faced by many marketers today is getting marketing to be taken seriously. Marketing should be an imperative discussion in decision-making conversations as a critical part of the value chain, but it isn’t. My other challenge is that of always having to make a judgement call on what’s good and what’s not. There are always ‘alternative best ways’ to do things, as there are always people who think they can do our jobs, but can’t. I call them “closet marketers”. You have to be able to judge the quality of work against strategy and get everyone to buy into it. It’s very challenging, but has its rewards. Has your gender ever influenced the way you do business, or have been perceived? Not so much my gender, but my personality. We have an advantage as women, as we have a lot more empathy, and an increased capacity to look, listen and communicate. In my view, men talk a lot, but women listen. I believe this has a big influence on the way I’m perceived. In marketing, specifically, you get your best insights when listening.
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Who has been your biggest influence? There are so many people that it’s hard to single out just one. I’ve had the gift of working for many amazing people across many amazing businesses, such as with Coca-Cola, Hollard and SAB, among others, and encountered numerous remarkable people from whom I have absorbed wisdom and learnt many things. What are your thoughts on the current business landscape in South Africa? With regard to marketing, there are two viewpoints. The first is that marketing is absolutely at the heart of any strategy; innovation, pipelines and strategies are led by marketing. It’s the true marketers who understand customer and competitor trends and are able to leverage them to influence the bottom line. The other viewpoint is that marketing is still seen by some as the people who order cupcakes and stage events. We live in a world of these two extremes and the challenge, as I always tell my team, is to earn your seat at the table and keep it. We need to be less excited by our own ideas and get to understand our audiences, so that we can ground all our strategies and expected outcomes therein, especially the business strategies. What are your business interests? My core interest at the moment—as it has always been—is the under-standing of human truths and having deep empathy for our audiences. This means understanding what problems they’re trying to solve, knowing that everyone is on a journey to their ‘next’, and not everyone’s next is the same. Within that, too, every individual has different layers of needs that span all their individual life stages. My core focus for Standard Bank is bringing our #WhatsYourNext? campaign to life. Any advice for aspiring women entrepreneurs? I think marketing is an exciting profession: It’s a creative, strategic and crucial role that’s best placed to tell what problems our customers are trying to solve and what solutions are needed to solve those problems.
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“ A s women, we have an increased capacity to look, listen and communicate”
Art credit teekay
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Next
The Great Innovation Frontier
M i l l s Soko
GENERATION WHY-NOT Young entrepreneurs in Africa face something of a perfect storm, so how do we push our under-30s into the big leagues?
Youth Month brought with it the usual barrage of commentary on Africa’s youth bulge and concomitant dearth of jobs on the continent. The narrative is frequently that young Africans have no option but to step up and create their own future. Entrepreneurship is the answer. It’s easier said than done. Young Africans are buoyantly entrepreneurial: Data from the Global Entrepreneurship Monitor, for instance, shows that three-quarters of Africans of working age consider entrepreneurship a good career choice. But at the same time, these entrepreneurial intentions don’t often translate into sustained businesses or innovations. In fact, innovation in sub-Saharan Africa—according to the same data set—is among the lowest in the world. So, what’s getting in the way of these optimistic and energetic young people being able to do what everyone expects of them, building sustainable businesses? Young entrepreneurs in South Africa and parts of the rest of the continent face something of a perfect storm. GEM lists a number of obstacles in the region: unfavourable legislation, a lack of R&D support, and other structural difficulties. Respondents to the most recent GEM survey listed difficult access to funds as their number-one challenge. Poor education and training also comes up repeatedly as a contributing factor. At the same time, economic conditions are worsening. Where, then, will we find our top under-30s? Perhaps the answer lies in what we can do for under-30s to make innovation, disruption and entrepreneurship easier. If the Gen Y’s and I’s are to deliver serious disruption on a larger scale, especially following South Africa’s downgrade to junk status, they need all the support they can get. Trade and Industry Minister Rob Davies recently pointed out the necessity for increased R&D support as we face the fourth Industrial Revolution, promising a renewed focus on digitisation, innovation and big data capabilities in the release of the department’s ninth iteration of South Africa’s Industrial Policy Action Plan. “We have no option but to prepare ourselves as quickly and creatively as possible,” he said. “Are we able to respond to the opportunities presented by the digital
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Building a business environment that’s more connected, more knowledgeable, and more competitive can only do good.
age in a way that supports our national priorities by providing better responses to challenges of poverty, underdevelopment and unemployment?” It’s a great question. A further intervention could lie in educating youth on how funding and other systems work. Environmental and management science, life orientation and a certain amount of career guidance are included in the school curriculum, but too little of this focuses on the realities of starting and running a business. How helpful if promising young people were assisted with entrepreneurial advice alongside tertiary education applications. Based on the feedback from aspiring entrepreneurs, the information required by SMEs should also be made easily accessible to all aspiring business owners. Comprehensive and up-to-date government web and print resources should be set up in easily accessible places so that entrepreneurs can find clear and accurate information about business registration, human resources legislation, insurance and other essentials. This information should be housed centrally, so that the entrepreneur isn’t in danger of missing key aspects. More supportive policy can take into account the importance of the informal sector, which contributes a significant portion to our economy and is saving millions from destitution. The informal sector holds important potential for skills development and, with some mentorship, may also hold potential for formal business development. According to Sarah-Ann Arnold, who runs the MTN Solution Space (an incubator based on the UCT Graduate School of Business Waterfront campus and in Philippi), experiential incubators and accelerators that are easily accessible to potential entrepreneurs— where they can develop new business opportunities, forge new links with industry and academia, and trial ideas in a relatively safe environment as well as reinforce skills already obtained—are crucial. Entrepreneurship can give our youth a better future. But those of us on more established footing need to give them a hand-up: through legislation, education, financial assistance and mentoring. Building a business environment that’s more connected, more knowledgeable, and more competitive can only do good.
Mills Soko is the director of the UCT Graduate School of Business and an associate professor specialising in international trade and doing business in Africa. With a career that has spanned business, government, civil society and academia, he is uniquely positioned to understand the role these sectors have to play—collaboratively and individually—in addressing the critical issues of Africa’s development and competitiveness.
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TOP SA WOMEN IN BUSINESS 2017 The movers and shakers
“YouTube—that’s how I got my international fan base up.”
KEVIN HART
comedian and actor
succeeding at both entrepreneurship and life
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Inside Africa’s fast cities getting ahead through tech innovation
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By Harry McCracken Illustration by Max-o-Matic
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TO OUTMANOEUVRE TRADITIONAL TV—AND SECURE GOOGLE’S FUTURE— YOUTUBE CEO SUSAN WOJCICKI MUST SEAMLESSLY SATISFY HOMEGROWN CREATORS, RISKAVERSE ADVERTISERS, HOLLYWOOD CELEBRITIES, AND THE VIEWERS WHO WATCH 1 BILLION HOURS A DAY
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I T IS MORE THAN A M AG A ZINE, I T'S A MOV EMEN T The Digital version of Fast Company South Africa is now available on Apple iPad and Android tablets
Fast Bytes Fast Company SA takes a look at the innovative new ideas, services, research and news currently making waves in South Africa and abroad
Ironclad protection Tech consumers can breathe a little more freely, knowing they’re safe from cybercriminals. Bitdefender was able to detect the Wannacry and Petya ransomware from the start, and protected all its users. With the advanced hacking attacks prevalent on the Internet currently, the global security technology company’s new system— Bitdefender Total Security 2018—gives users exclusive security and privacy by providing defence against ransomware, detecting and blocking new threats with Advanced Threat Defence, Webcam Protection, improved Multi-Layer Ransomware Protection and more. This line will be available in South Africa from August 2017.
A win for BBM and soccer fans BBM, together with Planet Sport Publishing, has launched the Football365 app for football fans around the world to enjoy the latest coverage of all the leagues, teams and goals, plus share pre-match and ingame updates with their peers. The mobile-first, socialfirst application also offers users audio reports from clubs and managers about the games, as well as previews, statistics and predictions. “We are constantly exploring innovative ways to pique the interests of our users, and in this case via Football365,” said Matthew Talbot, CEO of Creative Media Works, which operates and runs BBM globally.
Beyond book learning Rhodes University has become the first tertiary institution to introduce a course that involves community service. Children from underprivileged schools are being mentored and taught English skills by students undertaking the IiNtetho ZoBomi philosophy course (formerly known as Existential Conversations). This initiative challenges Rhodes students to question their societies and on that build opinions on racism or patriarchy that will benefit the community. “ZoBomi created a space for me to relieve the stress from other subjects, because helping people helps me to feel at peace,” said first-year student Annuschka Silence. 80 FASTCOMPANY.CO.Z A AUGUST 2017
From KZN to the world Xolile Xaba, a 22-year-old from Newcastle in northern KwaZuluNatal, has been invited to the One Young World Summit in Bogotá, Colombia from 4 to 7 October to showcase his novel creations. His Car-Park app helps you locate your vehicle— inspired by his grandmother who always had trouble finding her car in large parking lots. The founder of Prefect Communications and Development Inc. has also created BizzPort, an app that connects African entrepreneurs with each other. Xaba has turned his programming hobby into a way of finding solutions to problems faced by Africans, and aims to develop free apps focused on social issues.
Fast Bytes
Drones for humanity A project that will make use of unmanned aerial vehicles, or drones, has been launched by Unicef and the Malawian government to carry out humanitarian efforts in the country and eventually the rest of the world. First piloted in 2016, the first-of-its-kind air corridor is based at the Kasungu Aerodrome in central Malawi and provides a controlled platform for the private sector, universities and other partners to explore how drones can be used to help deliver services that will benefit communities. The Humanitarian UAV Testing Corridor will run for at least one year, until June 2018.
Bringing investment to Africa
Drones for Humanity: Unicef/UN070228/Chisiza
A new solution Pan-African telecommunications service provider Internet Solutions has launched its very own cybersecurity education service called PhishNet, which will protect corporates and their employees against one of the most popular forms of cybercrime: phishing. “Phishing attacks are increasingly sophisticated and they target individuals, so proactive employee education is an important element of a holistic cybersecurity strategy,” says the chief solutions officer at Internet Solutions, Sean Nourse. Internet Solutions recently tested the efficacy of phishing by sending an email campaign to IT–savvy contacts. Despite spelling errors, an outdated logo and a questionable subject line, a staggering 40% of recipients clicked the phishing link contained in the email—clearly demonstrating how vulnerable companies are to cybercrime.
Cape Town Executive Mayor Patricia de Lille officially opened the country’s latest venture capital company, Glenheim. It’s the product of financial management boutique OutsourcedCFO joining forces with Garreth Bloor, former Western Cape MMC for Economic Development, to bring investors from around the world into emerging local tech companies. Bloor is MD of the Glenheim team focused on dedicated fundraising, venture capital investments and business development. At the 2017 World Economic Forum on Africa held in Durban, Glenheim announced its first in-house fund, just a few months into operations. The team has already overseen R250 million in venture capital over the past two years, backed by OCFO’s financial management in each firm. Bloor was one of this year’s Global Shapers at the WEF: young people who are exceptional in their potential, their achievements, and their drive to make a contribution to their communities. AUGUST 2017 FASTCOMPANY.CO.Z A 81
Fast Events Local conferences, talks and meetups we think are worth attending
100% Design South Africa
Bits & Bytes Tech Quiz & Dinner
Date: 9 to 13 August Time: 10h00–18h00 Location: Gallagher Convention Centre, Johannesburg Cost: Adults R120; students R100; kids under 12 R20 www.100percentdesign.co.za
Date: 21 August Time: 18h15–21h15 Location: Deer Park Café, Vredehoek, Cape Town Cost: R250 per person (table of 4 to 6) www.kato.global
100% Design South Africa is the leading high-end curated showcase of the most inspirational designs and designers. It takes place alongside the popular and well-attended Decorex Joburg, and is the perfect platform to source South African and international furniture and product designs as well as lighting, interior design, surface and materials for the residential, commercial, hospitality and office sectors.
Come put your tech skills to the test with Women in Tech Cape Town’s first ever dinner and quiz night, as part of the Open Design Cape Town festival taking place from 13 to 25 August. Think delicious food, interesting tech-themed questions, and plenty of fun. All genders are welcome. Women in Tech Cape Town is a community designed to empower females (and men!) in the technology industry or who want to learn more about tech.
Startupbootcamp InsurTech FastTrack Days
Infrastructure Africa Business Forum
Date: 14 August (Joburg); 17 August (Cape Town) Time: 08h30–16h00 Location: Tshimologong Precinct, Braamfontein; Cape Town venue TBC Cost: Free until 14 August www.startupbootcamp.org
Date: 21 & 22 August Time: 07h30–17h00 Location: Sandton Convention Centre, Johannesburg Cost: R 8 250 per delegate www.infrastructure-africa.com
Europe’s leading accelerator programme Startupbootcamp will showcase South Africa’s entrepreneurial talent in the global market through its FastTrack Days. These sessions are free of charge and aimed at giving young African startups in the insurance and technology spaces the opportunity to engage with industry experts. From a pool of applications to the event, 10 of these startups will be invited to present their innovative ideas to the Startupbootcamp team, fellow entrepreneurs and top industry experts, as well as investing partners.
The 6th annual Infrastructure Africa Business Forum will present stakeholders with an opportunity to unpack the enormous growth potential in addressing the continent’s infrastructure needs. The event will bring together businesses to explore new trading opportunities, establish new networks, develop and form partnerships, and plan a way forward to address some of Africa’s requirements—in key sectors including water, energy, health, transport and finance.
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Fast Events
Cape Construction Conference and Trade Expo
Inspire Gauteng Expo
Date: 23 & 24 August Time: 09h00–18h00 (day 1); 09h00–16h00 (day 2) Location: Cape Town International Convention Centre Cost: Available on request www.cape-construction.co.za
Date: 7 & 8 September Time: TBA Location: Maropeng, Cradle of Humankind, Sterkfontein Cost: R2 850 per delegate (register online) www.inspiregauteng.co.za
The Western Cape’s only event for the built environment will exhibit over 100 brands, and offer free workshops and networking opportunities. The Stakeholder Engagement Forum will provide inside access to the provincial government and leaders defining the development pipeline for the region. With contractors, architects, civil engineers and quantity surveyors—and a number of knowledge- and technical training opportunities—this is a must-attend show for stakeholders. The Smart Buildings & Infrastructure Western Cape Summit will be co-located at the event.
The Gauteng Tourism, Trade and Investment Expo will bring together a selection of international traders, investors, the most innovative service providers, business leaders and high-profile delegates looking to do business with the province. Both exhibitors and delegates will have the opportunity to network with key decision makers to create new business opportunities. With a full conference running alongside the exhibition, the event delivers a fantastic platform for all those wishing to do business in Gauteng.
#BuyaBusiness Expo
Corporate Counsel Forum Africa 2017
Date: 31 August to 2 September Time: 09h00–17h00 Location: Ticketpro Dome, Northriding, Johannesburg Cost: Free (register online by 25 August); R65 at door www.reedexpoafrica.co.za/buyabusinessexpo This annual trade expo connects entrepreneurs and investors who are looking to grow, diversify or enter into business ownership with one of the many business and franchise opportunities available at the show. Whether you’re an entrepreneur looking for ideas to start or invest in a business, or to obtain financial support, or simply to explore business and franchise opportunities, visit the #BuyaBusiness Expo to discover everything you need.
Date: 7 September Time: 08h30–17h00 Location: The Wanderers Club, Illovo, Johannesburg Cost: Free (register online) www.ccf-africa.com The 6th annual Corporate Counsel Forum Africa will reunite some of the region’s leading general counsel and senior in-house counsel to discuss, debate and deliver vital insights into the changing dynamic of the African legal market. Issues that continue to drive change within corporate legal functions will dominate this year’s programme, while interactive breakout sessions aim to equip you with the skills and knowledge needed for ultimate success.
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The Brains Trust
Ly n n M adeley
BUILD YOUR A-TEAM How marketing agencies can help their clients get ‘fluent in tomorrow’ through forming a creative collective
Frankly, the current way of working between marketing agencies and clients is in a state of flux, and we’re not sure what’s coming next. We’ve seen this before, but this time it’s different. We know that for marketing agencies, adding value is no longer a price nor capability consideration—those are basics that should always be right. It’s now about genuinely understanding the way people are consuming information and adopting a structure that enables this understanding. Agencies who are in that state of mind are the perfect partners, poised to help clients get ‘fluent in tomorrow’ and win for the future. Clients’ need for more value to cushion their businesses through the current economic uncertainty is the reason behind the changing way of working. From the lead agency model to the full-service agency and the latest way of working, the best of breed—we’re all looking into agency-client relationships with a fine-tooth comb. We know we need a bit of tension to push ourselves to deliver great work. We also know we don’t have much time for egos anymore; managing them is timeconsuming and draining. So, where does that leave us? What is the future? Rather than creating silos or finding a jack of all trades, I believe the future lies in creating a brains trust. This brings together different areas of expertise into one core team, with supporting teams who project-manage the execution of ideas. It’s a creative collective of specialists: from brand and communication strategists, digitally savvy people, content developers, PR specialists to TV-smart people. Everyone works together to come up with media-agnostic ideas that help grow brands across the gambit of client needs to meet set business objectives. The problem with the brains trust, however, is that it can be expensive. You have highly paid resources doubling up, and the question is: Are clients prepared to pay for this, particularly at a time when budgets are being cut and economic uncertainty looms? In all honesty, some of them are and some are not. But that
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Our way of working needs to change to one that guarantees a shared value for both the client and the agency business.
can be managed. What we do know is that clients are more willing to pay a premium for good thinking than they are for the people who facilitate processes. It’s the thinking that provides value and uplifts their business. That’s not to undermine the people who action the thinking; they’re critical, too, but that’s not the point of this discussion. Having great thinking in one room, regularly working on client business, may increase pressure to perform, particularly if people come from different companies. We end up with a minipitch in every single brief. And maybe that’s not so bad: Perhaps that’s the edge needed to push ourselves and our clients to the next level. But is this sustainable for teams, energy-wise? It’s an interesting development for leaders of agencies. The approach to talent management has changed to manage this. We make sure we don’t have the same people working at the same pressure at the same time. Otherwise, exhaustion sets in. We essentially periodise people the same way athletes rest and work, to ensure quality of work. Playing only one A-Team will work if you’re buying them pizzas every night for a week—but after week three, that wears a bit thin. The current uncertainty in the global socioeconomic landscape presents us with the opportunity to rethink our way of working. Consumers are at the most dynamic we’ve ever experienced; budgets are much smaller—yet business key performance indicators are more demanding and more specific. Our way of working needs to change to one that guarantees a shared value for both the client and the agency business. The brains trust approach will get us closer to that sweet spot.
Lynn Madeley is the CEO of Havas Southern Africa and leads a team of 80 marketing and communications specialists working on a wide range of brands in southern Africa and beyond. She believes in fulfilling potential—everyone’s: from people who work at Havas, to the brands, companies and products they work with.
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