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Ict@innovation: Free your IT Business in Africa/4-1

Period:[edit]

1:00hrs

Supply methodology:[edit]

For tutorial goal, it’s suggested that trainers/lectures use lectures and group and particular person workout routines as a serious technique of delivering this module.

Introduction[edit]

Enterprise is each context and product particular. Whereas one type of enterprise may match in a single area or nation, the identical enterprise could not prosper in one other area. The kind of product defining ones enterprise additionally performs an necessary half in figuring out whether or not the enterprise will succeed or not. Thus, when beginning a brand new enterprise, there are various components to think about, necessary choices to be made, guidelines and procedures to be adopted. In easy phrases, there isn’t a golden rule one can observe when beginning a enterprise. Nevertheless, this module addresses some new enterprise necessities by figuring out some enterprise alternatives one can discover, it discusses how one can arrange a enterprise, develop a plan and a few enterprise methods that one can undertake to assist arrange a FOSS-based enterprise within the African context. The module attracts on experiences and sensible points mentioned in a few of the case research in Module 2.

Figuring out Enterprise Alternatives[edit]

Most profitable companies begin with a good suggestion. This concept could also be your personal or could also be drawn from any one among quite a lot of obtainable assets, together with the next:

  • Enterprise contacts and acquaintances. These are individuals you’re recognized to both by advantage of your present skilled actions or by way of casual interactions.
  • Enterprise magazines and newspapers: these typically comprise enterprise success tales, how-to data for would-be small enterprise house owners, and lists of start-up alternatives.
  • Particular curiosity publications: sector-related publications preserve entrepreneurs knowledgeable of developments of their space of curiosity.
  • Commerce exhibits. Throughout such occasions, there are exhibitors from all walks of life and one might likelihood upon an excellent thought by merely interacting with them.
  • Radio, tv and the Web. With the wealth of data at our finger suggestions by way of the assorted media at our disposal, it’s now doable to faucet concepts from throughout the globe with out ever setting foot exterior your nation.
  • Import items checklist: Reviewing an inventory of the products imported into an space would possibly present clues on all kinds of enterprise alternatives in import alternative and provider improvement. If merchandise are usually not manufactured domestically, discover out why not.
  • Development Evaluation: Look ahead to developments in inhabitants, shopper or company shopping for habits, authorities laws, and different developments associated to your enterprise sector.
  • Present innovations and improvements: Inquire at universities, commerce faculties and different analysis facilities for alternatives to accumulate applied sciences already developed.
  • Authorities departments, businesses and applications: governments departments and businesses are sometimes dedicated to rising the quantity of federal authorities buying of their space of operation.
  • Departments and businesses provide research and experiences on enterprise developments and alternatives. Boards of Commerce and Chambers of Commerce additionally compile quite a lot of enterprise and funding alternatives.
  • Web and private blogs the place you possibly can search and examine what companies others are doing, contemplating or commenting on different FOSS companies in your area.

Elements of Enterprise Administration Abilities[edit]

The next assets have been recognized as important elements for constructing an efficient enterprise.

Finance and Accounting: The lifeblood of a enterprise is cash and a concrete understanding how the funds preserve a enterprise afloat is important to the success of a enterprise. One other idea which is intently related to finance and accounting is bookkeeping.

Bookkeeping is the recording of economic transactions. Transactions embody gross sales, purchases, revenue, and funds by a person or group. Bookkeeping is often carried out by a bookkeeper. Bookkeeping shouldn’t be confused with accounting.

Accountancy or accounting could be merely outlined because the systematic recording, verifying, and reporting of your organization’s belongings, revenue, bills, and so forth. Accounting has been outlined by the American Institute of Licensed Public Accountants (AICPA) as “The artwork of recording, classifying, and summarizing in a big method and when it comes to cash, transactions and occasions that are, partially at the least, of economic character, and decoding the outcomes thereof.”

The position and accountability of book-keepers are appropriately summerized by Biswaroop Todi (2007) thus;

  • Preserve full, up-to-date, and correct information of accounts and monetary preparations.
  • Bookkeepers confirm and enter data into journals and ledgers or into a pc.
  • They periodically stability the books and compile experiences and monetary statements.
  • In addition they obtain, report, financial institution and pay out money.
  • They stability checkbooks with month-to-month financial institution statements.
  • They might calculate worker wages from plant information or time playing cards and difficulty payroll checks.
  • Posting accounts receivable and payable, put together and make financial institution deposits, report payrolls, preserve stock information, buy provides, put together buy orders and do expense experiences.
  • Bookkeepers may make schedules, type paperwork, and file payments.

Position and accountability of accountants and controller

The position and tasks of accountants could fluctuate from one firm to a different. Nevertheless, there are some customary practices which have to be adopted. For example, your organization accountant will consider your enterprise information drawn up by the bookkeeper . Accountants should additionally have the ability to draw up a set of economic information and prescribe the system of accounts that can most simply give the specified data (M. Chatfield; 1977 and A. J. Briloff; 1972).

They have to be able to arriving at a complete view of the financial and the authorized elements of a enterprise, envisaging the impact of each form of transaction on the profit-and-loss assertion.

They need to acknowledge and classify all different components that enter into the dedication of the true situation of the enterprise (e.g., statistics referring to manufacturing; properties and monetary information representing investments, expenditures, receipts, fiscal modifications, and current standing). As well as, it is crucial that the accountant possesses the next abilities and is ready to carryout the next;

  • information and abilities obligatory for the implementation of sound accounting and monetary protocols and procedures
  • know and perform fundamental bookkeeping and accounting terminology, equivalent to monetary statements, optimistic money move, bridge financing, liquidity, and so forth
  • have the ability to assess undertaking efficiency primarily based on monetary evaluations ie: normal valuation ideas, undertaking viability evaluations
  • perform value accounting rules and native pricing technique
  • handle accounts receivables
  • Once more the subject and content material beneath it does do justice to elements of enterprise abilities

Enterprise Plan[edit]

Definition: A marketing strategy is a generic mannequin appropriate for all sorts of companies.

Nevertheless, it’s best to modify it to fit your specific circumstances. On this case it ought to accommodate your plan of motion; which ought to goal at sustainability and strategic actions detailing how it’s best to generate income from FOSS. Paul Younger (2008) listed elements which you’ll think about incorporating into your marketing strategy. The elements of a marketing strategy are schematically illustrated within the determine beneath:
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Elements of a marketing strategy[edit]

As proven within the determine above, Younger (2008) described a marketing strategy as consisting of an govt abstract, normal firm descripion, mission ststement, firm targets and aims, the authorized type of possession of your organization, and describing the enterprise alternatives which can exist to your firm. Along with these, you may additionally need to state or checklist a few of your notable or goal shoppers and think about them as a part of your marketing strategy. Younger’s categorization of the elements of a marketing strategy are mentioned beneath:

Write this part final and make it two pages or fewer. Embody every thing that you’d cowl in a five-minute interview. Clarify the basics of the proposed enterprise: What is going to your enterprise be? Who will your clients be? Who’re the house owners? What do you assume the longer term holds for your enterprise and your trade? Make it enthusiastic, skilled, full, and concise. If making use of for a mortgage, state clearly how a lot you need, exactly how you will use it, and the way the cash will make your enterprise extra worthwhile, thereby guaranteeing reimbursement. The desk beneath exhibits examples of govt summaries from some firms

  • Common Firm Description:

What enterprise will you be in? The work you’re planning on doing shouldn’t be essentially the enterprise you’re in. For example, if you’re planning to setup a lodge, you’re really going into the enterprise of Hospitality i.e. taking care of individuals. That’s the precise enterprise and when you perceive that, then all of your efforts shall be on ensuring that the lodge ‘takes care of individuals’ very properly.

Definition: A mission assertion is a quick description of an organization’s elementary goal.

A mission assertion solutions the query, “Why will we exist?” Many firms have a quick mission assertion, often in 30 phrases or fewer, explaining their purpose for being and their guiding rules.

  • Firm Objectives and Targets:

Objectives are locations—the place you need your enterprise to be. Targets are progress markers alongside the way in which to objective achievement. For instance, a objective is likely to be to have a wholesome, profitable firm that could be a chief in customer support and that has a loyal buyer following. Targets is likely to be an annual development in your buyer base and a few particular measures of buyer satisfaction.

Defining this helps you understand what’s necessary to you in enterprise, to whom will you market your merchandise, a quick description of your trade and so forth. Nevertheless a lot of the data right here is present in element within the strategic plan, advertising and marketing plan and different sections of the marketing strategy.

Decide what kind you need your enterprise to take, that’s

  • Sole proprietorship: is a sort of enterprise entity which legally has no separate existence from its proprietor.
  • Partnership: is a sort of enterprise entity by which companions (house owners) share with one another the earnings or losses of the enterprise enterprise by which all have invested.
  • Restricted Firm: is an organization whose legal responsibility is proscribed by shares (Ltd), which is the most typical type of privately held firms.
  • Describing the chance:

Describe the hole that exists available in the market. What has given rise to this hole and the way can or not it’s stuffed? A method of discovering out what the market or your clients want is to make use of surveys, as demonstrated by the Linux Holding (Pty) Ltd. Case research in Module 2.4.

  • Describing the trade and the market:

A deeper understanding of a chance entails systematic analysis. Paul Younger (2008) argued that “It is extremely harmful to imagine that you simply already learn about your meant native market”. Thus, a type of SWOT evaluation (Part 4.1.6) or market analysis have to be undertaken to ensure you’re on observe; you understand what the enterprise local weather is in your area, who your potential clients (e.g. authorities, non-public sectors, and so forth) and rivals are. Use the enterprise planning course of as your alternative to uncover information and guarantee that there’s a sensible hole available in the market to your services or products and that you could be aggressive in offering that services or products. “Your time shall be properly spent“ (Younger, 2008).

  • Market analysis / aggressive evaluation:
    There are two kinds of market analysis. Particularly, main analysis and secondary analysis.
    Major analysis entails gathering new data, which might be instantly from the potential buyer. It means amassing new related data by interviews or surveys. By this you possibly can study in regards to the preferences and tendencies of shoppers.
    As it’s important to tackle many individuals for knowledgeable market analysis, this kind could be very costly. Due to this fact it’s best to search recommendation from examples and market analysis success tales in publications.
    Secondary analysis means desk analysis and entails compiling already present data, e.g. data and analysis leads to newspapers, magazines, statistical information or demographic profiles from authorities businesses.
    If you wish to analyze the market, it’s important to present sources, statistics, and numbers as precisely as doable. Effectivity of market evaluation performs a serious position, as a result of it would consequence right into a advertising and marketing plan and later into the all-important gross sales projection.
  • Trade Evaluation and Evaluation of boundaries to entry:

Younger (2008) additionally listed boundaries chances are you’ll face when coming into to a brand new and rising market, particularly FOSS markets. A few of these boundaries could also be related to your market or area whereas others could not:

  1. Excessive capital prices
  2. Excessive manufacturing prices
  3. Excessive advertising and marketing prices
  4. Client acceptance and model recognition
  5. Coaching and abilities
  6. Distinctive expertise and patents
  7. Tariff boundaries and quotas

Younger (2008) posits that an necessary issue of your enterprise is whether or not you clients have the shopping for energy of/over the merchandise you’re providing. You should have a look at your market and ask your self; Do my potential clients have vital alternative when shopping for my services or products? Are there substitute choices for the services or products that I’ve? What’s the probability that clients will swap to the substitute? What merchandise and corporations will compete with you?

  • Record your main rivals:

Will they compete with you throughout the board, or simply for sure merchandise, sure clients, or in sure places? How will your services or products evaluate with the competitors?

What’s a Product[edit]

Of their “Advertising and marketing Tutorials”, KnowThis. Com argued that, the time period “product” is commonly used as a catch-all phrase to determine options a marketer offers to its goal market. In essence, a product could be categorized as items, companies, and even an thought. Chances are you’ll discover a few of the definition of a product could prolong past your FOSS enterprise: :

  • Items – One thing is taken into account a superb if it’s a tangible merchandise.  That’s, it’s one thing that’s felt, tasted, heard, smelled or seen. Is you FOSS enterprise providing tangible items? Are you utilizing non-tangible (software program) as an ‘enhancer’ to the tangible items in your enterprise? For instance, you possibly can set up Ubuntu as a twin boot in all of the PCs or Laptops you’re promoting
  • Providers – in response to KnowThis.com, one thing is taken into account a service whether it is an providing a buyer obtains by way of the work or labor of another person. Providers can lead to the creation of tangible items (e.g., a writer of enterprise magazines hires a contract author to jot down an article) however the principle resolution being bought is the service. In contrast to items, companies are usually not saved, they’re solely obtainable on the time of use (e.g., hair salon) and the consistency of the profit provided can fluctuate from one purchaser to a different (e.g., not precisely the identical hair styling every time).
  • Concepts – One thing falls into the class of an thought if the marketer makes an attempt to persuade the client to change their habits or their notion indirectly (see FOSS advocacy in Module 3.1). Advertising and marketing concepts is commonly an answer put forth by non-profit teams or governments with the intention to get focused teams to keep away from or change sure habits. That is seen with public service bulletins directed towards such exercise as youth smoking, vehicle security, and unlawful drug use.

Whereas in some circumstances a marketer affords options that present each tangible and intangible attributes, for many organizations their main providing — the factor that’s the most important focus of the advertising and marketing effort — is concentrated in a single space. So whereas a producer could provide intangible companies or a service agency offers sure tangible tools, these are sometimes used as add-ons that increase the group’s most important product.

Enterprise Financing[edit]

Capital necessities are all of the belongings wanted to start a enterprise. An astute entrepreneur is ready to determine what these belongings are and the right way to pay for them. Types of Capital;

  • Debt Financing – By way of banks, micro finance establishments, leasing or commerce credit score.
  • Fairness Financing – By way of lenders, private funds, household and associates or Companions

These two types of financing are essentially the most available capital financing modes in Africa. Starting from non-public cash lenders to the mushrooming micro finance establishments, there’s now a giant supply of financing for small enterprise individuals with huge plans. The necessity for additional revenue has additionally spurred many gainfully employed individuals to put money into different individuals’s enterprise concepts as a approach of incomes a facet revenue and this helps then finally ends up both as fairness financing or debt financing.

The problem with financing in Africa lies in:

  1. The demand for safety tends to be outrageous. Some banks require safety in type of land titles or buildings owned earlier than they will prolong a grant of as little as US$ 2000. This makes it exhausting for the small companies to boost low cost cash to do enterprise as a result of once you have a look at the charges of the financial institution Vs these of the cash lenders, the distinction is greater than 5 instances. The one benefit of the cash lender is that they don’t often have very stringent phrases earlier than lending you.
  2. The dearth of documentation makes it exhausting for one to get credit score from the formal sector. A financial institution for instance could require that you’ve got sure documentation earlier than it could lend you cash.

SWOT Evaluation[edit]

While you setup a marketing strategy, typically this plan doesn’t function in a vacuum. There are different exterior/inner components which can influence your enterprise. The important thing parts you recognized as a part of your enterprise’ s inner assets and key capabilities or points have to be matched or assessed towards the exterior atmosphere by which you enterprise operates. The method which helps you on this endeavour is a course of known as SWOT evaluation. SWOT which stands for Energy, Weak point, alternatives and threats is, in response to David and Robert (1998) essentially the most acquainted of all [business] efficiency evaluation strategies. A scan of the inner and exterior atmosphere is a vital a part of the strategic planning course of. Definition: Environmental components inner to the agency often could be categorized as strengths (S) or weaknesses (W), and people exterior to the agency could be categorized as alternatives (O) or threats (T). Such an evaluation of the strategic atmosphere is known as a SWOT evaluation.The net QuickMBA.com course on “Strategic Administration” offers a SWOT evaluation framework, proven beneath, and discusses what chances are you’ll think about for your enterprise in of the weather within the framework:

Ict-innovation-FBT-Fig-4-1-6.png

Determine 1:evaluate with s.91, Kahraman, Grengiz: Fuzzy Multi-Standards Resolution-Making, Concept and Utility, NY 2008.

Strengths

A agency’s strengths are its assets and capabilities that can be utilized as a foundation for growing a aggressive benefit. Examples of such strengths embody:

  • robust model names
  • good repute amongst clients
  • value benefits from proprietary know-how
  • unique entry to excessive grade pure assets
  • favorable entry to distribution networks

WeaknessesThe absence of sure strengths could also be seen as a weak spot. For instance, every of the next could also be thought of weaknesses:

  • lack of patent safety
  • a weak model title
  • poor repute amongst clients
  • excessive value construction
  • lack of entry to the most effective pure assets
  • lack of entry to key distribution channels

In some circumstances, a weak spot would be the flip facet of energy. Take the case by which a agency has a considerable amount of manufacturing capability. Whereas this capability could also be thought of a energy that rivals don’t share, it additionally could also be a thought of a weak spot if the big funding in manufacturing capability prevents the agency from reacting rapidly to modifications within the strategic atmosphere.

AlternativesThe exterior environmental evaluation could reveal sure new alternatives for revenue and development. Some examples of such alternatives embody:

  • an unfulfilled buyer want
  • arrival of latest applied sciences
  • loosening of rules
  • elimination of worldwide commerce boundaries

ThreatsModifications within the exterior environmental additionally could current threats to the agency. Some examples of such threats embody:

  • shifts in shopper tastes away from the agency’s merchandise
  • emergence of substitute merchandise
  • new rules
  • elevated commerce boundaries

The SWOT MatrixBased on QuickMBA.com, a agency shouldn’t essentially pursue the extra profitable alternatives. Reasonably, it could have a greater likelihood at growing a aggressive benefit by figuring out a match between the agency’s strengths and upcoming alternatives. In some circumstances, the agency can overcome a weak spot with the intention to put together itself to pursue a compelling alternative.To develop methods that bear in mind the SWOT profile, a matrix of those components could be constructed.

  • S-O methods pursue alternatives which might be a superb match to the corporate’s strengths.
  • W-O methods overcome weaknesses to pursue alternatives.
  • S-T methods determine ways in which the agency can use its strengths to scale back its vulnerability to exterior threats.
  • W-T methods set up a defensive plan to forestall the agency’s weaknesses from making it extremely inclined to exterior threats.

State your aggressive benefits and drawbacks with respect to the next:

  • Change in expertise
  • Change in authorities rules
  • Change within the economic system
  • Change in your trade

Gross sales and Advertising and marketing[edit]

The gross sales and advertising and marketing divisions of a enterprise have an important position in securing money by way of gross sales to maintain the enterprise vibrant.

  • Position and accountability of gross sales and advertising and marketing personnel
  • Gross sales technique and targets
  • Position of gross sales personnel
  • Market analysis of FOSS enterprise potential, competitors and self-assessment
  • Distribution Channels
  • Growth of a “Preliminary” Advertising and marketing Combine

Operations Administration[edit]

The operation of an organization is the glue that pulls all the corporate divisions collectively for a standard goal.

  • Position and accountability of Operations
  • Setting targets and constructing capability
  • Setting personnel and gross sales name scheduling
  • Handle Stock controls
  • Compliance to ISO or different requirements
  • Compliance to privateness and different regulatory controls

Human Capital[edit]

The HR or personnel division is important in constructing the required expertise pool to carry out all of the capabilities of the enterprise.

  • Position and accountability of HR professionals
  • Recruitment technique of appropriate candidates
  • Hiring and firing methodologies
  • Specs of job descriptions and wage ranges
  • Compliance guidelines for Labour Legislation,  Truthful Recruitment & Choice course of
  • Personnel skilled improvement
  • Personnel efficiency appraisal and organisational effectiveness mapped to enterprise targets and technique

Module 4.1: ASSESSMENT[edit]

  • Task 1: Record and describe assets (enterprise magazines, ministries, commerce exhibits, Affiliation and so forth.) in your nation that are very important for establishing FOSS enterprise in your nation.
  • Task 2: Utilizing your information in Module 4.1.2 determine and checklist accounting procedures in Three firms chances are you’ll know in your nation.
  • Task 3: Establish and describe the FOSS alternatives which exist available in the market in your nation.
  • Task 4: Utilizing the desk beneath, describe the assist buildings in place in your nation which assist or finance ICT or any type of enterprenural[1] initiative.
Nation Assist buildings for finance Instance/Case
eg. Republic of Gambia Business financial institution, Chamber of commerce, ”Asusu’[2] Kumba enterprise obtained a mortgage of 2000$ to begin Linux coaching within the Gambia
……………. ………………………………. ……………………………
………….. ………………………………. …………………………….
……………… ……………………………… ……………………………..
  • Train 1: Utilizing your information in Module 4.1.Three and the case research in Modules 2.1 -2.7, full the desk beneath by ticking the place you assume the whole data is full.
Enterprise Plan Rating Sheet for Case Research
Firm Govt Abstract Firm Description Mission Assertion Firm targets & aims FOSS market alternatives
OpenWorld
GIS GlobalImage
FutureSoft Sources
Linux Holding
Linux Resolution
Amest Santim
CenFOSS
  1. Train 2: Record and determine 5 FOSS companies and 5 FOSS merchandise generally utilized in your nation or area
  2. Train 3: Based mostly in your information of SWOT evaluation in Module 4.1.7 develop a matrix for a FOSS firm chances are you’ll know in your nation.
  1. Train 4: Develop gross sales and advertising and marketing plan for a selected FOSS resolution (database system, CMS, and so forth) utilizing your native market because the goal for enterprise.
  2. Dialogue: Attainable technique of overcoming the boundaries to entry to market listed in Module 4.1.3?
  1. Discover some reference tor “Expertise Incubators“ right here: http://www.infodev.org/
  2. Asusu is a ‘Fula’ phrase describing a neighborhood type of banking the place a gaggle of intently knit associates contribute a repair quantity each month and provides it to a member of the group to begin a enterprise.

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