1. Recreating the Context
How Going Digital Changes Business Models

2. Content
S/N SUBJECT SLIDE
1. Digital Transformation – Building a Digital Business 3 - 15
2. Moving From Analogue to Digital – Recreating the Context 16 - 38
3. Integration – Accelerating Digital Transformation 39 - 42

3. 1. Digital Transformation
Building a Digital Business

4. Going Digital?
PURPOSE
• Taking bold steps
to place digital and
technology at the
very heart of life
and business
operations.
PLUG
• The creation of
innovative digital
services to help
aggregate and
build digital
platforms with
augmented
distribution
infrastructure and
store operations.
PLAN
• Digital technology
at the heart of
possibilities

5. What is Driving Digital Transformation
Information as
Asset
In this age of interactivity,
information as moved from
being a process commodity
to a critical business asset.
Speed as
Competitive
Advantage
Beyond the use of
information technology to
improve productivity and
efficiency, speed to market
and optimize supply chains
are part of the demands.
Customers as
Value Innovators
Customers demand to co-
create value and delivery
process.
The end-point being to quickly drive down costs and complexity.

6. Life Without These Things…
INFORMATION
Being able to
search for
information on
Google
MAILS
Being able to
send mails
without visiting
the post office
SHOP
Being able to
shop without
going to the
Mall or Market
COMMUNICATE
Being able to
communicate
without a face
to face
encounter
SOCIALIZE
Being able to
express our
views, vent and
socialize
outside a
physical space
The Information Age

7. Now Imagine…
• Imagine being able to
ride a driverless car that
knows and can navigate
the fastest route to your
destination?
The
Autonomous Car
• Imagine ordering an
item online and have
delivery done within
minutes from a location
as far as 100Km?
Drone Delivery
• Imagine giving your
shoe specification and
unique design online
and having same
produced in seconds
using 3D print?
3D
Manufacturing
The Era of Internet of Things (IoT)

8. Nikolay SPASOV
Copyright: Nikolay SPASOV, TBI Bank

9. Digital Maturity Model
Ad-Hoc
• Digital Resister
Opportunistic
• Digital Explorer
Repeatable
• Digital Player
Managed
• Digital
Transformer
Optimised
• Digital
Disrupter
Copyright: IDC, Digital Transformation Maturity Model, 2015

10. Key Imperatives for Digital Transformation
Cost Efficiency
Build cost efficiency by digging into
current cost models and making
adjustments.
Business
Efficiency
Innovate either through seeking
vertical or horizontal possibilities
with a view to support the new
value proposition.
10

11. Driving Digital Transformation
“What
Is”
Analogue systems and
Manual Operations
Current
Business
Model
Half-hearted digital
adoption with little
impact on business
models
“What
Should
Be”
An integrated delivery
model which enables
the business deliver
access and convenience
with or without physical
presence

12. Route
• To allow, and
encourage, community
to share experiences
and affect product
offering and delivery
Understand
the Customer
• To understand, engage
and retail to customer
base and primary
market via digital
tools.
Reinvent the
Business • To provide insights on
people’s ethnos,
behavior and other
required metrics .
Build Eco-
systems

13. The Path to Digital Transformation
Delivering
the New
Vision
Aligning the
entire
Organization
Taking an
Ecosystem
Approach
Growing not just
the customer
base for the core
of the business
but an aligned
community
Curating
and
Managing
Information
Delivering
precise insights
from tracking
communities
interaction with
products and
other activities
Delivering a
flexible
Business
Model
Being able to
learn, unlearn,
relearn and retool
quickly.
Optimising
Processes
Doing things
easier, quicker
and cheaper.

14. Aligning the Business in a New Eco-System
Digital
Assets
A blog/discussion forum with
capacity to drive user
generated content and an
ecommerce store to retail
goods and services using a
Mobile APP.
Applications will be modular
in nature allowing for future
modules based on future
needs.

15. Requirements
DATA
• Customer Data
• Customer Datamart
• Demography and
geography
PROCESS
• Streamlined
• Shorter
• Cheaper
• More Accessible

16. 2. Moving from Analogue to Digital
Recreating the Context

17. 1. Publishing

18. From Manual Publishing to Digital Publishing
Manual Publishing
Publishing with
Paper and Print
as core
Hard and Soft-
Cover Books
E-Publishing
Using electronic
Platforms
E-Books
Need for Information
on the Go
News and
Information is
today consumed
on the go.
Innovation is
driving access
and Delivery

19. Digital Publishing Eco-System
Sony Reader
Stanza –I-Phone
Adobe DE
E-Publishers
Mobi - Kindle
Lit
E Reader
Global Reader
Distributors
Adobe
OverDrive
DNAML
LibreDigital
eBook Technologies
Publishing Dimensions
VitalSource Technologies
Innodata Isogen
Support

20. 2. Commerce

21. FromManualCommerce toElectronicCommerce
The Dynamics
• The retail industry in Nigeria has become increasingly sophisticated, evolving from open-air
markets to modern malls and online shops, mainly due to a growing population of
urbanization and emerging middle class.
• Online shopping has become quite popular due to its relative convenience and the
reasonable prices of goods and services available.
Recent Developments
• The increase in internet penetration in Nigeria has created huge opportunities for the online
retail markets, hence the rise of stiff competition in the e-commerce industry in Nigeria.
• The CBN cashless policy has further driven the e-commerce and online shopping industry, as
it seeks to reduce the use of physical cash while adopting various electronic mode of payment
like the JumiaPay.

22. Order
Processing
• In-house
Stock Management
• In-house
Dispatch
• In-house Jumia
Picking and PackingComputer Processing
Payment Management
• Visa
• Verve
• Banks
The E-Commerce Value Chain

23. Linkages
Retail
Suppliers
Warehouse Customers Buyers
Security Procurement
Data
Warehouse
Policy
Makers
E-Commerce
SMEs
Payment Platform

24. Types of E-Commerce Players in Nigeria
B2B (Business to
Business)
• This refers to e-
commerce activities
between businesses.
• Quill.com
• www.ferguson.com
B2C (Business to
Consumer)
• This refers to e-
commerce activities
between a business and
a consumer.
• Jumia, Kaymu and
Jumia, Cheki
C2B (Consumer to
Business)
• This type of e-
commerce usually
refers more to services
rather than goods.
• Jobberman.com
C2C (Consumer to
Consumer)
• This type of e-
commerce is made up
of online classifieds
• OLX
• Jiji
• Carmudi

25. Context and Competition
CONTEXT
With over 67 million people online - potentially a big market –
Nigeria ranks among the top 5 emerging e-commerce markets.
In 2014, Nigeria’s e-commerce market was valued at 225 billion
Naira, or US$1.3 billion due to the 25% in e-commerce growth.
COMPETITION
Jumia
Kaymu
Payporte
Konga (Yudala)
Deal-Dey
MallforAfrica

26. Challenges facing the Ecommerce Industry
Teething problems of Logistics
•Logistics and supply chains remain tough
challenges for the e-commerce platforms in
Nigeria. Delivery within 24 hours is not feasible in
major cities and some parts of Nigeria do not yet
have good standardized physical address pattern.
High cost of internet services
•The high cost of Bandwidth is still a major set back
for most e-commerce companies. The cost of
Broadband services is high in major parts of the
country.
Security
• Most Nigerians still find it difficult to do
financial transactions through e-commerce
websites due to internet security threats.
Low literacy rates
• Illiterate citizens may be unable to participate directly
on e-commerce sites that require reading and writing
skills. Without investing in the education of these
citizens, the pool of potential customers for web
entrepreneurs is greatly reduced.
Payment (Online/Offline)
• The current systems are not user friendly
and they create additional steps to the
checkout process. There is also no viable
payment system for in-app purchases.

27. Upcoming Trend in E-commerce Industry
Growth of Online Malls
• Many e-commerce companies discover
that rather than being burdened with
inventory, they could set and provide
e-commerce as a service to traders
• ( eg., Jumia MarketPlace)
Ease of Payment
Integration
• Jumia also pioneered this initiative
with the JumiaPay solution
Credit Easing
• Easy credit in form of credit cards allow
buyers to act on impulse. They buy
now and pay later using dedicated
credit cards tied to an account.
Beyond Lagos
• The opportunity for e-commerce is
growing all over the country, beyond
the main cities of Abuja, Port Harcourt
and Warri. Now, there are online stores
as far as Maiduguri in the Northern
area.
Outsourced Delivery
• Currently, courier companies are
making delivery arrangements on a
bilateral, ad-hoc basis. In the near
future, we may see tailored products
being rolled out that target e-
commerce stores.
The Coming Legislation
• Nigeria does not have a specific e-
commerce law. The Legislature is
taking a top down approach to work
on a Cyber-security Bill with more
inputs from foreign NGOs.

28. 3. Banking

29. The Banking Industry Reforms – Entry of FINTECH
Policy Thrust
• The banking reforms in
Nigeria are an integral
part of the country-wide
reforms being undertaken
to reposition the Nigerian
economy.
Key Issues
• Address failures in
corporate governance in
banks
• Fill critical gaps in the
regulatory framework
and regulations
Projections
• From the Financial System
Strategy 2020 (FSS2020), of the
Central Bank of Nigeria (CBN), it
is envisaged that the financial
system should be robust enough
to support economic growth
• Drive towards Cashless
creating possibilities for
FINTECHS especially around
payment solutions

30. Creating a Digital Bank
• "Start-ups and emerging providers of digital banking platforms
offer banks interesting opportunities for innovation."
- Stessa Cohen, Research Director at Gartner.
INTERNET OF THINGS (IoT)DIGITAL BANKING

31. Some Digital Banks in Nigeria
BANK FOCUS YEAR LAUNCHED/ANALYSIS
https://www.lidya.co/
The platform’s first product is targeted at
SMEs as a receivables based loan, which
can be between $500 and $15,000. The
credit will be disbursed to the customers
within 72 hours as opposed to the 6
months it would normally take were it a
traditional bank. (Culled from Herald News)
2016
• Calls itself the first Digital Bank in
Nigeria
https://www.kiakia.co/
90% of KiaKia customers have never
accessed a loan from any traditional
financial institutions in their life and do not
even have credit score. So, you can see the
power of fintech”
2017
Is strategized as a digital lending platform
http://www.alat.ng/ Focus on easing Banking transactions
by creating a branchless bank which is
driven using a mobile app
2017
Big on Digital Savings

32. 4. News

33. From the Manual Newsroom to the Digital Newsroom
24 HOUR
NEWS CYCLE
The invention of the
24 hour cycle
THE COMING
OF ONLINE
NEWSSITES
Online New-site’s
speed converted
Newspapers to
mere News Rebase
Platforms
BREAKING
NEWS
Breaking news
delivered online and
to mobile devices
can compete with
TV.
Factors Driving the Growth of Digital News

34. Creating the 24 Hours Newsroom
Changing the
Context
Switching editorial
context
From allotted time
to Press to delivering
News on the Go.
Becoming
Platform Agnostic
Expanding the
platform for
communication
Move from pure
News-print to Digital
and Online
Delivering
Flexible Content
From Cold to Hot
Content
From Graphics to
Audio-Visual

35. From Rebasing to Breaking the News
Differentiating
Newsprint and Online
Coverage
Integrating platform
possibilities using Digital
to deliver Omnichannel
News and Information

36. 5. Film and Music

37. Market Dynamics
Digital Switch-
over
Cable
Television
Digital Film
and Music
Distribution

38. Move from Analogue to Digital
Production
• Adoption of
Digital
Production
• From
Instrumentation
to Editing
Distribution
• Move to arrest
Intellectual
Property Theft
• Adoption of
Digital
Distribution
Models
Exhibition
• Netflix
• Iroko
• Apple Music

39. 3. Integration
Accelerating Digital Transformation

40. Accelerating Transformation – Key Considerations
Looking Beyond Current
Business Model
• Production
• Distribution
• Delivery
Getting New Insights
• The problem area
associated with the
current model – Access
to Raw Materials,
Environmental Factors
etc.
• The sustainability
Question – For How
Long Can We Continue
to Do This?
Trend Spotting and
Disruption
• TRENDS - How do
customers prefer to be
served?
• DISTRUPTION - Do
Customers know what
they want until they
see it?

41. Driving the Process
Service Experience
• Create a seamless experience
Product Delivery
• Become the Customer Champion
Business Process
Remodel to suit
new possibilities

42. Conclusion
Driving Innovation and Entrenching New Values
Stretching the boundaries….
1. Create differentiation – Redefining route to Market
2. Decrease Volatility – Reduction Complexities
3. Broaden Income Base – Creation of Access through Aggregation
Cost Efficiencies.
Compelling
Models
Customer
Connection
42

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