Development of Africa as a New Frontier for the Technology Industry - Term Paper Example

New story report/ critique Introduction News, whether political, social, or economical, enlightens people on its subject matter that is often contemporary. My selected news article on ‘The next frontier,’ is an international business news story that was written in Nairobi, and The Economist published it on February 16, 2013. I review the news story to summarize it, offer a critique to it, and communicate my learnt lesson from it. Summary The business news article explores a shift in interest among technology companies to Africa. Each of the industry’s companies has recognized the potential in the continent and is making efforts to reap from the market. The writer tells of one Mamadou, a Senegalese who grew up in a middle-income family, studied mathematics at the University of Dakar before teaching in Ivory Coast. His ultimate goal was however to further his education in the United States. He moved to the United States and got a sales job before a customer advised him to seek an employment opportunity with IBM. This only opened Mamadou’s opportunities and he is currently managing IBM’s office in Dakar. The country’s office in Dakar is just but one of its initiatives towards its services in the continent that it has sparsely served before. The move to establish the office however communicates the company’s trend in the continent as it has established many other offices and shops across Africa where it expands its services. IBM, like its competitors, has also sought direct interaction with the market as it develops and introduces more products in it and one of the reasons for this exploration is the continent’s market potential. The Industry majorly targets the continent’s governments but also focuses on the private sector as well as informal sectors. Kenya is an example and has established itself as a potential center for technology, and attracted IBM research lab that promises many benefits (Economist 1). Critique The writer succeeds in demonstrating constructive and literal development of Africa as a new frontier for the technology industry’s companies. Mamadou’s developed interest in the United States and later moving there for education and employment only to be transferred back to Africa by IBM is the perfect example of the writer constructive approach to communicating the shift in both resources and potential to Africa. This is because Mamadou is identified, among his fellow employees at Staples, by an IBM employee and IBM eventually recruits him. Such identified potentials are also communicated in Mamadou’s capacity for which he is elevated to return and lead the company’s initiatives in the continent. Literal development of the continent as a new frontier is however evident in diversified reported observations. A time series evaluation of the industry’s commercial involvement is one of the identification bases for the developing frontier. IBM’s engagement in the continent, though experienced before, was less intensive than now. The company’s first commercial venture, according to the article, was in the year 1911 in South Africa and a sale in Ghana followed five decades later. This identifies a very low frequency of commercial participation as compared to the current ventures in the continent that simultaneously occur in different African countries. IBM’s 2011 contract to offer technology based products, for example reached 16 countries and comparing this with the earlier record of two ventures in more than five decades identifies a developing interest in the continent. Being a profit making organization, IBM’s establishment of shops and even research facilities across the African continent communicates an invented commercial interest whose returns will reward the ventures’ expenses. The interest in Africa is further so intense that for the first time, IBM’s high profiled personnel had to assemble outside its headquarters to interact with the continent’s consumers and this indicates that Africa is not only becoming a target, but is a special one (Economist 1). I also concur with the writer’s opinion of a developing frontier in Africa because of the emerging competition for the continent, among the technology industry’s firms, and identifiable opportunities. Like IBM, Microsoft has established officers across the continent, a factor that also identifies a relatively large market base that can accommodate competing rivals. The continent further has a widely unexplored market whose exploitation will meet the industry’s interest, contrary the western markets that are already explored. The available new market such the Kenya’s rift valley zone in which Microsoft seeks reach extra thousands of customers communicates the shift in interest to the continent. Current technological developments in Africa, as opposed to other continents in which the developments had earlier been realized, are also a reason for the continent’s emergence as a frontier for the technology industry. Mobile banking services such as the Kenya’s M-PESA services and Equity bank’s exploration of technology that its customers embrace are for example versions old applications in other continents. New innovations to meet the continent’s economic demands such as programs for small and middle income enterprises also creates market for the industry to develop its interest in the continent. The writer’s information is further validated by application of current events in the industry (Economist 1). Learnt lessons The article is informative and offers a number of social and entrepreneurial lessons. One of the learnt lessons is that no entity is poor and that entrepreneurship unlocks hidden potentials. Mamadou’s experience in which his quest for education and outstanding service delivery established him in IBM is an example because his success is a result of investment in education and his travel to the United States. The technology industry’s exploration in Africa that has identified the potential market and facilitated investments, also demonstrates this. I have also learnt that Africa has similar potentials like other continents but unlike the other continents, Africa’s resources have not been explored and this is what identifies Africa as a poor continent. Similarly, investors overlook Africa and only turn to it when other investment avenues are exhausted. This is why the industry moved to Africa after exploring the west and Asia (Economist 1). Conclusion The article reports on development of Africa as a new frontier for the technology industry. The author applies contemporary phenomena to illustrate the identified potentials in the continent and the industry’s trend in exploring the continent, an approach that also indicates reliability and validity of the news. The article is further informative and identifies neglect as the reason for Africa’s underdevelopment and underutilization of resources. Works cited Economist. “The next frontier: Technology companies have their eye on Africa. IBM is leading the way.” The Economist. February 16, 2013. Web. February 20, 2013. < http://www.economist.com/news/business/21571889-technology-companies-have-their-eye-africa-ibm-leading-way-next-frontier>. Read More