The speed of tech disruptions in the business space keeps growing by the day
BY ANTONY MUTUNGA
On September 1998, Google was introduced to the world by Larry Page and Sergey Brin. Back then, only a number of people would have imagined that the company’s web-based search engine would be the most preferred by users, 25 years later.
After a quarter a century in the tech space, Google has enjoyed a number of successes, but it has experienced its fair share of failures, too. For example, the company’s investment in phone-based virtual reality (VR) did not pay off. It failed given that Google Cardboard and Daydream, which were among the hot products, are no longer in production.
The discontinued Cardboard and Daydream virtual platforms were primarily low-priced handheld devices that would power a VR experience on almost any smartphone. In March 2021, following a waning interest on the two products, Google stopped to focus on “profitable businesses”. In one way, or another, African tech start-ups can borrow from the tech giant’s book in surviving in the tech space.
Lately, tech start-ups in Africa have taken a hit in the face of tough business environment, recording losses and facing a decrease in funding. There is nothing wrong with that. The high growth witnessed during the pandemic is declining. When the world entered the stages of recovery, the tech ecosystem was forced into correction that led to massive layoffs and closure of some tech firms.
African tech start-ups have faced a double challenge as not only have they been hit directly by the “ripple effects” but an indirect effect has also taken place, as the continent records a fall in funding from overseas investors.
A total of 633 African tech start-ups raised a combined Sh $3.3 billion in 2022 as per African tech startups funding 2022 report. In 2023, African tech start-ups have already recorded a decline as of April only 148 start-ups had received funding.
A decrease in funding has affected many tech start-ups in Africa, with a number opting to close down as they are unable to survive the environment. It’s been a wake up call for many start-ups that were highly dependent on funding. Most African tech companies are in need of creative ways to finance their operations instead of reliance on investors.
If anything, Google is proof just how crucial data is. Data collection through its search engine was important as it was able to understand what appeals to its users. With data, the tech giant applied behavioral targeting to entice users. That explains why the company came up with a number of applications such as Google maps and G-mail – data is the new gold.
In Africa, data collection is poor as most of it is incomplete and inaccessible. Following in Google’s footsteps, African tech start-ups have an opportunity to embrace data as a strategic asset by improving its collection and analysis. They can use the data to understand its users and be able to offer them what is tailored for them. In doing so, these start-ups will increase their revenue, drive innovation and promote economic growth.
According to Sundar Punchai, Google CEO, the company can accredit its success to its talented and dedicated employees. The tech giant has a number of tech geniuses under its wing and it also recruits gifted individuals and mentors them from a young age. This has seen it be able to stay ahead of it’s competitors with innovative members.
Many tech start-ups in Africa are the products of innovative individuals. However, many are those who do not have such an opportunity to turn their ideas into a reality. In fact, many more are those who might have been interested in a career in technology but lack the means and access to learn the technical skills required. Successful tech start-ups with the assistance of African governments should support those interested in tech by offering investments and coming up with
workshops aimed at offering tech skills to the youth.
If the African youth population can grow up with this skills they will have the necessary skills to develop Africa in the digital ecosystem. African start-ups will be focused on the long term in this endeavor, and such strategies were crucial in Google’s rise. Investing in the future in terms of new technologies and innovative projects was one of its successful strategies. In investing in the youth and improving skill development, African tech start-ups are looking to the innovative projects that will be the future of Africa.
African start-ups can build businesses that are sustainable and have the potential to make a real impact in their local communities. When looking at Google, its impact has been felt worldwide, now African tech start-ups, especially those at early stage, have a chance to do the same. Small companies cannot be compared to big ones, however, small or big, a company should be innovative, and ready for the ups and downs that come with success. It is a strategy that has kept Google on its toes, 25 years on. Google, is mostly known for its search engine, and is part of larger parent group, Alphabet, a company that sets stage in the tech field.
