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Software Implementation Failure not Peculiar to Nigeria – Agada

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James Agada, managing director of ExpertEdge and chief technology officer, Computer Warehouse Group (CWG) Plc, is a thoroughbred electronic engineer with over two decade experience in the information technology industry.
Agada has worked with reputable IT companies before helping to form ExpertEdge in 1994.

He spoke to chike onwuegbuchi on issues around software and Computer Warehouse Group Plc.

Certification of Local Software & Role in Marketing and Patronage

Yes, certification has a role to play in marketing and branding. But in the software world, certification is normally done on the Company rather than the product.
Why it is done on the Company is that the product gives you the link to areas you can certify a company. For instance, if you are using word document, did anybody certified it? of course, no. We use Google daily without being certified.
But in some areas the software such as software used in running an airplane, there might be no certifications, but they are of standard, dogged and resilient.
Although, while you want to purchase certain products you might require to know if the software met certain standards, but it is very hard to deduce that, because any software in its composition has a mode it can operate depending on the environment, parameters and the users.
That is why nobody writes software and gives you a guarantee that it is bug-free.
In fact, if you read most licenses for software, there are usually clear disclaimers that they will not be responsible for any loss you might suffer as a result of a bug in the system.
They can only guarantee that when bug cases arise they will use their anti-bug system to fight it. However, companies that provide third party or outsourcing services, when you do not know the man’s competencies, you would want to see some certifications that will assure you that they have the competence. That gave rise to levels of certifications.
These are process certification. The idea is that when you follow these processes, hopefully, the quality of what you produce will match what is requested for.
But there is large portion of the work where people signify Mr. X I want banking software and it should do A, B, C, D&E in the following order.
So, you have that already specified; in other words, you can check if the final product meets the standard.

Basic Causes of Incidences of Failed Software Implementations
If we actually take time to study IT projects in general, there are probably more failed ones than the successful projects.
But it is not peculiar to Nigeria. It is a worldwide phenomenon, because software is trying to capture the way you work; part of the problem is, does the user know all the possible use cases he can have. So, as a banker, you do your processes, but you do not know all the possible ways to go about it.
The failure of IT or software related projects starts with the setting, which is establishing the act. If you fail to establish what your processes are properly, there is a great tendency to failure. Failure here implies that it is not meeting the requirements.
Maybe you set it to calculate interests under this condition, however, in actually use there are more conditions that you thought.
The second thing that causes failure in the software management projects is that the initial plan ought to incorporate all the decisions and at what point they need to be implemented, but bringing it as an adhoc thing will not fly.
Part of the success we’ve had is because the processes were laid down and when the banks came, we told them before you start we are going to take you away for 45 to 52 days and train the people in the bank, so they will understand what the software can and cannot do.
The next two weeks will be used to set the parameters; now you know the software; you have to configure it and establish where there are gaps, adopt the software and close the gaps.
Then, you do training and retraining to keep the update on the processes. We have used this process to deliver our Finnacle successfully.
So, project management is a big issue; you have to set the process correctly.
More so, choosing the wrong partner and wrong software add to the failures. It is your project, not the consultant’s.
You have to be dedicated to it and fight till it is delivered. Such choices as he is my brother, business partner; kickbacks, influential personality, are not supposed to be the standards.
Competence matters. For instance, in changing you bank application; it is like changing the processes engine; the man to do it must be qualified.

Managing Processes in Face of Incessant Project Failures
There is a clear process for implementation. We have adopted that into many projects we are doing. I think you can apply that process to any software project for a better result.
A software provider can be sure of the properties, but you do not know the man’s or client’s business and vice versa.
The first thing is that the man has to learn your software, as you learn his business too. Then, two of you can discuss on how to get the best out of the processes.
A lot of software providers go with the notion, ‘this is the software’, now, come and take it to run your business.
Most times, the providers tend to assume that this is what the people required for their operations.

CWG 2.0 For SMEs
CWG 2.0 is not a product rather an initiative of the company. Most of the time, we have focused on large corporations. But if we look at it in Nigeria, we probably do not have more than 2,000 big corporations.
If you use the Stock market as a yardstick, only 200 are listed on the market. But, if you look at the statistics government gave us, we have more than 17 million medium and small enterprises. So, to have an impact on the economy, it cannot be only the large corporate.
Like somebody said, Dangote on its own can employ about 10,000 or all the corporations that are flourishing employ 100,000 people all together, but how many Dangotes are you going to have in Nigeria.
But the 17million SMEs are individuals doing something and they need support. To us as a business, it is not just going to make impact on the economy. It also means that we are going to sell to the 17 million enterprises.
These smaller companies do not have millions of dollars to spend on; but the smaller amounts they have can be used to transforms their fortunes.
So, how do you support them? How do you use IT to make them increase their profit margins? A large portion of what we are doing in CWG 2.0 is to make this happens.
It will improve their business and they can employ others.
For instance, if most of them employ one person it will reduce the issue of unemployment in Nigeria.
The SMEs platform CWG 2.0, have three initiatives. One of them allows businesses to operate, but you pay only subscription fee and it is delivered over the web.
That solution also ties into the cashless initiative of the government. What we have done is that you can even use your mobile phone to access it or the regular PoS.
Now, as an SME, you may end up not making any investment fee, because you will get the PoS from the bank and can use it to run your business and other commercial activities.
We also know that critical to this segment of business is their inability to sell outside the immediate market. The easiest way to overcome that is to have online shop. We are aware there are several online shops at different combination in Nigeria, but what we have done is that we created a platform in collaboration with Spin, where we have equity holding too.
The solution is where anybody can open an online shop. What we have done to make it easier is by integrating payment and logistics system on it.
Therefore, without doing anything extra, people can go and start accessing you through the internet. And when you sell, our logistics partner will come to your shop, pick it up and deliver it.
What that means is that we have taken away the barrier that prevented them from selling online. Even the question of accepting payment is eliminated, because it is with a proof of delivery that will guarantee you take your money.

Subscription to That
Of course, there is a subscription fee, but the fee is very minimal; an average of about N2,500 for a month.
If you are to go rent a shop, for instance, Tejuosho, do you know how much it will cost. Even the subscription of N10,000 amount, that has not gotten you a shop in that market, but with that you are sure of reaching out to your customers anywhere in Nigeria.

CWG’s Data Centre
The Data centre we have is the Tier 111 with 25 to 45 racks. For now, we are our biggest customer, because we are using a considerable amount. However, there are other customers. We need to make distinctions.
Ordinarily, you build a big house, people come and rent. That is why a lot of people are building data centres in Nigeria.
Why is our different? It becomes different, because when you have such infrastructure, you need to keep something inside. When you do that, you need to manage it.
We have the capacity to support your hardware, software and your obligations. We have the engineers ready to attend to additional services in a jiffy.
However, we also realized that the data centre requirements in Nigeria is not necessarily going to be met by people who build any large data centre. My opinion is that there is already a block of data centres but there is a scarcity of properly managed data centres.
Our programme is that, we are going to maintain the support services; we are not saying build a 100 rack data centre; rather we will follow the trends of businesses.
For instance, we are building a teleport; that alone will consume 5 to 10 racks. Others are coming on board. So, if we look at banks, what many people will quickly find out is that if the banks require putting their data recovery centre, which is what keeps them going, the problem you will have as a datacenter is power.
By the time you have five of those banks putting their servers with you; you will need a power source, not a generator issue, to keep powering them.
That is going to be major challenges in future because most of them are using enterprise servers that consume power. For now, we are not in that business, because of power.
If power situation in Nigeria improves significantly where generator will be your fall-back, then it will become easy to go into that business. Currently, the public power is the fall-back.

 


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New Report Reveals 20% of Nigerians Use Bitcoin to Transact Daily

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A new report claims that 20 per cent of Nigerians are using Bitcoin to carry out financial transactions every day.

According to the open-source blockchain website, Elastos, the research was compiled from online interviews conducted with 1,407 self-defined ‘tech savvy’ respondents in Brazil, Germany, Nigeria, South Korea, UAE, the UK, and the US.

The interviews were completed by a third party, a registered market research company and completed between 30 March and 04 April ’24.

The report further revealed that 67 per cent of Nigerians would have more trust in Bitcoin to put their life savings than banks and local governments.

The report reads; “The inaugural BIT Index (Bitcoin; Innovation & Trust) – compiled from over 1,400 self-defined ‘tech savvy’ respondents from 7 countries across the globe – sheds light on the actual perception and use of Bitcoin in people’s daily lives, irrespective of its current valuation. Elastos’ BIT Index is part of ongoing research to better track the ‘real world’ use of Bitcoin together with users’ motivations, expectations and barriers around the same.

“In particular, the data reveals the role being played by emerging markets in terms of understanding, usage and confidence around Bitcoin. Nigerian respondents’ levels of usage and trust compare starkly with those expressed from so-called ‘established’ markets such as Germany and the UK and Germany where daily usage levels are just 8% (for German respondents) and (9% for their UK counterparts).

“In terms of the trust – in addition to Nigeria – significant proportions of respondents from Brazil (35 per cent) and the UAE (32 per cent) would have more confidence in Bitcoin-based services to protect their life savings compared to those from markets such as the UK (20 per cent) and Germany (22 per cent).

“When it comes to ensuring the integrity of online transactions, emerging market respondents also revealed their relative confidence in Bitcoin, compared to alternatives. According to the data, 66 per cent of Nigerian respondents and 35 per cent from Brazil have more confidence in Bitcoin-based systems than alternatives such as banks, or national Governments, compared to figures of just 16 per cent (Germany) and 21 per cent (UK) who feel the same.


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Defending the foundations for connectivity

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By Engr. Gbenga Adebayo

In 2001, when the first GSM call was made in Nigeria how many of us would have envisaged the digital world that we live in today? The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services. Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations. System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides. It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development. We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing. Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone. The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces is the issue of rising costs. Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated. The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag. It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations. We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry. How we approach and resolve it will define the future of Nigeria’s digital economy. If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power. If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble. For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel. For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives. But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute. Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

Engr. Gbenga Adebayo is the Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON)


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LCCI Urges FG to Simplify Trade Procedures to Boost Economy

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The Lagos Chamber of Commerce and Industry (LCCI) has said that the government needs to simplify and harmonize trade procedures and address bottlenecks in order to boost economic growth in the country.

President of LCCI, Mr. Gabriel Idahosa, gave the charge at a Quarterly media briefing on the State of the Economy yesterday in Lagos.

He said that the government has to create an atmosphere that promotes export growth and competitiveness, which is projected to boost export earnings, raise domestic revenue, improve citizens’ welfare, and increase business productivity.

“We recommend that reforms must include simplifying and harmonizing trade procedures as well as addressing bottlenecks such as port logistics, congestion, and transportation costs. This is expected to position the country as the commercial centre of the region and a springboard into regional value chains,” he stated.

On managing the persistent high inflation, the LCCI president said both monetary and fiscal authorities should focus on the factors driving the inflation rates by tackling the supply-side deficiencies instead of focusing too much attention on the demand-side management.

“We urge the Central Bank of Nigeria (CBN) to continue with its foreign exchange (forex) market reforms with intense discipline, as the high exchange rate against the naira is a major driver of the skyrocketing inflation rates.”

Idahosa acknowledged the improvement in the naira exchange rate in the last few days, moving towards the level of N1000 per dollar or lower.

“CBN needs to sustain its policy and regulatory reforms in the FX market, adopt policies that would attract more FX inflow into the economy as well as build market confidence in the performance of the FX market,” he added.

 


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