Internet Of Things in Nigeria: How Technology is Making Few Very Rich and Majority Poor
The massive Adoption of technology has really made life easy, simple and fun to live. Now anyone can do anything through the internet, Buy, sell, travel, study, discover, have funs, etc.
Listening to Building the Future at Techcabal, with Oluyomi Ojo, Co-Founder of Printivo as the guest, you will see that Tech companies are leveraging the less competition when compared to traditional businesses.
Printivo is a DIY (do it yourself) web-to-print-to-doorstep platform. This startup is trying to redefine the digital printing business by offering consumers a radically easy solution for meeting their printing requirements.
There can be 100 printing local shops in Lagos all doing pretty well in the amount of revenues generated, but having 100 Printing tech startups (DIY) across all the states in Nigeria will seriously amount to high competition for customer s base and can’t generate what the traditional businesses do.
The Internet of things revolutionizing how the operation of the Tech ecosystem is good, but looking at the poor conversion against the potential businesses to emerge from the Internet, will The Trillion dollar deal as predicted by Mckinsey be reached?
YES AND NO!
Yes in the sense that Brand must pay good attention to customer behaviours and seek out various ways to influence they buyers activity to the positive growth than focusing on the number of traffic generation with poor online buyers understanding.
But the problem or high competition still can’t be overlooked as many will obviously go broke and run out of business as the competition for the internet conversion gets tighter.
Why? Internet conversion is always poor when compared to offline conversion.
This is the more reason why Jumia bags over 3 million visitors every day, yet, cannot make up $3 million dollars a day, but a traditional business that attracts 3 million customers every day is sure to make over $3 million on daily basis, taking Shoprite as an example.
“The If policymakers and businesses get it right, linking the physical and digital worlds could generate up to $11.1 trillion a year in economic value by 2025” – Mckinsey
The above statement remains viable for so many reasons like
- Biggest companies in the world right now are all internet driven
- Richest men on Forbes are all internet driven
- The exponential growth of internet adoption has been tremendous with and total estimation of 22.5 billion IoT devices in 2021, up from 6.6 billion in 2016 as seen on Business Insider
Important Things To Know About Internet Of Things in Nigeria – Tech Driven Businesses
In particular, companies that use IoT technology will play a critical role in developing the right systems and processes to maximize its value. Among our findings:
- Interoperability between IoT systems is critical. Of the total potential economic value the IoT enables, interoperability is required for 40 percent on average and for nearly 60 percent in some settings.
- Currently, most IoT data are not used. For example, on an oil rig that has 30,000 sensors, only 1 percent of the data are examined. That’s because this information is used mostly to detect and control anomalies—not for optimization and prediction, which provide the greatest value.
- The digitization of machines, vehicles, and other elements of the physical world is a powerful idea. Even at this early stage, the IoT is starting to have a real impact by changing how goods are made and distributed, how products are serviced and refined, and how doctors and patients manage health and wellness. But capturing the full potential of IoT applications will require innovation in technologies and business models, as well as investment in new capabilities and talent. With policy actions to encourage interoperability, ensure security, and protect privacy and property rights, the Internet of Things can begin to reach its full potential—especially if leaders truly embrace data-driven decision making.
- The IoT has a large potential in developing economies. Still, its estimated that it will have a higher overall value impact in advanced economies because of the higher value per use. However, developing economies like Nigeria could generate nearly 40 percent of the IoT’s value, and nearly half in some settings.
- Customers will capture most of the benefits. It’s estimated that IoT users (businesses, other organizations, and consumers) could capture 90 percent of the value that IoT applications generate. For example, in 2025 remote monitoring could create as much as $1.1 trillion a year in value by improving the health of chronic-disease patients.
- A dynamic industry is evolving around IoT technology. As in other technology waves, both incumbents and new players have opportunities. Digitization blurs the lines between technology companies and other types of businesses; makers of industrial machinery, for example, are creating new business models by using IoT links and data to offer their products as a service.
Having looked at the points above, The Internet of things technology has really got a lot to offer in the future but the major problem of monopolization of the huge market by just few businesses leaving many to suffer.
This will begin to leave some questions on our minds, questions like;
- What will be the fate of a new mega eCommerce startup in the United States knowing it has Amazon to battle with?
- What will be the fate of a new mega E-commerce in China knowing it has got Alibaba and the likes to battle with?
- What will be the fate of a product sales/distribution e-commerce that have got Jumia and Konga to battle with
- What will be the of 10 More startup that targets printing just like Printivo?
With these questions, one begins to wonder how and how many businesses will survive on the IOT so the huge opportunity it has got can be equally distributed across various businesses and not just have the big brands win it all to their revenue boxes.
Artificial intelligence and Robotics will steal away human jobs, making the AI/robot companies richer and leaving thousands Jobless.
What will now be the fate of the people affected? Obviously, they is little to almost no hope in the IOT space and will warrant a heavy competition in the Traditional business sector even when the technology-based businesses are already stealing enough of the market share from traditional businesses.
Once this happens (Having few internet businesses steal away the major market share and leaving Tons of traditional businesses to compete with the little market share that’s left) then, obviously, there is going to be a higher increase in the number of people that will fall out of business and end up having people with the Technology driven businesses in Nigeria and global village at large to enjoy the Wealth.
How to Stay Safe and Tap into the Tech-driven Businesses Market Share
- Niche down to something new that is tech-driven
- Start now and pay good attention to consumer/customer behaviour
- Target a global market with the Niche you have created for yourself