Excerpts: Most innovative companies in nigeria 2017

MOST INN VATIVE COMPANIES IN NIGERIA 2017

COMPANIES TO INSPIRE NIGERIA

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BUSINESSDAY INNOVATION REPORT 2018

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EXCERPTS: MOST INNOVATIVE COMPANIES & INSTITUTIONS IN NIGERIA 2017

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Contents Page Introduction 6 Executive Summary 7-8 Defining Innovation 9 How Does Innovation Lead to Growth? 10 Nigeria’s Innovation Profile in the World 12-14 Extract From the Businessday Innovation Survey

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BusinessDay Innovation Awards 2018 19-20

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The information captured in this report has been drawn together from various sources including the Companies covered. We consider the information reliable but do not guarantee the same.

This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification.

BusinessDay Media Limited does not warrant the accuracy, reliability or completeness of the information in this report nor its utility in achieving any purpose. Readers are responsible for assessing the relevance and accuracy of the content of this publication.

BusinessDay Media Limited will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.

The opinions/conclusions and suggestions in this report do not represent investment or other advice and should therefore not be construed as such.

This publication is copyright. Apart from any use as permitted under Copyright Act 1968, Nigeria, no part contained herein may be reproduced, copied or duplicated in any form without prior written consent of BusinessDay Media Limited.

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BUSINESSDAY INNOVATION REPORT 2018

Introduction BusinessDay Research & Intelligence Unit (BRIU) presents excerpts (extracts) from over 200 pages of the maiden edition of our annual Innovation Report 2018 sub-titled Companies to Inspire Nigeria following the first BusinessDay Innovation Awards held in 2017. The report tracks the innovative trends and strides of 88 Companies who introduced and pioneered inventive and ground-breaking products, services, models, processes and ideas in Nigeria that revolutionised our local markets over the last three (3) years (2014 to 2017).

Africa’s peculiar set of problems has necessitated that innovation becomes a key ingredient for Companies and Individuals to thrive. Largely fuelled by the equalising nature of technology and mobile telephony, Nigeria is slowly but surely emerging as a force to be reckoned with, especially with the economy in recovery.

Nigeria’s economic decline and slow recovery has challenged the operational existence of many of Nigeria’s big and small companies across all sectors. But in every challenge, there is an opportunity.

Faced with declining demand, policy inconsistency and uncertainty, foreign exchange scarcity, and dwindling revenues, players in both the private and public sector have had to dig deep into their innovative capacity to do extra-ordinary things.

Nigeria was ranked in the 119th position out of 127 Countries in the Global Index Innovation Report 2017 published by Cornell University, INSEAD Business School and the World Intellectual Property Organisation (WIPO). Every year, the Global Innovation Index provides detailed metrics about the innovation performance of nearly 130 countries and economies around the world. Each country is scored according to 81 indicators. Its 81 indicators explore a broad vision of innovation, including political environment, education, infrastructure and business sophistication.

BusinessDay seeks to advance the philosophy and culture of innovation in our nation space; and to recognise the people and companies that are driving it. Today, innovation is a key driver of organic growth for all companies—regardless of sector or geography. Recognizing the Organisations, Agencies and Individuals that are driving and advancing the culture of innovation, BusinessDay brings together industry leaders across all sectors.

Summarily, the full Report (out in December) seeks to showcase the Companies and Institutions that contributed immensely to the sustainability of their customer-base, bottom-line, overall organisational growth, as well as the socio-economic development of our country.

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Executive Summary BusinessDay is publishing the maiden edition of the Most Innovative Companies & Institutions in Nigeria Report 2018. Out soon, the full Report, which is over 200 pages, showcases the Companies and Institutions that contributed immensely to the growth of their customer-base, bottom-line, overall organisational growth, as well as the socio-economic development of our country via Innovation.

The report profiles the Organisations that are advancing the frontiers of innovation in the Country spurring transformations in new markets and disrupting existing industries.

Innovation is a prerequisite for corporate survival and the lifeblood of sustainable business growth and development globally. Organisations that innovate successfully are those that drive the future of the sectors or markets in which they play and indeed the overall economy they are located.

According to the Economist “Innovation in Africa is helped by a peculiar confluence of economic and political circumstances.” The World Economic Forum elaborated further in its article published in January 2016 titled: “Is Africa leading the Innovation Revolution?” that “Necessity is the mother of invention, and in Africa it has been the mother of innovation.”

Indeed, Africa’s peculiar set of problems has necessitated that innovation becomes a key ingredient for Companies and Individuals to thrive. Largely fuelled by the equalising nature of technology and mobile telephony, Nigeria is slowly but surely emerging as a force to be reckoned with, especially with the economy in recovery.

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Technology has fur ther deepened the advancement of Nigeria as a frontier market when it comes to innovation. Furthermore, technology is also helping to transform business models, especially across all sectors of the economy.

For instance, in the banking as well as the media & entertainment industries, technology is revolutionising the market space. Leading Innovators in the banking categor y are spearheading their Company’s growth and improving bottom-line through technology.

Most notable in the innovation emerging in Nigeria’s banking sector is the digitalisation of banking and e-payments, as well as the growth of the fintech segment.

Another notable factor of the innovators that made the list for BusinessDay’s Innovation Awards is the fact that collaborations between players operating in different sectors also create innovative results.

Overall, the 88 Companies that made the list of Innovators for BusinessDay’s Innovation Report: Companies to Inspire Nigeria 2018 Edition emerged from different and diverse sectors of the Nigerian Economy. Innovation takes place in various forms; it can be to transform business models; disrupt existing markets or create new ones; develop a new set of products; revolutionise service facilitation and deployment, among others.

For the different categories, the Research & Intelligence Unit employed various parameters and criteria in the process of selecting and short-listing Innovators out of hundreds of organisations, institutions and businesses registered and operating in Nigeria.

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Summarily, the benefits of innovating successfully leads to cost reductions, growth in revenues and increase in the bottom-line. Most importantly, the ability to exploit and tap into unexplored markets is key. The capacity to develop new and unexplored solutions to prevalent and existing problems is a major underlying foundation for any innovative venture.

BusinessDay seeks to advance the philosophy and culture of innovation in our nation space; and to recognise the people and companies that are driving it. Today, innovation is a key driver of organic growth for all companies—regardless of sector or geography. Recognizing the Organisations, Agencies and Individuals that are driving and advancing the culture of innovation, BusinessDay brings together industry leaders across all sectors.

Subsequently, as part of the Report, BusinessDay Research conducted a survey to gauge the level of adoption and deployment of innovation and innovative strategies across Nigerian Companies and Organisations, especially those recognised and selected in our Report as the leading innovators and disruptors in their respective sectors, markets and industries.

The first BusinessDay Innovation Survey focuses on how Companies in Nigeria define and implement innovation, find a forum for innovation; involve customers in the innovation process, among other key factors and characteristics. The Survey was addressed to key Executives of local Companies ranging from start-ups to large Companies, from various industries such as financial services, technology, media & telecommunications, healthcare, as well as from the industrial and commercial sector.

The Report, which is over 200 pages, seeks to showcase the Companies and Institutions that contributed immensely to the sustainability of their customer-base, bottom-line, overall organisational growth, as well as the socio-economic development of our country. The full report, which will be published in December, contains profiles of the 88 Companies covered, as well as interviews with 12 of the leading innovators and CEOs, in addition to the results of a survey conducted with key Executives of the Companies in the Report focusing on their Innovation strategies, future plans and prevailing challenges with respect to innovating in Nigeria.

For further enquiries, please contact the Author of the Report: Omosomi Omomia Senior Research Analyst BusinessDay Research & Intelligence Unit (BRIU) omosomi.omomia@businessdayonline.com omosomi.omomia@gmail.com

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BUSINESSDAY INNOVATION REPORT 2018

Defining Innovation Innovation is the process of translating an idea or invention into a good or service that creates value or for which customers will pay. To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need. Innovation involves deliberate application of information, imagination and initiative in deriving greater or different values from resources, and includes all processes by which new ideas are generated and converted into useful products. In business, innovation often results when ideas are applied by the Company in order to further satisfy the needs and expectations of the customers.

Definitions of Innovation

by Thought-Leaders on the Subject Matter Innovation is:

In a social context, innovation helps create new methods for alliance creation, joint venturing, flexible work hours, and creation of buyers’ purchasing power. Innovations are divided into two broad categories: 1.

Evolutionary innovations (continuous or dynamic evolutionary innovation) that are brought about by many incremental advances in technology or processes and 2.

Revolutionary innovations (also called discontinuous innovations) which are often disruptive and new.

Nick Skillicorn; Chief Editor of Idea to Value and the CEO & Founder of Improvides Innovation Consulting. He was voted one of the world’s top innovation bloggers for 2014.

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A great idea, executed brilliantly, and communicated in a way that is both intuitive and fully celebrates the magic of the initial concept

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Innovation is synonymous with risk-taking and organisations that create revolutionary products or technologies take on the greatest risk because they create new markets.

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Turning an idea into a solution that adds value from a customer’s perspective

Peter Foley is a Consultant, Innovator, Artist, Scientist, Photographer, Musician, Accountant and Blogger, with 25 years’ experience of Innovation and Behavioural Science in the Fortune 50.

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How Does Innovation Lead to Growth?

Innovation is an essential driver of economic progress that benefits consumers, businesses and the economy as a whole. How does it play that role, how does it contribute to economic growth and what can be done to promote it?

What is innovation?

In economic terms, innovation describes the development and application of ideas and technologies that improve goods and services or make their production more efficient.

A classic example of innovation is the development of steam engine technology in the 18th century.

Steam engines could be put to use in factories, enabling mass production, and they revolutionised transport with the railways. More recently, information technology transformed the way companies produce and sell their goods and services, while opening up new markets and new business models.

Innovation and productivity growth bring vast benefits for consumers and businesses. As productivity rises, the wages of workers increase. They have more money in their pockets, and so can buy more goods and services. At the same time, businesses become more profitable, which enables them to invest and hire more employees.

Why do we need innovation?

One of the major benefits of innovation is its contribution to economic growth. Simply put, innovation can lead to higher productivity, meaning that the same input generates a greater output.

As productivity rises, more goods and services are produced – in other words, the economy grows.

How does innovation take full effect?

Innovation usually starts on a small scale, e.g. when a new technology is first applied in the company where it has been developed. However, for the full benefits of innovation to be realised, it is necessary for it to spread across the economy and equally benefit companies in different sectors and of different sizes. Experts call this process the diffusion of innovation.

How can innovation be promoted?

Structural measures to promote innovation include increasing spending on research and development (R&D) and investing in education, as well as enabling entrepreneurs to start businesses more easily and for failed businesses to exit the market more quickly. In addition, companies can facilitate innovation by investing in their staff and conducting their own R&D.

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Nigeria’s Innovation Profile in the World Nigeria was ranked in the 119th position out of 127 Countries in the Global Index Innovation Report 2017 published by Cornell University, INSEAD Business School and the World Intellectual Property Organisation (WIPO). Every year, the Global Innovation Index provides detailed metrics about the innovation performance of nearly 130 countries and economies around the world. Each country is scored according to 81 indicators. Its 81 indicators explore a broad vision of innovation, including political environment, education, infrastructure and business sophistication.

Innovation Ranking In Africa

According to the 2017 Index, the top five (5) Innovative Countries in the World are Switzerland, Sweden, Netherlands, USA and the UK. In Africa, the top five (5) are South Africa, Mauritius, Morocco, Tunisia and Kenya. Nigeria ranked in the 21st position out of the 28 Countries covered in Africa.

Research & Development In Africa

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Research and development, also known in Europe as research and technological development, refers to innovative activities undertaken by corporations or governments in developing new services or products, or improving existing services or products. According to the Global Innovation Index, Nigerian ranked 17th out of 29 Countries in Africa; the highest on the Continent being South Africa, Egypt, Tunisia, Morocco and Kenya in that order.

According to the UNESCO Institute for Statistics (UIS), Global spending on R&D has reached a record high of almost US$ 1.7 trillion. About 10 countries account for 80% of spending. As part of the Sustainable Development Goals (SDGs), countries have pledged to substantially increase public and private R&D spending as well as the number of researchers by 2030.

According to the 2016 Global R&D Funding Forecast, R&D investments are spread evenly among five regions making up about 11% of the total global R&D spending, or $212 billion of the total $1.95 trillion. Africa accounts for 1.1 percent of the regional share (comprising North America/Caribbean, South America, Middle East, Africa and Russia/CIS) of $212.26 billion. South Africa is the leader in Africa with 30.3% of R&D Spending amounting to $6.76 billion. Overall, Five countries in the five global regions are responsible for nearly two-thirds of the $212 billion in R&D invested in these areas.

Human Capital & Research In Africa

On the innovation index, Nigeria ranks in the 11th position in Africa in terms of human capital and research. The human capital & research indicator result was derived via the analysis of multiple subindicators or indices including: School-life expectancy, years; Pupil-teacher ratio, Secondary; Tertiary enrolment; Expenditure on education as a percentage of GDP; etc.

The World Economic Forum’s (WEF) Human Capital report ranked 130 countries on their human capital development index and Nigeria ranked 114, among the lowest 20 globally, showing the country’s human capital is poorly prepared for competition in a fast changing global economy.

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Nigeria, which is Africa’s largest economy, ranked lower than Rwanda, which was ranked 71; Ghana, which ranked 72, Cameroon (73) Mauritius (74) and South Africa (87). Only Ethiopia ranked worse than Nigeria at 127.

Information And Communication Technologies In Africa

With respect to the access and use of ICT in Africa, Nigeria was in the 18th position out of 27 Countries on the Continent. Global experts have posited that increasing broadband access and penetration is critical for any country – particularly an economy like Nigeria, seeking growth, jobs and wealth creation. Increasing penetration and access in Nigeria will impact the economy positively, as it opens up opportunities for Nigeria’s teeming population – the largest in Africa.

The growth of tech start-ups and tech-hubs in Nigeria are providing further opportunities for investment. Big technology corporations like Facebook, Amazon, Microsoft, IBM, Google and many more have all marked Nigeria as the tech investment hotspot on the African continent.

According to the NCC, in 16 years since the Digital Mobile Licences (DML) were issued, investment in the sector has hit $70 billion from a mere $50 million in 2001.

Despite this, broadband penetration is currently at 21 percent from 10 percent in 2014, and expected to hit 30 percent by 2018, according to the National Broadband Plan. Challenges like high cost of leasing transmission and other types of infrastructure; long delays in processing permits; multiple taxation & regulations at federal, state and local government levels; as well as inordinate right-of-way charges have crimped the output of players in the industry.

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Extract From the Businessday Innovation Survey The first BusinessDay Innovation Survey focuses on how Companies in Nigeria define and implement innovation, find a forum for innovation; involve customers in the innovation process, among other key factors and characteristics. The Survey was addressed to key Executives of local Companies ranging from start-ups to large Companies, from various industries such as financial services, technology, media & telecommunications, healthcare, as well as from the industrial and commercial sector.

Some Findings from the Survey

Dependence of Organisation’s strategy on innovation for its long term success Nigerian businesses are increasingly likely to consider innovation to be an enabler of long-term success. In the last three years, Company leadership have expanded their thinking about what innovation can do for their organisations. In our survey, 56 percent of organisations’ strategies are extremely dependent on innovation for their long term success; 40 percent of respondents claim that their respective companies are very dependent on the application of innovative strategies for business sustainability, while the balance of 4 percent of organisations express dependence on innovation as a tool for long term strategic success.

Primary goals of the Organisation with respect to innovation strategies In 2017 and 2018, the primary goals of Organisations surveyed was to add new value to a current product (78.57%) and enter new markets (71.43%). 57.14 percent of respondents’ goals was to disrupt current markets by creating a new process or business model; while 55.36 percent intended to introduce an entirely new product category (55.36%). 50 percent of respondents plan to reduce the cost of existing products and services and 16.07 percent intend to change their business models.

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Views on the most important ingredients for successful innovation at your Company

97 percent of Executives think that strong visionary /business leadership are important ingredients for successful innovation at a Company. 86 percent are of the opinion that having the right culture to support and foster innovation are essential to success.

75 percent believe that having a capacity and capability for creativity are significant to attaining positive results in the cause of innovating.

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73 percent suggest being able to locate and train the right people undergirds successful innovation.

71 percent proffer the willingness to challenge organizational norms and take risks are key to resultdriven innovation. 64 percent of respondents think that the ability to capture ideas throughout the organisation, as well as the use of new tech (such as social media) to support innovation is important.

44 percent consider being able to secure the right levels of funding as an important ingredient underpinning successful innovation and 29 percent submit to collaborating with suppliers as significant to attaining successful innovation.

Constraints stopping Companies from being more innovative 37 percent of Executives confide that political and regulatory factors are major constraints stopping their Organisations from becoming more innovative. 33 percent reveal financial resources as a limitation toward their innovation growth and development. 13 percent of respondents disclose that inadequate technology is impeding progress toward increased innovation in their Companies.

9 percent divulge that lack of talent is the major restriction in their developing more in the quest toward becoming significantly innovative. 6 percent of respondents claim their existing organisation culture is the problem as 2 percent suggest that weak corporate governance/leadership is to blame within their own firms. On the other hand, 35 percent of Companies state that nothing is stopping them from being innovative.

Further information and analysis from the survey results including: Areas Companies are looking to innovate over the next 3 years (2018 to 2021); Percentage of total turnover in 2016 from new innovations introduced by the Companies between 2014 to 2016; Key ingredients for successful innovation, among others, can be found in the Full report out in December.

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BusinessDay Innovation Awards 2018 BusinessDay Annual Innovation Awards is a yearly event conceptualised by the BusinessDay Research & Intelligence Unit (BRIU) to recognise and celebrate organisations and companies that are advancing successfully the frontiers of innovation in Nigeria. We seek to laud and encourage the efforts of high-impact entrepreneurs and CEOs who have embraced many challenges to create world-class, industry-transforming and scalable companies that continue to forge new ways of doing business.

BusinessDay Innovation Awards showcases and rewards excellence in innovation across a range of ground-breaking products and services. The Awards are aimed at the businesses that are able to demonstrate real innovation with the potential to change the way an industry operates both locally and internationally. Businesses must exhibit high-growth potential and have the capacity to add substantial economic value.

Objectives of the Awards 1. To drive the concept and practice of innovation in our socio-economy.

2. To recognize the leading innovators and innovations in Nigeria.

3. To commend the contributions of professionals, organisations and institutions toward building a sustainable economy through innovation.

4. To foster the global culture and phenomenon of innovation, as well as engender strong innovation ecosystems and hubs within the country.

5. To promote and increase the awareness of new innovations and emerging technologies in every sector.

So here is a call for nomination and entries. Are you a Company, institution in the private and public sector that have introduced a very innovative product, service, idea or process that helped you surmount the economic challenges in 2016, as well as created socio-economic value for your Organisation, as well as internal and external stakeholders in your business environment or the overall economy.

Please share it with BusinessDay Research and Intelligence Unit (BRIU) team in just a few paragraphs showing: • Name of the product or service or idea?

• What is unique about it?

• What challenge or need did it serve?

• How successful has it been?

Eligibility Criteria • Only Nigerian-based Companies, Organisations & Institutions are eligible for participation.

• Only innovative products or services developed or introduced in 2016/2017 are eligible for entry submission for the 2018 Awards edition.

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BUSINESSDAY INNOVATION REPORT 2018

Multiple entries can be made in various categories by a Company for sector-related innovations in products & services.

Interested organisations can submit entries via various communication platforms set-up by BusinessDay. A selection committee is instituted to identify and contact leading nominees in each category.

The advisory board/jury selection committee provides additional support and oversight on nominations and make the final selection of winners.

The closing date for entries is Friday, March 30, 2018.

The decision of the jury is final.

Further details to be provided soon.

For further enquiries, please send your email to omosomi.omomia@businessdayonline.com; rerhe.idonije@businessdayonline.com; cc: research@businessdayonline.com BusinessDay Innovation Awards 2018 will be held on July 22, 2018.

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