Taxonomy of it enterprises in kenya and their undeveloped growth interventions - with a special focus on startups
This is a preliminary analysis by John Kieti - Outgoing Lead at m:lab East Africa. This version has improvements from initial version presented at the AITEC East Africa ICT Summit - 19th Feb 2014 based on some feedback I got.
In short, the presentation calls for players in the industry to identify the unique characteristics of value creation and delivery processes of IT enterprises hence different business models priorities. Its after acknowledging these unique characteristics that ecosystem enablers such as governments and development agencies can devise more effective intervention strategies.
1. Taxonomy of IT Enterprises in Kenya
and their undeveloped growth
interventions.
with special focus on startups
A preliminary analysis by John Kieti - Outgoing Lead at m:lab East Africa
with improvements from initial version presented at the AITEC East Africa ICT Summit - 19th Feb 2014
@JohnKieti
4. 2013
Kenya: GDP $55b;
GNP $123b
Tanzania: GDP $33b;
GNP $84b
Uganda: GDP $21b;
GNP $55b
Nigeria: GDP $521b;
GNP $930b
2014
Google: Revenue $66b;
Founded 1998
Apple: Revenue $182b;
Founded 1976
Amazon: Revenue $89b;
Founded 1994
Ali Baba: Revenue $8;
Founded 1999
5. Canada ICT GDP Components
ICT Manufacturing (tangible?)
ICT Services (communication, software
publishing, implementation, hosting, etc)
ICT Wholesaling, Rental and Leasing
(intangible and tangible?)
6. IT Enterprise classification can be done as
pertains their business models
A business model describes the
rationale of how an organization
creates, delivers, and captures value
Osterwalder & Pigneur (2010)
7. A startup is an organization (temporary)
formed to search for a repeatable and
scalable business model -
Steve Blank (2010)
A startup is a human institution designed to
deliver a new product or service under
conditions of extreme uncertainty -
Eric Ries (2011)
9. IT Enterprises Value Characteristics & Business
Model Priorities
Freelancers &
Consultants
Traders &
Middlemen
Startups
Mature
Corporates
New product;
Arrive at repeatable & scalable model
Value pre-specified;
Build capacity of individual or outfit
Value pre-packaged (elsewhere);
Beat logistical and market inefficiencies
Diminishing value of current products;
Augment value or diversify products
11. IT Enterprises Dream On! Raise GNP by 15% Yearly;
# of native enterprises (Guesstimate)
Freelancers &
Consultants
Traders &
Middlemen
Startups
Mature
Corporates
Thousands (1,000 - 10,000)
Hundreds of thousands (500,000+)
Hundreds of thousands (500,000+)
Hundreds (100 - 1,000); 5th Year
12. IT Enterprises Ideal interventions from IT ecosystem
enablers in Kenya
Freelancers &
Consultants
Traders &
Middlemen
Startups
Mature
Corporates
Capital! Human, Social, Financial
Information infrastructure
Human capital
Information infrastructure
Trade Finance
Logistics infrastructure
Human capital
Empowering regulation
13. Resource constraints + Market conditions +
Caliber of Team => Most Startups die
before they can graduate
(90% in 3 years - guesstimate)
Graduation from startup to mature
corporate is typically a couple of years
(3-5 years - guesstimate)
14. # of Startups
Expand Base
Timeto
maturity
# of Startups
CompressTime
Timeto
maturity
15. Expand Base of The Startups Pyramid
Massively mobilize - use unemployment;
Popularise entrepreneurship!
Natural selection;
The best become high growth companies!
16. Compress Time to Maturity or Death
Human Capital: Refine that raw talent
Social Capital: Build business networks
Financial Capital: Fund (seed then growth)
17. Thank you;
Criticism and suggestions for
improvement requested …
jkieti@gmail.com
Follow further analysis and reflections on gmeltdown.com
@JohnKieti