Microsoft 4Afrika has advised that for SMEs in Africa to meet up with the current pandemic-driven changes in customer behaviour, then its invention economy must shift to becoming an innovation-based economy.
Soromfe Uzomah, Head, Strategic Partnerships, Microsoft 4Afrika, in his paper, titled: Should post-Covid reimagining prompt African SME’s to revisit their business models, explained that the invention based economy is where there are lots of great ideas with lack of scalable product; while an innovation economy is one based on competitive products that are scalable.
Explaining further, he noted that innovation becomes important only when it solves a customer’s problem and has a business model that creates or captures value.
“We must strengthen the innovation ecosystems in Africa. For SMEs and start-ups to thrive in the competitive world of business, they need to progressively innovate to ensure that goods and services reach untapped customer needs, and for this, business models must allow innovation to flourish.
“Here, accelerators and innovation hubs have an important role to play in nurturing talent and identifying and supporting future unicorns.
“While the Covid-19 pandemic has presented significant challenges to SMEs, it also represents an opportunity to adapt in order to make the most of their resources.
Lagos govt to begin demolition of buildings under powerlines, others
“Business model innovation is one of the most effective ways for companies to stand out from the competition and secure their futures, particularly in turbulent times.”
Soromfe disclosed that in times of significant changes, such as those stemming from the current global pandemic that it is pertinent for companies to think about what business model changes might help them adapt to the shifting landscape.
