In the ever-evolving landscape of technology and business, digital transformation has become essential for organisations aiming to stay competitive and relevant. The synergy between established corporate entities within the private sector and pioneering tech startups and fintech enterprises holds immense potential to steer significant digital transformations, as these partnerships can act as a catalyst for positive change. Our recent monthly dialogue held on Tuesday, 15th August underlined the theme of ‘Digital Transformation through Innovation and Collaboration.’ This engagement highlighted the role of strategic partnerships in driving successful digital transformation initiatives, while sharing best practices and exploring how Tanzania can further drive innovation and address existing challenges.
As stated by Mr. Philip Besiimire (Managing Director – Vodacom Tanzania), digital transformation is not an event but a continuum, and we are all at different stages of maturity. This diversity was evident in the findings from our initial survey conducted at the start of the event. When asked about their organization’s current state of digital adoption, 55.8% of us affirmed complete digital transformation and integration across all operational domains. In contrast, 5.8% indicated limited or no digital adoption, relying predominantly on conventional methods. Of note, aligning with a salient theme in the panel discussions, the responses to the second question regarding data analytics and insights strategies were particularly enlightening. Only 26.9% expressed possessing a well-established data analytics strategy and extensive reliance on data-driven decision-making. Other responses indicated varying levels of data analytics usage: 38.5% acknowledged its use to some extent while acknowledging room for enhancement, 21.2% viewed data analytics as an area of interest yet to be fully incorporated, and 13.5% revealed not utilising data analytics for decision-making, relying instead on intuition and experience. Given that the CEOrt membership comprises over 200 prominent Tanzanian companies, these outcomes offer a compelling snapshot of the present state of digital involvement within the country’s Private Sector.
A recent World Bank report, the GovTech Maturity Index (GTMI), placed Tanzania as a standout in technology adoption. The report positioned the country at the 26th spot globally for its adept usage of Information and Communication Technology (ICT) in public service delivery, marking a significant climb from its 90th position in 2021. While these efforts might not always yield intended outcomes, they do emphasise the Government’s determined commitment to embracing digital development. This was also expressed by Hon. Nape Nnauye, Minister for Information, Communication, and Information Technology, when delivering his keynote address at the engagement. “Innovation is the heart of real progress. As the Government, it is our responsibility to foster an environment where innovation thrives; where our youth are not just job seekers but job creators,” he said.
Although evident strides are being taken toward digital transformation, the imperative for business leaders to step up remains clear. Drawing attention to the underutilization of technology within organisations, Mr. Harish Bhatt (Managing Director – Soft-Tech Consultants Ltd) shared insights on the immense potential of harnessing data analytics to decipher consumer behaviours. Typically, companies concentrate on conducting financial analysis, inadvertently bypassing valuable insights that arise from scrutinising the market and customer dynamics. By adopting this perspective, businesses would be able to gain insights into customer behaviours, identify pain points, and comprehend the factors shaping their decision-making process.
In light of Mr. Bhatt’s subsequent comments, it becomes crucial to differentiate between the traditional practice of categorising data based on demographics and the advocated progression of classifying data according to behavioural patterns. It is through adopting the latter approach that businesses can proactively anticipate their customers’ needs and devise strategies to refine their offerings. Valuable insights can be drawn from global information giants like Amazon, Netflix, and Meta, renowned for their adeptness in unleashing the potential of data science. These enterprises have skillfully harnessed the innovative potential of data to personalise customer experiences and extend the influence of their brands. Along with enriched customer relationships, the success of these businesses demonstrates the remarkable power that data-driven approaches hold in today’s business landscape.
Tanzanian businesses have merely grazed the potential that strategic data utilisation holds, leaving vast untapped opportunities in their wake. Additionally, it’s widely acknowledged that a foundational level of trust is imperative for gathering authentic data. The recent enactment of the Personal Data Protection Act in Tanzania is expected to wield a significant influence in bolstering trust, given its emphasis on safeguarding data privacy. The potential insights gleaned from analysing behavioural data also extend to the Public Sector, which stands to benefit by identifying and understanding critical concerns the people have, enabling the development of effective strategies to address them.
Initiating a cultural shift is imperative to unlock the potential of data analytics opportunities. Given that digital transformation is inherently collaborative, culture undeniably assumes a pivotal role in facilitating its complete realisation. However, effecting a change in culture is no easy feat; would insights from behavioural specialists be the key to guide the broader society in embracing the integration of digital technologies?
The current administration, under the banner of the sixth phase Government, has pledged unwavering support for collaborative efforts propelling digital transformation in Tanzania. With the prospect of further insights from experienced leaders, we can envisage an accelerated pace of transformation, unveiling a plethora of untapped opportunities that can be harnessed to fuel growth and prosperity.