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Government is not the answer to every problem, but when it comes to technology access, it is the single most important determining factor everywhere in the world, says Gustavo Arenas of AMD.
 Expanding IT infrastructure and reducing network costs would help African business efficiency and enable African governments. How can governments encourage business investment in order to expand Africa's IT infrastructure?
Information Technology companies, like AMD and our customers and partners, increasingly see Africa as a place where we want to do business. So half the battle is already won. We want to be here and African leaders want us here. The next step is for governments across the continent to work with the private sector and public organizations to enact policies that serve to nurture a healthy business environment where fair and open competition prevails. Fortunately, we’re seeing this kind of thinking blossom here. It manifests in initiatives such as NEPAD (New Economic Program for Africa’s Development), where multiple African governments, non-profit organizations, the global IT industry and many other world bodies and organizations have come together to develop programs and initiatives that seek to solve an array of socio-economic problems by empowering and enabling people to take control of their own lives. This is sustainable and it's wonderful to see.
We should also, collectively, examine aid programmes and look for ways to redirect some of those resources toward cultivating the right conditions for long-term success. This includes developing the most competitive aspects of the full range of business sectors, not just IT. It also should include a commitment to R&D investment, as well as investment in education and training (including health education), manufacturing, natural resource development and other factors that are fundamental to future prosperity. Aid goes a long way toward solving a lot of problems, but much of it is understandably directed at emergency relief efforts. It’s difficult to think beyond that, but it’s vital that we make room for aid to also drive long-term growth opportunities as well.
Finally, competition is key. AMD continues to be an advocate for fair and open competition everywhere around the world. It also informs our 50x15 initiative, which seeks to connect 50 percent of the world’s population to the Internet by the year 2015. The only way we can reach this goal is by working together with global partners from all public and private sectors of society to develop innovative new ideas and technologies. If history teaches us anything, it’s that true innovation is born from competition.
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"Information Technology companies... increasingly see Africa as a place where we want to do business. "
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Ford’s introduction of assembly line manufacturing is perhaps the most recognized example of this, but it is by no means the only one. AMD’s joint announcement with Microsoft on May 22 is an equally powerful example. Together, AMD and Microsoft are developing new technology designed to allow people in high-growth markets around the world to own a fully featured PC under a pay-as-you-go business model, similar to the way most people around the world use cell phones. This is the ultimate win-win situation, as the population in emerging markets will be able to able to obtain a full featured, low power PC in a very affordable way.
How can the internet and new technologies help businesses and government improve their management?
Largely in the same way IT and the Internet have helped private industry become more efficient. Brazil is a great example of how to leverage new technology to improve government efficiency in terms of how it operates and serves its citizens. President Lula has made IT access for Brazilians a key goal of his administration. As a result, Brazil’s government is becoming more efficient as it leverages IT technology to support its operations and management. It’s also no accident that the Brazilian economy has grown strong as IT access has expanded. Technology can unleash economic potential in powerful and sometimes surprising ways.
Today, citizens in Brazil can interact with their local and national governments by visiting any number of local e-government centers. There, they can use computers to conduct nearly any government related transaction online – from applying for and renewing driver’s licenses to applying for government loans or taking part in various government programs, and much more. They can also look for jobs, evaluate and obtain healthcare benefits, and conduct other non-governmental or quasi-governmental business, quickly and efficiently over the Internet. What used to take a full day, or more, now takes a fraction of the time. This is only the beginning.
Governments in Africa that want to learn how to leverage IT technology to drive efficiency and economic growth should study Brazil, as well as other countries such as Korea. There are many valuable lessons in these examples.
What obstacles prevent an increase in the use of these technologies?
Lack of education and training, lack of infrastructure and lack of commitment on the part of governments to make IT access a national goal. If you train people and educate them properly, they will be more interested in learning how to utilize technology to improve their lives and livelihoods. They will also be far less intimidated by the thought of using a computer.
This was something AMD learned first hand during a pilot program we helped drive for the World Economic Forum in Brazil. The programme focused on providing computers and Internet access for job hunters in a poor section of Sao Paolo. At first, many of the people we accepted into the pilot program were nervous and intimidated about using technology. After a few weeks of training, however, their fears evaporated completely. These same people were writing resumes with ease. They were identifying job opportunities on the Internet and applying for jobs via email. It was truly extraordinary.
That said, without the right infrastructure, the best technology is rendered nearly useless. Things like electrical power, training and education programmes, software development, hardware development, and even micro-financing are all critical elements that must be in place for people to reap the benefits of technology.
And finally, the two objectives I’ve outlined above will be difficult to achieve without a firm commitment on the part of the government to make it a priority. Government is not the answer to every problem, but when it comes to technology access, it is the single most important determining factor everywhere in the world.What are the key skill sets needed by companies in Africa today and how can African business schools better prepare graduates for a global business environment?
In general, business leaders in Africa, as in many other countries around the globe, tend to pursue short-term fixes to long-term problems. They focus on exporting raw, undifferentiated materials or on finding cheap labor. Both deliver short-term gains, but these gains are not sustainable over multiple decades.
Business schools can help immensely by incorporating macro-economics into their programmes. Exchange programmes with schools around the world can also help. AMD believes IT can also play an important role because it can open doors to new opportunities that previously were inaccessible to African businesses.
The other half of this equation involves thinking about serving people near the bottom of the pyramid in new ways. This goes for both African businesses as well as businesses from around the globe. In his book, The Fortunate at the Bottom of the Pyramid, C.K. Prahalad writes, “If we stop thinking about the poor as victims or as a burden and start recognizing them as resilient and creative entrepreneurs and value-conscious consumers, a whole new world of opportunity will open up.”
These are wise and insightful words and they represent the inspiration for AMD’s 50x15 Initiative, which we have established as a business strategy, rather than a charitable endeavor.In today’s global supply chain, companies are increasingly locating production facilities in countries with labour cost advantages. What is
needed to make the African labour force more competitive in the face of competitive pressures from Asia?
The answer is really the sum total of everything I’ve been saying. But it may be useful to understand which factors are important for AMD. First and foremost, we locate our facilities where we know a skilled and educated workforce resides. This is truly the single most important factor for us. A skilled employee is nearly invaluable and AMD goes to great lengths to ensure our employees have the tools and resources they need to stay ahead in a competitive world, both personally and professionally.
AMD also looks for communities that value our presence and our contribution. We take this role very seriously and we want to be sure we have a seat at the table, as appropriate, to help local officials make the right decisions for their citizens and for us. We believe that it’s right for AMD to partner with local governments, for example, to enabling their citizens to live active, productive and healthy lives. It’s good for us and it’s good for them. Things like proper educational facilities are important. So is a reliable infrastructure. Hospitals, police, integrity of local and national governments – these are all important factors for us.
And finally, we look for places that are friendly and inviting to business. Having said that, I can tell you that this is not necessarily a deciding factor for us. But it is an important one. If we are able to take advantage of various incentives that allow us to maximize our revenue flow, with all other factors being equal, our customers win, our shareholders win, our employees win, and the local communities we reside in win. |
