The State of Innovation in South Africa: Challenges, Opportunities, and Findings

The Need for Innovation Driven by Digital Disruption

Business Chief takes a look at the current state of technological innovation in South Africa.

Reflecting on the current state of innovation in South Africa, Vukani Mngxati, CEO for Accenture in Africa, details that “Johannesburg is in the midst of a major technology revolution”; however, “South Africa continues to face multiple challenges such as high unemployment, slow economic growth and declining productivity to mention a few”. 

To open up new opportunities, Mngxati explains that innovation driven by digital disruption will create jobs, boost economic growth and address fundamental socio economic development and development issues. 

“South Africa needs to isolate the innovation gene and replicate it in all endeavours in all sectors of society where it can create value. This is not just the can-do kind of innovation that South Africa is known and recognised for, but true systemic, repeatable, collaborative, problem-solving innovation of the first order – the kind that disrupts and defines successful and resurgent nations,” adds Mngxati.

Disruption is inescapable and a growing challenge among industries in South Africa. “South African companies must ramp up their innovation capability and compete with global giants who are seeing Africa as the next mechanism for exponential growth. They need to invest in the talent at scale and rise to the next wave of challenges and opportunities.”

Accenture recently released its Innovation Maturity Index, which looked at the opportunities that technology innovation presents in South African businesses and their ability to turn opportunities into value. 

• While 14% of global companies are innovating using digital technologies, only 7% of South African companies are doing the same.

• 62% of companies in South Africa are vulnerable to disruption, with weaknesses ranging from a lack of innovation to insufficient investment.

• Only 9% of South African industries demonstrate broad resilience and achieve consistent performance. 

“One needs to recognise that business is changing and with it, the business landscape. The old paradigms are being shifted by disruption and industries are converging to create channels to multiple services from singular entry points.” 

Accenture also conducted interviews with 100 South African C-suite executives from 14 industries to understand how their businesses are preparing for and are positioned to deal with disruption.

1. Define what an innovation is in a business organisation. Briefly explain how it is different from an invention. (2)

2. Clarify what the goals of innovation are. (4)

3. Judging by the content of the article, South African companies are rated poorly on preparedness for disruption and innovation. Explain five 
impediments in the innovation process that could be the cause of this.
 

4. Explain six key factors that will promote innovation. Ascertain where management should start with each of these factors.

5. Clarify how the Deming Wheel (plan-do-study-act) could be used to implement innovations. (8)

Supply chain risk management can be defined as the practice of managing the risk of any factor or event that can materially disrupt a supply chain, whether within a single firm or across multiple firms.

1 Choose four factors or events that could cause significant disruptions to the supply chain of your organisation (or an organisation of your choice), and:
• Define the disruption
• Explain the consequences of the disruption
• Describe what you think the risk is of the disruption to the organisation
• Explain how the risk can be mitigated. (16)

2 In your opinion, is there an overall supply chain strategy that could be pursued to help with the supply chain risk management? Motivate your answer. (5)

3 Explain the “bullwhip effect” and how it affects supply chains. Delineate the steps can your organisation take to minimise this effect. (4)

TOTAL MARKS: 100