The world has changed - CEO Roundtable

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14 Δεκ 2012 (πριν από 4 χρόνια και 10 μήνες)

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“GLOBALISATION AND TANZANIA”


FACING THE CHALLENGES AND EXPLOITING THE OPPORTUNITIES
.


REMARKS

BY

AMI R. MPUNGWE

CEO
-
ROUNDTABLE MONTHLY
DINNER


HYATT HOTEL, DAR ES SALAAM, 9
th

OCTOBER 2012

THE WORLD HAS CHANGED!

END OF COLD WAR AND SIGNIFICANT DEVELOPMENTS IN
SCIENCE AND TECHNOLOGY(ICT) HAS CHANGED THE
WORLD THAT WE KNEW, NOT TOO LONG AGO, BEYOND
RECOGNITION!


THIS CHANGE IS HAPPENING AT AN ALARMING SPEED!


EVEN THE NATURE AND CHARACTER OF CHANGE ITSELF
HAS ALSO CHANGED!


IT IS TRANSFORMING EVERYTHING THAT DISTINGUISHES
HUMAN FROM THE REST OF THE ANIMAL KINGDOM!


KEY DRIVERS OF GLOBALISATION.

HUMANISATION:
POST
-
COLD WAR EVOLUTION OF THE SO
-
CALLED UNIVERSAL
PRINCIPLES AND VALUES OF DEMOCRACY, HUMAN RIGHTS, RULE OF LAW AND GOOD
GOVERNANCE


GLOBALISATION:
COORDINATION AND INTEGRATION OF GLOBAL PRODUCTION,
DISTRIBUTION AND EXCHANGE PROCESSES, BASED ON ECONOMIES OF SCALE AND
SCOPE


LIBERALISATION:
OPENING UP OF DOMESTIC, REGIONAL AND GLOBAL MARKETS AND
TRANSFORMING NATIONAL BOUNDARIES INTO MARKETS THAT ARE OPEN TO GLOBAL
COMPETITION (CANCUN, DOHA, HONG KONG etc).


DIGITALISATION
LARGELY THROUGH, FALLING COSTS OF TELECOMMUNICATIONS AND
GROWING EFFICIENCIES IN
ICT
, THAT RENDERS TIME, DISTANCE AND SPACE
COMPLETELY IRRELEVANT IN THE HIGHLY COMPETITIVE NEW GLOBAL BUSINESS
ENVIRONMENT.


ENVIROMENTALISATION:
RENEWED CONCERN AND CARE FOR THE ENVIRONMENT IN
THE QUEST FOR SUSTAINABLE DEVELOPMENT(DEMAND FOR RESOURCES).

FURTHER UNPACKING OF DRIVERS



A DEEPER LOOK INTO EACH OF
THE DRIVERS WOULD REVEAL
MORE WORRYING GLOBAL
ENVIRONMENT FOR BOTH
POLITICAL AND BUSINESS
GOVERNANCE.

THE TYRNY OF ICT AS A CASE STUDY

AS INDICATED EARLIER, ICT DRIVES THE 21
ST

CENTURY
GLOBALISATION PROCESS, LARGELY DUE TO GROWING
EFFICIENCIES IN IT AND PLUNGING COSTS OF
TELECOMMUNICATIONS.


ICT IS ALREADY TRANSFORMING THE WAY WE RELATE,
WORK, COMPETE AND EVEN PLAY.


TRANSFORMING THE NATURE OF PRODUCTS,
PROCESSES, COMPANIES, INDUSTRIES, AND EVEN
COMPETITION ITSELF!

DISPLACES ELEMENTS OF OLD INDUSTRIES AND
PROFESSIONS AND CREATES NEW ONES!


ICT CHALLENGES GET MORE
COMPLEX

More micro
-
processors outside than inside computers!

Developments in infrared technology, telecommunications
infrastructure, radio frequencies, magnetic fields etc will expand
the existence and use of these “smart systems” sooner than later

Developments in bio
-
technology are gaining momentum

Since break
-
through in the understanding of human genome in
June 2000, developments in genetic engineering or geno
-
technology or genomics has attained faster growth.


Fast expansion of “smart systems” due to increased
communication and interaction between the human race, computer
chips and other microprocessors located elsewhere e.g. in
phones, door knobs, cars, etc



THE NEW WAVE

STAN DAVIS (
Lessons from the Future
) asserts that in the next
two decades:



such interactions between smart systems (organic and inorganic
chips) would further deepen the future structure of the global
economy whereby

elements of ICT, biotechnology and geno
-
technology in optical, quantum, molecular or DNA computing, in
inorganic silicon microprocessors as well as organic biochips will
all be code based and they will all work from bottom up!”

Venture capitalists are already focussing into these

opportunities and there is a noticeable movement from

technology to business and from R&D to customised ICT

solutions, products and services.



THE DYNAMIC INTERPLAY BETWEEN AND AMONG THESE KEY DRIVERS
IS EVOLVING A BRAND NEW WORLD THAT IS CHARACTERISED BY:


EXTREME DISCONTINUITIES;


PROFOUND UNCERTAINTIES;


WIDESPREAD UNPREDICTABILITIES;


LARGE
-
SCALE INSTABILITIES, AND;


MOST INTENSIVE COMPETITION FOR RESOURCES
AND MARKETS EVER WITNESSED.

AFRICA HAS ALREADY BECOME THE NEW AND
PERHARPS THE LAST FRONTIER OF THESE
RESOURCE AND MARKETS SCRAMBLES!






NEW STRUCTURES AND RULES OF
GLOBAL ENGAGEMENT

WORLDWIDE, OLD POWER STRUCTURES ARE COLLAPSING/
NEW ONES TAKING SHAPE.

POWER INCREASINGLY EVOLVES FROM BELOW!

NEW RULES OF GLOBAL ENGAGEMENT ARE EVOLVING AND
ARE INDEPENDENT OF BOTH BIG GOVERNMENTS AND BIG
BUSINESS !

GOVERNMENTS OR BUSINESSES THAT ABIDE BY NEW
RULES ARE HANDSOMELY REWARDED AND THOSE WHO
IGNORE ARE SEVERELY PUNISHED!


WE ARE LIVING IN EXTRAORDINARILY UNFORGIVING
TIMES AND THERE IS NOWHERE TO HIDE.

GLOBAL AWARENESS, GLOBAL
CITIZENSHIP

AS A RUSLT OF EXTENSIVE, NEWS AND SOCIAL NETWORKS:


CITIZENS AND VOTERS THROUGHOUT THE WORLD ARE
INCREASINGLY BECOMING MUCH MORE AWARE OF THEIR
RIGHTS AND CHOICES THAT THEY HAVE TO MAKE ( ETC).


CUSTOMERS AND SUPPLIERS THROUGHOUT THE WORLD
ARE INCREASINGLY AWARE OF THE RANGE OF PRODUCTS
AND SERVICES AVAILABLE IN THE MARKET AND AT WHAT
DELIVERY TERMS, CONDITIONS, PRICES ETC

THE DEMOGRAPHIC SHIFT HAS CREATED NEW GLOBAL
CITIZENSHIP THAT IS BASED ON TWEETER AND FACEBOOK
WITH DIFFERENT PERSPECTIVES ON SYSTEMS OF
GOVERNANCE



FORCES OF CUSTOMER ECONOMY
ACCELERATING: OPPORTUNITIES


GLOBAL DRIVERS ARE AT FULL SPEED.

COMPETITION INCREASES (GROWING
EFFICIENCY/PRODUCTIVITY AND COMPETITIVENESS).

OVERCAPACITY E.G MANUFACTURING, MOBILE TELECOM,
BANKING ETC MORE WEALTH!

HIGHER PRODUCTIVITY; LOWERED COSTS; BETTER
QUALITY AND IMPROVED SERVICE, HIGHER
COMPETITIVENESS
(China/India)
.

INCREASING COMMODITISATION OF PRODUCTS INCLUDING
KNOWLEDGE PRODUCTS (e.g. COMPUTERS,HOUSEHOLD


“CUSTOMER POWER INCREASES”
.


CUSTOMER ECONOMY MOVES ON

CUSTOMERS CONTINUE TO BECOME MORE
SOPHISTICATED AND INFORMED BUYERS.


STAYING WITH OLD/TRADITIONAL PROVIDERS OF GOODS
AND SERVICES HAS BECOME A LUXURY THAT MANY CAN
NOT AFFORD.


PRODUCT LIFE CYCLES SHORTENED (DOG YEARS): NEW
PRODUCTS KEEP ON FLOWING.


AS A RESULT: A LOT OF SIMILAR OFFERINGS THAT MAKE
DIFFERENTIATION DIFFICULT.

NEW SURVIVAL KIT HAS
EVOLVED, LARGELY BASED ON:

PROFICIENCY IN EDUCATION;


PROFICIENCY IN ENGLISH
LANGUAGE; AND,


BEING CONNECTED OR “WIRED”
THROUGH ICT.



WHY RAISE THESE OBVIOUS
ISSUES

LARGELY FOR DEVELOPING COMMON UNDERSTANDING
AND PESPECTIVES ON THE NATURE AND CHARACTER OF
THE EVOLVING NEW WORLD ORDER.

“YOU DONT SEE SOMETHING UNTIL YOU HAVE THE RIGHT
METAPHOR TO LET YOU PERCEIVE IT”

THOMAS KUHN ON
PARADIGM SHIFTS

BUT ALSO DEVELOP THE MOST APPROPRIATE STRATEGIC
AND OPERATIONAL MEASURES IN OUR ESPECTIVE
BUSINESSES AND STAKEHOLDER ENGAGEMENT.









WHOW DOES TANZANIA FIT IN THIS
EVOLVING NEW WORLD ORDER?

LARGELY BASED ON STANDARD AFRICAN RESPONSE, LARGELY
DRIVEN DOMESTIC SOCIO
-
ECONOMIC FAILURES AND EXTERNAL
DONOR PRESSURE RATHER THAN CONVICTION AS SEEN IN ASIAN
CHANGE PROCESSES.

TANZANIA STILL NEEDS TO DO A LOT IN STRENGTHENING THE
INSTITUTIONS OF, DEMOCRACY, HUMAN RIGHTS, RULE OF LAW AND
GOOD GOVERNANCE.

NEED TO EVOLVE APPROPRIATE POLICIES AND GROWTH
STRATEGIES THAT WOULD ENHANCE PRIVATE SECTOR
INVESTMENTS, PRODUCTIVITY, COMPETITIVENESS.

TANZANIA’S APPROACH TO MARKET DEVELOPMENT AND REGIONAL
INTEGRATION NEEDS NEW VIGOUR AND PERSPECTIVES.

ENVIRONMENTAL CONSERVATION ISSUES REQUIRE MORE EFFECTIVE
GOVERNANCE APPROACHES, FOR SUSTAINABLE GROWTH AND
DEVELOPMENT.

GLOBALISATION AND ROLE OF
BUSINESS OIN TANZANIA

SUSTAINABLE GROWTH AND DEVELOPMENT IN TANZANIA
WOULD VERY MUCH DEPEND ON THE EXISTENCE OF
MODERN, ORGANISED AND DYNAMIC PRIVATE SECTOR
WHICH IS SUFFICIENTLY INDIGINOUS .

DONOR DEPENDENCY IS A MAJOR DRAW BACK.

PRIVATE SECTOR IN TANZANIA NEEDS TO BE BETTER
ORGANISED.

IT NEEDS TO BE MORE ACTIVELY ENGAGED ON MATTERS
RELATED TO APPROPRIATE RESPONSES TO THE
CHALLENGES AND OPPORTUNITIES THAT ARE LOCATED
IN THE NEW WORLD OF GLOBALISATION (Constitutional
debate)


CONCLUSION

PRIVATE BUSINESS IN TANZANIA HAS STRATEGIC ROLE TO PLAY IN
ENABLING TANZANIA TO EFFECTIVELY MEET THE DIFFICULT
CHALLENGES AND EXPLOIT THE VAST OPPORTUNITIES THAT COME
WITH GLOBALISATION

BIGGEST CHALLENGE REMAINS: TO PREPARE FOR A FUTURE THAT
YOU CAN NOT PREDICT.

YET, YOU NEED TO EMBRACE AND INSTITUTIONALISE A CAPACITY
FOR CHANGE.

IN THAT REGARD, IT REMAINS TRUE, AS CHARLES HANDY PUTS IT,
THAT:

“THE GREAT EXCITEMENT ABOUT THE FUTURE IS THAT WE CAN SHAPE
IT”

I AM QUITE CONFIDENT, WITH PROPER ORGANISATION AND
APPROPRIATE GOVERNMENT SUPPORT, THE PRIVATE SECTOR IN
TANZANIA CAN INDEED, SHAPE A BETTER FURTURE FOR OUR
COUNTRY

THANK YOU FOR YOUR KIND ATTENTION