Recently, my US-based job led me to a South African hotel room, where I watched Germany play Brazil in the World Cup. The global nature of the event was familiar to me. My work covers countries like Malaysia, Thailand, Singapore, South Africa and Costa Rica. And as I pondered the stunning score (Germany won, 7 to 1), my mind was drawn to emerging markets. What defines an emerging market? In particular, what are the data-related themes common to emerging markets? Because I work with global clients in the banking, oil and gas, telecommunications, and retail industries, I have learned a great deal about this. As a result, I wanted to share my top 5 observations about data in Emerging Markets.
1) Communication Infrastructure Matters
Many of the emerging markets, particularly in Africa, jumped from one or two generations of telco infrastructure directly into 3G and fiber within a decade. However, this truth only applies to large, cosmopolitan areas. International diversification of fiber connectivity is only starting to take shape. (For example, in Southern Africa, BRICS terrestrial fiber is coming online soon.) What does this mean for data management? First, global connectivity influences domestic last mile fiber deployment to households and businesses. This, in turn, will create additional adoption of new devices. This adoption will create critical mass for higher productivity services, such as eCommerce. As web based transactions take off, better data management practices will follow. Secondly, European and South American data centers become viable legal and performance options for African organizations. This could be a game changer for software vendors dealing in cloud services for BI, CRM, HCM, BPM and ETL.
2) Competition in Telecommunication Matters
If you compare basic wireless and broadband bundle prices between the US, the UK and South Africa, for example, the lack of true competition makes further coverage upgrades, like 4G and higher broadband bandwidths, easy to digest for operators. These upgrades make telecommuting, constant social media engagement possible. Keeping prices low, like in the UK, is the flipside achieving the same result. The worst case is high prices and low bandwidth from the last mile to global nodes. This also creates low infrastructure investment and thus, fewer consumers online for fewer hours. This is often the case in geographically vast countries (Africa, Latin America) with vast rural areas. Here, data management is an afterthought for the most part. Data is intentionally kept in application silos as these are the value creators. Hand coding is pervasive to string data together to make small moves to enhance the view of a product, location, consumer or supplier.
3) A Nation’s Judicial System Matters
If you do business in nations with a long, often British judicial tradition, chances are investment will happen. If you have such a history but it is undermined by a parallel history of graft from the highest to the lowest levels because of the importance of tribal traditions, only natural resources will save your economy. Why does it matter if one of my regional markets is “linked up” but shipping logistics are burdened by this excess cost and delay? The impact on data management is a lack of use cases supporting an enterprise-wide strategy across all territories. Why invest if profits are unpredictable or too meager? This is why small Zambia or Botswana are ahead of the largest African economy, Nigeria.
4) Expertise Location Matters
Anybody can have the most advanced vision on a data-driven, event-based architecture supporting the fanciest data movement and persistence standards. Without the skill to make the case to the business it is a lost cause unless your local culture still has IT in charge of specifying requirements, running the evaluation, selecting and implementing a new technology. It is also done for if there are no leaders who have experienced how other leading firms in the same or different sector went about it (un)successfully. Lastly, if you don’t pay for skill, your project failure risk just tripled. Duh!
5) Denial is Universal
No matter if you are an Asian oil company, a regional North American bank, a Central American National Bank or an African retail conglomerate. If finance or IT invested in any technologies prior and they saw a lack of adoption, for whatever reason, they will deny data management challenges despite other departments complaining. Moreover, if system integrators or internal client staff (mis)understand data management as fixing processes (which it is not) instead of supporting transactional integrity (which it is), clients are on the wrong track. Here, data management undeservedly becomes a philosophical battleground.
This is definitely not a complete list or super-thorough analysis but I think it covers the most crucial observations from my engagements. I would love to hear about your findings in emerging markets.
Stay tuned for part 2 of this series where I will talk about the denial and embrace of corporate data challenges as it pertains to an organization’s location.