Technology By George Kagwe Frictionless E-commerce Digital Enabler – Bawa In 2014 my family and I used to reside in an apartment complex here Connect in Nairobi, Kenya. In this complex, just like the majority of residential communities, we had various WhatsApp groups; one for ladies, the other for men and a joint one. It was common of course for residents to share information either on complex matters or even business ventures. One Saturday afternoon, my wife received a delivered package in the form of groceries which was not quite the trend then. I was astonished as she had opted not to go and inspect the product at the market but to have it delivered to the doorstep. I began my interrogation to understand her purchasing habit that day. Here is what had transpired; a few ladies had done a morning run to their family farms in the outskirts of the city and had come back with some spoils. They parked their vehicles within the complex, took some photos of the produce, attached the price and distributed the content to various groups. Like wildfire the forwarded messages were spread and thus arrived on my wife’s device. She then made her selection, made the payment via mobile money and the produce was delivered at the said time and exact quality & quantity. My doubts were thwarted and thus commenced our informal e-commerce journey. THE DIGITAL ERA & E-COMMERCE sales and commerce. Additionally, and every business to switch to digital, it is paramount for each and every global platforms. Iwould sum up the digital era business owner, entrepreneur and that we are in as a trade of trust brand leader out there, to know how E-commerce has gradually and & convenience, combined. We to improve customer experiences to heavily disrupted the retail space over are getting to further understand deliver new growth for their business. the past 26 years with platforms like how powerful the consumer is Of great importance to note is also the Amazon disrupting the consumer with mobile devices in hand, thus catalytic reaction COVID-19 has had purchase journey for various daily directing business to more consumer on the same, forcing and pushing each needs ranging from books to content. centric strategies in marketing, As much as this model of having | THE RATIONAL VOICE ON TAX, CUSTOMS & FISCAL POLICY MATTERS October - December | 51
Technology e-commerce established on web and mobile apps, has worked for the various markets in the world, it has and still is struggling to get a footing within the country, region and continent. As much as professionals may cite one of the main reasons being internet connectivity and affordability across all walks of life, I would cite other fundamental reasons as follows: (i) We are not a Web or Mobile App centric market: This can be simply put this way; As the rest of the developed world transitioned through each digital era from morse-code all the way to pagers and eventually to the range of mobile devices we have, majority of our market and people jumped from a call - box to owning a feature or smartphone. We were not heavily immersed in the pioneer days of emails and websites back in the 90s, but jumped straight into the social platforms optimized for the web. This in turn has contributed to the rise of social and conversational commerce (e-commerce on social and messaging apps). (ii) We are highly a Social/ creating a great consumer experience and mobile app loading speeds, poorly Conversational Commerce is vital. But the majority of businesses designed User Interface (UI)/User society: I would categorize e-commerce are falling short of this with the Experience (UX) and the list goes on into 2 - formal and informal e-commerce. majority of web and mobile platform and on. The latter refers to consumers and traders checkouts taking up to an average of utilizing social media and messaging 18 clicks. It is of great importance Any business that does not realize platforms as a medium for business, and to note that any additional steps or the fundamental impact that friction the former referring to the mainstream efforts can be defined as friction as has on a potential and existing e-commerce platforms on web and mobile consumers have options and can opt customer, stands to lose the trust of apps. We have found ourselves more out of the purchase where it is taking the existing and potential consumers invested in doing business via WhatsApp longer than anticipated. and eventually will lose revenue. and Facebook, for example, than setting up a stand-alone e-commerce platform DOES YOUR BUSINESS SUPPLY CHAIN REDUCING FRICTION IN YOUR BUSINESS as its cheaper and more result oriented. HAVE FRICTION? In addition to this, we are also a highly All hope is not lost. The solution to social society and people. Whether you are purchasing online or reducing friction within the purchasing offline, friction can be experienced at journey lies within understanding the With the above insight, whether all stages of the purchasing journey, consumer habits and behaviours. First one is a practitioner of social possibly when standing in long queues, of all, friction occurs during these 3 and conversational commerce or navigating for items in a store or app, phases of the customer journey: mainstream e-commerce, we ALL too many details needed for payment need to be cognizant of potential and location information, slow web Discovery - This is all about having friction within the purchasing journey an effective brand awareness journey of consumers. Fact is we are living in an instant gratification age and October - Deceember | 52 | THE RATIONAL VOICE ON TAX, CUSTOMS & FISCAL POLICY MATTERS
Technology for your consumers by providing Fulfilment - This occurs in the We ALL need to be easily accessible information. post-purchase part of the consumer cognizant of potential friction Information leads to inspiration which journey where consumers are unable within the purchasing journey in turn leads to consideration. The use to experience fast or rapid fulfilment or of consumers. Fact is we are of social media platforms to edu-tain any update on the same. It is estimated living in an instant gratification (educate and entertain) consumers that 52% of consumers usually switch age and creating a great by adding value in their lives thus to a different product/vendor because consumer experience is vital. grabbing their eyeballs attention, is of poor customer service. a sure way of ensuring the discovery process is successful and frictionless. All in all, for any of us to be able to have a pulse on friction reduction in Consideration - This is the our customer journey, here are 3 easy stage where the consumer is ready steps that ensure you reduce if not to purchase the product or service. eliminate friction: Most times the customer runs into unexpected steps and processes in this 1. Map - Simply put, know your part of the journey. This can range consumer/audience. Identify their pain from unclear delivery options, lack points within your ecosystem via surveys of precise details or descriptions of or other creative ways of grabbing these the commodities, missing price tags insights. and so on. There is also a possibility 2. Analyse - Data evaluation and of customers experiencing difficulty examination is paramount as this buying their choice of goods or identifies your revenue loss areas which services. This may include hidden points to consumer/customer drop offs charges or laborious checkout and/or non-engagement. processes. This is the juncture that 3. Implement - Use the insights and one may need to reconsider using data captured to now formulate a strong conversational commerce platforms go to market strategy that shall quench the like WhatsApp. consumer appetite. Conclusion platforms are executing a takeover in experience, M-commerce, Artificial our market as the go to e-commerce Intelligence (AI) and Machine A joint 2016 National ICT Survey platforms. The platforms are Learning amongst others. Though between the Communications observed to retain attractiveness due laden with various degrees of risk Authority of Kenya and the Kenya to flexibility and ability to eliminate profiles a constant is that more than National Bureau of Statistics (KNBS) friction, as consumers have less steps half of sales by businesses according National ICT Survey established to go through during the purchasing to Statistica are from online buyers/ that, 39% of private enterprises are process. Consumers can converse consumers. Therefore, with this in mind engaged in e-commerce. Though with the brand either directly or by the question is not if individuals and the survey focused only on private brand utilizing agents like chat bots, organizations will employ frictionless enterprises and did not take into thus increasing customer acquisition commerce but when! account households, for the first and retention and as an added ‘We see our customers as invited time it was possible to determine benefit, business to consumer follow guests to a party, and we are the e-commerce penetration levels at the up is made much easier. hosts. It’s our job every day to national level. E-commerce continues to advance make every important aspect of the As the government undertakes various with technological improvements customer experience a little bit better’ initiatives to leapfrog economic in landscapes such as Internet of Jeff Bezos, Founder of Amazon growth and improve our digital print, Things (IoT), integrated shopping ■ conversational and social commerce | THE RATIONAL VOICE ON TAX, CUSTOMS & FISCAL POLICY MATTERS October - December | 53
Book Review THE TRUTH ABOUT LEADERSHIP Book by: James M. Kouzes and Barry Z. Posner By Perez A. Mac’oduol Advocate of the of leadership endure over time. The forward-looking, leaders must unfailingly High Court of Kenya book is neither pretentious nor does it spend time investigating what could occur boast to dissipate the list of everything in the future. No one wants to support a Globalization has converted one needs to know about Leadership. leader without a vision and direction for the world into a small global It simply provides Ten Truths of the future. community; a community in which leadership, which only begins to there is an ever growing extraordinary scratch the surface of the myriad of v) Leaders cannot do it alone: stream of contentions and truths one can unearth on the context Extraordinary things are done with the competitions between organizations. and content of leadership. These ten help of others and leadership is a shared In this perspective the most effective essential lessons that effective leaders responsibility. and favourable manoeuvre for any must learn are identified as: vi) Trust rules: Trust is the social organization is to create innovative glue that holds individuals and groups ways in conducting business. i) Individuals make a together and if people feel like information Therefore, a capable and competent difference: The belief and adage has is being withheld or its late, distrust leader as an in-charge or as a change been that leadership is at the highest level grows. You have to earn your teams’ trust agent, should be able to manage of the organization. The authors refute before you can get trust. an organization or the process of this notion and opine that leadership is organizational change more effectively for those who have the resolve to change vii. Challenge is the crucible and successfully within the purview of the state quo. for greatness: ‘All significant and globalization. ii) Credibility is the foundation meaningful accomplishments involve of leadership: When a leader is adversity, difficulty and challenge. No One driver of globalization is credible their direct reports are more one ever got anything extraordinary technology, and as we can observe likely to tell others that they are part done by keeping things the same.’’ technological advancements have of the organization. This in essence backed a rise in customer expectations is demonstrated in the two Laws of viii) Leaders either lead by and facilitated change in the business Leadership developed by Kouzes and example, or they do not lead environment. The impact of this Posner. The First Law is stated as, “If at all: A Leader must inescapably keep digital revolution has compelled you do not believe in the messenger, you his/her promise, becoming the perfect role organizations to re-examine existing won’t believe the message” and the second model. business models and adopt necessary Law “Do what you say you will do” changes that accommodate shifting (DWYSYWD). It is evident from these ix) The best leaders are the best business dynamics. As the business two laws that credibility and personal learners: Excellence in leadership environment transforms, leadership integrity not only affects the employees but cannot be fast-tracked. It is said that must perceive these changes in order customers and investors loyalty. the best leaders reached their level of to facilitate organizational change in iii) Values drive commitment: performance as a result of time spent the most appropriate way. However, Great leaders have clarity about their learning, practicing and honing their though there are changes in the personal values, know what others skills. context of leadership as a result of value, and understand how to forge globalization and new technology, alignments between these values and the x) Leadership is an affair of the the content of Leadership remains organizational values. heart: One style of leadership with constant. iv) Focusing on the future sets heart is called “Servant Leadership”. leaders apart: A leaders’ constituents This is evidenced by leaders placing In the Truth about Leadership, expect him or her to know where they others at the center, deflecting attention James M. Kouzes and Barry Z. Posner are going and have a sense of direction. to the organization and responding to address this notion by describing In order to develop the capacity to be the needs and interests of his/her people. what research has revealed about Great leaders show love by recognizing leadership and how certain aspects people in the formal and informal ways. Remember, positive leadership generates positive emotions ■ October - Deceember | 54 | THE RATIONAL VOICE ON TAX, CUSTOMS & FISCAL POLICY MATTERS
Facts & Figures By Jonathan Titus Limo Library Services (KRA) Economic growth rate of EAC countries, China, Russia, US, Germany, UK, and India Gross Domestic Product (GDP) is economy and growth rate. (Chappelow, compared to an earlier period. The the monetary value of all finished n.d.) economic growth rate measures the goods and services made within a comparative health of an economy country during a specific period. GDP An economic growth rate is the over time. (Chappelow, n.d.) provides an economic snapshot of a percentage change in the value of all country, used to estimate the size of an of the goods and services produced in a nation during a specific period, as Economic Growth Rate EAC Countries Vs Some of the Develpoed Economies 2015 - 2019 (%) ECONOMIC GROWTH RATE EAC COUNTRIES VS SOME OF Year KEN TZA RWA UGA BDI CHN DEU RUS USA GBR IND E C O N O M I C GDR OE VWET LH ORPA TEEDEEACC OCNO UONMTIREI ESS2V0S1S5O- M2 0E 1O9F ( % ) 2015 5.72 6.16 8.87 5.19 -3.90 7.04 1.74 -1.97 2.88 2.36 8.00 2016 5.88 6.87 5.98 4.78 -0.60 6.85 2.23 0.19 1.57 1.92 8.26 D E V E L O P E D E C2O01N5O M2I0E1S6 2 021051-72 0 12901(8% ) 2019 2017 4.81 6.79 3.99 3.90 0.50 6.95 2.47 1.83 2.22 1.89 7.04 2015 2016 2017 2018 2019 2018 6.32 5.44 8.57 6.16 1.61 6.75 1.53 2.54 2.93 1.34 6.12 2018 5.37 5.79 9.41 6.51 1.84 6.11 0.56 1.34 2.33 1.41 5.02 4.58.515.34..77685.82.53185.3.27768.2382 6.16616.7...78905554 6.16616.7...78905554 0.109111...1.0.11.1133.4..59521144228.1.8791.2..16.1.3232.2932.35.5.5222743268.3.728.4924..32223832.4.52337849538.026.172.084.8.0206 5.026.172.084.8.0206 0.510.1.6814 33..99403.935...75.1995845.490..66957..46.79511.96.165.88.6655.497.66187..4699711.966.8.665871.88.957987.784.81.5987.741 11..1134..14289.2936 0.5 10.1.6814 0.51.16.5273.24.2437 KEN TZA RWA UGA BDI CHN DEU RUS USA GBR IND KEN CHN DEU TZA RWA UGA -3.90 -0.60BDI RUS USA GBR IND -3.90 -0.60 -1.97 -1.97 Gross Domestic Product (GDP) EAC Countries 2015-2019 in US$ GROGSRSODSOSMDESOTMICEPSRTOIDCUPCRT O(GDDUP)CETAC(GCDOPU)NETARICESC2O01U5N-2T0R1I9EISN U2S0$15-2019 IN US$ 2015 2016 2017 2018 2019 112200,0,0000,00,000,000,00.0000.00 64,007,750,169.33 69,188,755,364.30 78,965,004,656.18 87,778,582,964.14 95,503,088,538.09 110000,0,0000,000,000,000,00.0000.00 KEN 47,378,599,025.30 49,774,021,003.07 53,320,625,958.56 58,001,200,572.40 63,177,068,174.55 TZA 8,582,588,882.61 8,734,161,827.57 9,253,098,954.28 9,627,720,629.71 10,122,472,590.17 8800,0,0000,000,000,000,00.0000.00 2015 2016 2017 2018 2019 RWA 32,124,730,770.81 28,967,460,676.83 30,756,466,548.05 32,772,824,208.95 34,387,229,486.40 2015 KEN 2016 2017 2018 UGA 6600,0,0000,000,000,000,00.0000.00 TZA RWA UGA BDI B20D19I 3,104,394,858.12 2,959,640,987.30 3,172,292,379.36 3,036,931,818.18 3,012,334,881.64 UGA BDI 40,000,000,000.00 KEN TZA RWA 40,000,000,000.00 20,000,000,000.00 20,000,000,000.00 0.00 0.00 Gross Domestic Product (GDP) of some of the Developed Economies 2015-2019 in US$ 2015 2016 2017 2018 2019 CHN 11,061,552,790,044.20 11,233,277,146,512.20 12,310,408,652,423.50 13,894,817,110,036.30 14,342,902,842,915.90 DEU 3,360,549,973,888.58 3,466,790,065,011.83 3,665,804,120,835.30 3,949,548,833,952.94 3,845,630,030,823.52 RUS 1,363,481,063,446.77 1,276,786,979,221.81 1,574,199,387,070.90 1,669,583,089,322.96 1,699,876,578,871.35 USA 18,219,297,584,000.00 18,707,188,235,000.00 19,485,393,853,000.00 20,529,049,174,601.50 21,374,418,877,706.70 GBR 2,928,591,002,002.51 2,694,283,209,613.29 2,666,229,179,958.01 2,860,667,727,551.97 2,827,113,184,695.58 IND 2,103,587,817,041.78 2,294,797,978,291.98 2,652,754,685,834.59 2,713,165,057,513.35 2,875,142,314,811.85 | THE RATIONAL VOICE ON TAX, CUSTOMS & FISCAL POLICY MATTERS October - December | 55
THE RATIONAL VOICE ON TAX, CUSTOMS & FISCAL POLICY MATTERS I S S U ET0H0E2 •RAAPTR II LO-NJAU NLE !#0!..!#/$\"2)00#\"*$3%*1#&&-*''+#&$$!+&\",($#$-*$ $ V20O2I0CE ONKsThAs 600 X, CUST OM S & FISCAL POLICY MATTERS ISSUE 003 • JULY - AUGUST 2020 E-OCIPOMPTMPOHAMRECTEITNURANTCNRIETDIOICENASCTOIREFASD, E::W!J0-W;\\,.Q*K$,.8\"(Z'W)!K%M(|[\"T/[2H$P,)E3aR,]A$u\\T)\"WI'OlU\"*!8N$A(MI5(\"L+\\9V'Q.#OW\"$I$2VM\"C$E8%,uO%\":A'N\"t)N&T.Ah%,-XO'\",a$%)'CF,$UuF5(S5I.CrT6(O)\"I/aM*A0S+(L*;&,P,\"FU50IS)BC-1\"LAIL2C$#P':AO\"#LTI.)I(CO'.Y3',0NM#$A42!\"OT$/\"4\"T0'FE%,!#R2*T&S!H.\"$1c\"'!5Er%\"\"o!(E6K(!s5%Em)T7s\"N&-&*Hpb'Y#$2$lEoA$o6\"r+%yS|F$diC&'UTe&n,H(\"HrTgE-'0ORt#U\"1tAr.e(OTRa*6IcOdEL/NheA.0OnL*d1oVF.OiDl%&IsRoC'r\"rEEg2$uOV.A0SyNp2ENMe'T\"ttN.AE3cio$OXouUr,$-*nFbeCkEF$Ucset7IShACa&aToOiD'rItAMs\"myMCSLa-&PIOGmNFUKIeSBVISCienLAtTIIrLCReDuPcAArOy-aTLTe1IIIICOlOY9o-NMN’sf[AOTIM(#tTnKFKhE']RsTE.eSHZ(i,SMgERUg.)h'AIKr0T*oNEtV)+N+swrL\"TCaY',btAA2Mdhy)Tٺ0eXSa)M*CAaKnTH$&\\ndD-AQ8Od^$LO,dM2cKeL\"M6uvKO%seWF0t!l[ooR'a-!m.pE[$\"V\\msM#*E$U%Nce&\"'onU9[&(\"n\\Et)!*tAor\"+Dfi#bM$e!u%Ic\"&N!toe%IS'nTt(oRo)AmtThIiOeeNs (KESRAo)u)rZBcMuUWlSt]uIZrNeKE,PSpWSuJQuKrlyHMp[-EoAIsAueVgLuLaTsntHIdK|\\vQ1WaVlu[eZ?MÆMK\\QVO Kshs 600
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