THE EFFECT OF 5G FLIP WATCH TO THE KENYAN DIGITAL ECONOMY.

Abstract

The Apple company has introduced the first 5G folding smartwatch into the market. As seen in various studies, the development of new technologies has great boast on the digital marketing and e-commerce sectors. The paper studies on the effect of innovation technology and specifically the 5G flip smartwatch in Kenya, which is one of the developing countries in the world. Digital business and e-commerce are targeting to change the traditional way of how people used to buy or sell goods and services to introduce technological innovations. New technologies in the digital business have shown the potential to achieve higher value in developing countries. The country has proved to be a potential destination for e-commerce and digital marketing in Africa. The country is placed third after Nigeria and South Africa in e-commerce. Technological advancement has handful of contributions to the economy, such as the growth of digital marketing and e-commerce, improved online shopping, increased health, and growth of tourism.

Introduction

The field of technology is maturing and have been marked by the development of first the First 5G Folding Watch. Digital business is the application of digital technology and the media to optimize the internal processes of the organization to improve the competitiveness of an organization. E commerce can be defined as the electronically conveyed information between external stakeholders and the organization. Digital business and e commerce is targeting to change the traditional way on how people used to buy or sell goods and services to introduce technological innovations. This innovation is expected to contribute much especially in the digital business and ecommerce and to the developing countries. As defined by world bank (2013), developing countries are defined based on their Gross National Income per capita per year which is $ 11, 905 or less (Weiser, et al 2016).  Most of the people in Keya live on $ 1000 a year or less than $2 a day  The paper will investigate how the introduction of 5g flip watch will contribute to the Kenyan economy and the effects and to Kenyans. New technologies in the digital business have high potential to achieve great value addition to the economy in developing countries.

Business model, revenue model, the business process and value proposition for the 5g folding watch in Kenya

Business models

Business model describes the method an organization can implement to convey and achieve its values. Example of models than be applied by Apple company in the sale of it flip watched included include business to consumer (B2C)   where the products are distributed to consumers. Another modeled is business to business (B2B) model where the company can cooperate with other business for the use of the 5G flip watches in their digital market and e-commerce marketing.

Value proposition

Value can be defined as the monetary worth of something. Product value is the fair returns of or the benefits the 5G flip watch will bring to the customers. 5G flip watch has a number of features to make as return benefits for luxurious product. The 5G flip watch is more compact, stylish and uses a 5G network to provide the consumers with super-fast and modern experience. One can use it as a smartphone by inserting a sim card or connecting with your smartphone. When the product is folded, it looks like a normal smart watch and a phone when opened to operate like a smartphone attached to your wrist. The dial can be removed from the strap when needed in use and can be charged through a wired connection as well as a wireless plate. The Apple product also gives its user a runner time where they can monitor their workouts such as daily running or jogging.

Revenue model

One of the revenue model identified is the direct sales business model.  The flip watches can be sold at both premium and Single purchase model. The 5G flip watches are luxurious products and hence targeted to high-end product customer. Businesses can also be targeted to make bulk purchases for their stakeholders. Other model includes add-on purchases and services such as watch strap, screen cleaner and engraving, wired chargers and wireless charging plates and accessories sale include the such as wireless charger. The trade-in Insurance covers can be given at a cost to provide extra year guaranteed and screen insurance.

Business process

Example of business model that can be applied in the sale and distribution of the 5G flip watches is the use of e-retailers and digital marketing. The 5G flip watches can be distributed via Apple branded shops where customers can purchase the product either physically or make orders online and product distributed to their door step.

Opportunities for the 5G folding watch in Kenya.

Kenya has a bigger distribution on ownership of smartphone and internet access. The country has 83% smartphone   penetration rate and 30% with internet subscription. It is of the countries in Africa which has an advancing trajectory in the digital capacity meaning it hold great potential for adopting technological adaptations. The country has significant opportunities as well as challenges for building digital capacity.

Limitations

A major limitation will be the reduced penetration power. For example, in PricinKenya, an online shopping, Apple Watch Series 4 44mm smartwatch is priced KSH 47,500 equivalent to 409.32 Euro. The average income for a Kenyan is KSH  20, 000 172.27 Euro (average salary survey 2018). This means only people from high income can afford the product.

The Folding Watch Is also seen to have little value added value and are less stylish than the normal watches. Many people will opt to buy the normal sized smartphones or a normal watch over the smartphone.

How 5g folding watch could contribute to Digital Business and e-commerce in Kenya

Improved digital business and ecommerce

E-commerce is an essential makeup for the social economic growth for developing countries like Kenya. The fact that the flip watch is 5G enabled means it is going to have a high turnover effect on the activity of the digital business and ecommerce.  As attested by Huo et al., (2019), the 5G flip watch has quicker access and perfect for the office or busy environment use. This will help in improving productivity of organizations and help in eliminating time wastage with phones while getting it out or misplacing the phone. The flip watches also provide Instant replies and notifications hence improving the effectiveness of digital business and ecommerce.  The 5G flip watch is expected to improve on customer’s relationship in the of the digital business and ecommerce. The flip watch provides services such as live chat, online services, and customer feedback where the customers can communicate and relate with different organization in a faster, efficient and quicker way.

Improving the online business.

The 5G flip watch is expected to improve the online shopping economy. 2.1 million, around 5% of total population,  of Kenyans and especially the millennials do their shopping online( Mwangi 2019).  Bigger proportion of these smart watches are expected to be done online hence boosting the online business. After the purchases of the 5G flip watches, the consumers get access to high range internet where they can continue doing their online purchases in a more effective and faster way utilizing the smart watches.

Improving the tourism economy

Kenya’s economy is heavily dependent on tourism and agriculture (Jonker and Robinson , 2018).Tourism in Kenya faces numerous challenges one of them being luck of promotion and publicity. Few people know about Kenya’s, sandy beaches such as the Diani beach, the big five including lion, buffalo, rhino and the African elephant, game drives such as Masai Mara  and epic mountains such us Mount Kenya which is the second highest peak in Africa. With the  5G flip watch, tourist can get to learn about these tourist attraction sites via the internets and plan for a vistit. Ones there, the  user can take and upload photos  of the sceneries which can be share through in built  social app such as Face book and WeChat.in this way, the flip watches can be used to boost and contribute to the economy through tourism.

Effect on health

From the group discussion data, the smartwatch trackers continue to gain popularity among the customers compared to the fitness tracker sport watches. Whilst a smartphone does have some of these functions, a smartwatch can do them almost immediately, such as heart rate monitoring & sleep tracking.  The apple runkeepeer app is expected to improve Kenyans’ health status. The flip watch provides uses with an application where they can monitor their workouts such as running workouts among other activities. As discussed by Srinivasan (2019), running and monitoring of heartbeat is expected to improve health by reducing the risk of lifestyle diseases such as diabetes and cardiovascular diseases which are rampart in the country.

Evaluating country’s people resources, skills and challenges on adopting the 5G flip smart watch

Adoption of E-commerce in Kenya

E-commerce approached can be achieved through Interpretive perspective and positivist perspective. Interpretive perspective  highlights the idiosyncrasies of adoption behavior and focuses on the social world context (Dalvi-Esfahani, Ramayah, and Nilashi, 2017). Example is the use of iPad to skype communications. Positivist perspective focuses on the social network and general environment of the adaptation (García-Álvarez, Novo-Corti, and Varela-Candamio, 2018).  Key antecedents include macro-level contingencies, performance expectancy and the social influence. Performance expectancy is the degree to which the citizens of the country will perceive and adapt to ecommerce to offer developmental potential.  Kenya has a high performance expectancy as most of the people are internet and computer literate meaning they are highly perceptive to ecommerce. Social influence on the other hand is the degree at which the members of the society perceive others I the adoption of ecommerce technologies. Kenya is made of young generation who have a positive perception and compliance to e commerce adoption. Rendering to Piper  et al., (2016) Kenya  has built a system that have adopted the use of IT in the education system which can be attested by the introduction of laptops to grade 1 student by the ruling government.

Challenges to the effectiveness of the 5G folding watch.

A major challenge for the devilment of e commerce in Kenya and other developing is the lack of purchasing power. One of the weakness of the weaknesses of the 5G folding watch identified on the group discussions is that the gadgets are too expensive

Kenya has low credit card penetration (McCurdy et al., 2018) .  The country faces lack of adequate streamlined payments mechanism and fewer online vendors to work in the ecommerce and digital markers

Inadequate legal protections for internet policy is also a problem as developing countries lack proper policies governing the introduction of internet operations and ecommerce.

General computer literacy ad English competence levels to operate the flip watches in the ecommerce also remains to be a problem in Kenya as well as other developing countries. There is high preference of face to face communications over the use of modern technology as a means of communication in industries.

How to overcome these challenges.

Use of Maxi’s M-Money to solve on reduced ecommerce

The Maxi’s M-Money is a secure convenient way of money transfer to pay for products and services using electronic money in smart phones. The application uses wap-enabled cell phones to remit money.  User can make electronic payments to almost 9 million Maxis subscribers across the globe and cash transfers received immediately. This can one way to solve on the reduced streamlined payments mechanism and fewer online vendors to work in the ecommerce and digital markers.

Government roles in supporting ecommerce

The Kenyan government needs to develop policies which encourage the internet operations in the country.   For example, the country has introduced the internet and IT equipment  which control on the level of completion of internet services from privatization and  nation legislative policies on enterprenueruiaship and  privatization. The society need to adopt a speedy ecommerce adaptation which acan be promoted by community training on the use of internet and computer literacy.

Conclusion

New technologies in the digital business have shown the potential to achieve higher value in developing countries like Kenya compared to other  developed countries. Kenya has shown potential for technologival advancement such as the introduction of the 5G flip watch. A higher proportion of people in the country has smartphone and acess to internet. Disruptive technological innovations such as the 5g flip watches are expected to bring positive change in the economy, production process, business and every aspect of economy to change the rules of the game (Schneider Niles 2020). Technological advancement has handful contributions to the economy such as the growth of digital marketing and e-commerce, improved online shopping, increased health, and growth of tourism.

References

Average salary survey 2018. Kenya salary earnings. retrieved from: https://www.averagesalarysurvey.com/kenya

Dalvi-Esfahani, M., Ramayah, T. and Nilashi, M., 2017. Modelling upper echelons’ behavioural drivers of Green IT/IS adoption using an integrated Interpretive Structural Modelling–Analytic Network Process approach. Telematics and Informatics, 34(2), pp.583-603.

García-Álvarez, M.T., Novo-Corti, I. and Varela-Candamio, L., 2018. The effects of social networks on the assessment of virtual learning environments: A study for social sciences degrees. Telematics and Informatics, 35(4), pp.1005-1017.

Huo, Y., Dong, X., Xu, W. and Yuen, M., 2019. Enabling Multi-Functional 5G and Beyond User Equipment: A Survey and Tutorial. IEEE Access, 7, pp.116975-117008.

Jonker, K. and Robinson, B., 2018. Economic Growth and Diversification Fuelling Development in Africa. In China’s Impact on the African Renaissance (pp. 35-76). Palgrave Macmillan, Singapore.

McCrocklin S. 2019. Smartphone And Mobile Internet Penetration In Africa And Globally. Tech innovation retrieved from.  https://www.geopoll.com/blog/smartphone-mobile-internet-penetration-africa/

McCurdy, J., Simone, C.P., Herrera, M. and Heckathorne, H., 2018. mVisa: Penetrating the Electronic Payments Market in Sub-Saharan Africa.

Mwangi ,C., Growth of online shopping in Kenya. Kenya News. Retrieved from: https://kenyanews.co.ke/online-shopping-in-kenya/#comments

Piper, B., Zuilkowski, S.S., Kwayumba, D. and Strigel, C., 2016. Does technology improve reading outcomes? Comparing the effectiveness and cost-effectiveness of ICT interventions for early grade reading in Kenya. International Journal of Educational Development, 49, pp.204-214.

Price in Kenya 2020. Apple Watch Series 4 44mmSmartwatch. Retrieved from. https://www.priceinkenya.com/product/apple-watch-series-4-44mm

Schneider Niles 2020 Digital Business and E-commerce. Innovation for digital. University of Bristol

Sreenivasan, P., 2019. The Cardiovascular and Diabetic (Chronic) Diseases and Interventions of the Diverse Silicon Valley Asian Indian Diaspora (Doctoral dissertation, Capella University).

Weiser, T. G., Haynes, A. B., Molina, G., Lipsitz, S. R., Esquivel, M. M., Uribe-Leitz, T., … & Gawande, A. A. (2016). Size and distribution of the global volume of surgery in 2012. Bull World Health Organ, 94(3), 201-209F.