Locally-developed software cuts accounting costs for SMEs

Small and medium enterprises (SMEs) can now eliminate the cost of buying computer servers and employing ICT personnel by tapping into a locally developed web-based business management system — Biashara Cloud.

Biashara Cloud is an enterprise resource planning (ERP) software developed for SMEs.

It can be accessed remotely through cloud computing technology through laptops, personal computers, and mobile phones.

The system offers applications that support everyday company activities such as sales, stock management, banking, and purchasing — meaning a business owner who subscribes to Biashara Cloud only needs to enter business transactions into the software to automatically generate a balance sheet or profit and loss account.

It costs SMEs between Sh800,000 and Sh2 million to acquire computer servers.

This has made it difficult for most businesses to leverage on technology, cut costs, and improve efficiency.

Tony Mutonga, the commercial director of Biashara Cloud Ltd, said that at a monthly fee of Sh1,500 per user, SMEs can access the system from wherever they are so long as the area has Internet connectivity.

"The system is able to manage and co-ordinate all business transactions.

Therefore one can keep track of all their records from anywhere, and since it does not require one to buy physical servers it reduces the number of IT support," said Mr Mutonga.

Through the system, business records can be shared in real time between the office and field officers. Since its launch two months ago, Biashara Cloud has attracted 21,000 users.

Mr Mutonga said that they were working with financial institutions, such as Family Bank, who have roped in their SME clients to enable them conduct their businesses efficiently. Biashara Cloud has joined a number of firms such as Safaricom, Kenya Data Networks, and Flexus which are battling it out to offer cloud computing technology to corporates, government departments, and SMEs.
To secure data, Mr Mutonga said, the firm has encrypted information. Encryption is the process of transforming information (referred to as plaintext) using an algorithm (called a cipher) to make it unreadable to anyone except those possessing special knowledge, usually referred to as a key.

Cloud computing involves using multiple server computers via a digital network to store data and allow clients secure access to a variety of applications and data from any network device.

It also provides an easy to use, cost efficient, flexible, dynamic, and secure environment for modern business transactions.

Gaining traction

The practice is gaining traction among corporate organisations that want to cut down on capital and operational expenses.
Other than Biashara Cloud, other firms targeting SMEs with similar services include Flexus Technology.

Mr Oscar Ahere, a product development manager at Flexus Technology, said that while some Saccos had started embracing the use of money transfer services such as M-pesa, Zap, Orange Money, and YuCash, they were yet to link them with their back office financial databases.
"With technology such as cloud computing, Saccos can cut their operation costs by embracing the latest technologies which will help them trim the number of their field officers, reduce fraud, and increase efficiency," said Mr Ahere.
Flexus Technology's Kopesha web-based application aims at helping microfinance field officers to minimise errors associated with manual entries.

Sacco field officers can use Kopesha to register members, manage savings, make loan applications, disburse loans, and receive loan repayments.

The software can be used on simple mobile phones that cost as low as Sh4,000.
As a result, Saccos may no longer require data entry clerks to update and reconcile information that field officers or their members submit.

National Co-operative Housing Union chairman Francis Kamande said most co-operative societies use internal servers which are not only expensive to buy, but also mean that they must employ ICT staff.

This not only adds to their operational costs, but also makes it hard to retain the professionals making the investment not fully utilised.
However, by adopting new technologies such as cloud computing they would be able to cut such costs.

It costs a co-operative society about Sh200,000 to buy a server, while the cost of maintaining cloud computing could be as low as Sh30,000.

"This is a new method of storing huge amounts of data using the Internet and outside the physical premises of the parties involved, the server is no longer necessary," Mr Kamande said.

"Cost saving in harsh economic times rationalises the need for cloud computing by eliminating the need for costly infrastructure purchases every year," he added.

Kenya has 14,000 co-operative societies with 10 million members who have mobilised about Sh230 billion or 30 per cent of national savings.

By Okuttah Mark

Recruiters cast net online to catch tech-savvy talent

For jobseekers, social media has become the place to cast the net as it is where recruiters post opportunities while friends spread the word.

Facebook, Twitter and LinkedIn are becoming important tools for job seekers looking for opportunities as well as for recruiters searching for talent.

With a critical mass of job seekers and organisations now using these platforms, searching for jobs and talent online has become a global trend, with more Kenyan companies catching on.

"It is an effective way to reach people, especially younger people," said Sheila Mwihia, the Pedersen & Partners country manager.

"You create awareness about the job without having to take out advert space."

Deloitte East Africa is the latest recruiter to run a social media campaign behind this year's graduate recruitment drive.

Through the campaign launched last month, the auditing firm is using Twitter, YouTube and Facebook to reach young graduates looking to join the firm.

"We thought to use social media to reach out to as many graduates as possible," said Ann Muraya, the Talent and Audit partner.

"We will not be going to the universities this year, but will send a letter notifying them and mainly use social media."

To raise awareness on its social media efforts, the company held an open day at the University of Nairobi, the first of three to be held in the region as part of attracting talent.

The company has also put out a video on YouTube with staff members talking about the company, the environment, the opportunities available and why one would want to launch their career at Deloitte.

The three minute video, launched late March, is part of the company's strategy to reach the modern job seeker.

Deloitte is also using two twitter accounts as well as its official Facebook page. "It is part of attracting top talent in the region and using technology to do so," Ms Muraya said.

The social networking scene is growing with different websites offering different options. Some are viewed to work best for younger talent while others are more suitable for executives.

Facebook and Twitter are viewed as ideal for spreading the word about an opportunity but not necessarily for recruiting.

Ms Mwihia, who mainly recruits executives, said Facebook and Twitter are not ideal for some job positions; however LinkedIn is gaining popularity as a talent search site.

"For executive positions sometimes social media is not an effective way, it's more effective with younger people," she said. "LinkedIn has been accepted as a professional network."

LinkedIn is a social networking site mainly used for professional networking.

With more than 150 million registered users, according to the site, recruiters are able to read the professional profiles, recommendations and even see their network.

Recruiters use the website to research, engage and eventually hire people.

Companies are using the professional Website to advertise jobs and users can save jobs they are interested in as well as follow different companies to get notifications on any opportunities.

It also allows people to join different communities, mainly professional, linking one to people with similar professional interests.

Google+, the social networking site by Google, makes it easy for an individual to distinguish contacts into discreet groups like friends, family and professional contacts.

Initially social media was frowned upon with companies blocking the sites for their staff. Ms Mwihia said this is "gradually" changing.

"Social media is now seen as an opportunity to get information. Companies can't run away from social media," she said, adducing that the sites have also become reference checking points for recruiters.

A survey carried last year in the US by Jobvite, a leading recruiting platform for the social Web, showed that there has been a steady increase by employers in the use of social media.

The survey showed that at least 90 per cent, of the more than 800 US-based human resources and recruitment professionals polled, planned to use social networks to find job candidates, while 64 per cent of those surveyed hired through social medial last year, compared to 58 per cent in 2010.

Visual Unity targets Africa in deal with Nairobi firm

Visual Unity system integrator and multi-screen platform provider has entered into a joint venture with Telemedia Africa to establish Visual Unity Africa.

The company, based in Nairobi, offers system integration and professional services to the local broadcast, information technology and telecommunications industry, along with specialist research and development to develop innovative mobile applications.

Visual Unity Africa is headed by Baiju Shah, Ali Hussein and Ken Kariuki, all of whom have extensive management experience in the broadcast and technology sectors.

Mr Hussein and Mr Kariuki will be based at the company's Nairobi offices from where they will initially develop the east and central African market, with a view to expanding into other areas in the future.

The firm is eyeing the growing middle-class in Kenya and Africa in general.

The region is recognised as a hub of innovation in the broadcast and mobile applications, thanks to the high penetration of mobile devices and cheap tablet computers.

As countries switch from analogue to digital broadcasting, it is expected that a price war between main providers would result in low Internet costs.

Visual Unity managing director Tomas Petru said that Africa is ripe for expansion of broadcast and there are significant changes with a proliferation of new television stations to meet demand for local content.

"With our rich set of video and broadcast products, our extensive research and development expertise and knowledge of the linear and multi-screen systems integration, Visual Unity Africa is well placed to bridge this gap by providing high quality services and products to the emerging market," said Mr Petru.

However, he said that what the market lacks are specialist systems integration and professional services organisations that could help broadcasters in their choice of equipment as they switch to digital television and enable them to monetising content as they embrace the growing multi-screen environment.

Mr Hussein adds that Visual Unity Africa's combination of local links and business development expertise will give the firm an enviable lead in the market.

"Visual Unity Africa's view of integration, along with its acquired mobile applications capability, will enable us to sell products and services to media, Telco and broadcaster organisations," he said.

"Visual Unity Africa also has an important role to play in influencing regulatory issues and setting new regional standards."

By OKUTTAH MARK