Module 0-Introduction-Conducting business in the 4th industr

Conducting Business in the 4 th Industrial Revolution

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Table of Contents

NAVIGATING THE LEARNER GUIDE .......................................................................................................4

LEARNER ADMINISTRATION ....................................................................................................................5

GLOSSARY OF TERMS ..............................................................................................................................6

INTRODUCTION ...........................................................................................................................................9

RECOMMENDED LEARNING SEQUENCE ...............................................................................................9

MODULE DESCRIPTION ...........................................................................................................................10

PRE-READING: CONDUCTING BUSINESS IN THE 4 TH INDUSTRIAL REVOLUTION ......................12

1. T RADITIONAL BUSINESS VERSUS O NLINE - BASED BUSINESS ................................................................. 12

1.1 Types of traditional business models .................................................................................. 13

1.2 Digital (e-commerce) business model .................................................................................. 14

1.3 Types of digital business models .......................................................................................... 15

2. H OW TECHNOLOGY AFFECTS BUSINESS ................................................................................................. 17

2.1 The way we communicate and share information ............................................................. 17

2.2 Mobile business environments .............................................................................................. 17

2.3 Remote working ......................................................................................................................... 18

2.4 Use of Artificial Intelligence (AI) ............................................................................................ 18

2.5 Increased collaboration (working together) ........................................................................ 18

2.6 Working or storing items in the cloud .................................................................................. 19

3. S UMMARY ................................................................................................................................................ 20

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Navigating the Learner Guide

Use of Icons

You will come across some of these icons below in your learner material. Each icon will instruct you to carry out a task or activity.

Group Activity / Pair Activity : You will be required to complete an activity in your group or in pairs, and provide feedback to the participants when required.

Individual Activity : You will be required to complete an activity on your own.

Assessment Activity : Complete the assessment activity.

Learner Tip : A useful tip or essential element regarding the concept under discussion is given as a basis to further discussion.

You Tube Link Navigate to the You Tube Link and watch the required clip.

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Learner Administration

Tip : The following Learner Administration is critical in assisting your provider in managing this programme effectively.

Attendance Register

Please sign the online or paper attendance register.

Learner Registration Form

Please ensure you complete the learner registration form and submit a copy of your ID to your facilitator. We need this to capture your information correctly.

Programme Evaluation Form

At the end of the Learning Programme is an Evaluation Form. Please complete the form to help us continuously improve our offering to others.

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Glossary of Terms

Term

Definition

Affiliate Marketing

Affiliate marketing is a type of cost per action (CPA) marketing where you get paid a commission when a sale is made. A blog is traditionally described as an online journal or diary. WordPress is the most popular blogging platform. How many people have clicked onto a link on your website or on one of your social media posts. Content management systems (CMS) are tools used to help publishers build a website and easily post and update content. One of the most popular content management systems is WordPress, an open source and free tool used commonly by bloggers and online publishers. A mixture of advances in artificial intelligence, robotics, the Internet of Things, genetic engineering, quantum computing and more. It is a way of describing the blurring of boundaries between the physical, digital and biological worlds. Refers to creating a digital representation of physical attributes or objects. Whereas in the past we had analogue TV we now have digital TV. Previously we had analogue cameras whereas now we have digital cameras on our cell phones. A complex network of stakeholders that connect online and interact digitally in ways that create value for all. This is any form of media that uses an electronic device to get information out to your customers. Digital media is commonly used software, video games, videos, websites, social media, and online advertising. A domain name is essentially an address on the web. Just like a mailing address it consists of letters and may include numbers. Domain names are followed be a suffix. A few of the more common suffixes are; .com, .edu. , .org or co.za Electronic commerce refers to the buying and selling of goods or services using the internet to transfer money to pay for the goods or services purchased. How many people have liked, commented or clicked on your website or your social media posts. Geo-targeting involves identifying the location of the individual who is visiting the website. This is often done by means of the IP address of the visitor. It may also be based on information a visitor supplied; such as the zip code, region or state Computer based technology that is used to collect, store and analyse data for successful business operations. Internet marketing is the act of marketing products or services on the internet. It can also be thought of as advertising through the internet. This is a broad term that involves aspects of web design, web development, creativity, scalability, market identification, advertising How many people see your posts on social media.

Blog

Clicks

CMS

4 th Industrial revolution

Digitisation

Digital Ecosystem Digital Media

Domain Name

E-Commerce

Engagements:

Geo-targeting or geo-locating

Impressions Information technology

Internet Marketing

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Term

Definition and sales.

Keyword

This is a term or word used in digital (online) marketing to describe a word or group of words an internet user (or your customers) uses to do a search in a search engine e.g. google to find a link to your website. In digital marketing, this is a standalone web page used to attract customers to your website. This refers to the links on your website that connect your pages. The main purpose of navigation is to help your users easily find information on your site. A niche is a subset of a broader market. For example, exercise is a market while Pilates can be thought of as a niche of that broader market. Open source typically means the end product is free and you have access to the code and the ability to change it as needed. WordPress is an example of open source software. Pay per click (PPC) is an online advertising model where you pay a certain amount for each time somebody clicks on your advertisement. A programme that searches for and identifies information that relate to keywords you type in to find particular sites on the world wide web. Search engine optimization (SEO) refers to the set of techniques for getting the pages of a website ranking high in the search engines. There are four different types of social media:  Social networks : Facebook, Twitter, LinkedIn  Media sharing networks : Instagram, Snapchat, YouTube  Discussion forums: Reddit, Quora, Digg  Bookmarking and content curation networks : Pinterest, Flipboard  Consumer review networks : Yelp, Zomato, TripAdvisor, Hello Peter Machinery and equipment developed from the application of scientific knowledge to enable human beings to convert physical processes to automated processes. The cellphone is an example of how technology has made it possible for us to send messages, store information, take photographs and record videos all integrated into one technological device. This is the amount of people who visit your website. Website traffic is measured in visits and is a good to measure how well your website is doing and attracting customers. A website is a collection of web pages containing related content that is identified by a common domain and published on a web server. Just as paper pages are bound together in a book, a website has web pages bound together into a website by a domain name. This is software that is used to find information on the web. For example, Chrome, Firefox, Safari, Edge and Opera. Websites and applications that enable users to create and share content or to participate in social networking.

Landing Page

Navigation

Niche

Open Source

Per Per Click

Search Engine

Search Engine Optimisation (SEO)

Social media

Social media networks

Technology

Traffic

Website

Web browser

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This glossary has been adapted from (Course Method, 2021)

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Introduction

Congratulations on taking the first step towards embracing the Internet to assist you to conduct business in the digital world. In this training programme we will guide you through a step-by step process of reimagining how your business can operate in a digital world. The programme is a practical one offered as a series of modules to enable your business to establish and maintain an online presence. To optimise the benefits of the programme it is important you complete all activities. It is only by reading and doing; that you can empower yourself to grow your business in the digital world.

Recommended Learning Sequence

The content is arranged in a chronological sequence as shown below. Although each module is centred on the main theme of conducting business in the digital world, they do deal with separate (but related) issues that link to digitalisation within a fourth industrial revolution context.

Pre-reading: Conducting Business in the 4th Industrial Revolution

Module 1 : My Business and I

Module 2 : The Online Ecosystem

Module 4 : Establishing my digital presence

Module 3 : Transitiong to the digital world

Module 5 : Promoting my digital presence

Final Website Assessment

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MODULE DESCRIPTION

PRE-READING: CONDUCTING BUSINESS IN THE 4 TH INDUSTRIAL REVOLUTION

At the end of this module, you will be able to:

 Explain the differences between traditional business and online based business  Define and understand the terms online, digital, e-commerce and 4 th industrial revolution  Describe how business will be impacted by the rapid pace of technological development

MODULE 1: MY BUSINESS AND I

At the end of this module, you will be able to:

 Conduct a needs analysis of the business using an online diagnostic tool  Conduct a 360-degree self-evaluation to understand your entrepreneurial aptitude  Set SMART goals for your business

MODULE 2: THE ONLINE ECOSYSTEM

At the end of this module, you will be able to:

 Describe the components of an online ecosystem  Explain how the components of an online ecosystem can be harmonised into an online business  Convert business goals into an action plan for online delivery

MODULE 3: TRANSITIONING TO THE DIGITAL WORLD

At the end of this module, you will be able to:

 Use the business diagnosis done in the previous module to understand what can be transitioned to a digital format

 Define your offering  Register a domain

 Understand how a website gets hosted  Install WordPress and Set up WordPress  Choose your website design according to your corporate design

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MODULE 4: ESTABLISHING MY DIGITAL PRESENCE

At the end of this module, you will be able to:

 Add Plug-Ins and social media links  Explain how to use a search engine to optimise your website  Devise an online sales strategy

MODULE 5: PROMOTING MY DIGITAL PRESENCE

At the end of this module, you will be able to:

 Understand the different components of digital marketing  Develop a better understanding of paid advertising: Pay Per Click and Facebook Advertising  Understand the implications of the POPI Act in relation to advertising  Understand the risks associated with using social media.

FINAL WEBSITE ASSESSMENT

You will be required to prove your website is live. This will be assessed using a checklist to ensure the functionality of the website. Please refer to the assessment guide for more detailed guidance.

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Pre-Reading: Conducting Business in the 4 th Industrial Revolution

Learning Outcomes :

At the end of this module, you will be able to:

 Explain the differences between traditional business and online based business  Define and understand the terms online, digital, e-commerce and 4 th industrial revolution  Describe how business will be impacted by the rapid pace of technological development

1. Traditional business versus Online-based business

A traditional business is one in which we are all familiar with. There is a building that contains a shop, or office that customers go to, to buy a product or service. Think of your spaza shops, your shopping malls, etc. Customers will go to a particular place and people tend to shop at places that are near to them to avoid transport costs for example. There is an exchange of money, and the aim is to make a profit. A digital business is one that can be set up anywhere in the world provided you have access to a computer, electricity, access to data and the Internet. People will visit your website to buy products and/or services.

Both traditional and digital businesses have their advantages and disadvantages.

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1.1Types of traditional business models

Below is a diagram showing the different types of business models. We won’t look at all the areas in the detail. This will give you an idea of the different types of traditional businesses and the different functions that are needed within a traditional business to make it effective.

Finance

Sales / Retailer

Franchise

Traditional Business

Marketing

HR

Operations / Manufacturer

IT

Manufacturer The manufacturer business model makes use of raw material to create products that are then sold to the market. This business model involves the assembly of pre-manufactured items. The products are either directly sold to customers (e.g. car manufacturers) or to another business to sell to customers (e.g. a wholesaler). Distributor This distributor business model buys products directly from the manufacturer. The company then sells the bought materials to customers or other businesses (retailers). Retailer A retailer business model buys products from the wholesaler or distributor. They then sell the stock to the public. For example, a shopping centre that sells food to customers. Franchise In this situation, the company buys the franchise of a successful brand and promotes the brand’s products or services to the general public. The franchise is a popular way to build awareness across the country. For example, you could have a franchise in Joburg, Cape Town and Durban. McDonald’s is an example of a very successful franchise.

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In brief, traditional business relies on various people doing certain functions to keep it successful. Smaller organisations may not need all these functions, however, they do still have a place. These roles or departments (in larger organisations) include: finance, human resources, IT, marketing, sales, operations, etc.

1.2Digital (e-commerce) business model

E-commerce or a digital model is the way of the future and part of the 4 th Industrial Revolution. It is very different from a traditional business. This model uses technology to create value and gives a totally different experience for customers. In some cases, traditional businesses also have a digital component to maximise selling products and/or services to customers. Pandemics have highlighted the need to go online and still continue running a business. An excellent example of digital businesses are Uber and Bolt, video streaming services like Netflix and other online streaming platforms.

Below is a diagram of a digital business model so you can identify all the parts involved.

Finance: Accounting

packages e.g. Sage / Quick books are cloud based

Sales: Online selling through payment gateways. Using sites like Facbook, Markeplact & Spotify make things simple

HR: Cloud based payroll can link directory to your bank account.

My small business

IT: Networking makes SMART (automated) office. Google tools makes an an online office possible

Marketing: Digital marketing using social media to drive traffic to your webiste and tracking the traffic

Operations: Policies and procedures are automated

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1.3Types of digital business models

Basic: Small businesses. Small presence on a digital platform means you still need to use traditional marketing methods e.g. direct mail and print advertising.

Intermediate: Small business uses tools like websites with basic functions. There are no e- commerce functions. You can list on online directories and 3rd party market places.

Advanced: The business has a website with a mobile app version and e-commerce functions. They rely heavily on social media, apps, video conferencing. This is where you want to be. There is no store or shop and work is only done online and you engage with customers through the internet.

Advantages and disadvantages

Traditional

Digital

 More capital to start up  You need premises, furniture, transport, staff, and other utilities  Specific products or services are offered to customers, and this is set and rigid.  Customers get to feel, touch, try-on and browse stock.  Less marketing spend as marketing strategies are diversified to attract customers from local areas and online customers. However, their reach is restricted when compared to digital businesses.  There are restrictions when and where they function. Timings are rigid (e.g., shopping hours) and customer service is also not flexible. Very few traditional businesses operate 24.7.

 Less capital to start up, however, you do need to money for data, electricity, etc.  You need a computer and reliable and fast connectivity  Convenient for customers (24/7) and offers a variety of products and different costs for products.  The digital model is not yet perfect when it comes to real-time customer experience. For example, you cannot try a cellphone before you buy it. You rely on customer reviews and specifications on the website. This doesn’t happen in the traditional model.  Larger marketing spends and constant updating on social media sites is required.

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Activity 1

Instructions:

a) Read the following article about the 4 th industrial revolution. b) Using the categorization of digital businesses provided in 1.3 try to identify what model type your current business is. Are you at the basic, intermediate, or advanced level? c) Use the Internet to search for information on how businesses will be affected by the 4 th industrial revolution.

This activity must be done before your training begins.

CONDUCTING BUSINESS IN THE FOURTH INDUSTRIAL REVOLUTION

The fourth industrial revolution has really affected the way business is done and small businesses must change or disappear. The Covid-pandemic has had a devastating impact on small businesses and the poor economic conditions have meant we need to do business another way. To achieve a digital approach to doing business, it is important to realise that the “technology is not a panacea (a solution) for all our ills”, it is only a way to do better business. Therefore, technology and automation must be used to help better meet our customers’ needs. The use of digital technology should not result in widening the distance between customers and businesses but rather narrow that gap. For those businesses who already enjoy an online presence, this training programme will equip them with the knowledge and skills to translate their online presence into tangible gains either through increased website hits, Facebook likes, Instagram likes or retweets on Twitter. This programme should equip the small business owner with a tech-tool kit to establish and maintain an online presence.

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2. How technology affects business

2.1The way we communicate and share information

Whether we are in a traditional business or digital business communication is essential. No business will survive without communicating to their customers. The advantage of technology is that it makes it faster, easier and more efficient. However, as with anything, there are always advantages and disadvantages to this. Digital environments makes it easier for us to get information about our customers and use it to enhance customer experience. Communicating is effective when technology is used to obtain customer information to help us create personalised messages to our customers. Automated communicating using different channels helps to improve marketing productivity and reach customers. However, if this is done too much we could also lose customers and lose the human-touch. Think about how much you use your cellphone, smart table and computers to find information or to buy something. You can even use these devices to study and complete training programmes. These mobile devices are here to stay. If you have the right software you can manage every part of your organisation remotely. Everything from sales, content marketing, and customer relationships through back-end processes like shipping and invoicing are all at the click of a button.

2.2Mobile business environments

Customers are also using mobile devices more and more to interact with organisations to buy, sell, shop, find local businesses and share their retail experiences with friends, acquaintances, prospects and social media strangers every day. Technology has increased the way we all stay in touch. This could be having your co- workers and employees available via text or video chat at a moment’s notice or being able to send targeted email messages to pre-qualified customers when they are shopping at nearby businesses. Mobile technology has blended with communication software to create a real-time information system.

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2.3Remote working

The rise of pandemics has meant many people have had to work from home. It has also resulted in many companies rotating staff for precautionary purposes and/or selling their larger premises to allow some staff to work from home and some staff to come into a ‘smaller office’ every now and again. This is likely not going to change in the future. Remote working has to become a part of people’s working lives if organisations are going to survive. This has meant ensuring employees have the right access to technology, computers, bandwidth to handle video conferencing, etc. Employees are being managed on productivity rather than hours spent in the office. This has increased the ability to attract and retain talent and has also boosted productivity. Artificial Intelligence is being used more and more. Incorporating AI is essential to keep a competitive edge. AI can do machine learning (processing huge amounts of data into smaller pieces of information for us to use); to security; customer relationship management as well be very useful in financial and real estate sectors. AI is used to track buyers and predict their intent to purchase by looking at their search patterns, what they view and open and more.

2.4Use of Artificial Intelligence (AI)

2.5 Increased collaboration (working together)

Google drive, OneDrive and other platforms have enabled us to collaborate more with each other and share information more easily. These tools simplify how we work together for team discussions, file sharing, project collaboration, tasks and storage.

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2.6Working or storing items in the cloud

Using the cloud to store information has changed how organisation’s operate as it optimises their internal resources and delivers value to customers. It allows everyone to work in remote areas but still have access to the information they need to provide a product or service. Organisations moving to the cloud can innovate quickly, scale efficiently and even bring new market capabilities faster. This has allowed small businesses access to resources that they would not have been able to afford in the past and has evened out the playing field with bigger companies.

Activity 2

Instructions:

a) Read the following quotation by Diamandis and Kotler on your own. b) In groups discuss how the next decade is going to affect your business and how your business is going to change in line with the technological developments that are rapidly happening. There is little doubt that the decade to come will be filled with radical breakthroughs and world changing surprises. Every major industry on our planet is about to be completely reimagined. For entrepreneurs , for innovators, for leaders, for anyone sufficiently nimble and adventurous, the opportunities will be incredible. It will be both a future that’s faster than you think and arguably the greatest display of imagination rendered visible the world has yet seen. Welcome to a world of extraordinary.

(Diamandis & Kotler, 2018)

c) Write down the main points of your discussion and file It safely.

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We finish this module with a statement from the President of South Africa, Mr Cyril Ramaphosa. Read this statement on your own and write down three business opportunities you think will emerge over the next few years for your business.

We want to be a country where our people are digital citizens, our workforce is skilled and empowered, and our youth enjoy the transformative benefits of employment in a new world of work. Africa is a continent of entrepreneurs, and we want to use the advance of technology to catalyse entrepreneurial activity. Economic growth will be driven by the leaner and more adaptable small- and medium-sized businesses of the future. Industry 4.0 will enable us to “leapfrog” outdated processes and technologies in favour of newer, more sustainable ones. Digital business models such as mobile money have taken root in large continental markets and are expanding. Although the resource sector will continue its substantial contribution to GDP, Africa’s long- term growth lies in scaled-up investment in disruptive technologies, especially with the rapid growth of the consumer class, more people entering the workforce, improved levels of education, and mass urbanization. Our ability to harness the 4IR rests on forging collaborative partnerships between government and the private sector, with policymakers and industry experts, and with our fellow nations on the African continent. Our success rests on the political will of governments, on being prepared to take risks, and on striking a balance between innovation and regulation. South Africa, together with the other nations of the world, shares a desire to be part of this new age of disruption, and, in doing so, ensures that we move beyond mere connectivity towards sustainable growth, tangible job creation, and an inclusive future.

A national strategy for harnessing the Fourth Industrial Revolution: The case of South Africa (Ramaphosa, 2020)

3. Summary

We have looked at the differences between traditional business and online based business. You have identified if you are at the basic, intermediate or advanced level.

We have looked at various definitions of words that are related to an online environment that will help you to build your website.

You now have an idea of how your business will be impacted by technology. You also have an idea of what is involved to start looking at changing your business to an online one.

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Bibliography

Diamandis, P., & Kotler, S. (2018). The Future is Faster Than you Think.

Ramaphosa, C. (2020, January 10). https://www.brookings.edu/blog/africa-in- focus/2020/01/10/a-national-strategy-for-harnessing-the-fourth-industrial-revolution- the-case-of-south-africa/. Retrieved November 13, 2021, from https://www.brookings.edu/blog/africa-in-focus/2020/01/10/a-national-strategy-for- harnessing-the-fourth-industrial-revolution-the-case-of-south-africa/

Course Method. (2021). Online Glossary . Retrieved November 2021 27, 2021, from https://coursemethod.com/glossary

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