Innovation report 2018 excerpts

BUSINESSDAY RESEARCH & INTELLIGENCE UNIT www.businessdayonline.com
BUSINESSDAY INNOVATION REPORT 2018 1

BUSINESSDAY INNOVATION REPORT 20182

EXCERPTS: MOST INNOVATIVE
COMPANIES & INSTITUTIONS
IN NIGERIA 2018

Contents Page
Introduction 6
Executive Summary 7-8
Defining Innovation 9
How Does Innovation Lead to Growth? 10
Nigeria’s Innovation Profile in the World 12-14
Extract From the Businessday Innovation Survey 16-18
BusinessDay Innovation Awards 2018 19-20

The information captured in this report has been drawn together from various sources including the
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BusinessDay Research & Intelligence Unit (BRIU) presents excerpts (extracts) from over 200 pages of
the maiden edition of our annual Innovation Report 2018 sub-titled Companies to Inspire Nigeria
following the first BusinessDay Innovation Awards held in 2017. The report tracks the innovative
trends and strides of 88 Companies who introduced and pioneered inventive and ground-breaking
products, services, models, processes and ideas in Nigeria that revolutionised our local markets over
the last three (3) years (2014 to 2017).
Africa’s peculiar set of problems has necessitated that innovation becomes a key ingredient for
Companies and Individuals to thrive. Largely fuelled by the equalising nature of technology and
mobile telephony, Nigeria is slowly but surely emerging as a force to be reckoned with, especially
with the economy in recovery.
Nigeria’s economic decline and slow recovery has challenged the operational existence of many of
Nigeria’s big and small companies across all sectors. But in every challenge, there is an opportunity.
Faced with declining demand, policy inconsistency and uncertainty, foreign exchange scarcity, and
dwindling revenues, players in both the private and public sector have had to dig deep into their
innovative capacity to do extra-ordinary things.
Nigeria was ranked in the 119th position out of 127 Countries in the Global Index Innovation Report
2017 published by Cornell University, INSEAD Business School and the World Intellectual Property
Organisation (WIPO). Every year, the Global Innovation Index provides detailed metrics about the
innovation performance of nearly 130 countries and economies around the world. Each country is
scored according to 81 indicators. Its 81 indicators explore a broad vision of innovation, including
political environment, education, infrastructure and business sophistication.
BusinessDay seeks to advance the philosophy and culture of innovation in our nation space; and to
recognise the people and companies that are driving it. Today, innovation is a key driver of organic
growth for all companies—regardless of sector or geography. Recognizing the Organisations,
Agencies and Individuals that are driving and advancing the culture of innovation, BusinessDay
brings together industry leaders across all sectors.
Summarily, the full Report (out in December) seeks to showcase the Companies and Institutions
that contributed immensely to the sustainability of their customer-base, bottom-line, overall
organisational growth, as well as the socio-economic development of our country.
Introduction

BusinessDay is publishing the maiden edition of
the Most Innovative Companies & Institutions
in Nigeria Report 2018. Out soon, the full
Report, which is over 200 pages, showcases the
Companies and Institutions that contributed
immensely to the growth of their customer-base,
bottom-line, overall organisational growth, as
well as the socio-economic development of our
country via Innovation.
The report profiles the Organisations that are
advancing the frontiers of innovation in the
Country spurring transformations in new markets
and disrupting existing industries.
Innovation is a prerequisite for corporate survival
and the lifeblood of sustainable business growth
and development globally. Organisations that
innovate successfully are those that drive the
future of the sectors or markets in which they
play and indeed the overall economy they are
located.
According to the Economist“Innovation in Africa
is helped by a peculiar confluence of economic
and political circumstances.”The World Economic
Forum elaborated further in its article published
in January 2016 titled: “Is Africa leading the
Innovation Revolution?” that “Necessity is the
mother of invention, and in Africa it has been the
mother of innovation.”
Indeed, Africa’s peculiar set of problems has
necessitated that innovation becomes a key
ingredient for Companies and Individuals to
thrive. Largely fuelled by the equalising nature
of technology and mobile telephony, Nigeria
is slowly but surely emerging as a force to be
reckoned with, especially with the economy in
recovery.
Technology has further deepened the
advancement of Nigeria as a frontier market
when it comes to innovation. Furthermore,
technology is also helping to transform business
models, especially across all sectors of the
economy.
For instance, in the banking as well as the
media & entertainment industries, technology
is revolutionising the market space. Leading
Innovators in the banking category are
spearheading their Company’s growth and
improving bottom-line through technology.
Most notable in the innovation emerging in
Nigeria’s banking sector is the digitalisation of
banking and e-payments, as well as the growth
of the fintech segment.
Another notable factor of the innovators that
made the list for BusinessDay’s Innovation
Awards is the fact that collaborations between
players operating in different sectors also create
innovative results.
Overall, the 88 Companies that made the list of
Innovators for BusinessDay’s Innovation Report:
Companies to Inspire Nigeria 2018 Edition emerged
from different and diverse sectors of the Nigerian
Economy. Innovation takes place in various forms;
it can be to transform business models; disrupt
existing markets or create new ones; develop a new
set of products; revolutionise service facilitation
and deployment, among others.
For the different categories, the Research &
Intelligence Unit employed various parameters
and criteria in the process of selecting and
short-listing Innovators out of hundreds of
organisations, institutions and businesses
registered and operating in Nigeria.
Executive Summary

Summarily, the benefits of innovating successfully leads to cost reductions, growth in revenues and
increase in the bottom-line. Most importantly, the ability to exploit and tap into unexplored markets
is key. The capacity to develop new and unexplored solutions to prevalent and existing problems is
a major underlying foundation for any innovative venture.
BusinessDay seeks to advance the philosophy and culture of innovation in our nation space; and to
recognise the people and companies that are driving it. Today, innovation is a key driver of organic
growth for all companies—regardless of sector or geography. Recognizing the Organisations,
Agencies and Individuals that are driving and advancing the culture of innovation, BusinessDay
brings together industry leaders across all sectors.
Subsequently, as part of the Report, BusinessDay Research conducted a survey to gauge the level of
adoption and deployment of innovation and innovative strategies across Nigerian Companies and
Organisations, especially those recognised and selected in our Report as the leading innovators and
disruptors in their respective sectors, markets and industries.
The first BusinessDay Innovation Survey focuses on how Companies in Nigeria define and implement
innovation, find a forum for innovation; involve customers in the innovation process, among other key
factors and characteristics. The Survey was addressed to key Executives of local Companies ranging
from start-ups to large Companies, from various industries such as financial services, technology,
media & telecommunications, healthcare, as well as from the industrial and commercial sector.
The Report, which is over 200 pages, seeks to showcase the Companies and Institutions that
contributed immensely to the sustainability of their customer-base, bottom-line, overall organisational
growth, as well as the socio-economic development of our country. The full report, which will be
published in December, contains profiles of the 88 Companies covered, as well as interviews with
12 of the leading innovators and CEOs, in addition to the results of a survey conducted with key
Executives of the Companies in the Report focusing on their Innovation strategies, future plans and
prevailing challenges with respect to innovating in Nigeria.
For further enquiries, please contact the Author of the Report:
Omosomi Omomia
Senior Research Analyst
BusinessDay Research & Intelligence Unit (BRIU)
omosomi.omomia@businessdayonline.com
omosomi.omomia@gmail.com

Innovation is the process of translating an
idea or invention into a good or service
that creates value or for which customers
will pay. To be called an innovation, an idea
must be replicable at an economical cost
and must satisfy a specific need. Innovation
involves deliberate application of information,
imagination and initiative in deriving greater
or different values from resources, and
includes all processes by which new ideas
are generated and converted into useful
products. In business, innovation often results
when ideas are applied by the Company
in order to further satisfy the needs and
expectations of the customers.
In a social context, innovation helps create
new methods for alliance creation, joint
venturing, flexible work hours, and creation
of buyers’ purchasing power. Innovations are
divided into two broad categories:
1. Evolutionary innovations (continuous or
dynamic evolutionary innovation) that
are brought about by many incremental
advances in technology or processes and
2. Revolutionary innovations (also called
discontinuous innovations) which are
often disruptive and new.
Innovation is synonymous with risk-taking
and organisations that create revolutionary
products or technologies take on the greatest
risk because they create new markets.
Agreatidea,
executedbrilliantly,
andcommunicatedina
waythatisbothintuitive
andfullycelebrates
themagicoftheinitial
concept
Peter Foley is a Consultant, Innovator,
Artist, Scientist, Photographer, Musi-
cian, Accountant and Blogger, with
25 years’ experience of Innovation and
Behavioural Science in the Fortune 50.
“
Turning an idea
into a solution
that adds value
from a customer’s
perspective
Nick Skillicorn; Chief Editor of Idea
to Value and the CEO & Founder of
Improvides Innovation Consulting. He
was voted one of the world’s top inno-
vation bloggers for 2014.
“ “
“
Definitions of Innovation
by Thought-Leaders on
the Subject Matter
Innovation is:
Defining Innovation

Innovation is an essential driver of economic progress that benefits consumers, businesses and the
economy as a whole. How does it play that role, how does it contribute to economic growth and
what can be done to promote it?
What is innovation?
In economic terms, innovation describes the development and application of ideas and technologies
that improve goods and services or make their production more efficient.
A classic example of innovation is the development of steam engine technology in the 18th century.
Steam engines could be put to use in factories, enabling mass production, and they revolutionised
transport with the railways. More recently, information technology transformed the way companies
produce and sell their goods and services, while opening up new markets and new business models.
Innovation and productivity growth bring vast benefits for consumers and businesses. As productivity
rises, the wages of workers increase. They have more money in their pockets, and so can buy more
goods and services. At the same time, businesses become more profitable, which enables them to
invest and hire more employees.
Why do we need innovation?
One of the major benefits of innovation is its contribution to economic growth. Simply put,
innovation can lead to higher productivity, meaning that the same input generates a greater output.
As productivity rises, more goods and services are produced – in other words, the economy grows.
How does innovation take full effect?
Innovation usually starts on a small scale, e.g. when a new technology is first applied in the company
where it has been developed. However, for the full benefits of innovation to be realised, it is necessary
for it to spread across the economy and equally benefit companies in different sectors and of different
sizes. Experts call this process the diffusion of innovation.
How can innovation be promoted?
Structural measures to promote innovation include increasing spending on research and
development (R&D) and investing in education, as well as enabling entrepreneurs to start businesses
more easily and for failed businesses to exit the market more quickly. In addition, companies can
facilitate innovation by investing in their staff and conducting their own R&D.
How Does Innovation Lead to Growth?

Nigeria was ranked in the 119th position out of 127 Countries in the Global Index Innovation Report
2017 published by Cornell University, INSEAD Business School and the World Intellectual Property
Organisation (WIPO). Every year, the Global Innovation Index provides detailed metrics about the
innovation performance of nearly 130 countries and economies around the world. Each country is
scored according to 81 indicators. Its 81 indicators explore a broad vision of innovation, including
political environment, education, infrastructure and business sophistication.
According to the 2017 Index, the top five (5) Innovative Countries in the World are Switzerland,
Sweden, Netherlands, USA and the UK. In Africa, the top five (5) are South Africa, Mauritius, Morocco,
Tunisia and Kenya. Nigeria ranked in the 21st position out of the 28 Countries covered in Africa.
Research & Development In Africa
Innovation Ranking In Africa
Nigeria’s Innovation Profile in the World

Research and development, also known in Europe as research and technological development, refers
to innovative activities undertaken by corporations or governments in developing new services
or products, or improving existing services or products. According to the Global Innovation Index,
Nigerian ranked 17th out of 29 Countries in Africa; the highest on the Continent being South Africa,
Egypt, Tunisia, Morocco and Kenya in that order.
According to the UNESCO Institute for Statistics (UIS), Global spending on R&D has reached a record
high of almost US$ 1.7 trillion. About 10 countries account for 80% of spending. As part of the
Sustainable Development Goals (SDGs), countries have pledged to substantially increase public and
private R&D spending as well as the number of researchers by 2030.
According to the 2016 Global R&D Funding Forecast, R&D investments are spread evenly among five
regions making up about 11% of the total global R&D spending, or $212 billion of the total $1.95
trillion. Africa accounts for 1.1 percent of the regional share (comprising North America/Caribbean,
South America, Middle East, Africa and Russia/CIS) of $212.26 billion. South Africa is the leader in
Africa with 30.3% of R&D Spending amounting to $6.76 billion. Overall, Five countries in the five
global regions are responsible for nearly two-thirds of the $212 billion in R&D invested in these areas.
On the innovation index, Nigeria ranks in the 11th position in Africa in terms of human capital and
research. The human capital & research indicator result was derived via the analysis of multiple sub-
indicators or indices including: School-life expectancy, years; Pupil-teacher ratio, Secondary; Tertiary
enrolment; Expenditure on education as a percentage of GDP; etc.
The World Economic Forum’s (WEF) Human Capital report ranked 130 countries on their human
capital development index and Nigeria ranked 114, among the lowest 20 globally, showing the
country’s human capital is poorly prepared for competition in a fast changing global economy.
Human Capital & Research In Africa

Nigeria, which is Africa’s largest economy, ranked lower than Rwanda, which was ranked 71; Ghana,
which ranked 72, Cameroon (73) Mauritius (74) and South Africa (87). Only Ethiopia ranked worse
than Nigeria at 127.
With respect to the access and use of ICT in Africa, Nigeria was in the 18th position out of 27 Countries
on the Continent. Global experts have posited that increasing broadband access and penetration
is critical for any country – particularly an economy like Nigeria, seeking growth, jobs and wealth
creation. Increasing penetration and access in Nigeria will impact the economy positively, as it opens
up opportunities for Nigeria’s teeming population – the largest in Africa.
The growth of tech start-ups and tech-hubs in Nigeria are providing further opportunities for
investment. Big technology corporations like Facebook, Amazon, Microsoft, IBM, Google and many
more have all marked Nigeria as the tech investment hotspot on the African continent.
According to the NCC, in 16 years since the Digital Mobile Licences (DML) were issued, investment
in the sector has hit $70 billion from a mere $50 million in 2001.
Despite this, broadband penetration is currently at 21 percent from 10 percent in 2014, and expected
to hit 30 percent by 2018, according to the National Broadband Plan. Challenges like high cost of
leasing transmission and other types of infrastructure; long delays in processing permits; multiple
taxation & regulations at federal, state and local government levels; as well as inordinate right-of-way
charges have crimped the output of players in the industry.
Information And Communication Technologies In Africa

The first BusinessDay Innovation Survey focuses on how Companies in Nigeria define and implement
innovation, find a forum for innovation; involve customers in the innovation process, among other key
factors and characteristics. The Survey was addressed to key Executives of local Companies ranging
from start-ups to large Companies, from various industries such as financial services, technology,
media & telecommunications, healthcare, as well as from the industrial and commercial sector.
Some Findings from the Survey
Dependence of Organisation’s strategy on innovation for its long term success
Nigerian businesses are increasingly likely to consider innovation to be an enabler of long-term
success. In the last three years, Company leadership have expanded their thinking about what
innovation can do for their organisations. In our survey, 56 percent of organisations’ strategies are
extremely dependent on innovation for their long term success; 40 percent of respondents claim
that their respective companies are very dependent on the application of innovative strategies for
business sustainability, while the balance of 4 percent of organisations express dependence on
innovation as a tool for long term strategic success.
Primary goals of the Organisation with respect to innovation strategies
In 2017 and 2018, the primary goals of Organisations surveyed was to add new value to a current
product (78.57%) and enter new markets (71.43%). 57.14 percent of respondents’goals was to disrupt
current markets by creating a new process or business model; while 55.36 percent intended to
introduce an entirely new product category (55.36%). 50 percent of respondents plan to reduce the
cost of existing products and services and 16.07 percent intend to change their business models.
Extract From the Businessday Innovation Survey

Views on the most important ingredients for successful innovation at your
Company
97 percent of Executives think that strong visionary /business leadership are important ingredients
for successful innovation at a Company. 86 percent are of the opinion that having the right culture
to support and foster innovation are essential to success.
75 percent believe that having a capacity and capability for creativity are significant to attaining
positive results in the cause of innovating.

73 percent suggest being able to locate and train the right people undergirds successful innovation.
71 percent proffer the willingness to challenge organizational norms and take risks are key to result-
driven innovation. 64 percent of respondents think that the ability to capture ideas throughout the
organisation, as well as the use of new tech (such as social media) to support innovation is important.
44 percent consider being able to secure the right levels of funding as an important ingredient
underpinning successful innovation and 29 percent submit to collaborating with suppliers as
significant to attaining successful innovation.
Constraints stopping Companies from being more innovative
37 percent of Executives confide that political and regulatory factors are major constraints stopping
their Organisations from becoming more innovative. 33 percent reveal financial resources as a
limitation toward their innovation growth and development. 13 percent of respondents disclose
that inadequate technology is impeding progress toward increased innovation in their Companies.
9 percent divulge that lack of talent is the major restriction in their developing more in the quest
toward becoming significantly innovative. 6 percent of respondents claim their existing organisation
culture is the problem as 2 percent suggest that weak corporate governance/leadership is to blame
within their own firms. On the other hand, 35 percent of Companies state that nothing is stopping
them from being innovative.
Further information and analysis from the survey results including: Areas Companies are looking
to innovate over the next 3 years (2018 to 2021); Percentage of total turnover in 2016 from new
innovations introduced by the Companies between 2014 to 2016; Key ingredients for successful
innovation, among others, can be found in the Full report out in December.

BusinessDay Annual Innovation Awards is a yearly event conceptualised by the BusinessDay Research
& Intelligence Unit (BRIU) to recognise and celebrate organisations and companies that are advancing
successfully the frontiers of innovation in Nigeria. We seek to laud and encourage the efforts of
high-impact entrepreneurs and CEOs who have embraced many challenges to create world-class,
industry-transforming and scalable companies that continue to forge new ways of doing business.
BusinessDay Innovation Awards showcases and rewards excellence in innovation across a range of
ground-breaking products and services. The Awards are aimed at the businesses that are able to
demonstrate real innovation with the potential to change the way an industry operates both locally
and internationally. Businesses must exhibit high-growth potential and have the capacity to add
substantial economic value.
Objectives of the Awards
1. To drive the concept and practice of innovation in our socio-economy.
2. To recognize the leading innovators and innovations in Nigeria.
3. To commend the contributions of professionals, organisations and institutions toward building
a sustainable economy through innovation.
4. To foster the global culture and phenomenon of innovation, as well as engender strong
innovation ecosystems and hubs within the country.
5. To promote and increase the awareness of new innovations and emerging technologies in
every sector.
So here is a call for nomination and entries. Are you a Company, institution in the private and
public sector that have introduced a very innovative product, service, idea or process that helped
you surmount the economic challenges in 2016, as well as created socio-economic value for your
Organisation, as well as internal and external stakeholders in your business environment or the
overall economy.
Please share it with BusinessDay Research and Intelligence Unit (BRIU) team in just a few paragraphs
showing:
• Name of the product or service or idea?
• What is unique about it?
• What challenge or need did it serve?
• How successful has it been?
Eligibility Criteria
• Only Nigerian-based Companies, Organisations & Institutions are eligible for participation.
• Only innovative products or services developed or introduced in 2016/2017 are eligible for entry
submission for the 2018 Awards edition.
BusinessDay Innovation Awards 2018

• Multiple entries can be made in various categories by a Company for sector-related innovations
in products & services.
• Interested organisations can submit entries via various communication platforms set-up by
BusinessDay.
• A selection committee is instituted to identify and contact leading nominees in each category.
• The advisory board/jury selection committee provides additional support and oversight on
nominations and make the final selection of winners.
• The closing date for entries is Friday, March 30, 2018.
• The decision of the jury is final.
• Further details to be provided soon.
For further enquiries, please send your email to omosomi.omomia@businessdayonline.com;
rerhe.idonije@businessdayonline.com; cc: research@businessdayonline.com
BusinessDay Innovation Awards 2018 will be held on July 22, 2018.

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