Case Studies

Technology Trends – Small is Beautiful and Scalable

 

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In the computer services market, there are various ongoing and emerging trends driving uptake of services across the corporate and public sectors. Some of the key drivers affecting the computer services sector include the use of open

source solutions and the effect that virtualisation technology is having on infrastructure costs and Infrastructure management. It is allowing companies to develop a better technology to create competitive advantage and move away from the one size fits all.

However a huge amount of companies and governments around the world go down this route with great results. It allows then to scope out what you need and slowly roll out a services – these services allow you have customisation and development as part of an ongoing programme and as Part of your Service Level agreement – they are fully backed with training and support. It’s allow you to develop unique data services that are unique to you as part of your overall company strategy and over time to customise and bring greater value. They also benefit you to make statements about how you manage your data and how it is hosted.

The Continuous growth in digital services across virtually all sectors of the UK economy has generated significant demand for computer services and IT outsourcing (ITO).

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The proliferation of mobile devices and mobile Internet access has driven demand for mobility services, which provide workers with remote access to client systems. Privacy and data protection are key concerns in the sector, with new up-and-coming regulations and directives from Europe set to impact the market over the next year or two. The new rules could help reduce administrative burdens for European operators through the introduction of a single set of rules on data protection across the EU.

There has been a significant increase in demand for cloud computing services. At present, the vast majority of demand is for software-as-a-service (SaaS); however, opportunities remain to grow other cloud computing services, such as infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS).

Public sector IT supply has been affected by tighter central and departmental government budgetary constraints. IT is a key area of investment in the public sector, particularly under the Government’s Digital by Default programme, but austerity has nevertheless placed pressure on contracts.

Growing Online Basket Size in the Middle East: (Part 2)

With Saudi Arabia’s new leadership and notable economic reforms, the outlook  for foreign ventures and investment is promising. BigOnIT  are exploring various opportunities in Food, Healthcare and Food Security in the Middle East.

This blog series provides an update on our ventures in the region, as well as the current business landscape as I see it.

See Part 1: Food Security and Food products in Saudi Arabia

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With thousands having access to the Internet and going online every year, in addition to the boost in mobile commerce traffic, the Arab peninsula has become the fastest growing e-commerce sector in the world. According to ArabWorld’s Online Payment Report for 2014, which covers the UAE, Saudi Arabia, Egypt, and Kuwait, the following developments are taking place in the Arab e-commerce sector: [8]

There are more credit card holders, but COD is still strong.

In the UAE, 60% of the 3.65 million e-commerce customers are located in Dubai, while another 27% are in Sharjah and Abu Dhabi collectively. In Egypt, 27% of e-commerce purchases are paid for with a credit card, while cash on delivery makes up the remainder.

Average cash-on-delivery (COD) orders had a minor decrease of 0.8% in the last year, decreasing from $114 in 2013 to $113 in 2014. Credit card orders meanwhile had a 49% increase in the last year, increasing from $155 in 2013 to $168 in 2014. Overall, there was an increase in e-commerce basket size in the UAE.

 

Online basket size is growing in the Arab peninsula.

Saudi Arabia saw an overall increase in e-commerce basket size. There was an increase of 8% for cash-on-delivery orders in the last year, increasing from $143 in 2013 to $154 in 2014. Credit card orders then saw a 32% increase in the last year, increasing from $96 in 2013 to $127 in 2014.

Egypt saw the largest increase in e-commerce basket size. There was an increase of 16% cash-on-delivery orders in the last year, increasing from $83 in 2013 to $96 in 2014. Credit card orders then saw a 36% increase in the last year, increasing from $71 in 2013 to $96 in 2014.

 

Arabs use mobile commerce twice as frequent as the rest of the world.

People in the Arab World transact on mobiles more than the global average. 41% of smartphone users in the Arab World transact online, while only 21.3% of global smartphone users transact online.

18 to 26 year olds make up the largest demographic group of mobile payment users with 39% of the market. This age group is expected to reach $2.45 trillion in transactions worldwide by 2015. The next largest group is the 27 to 39 year olds with 31% of the market, followed by 40 to 61 year olds with 26%, and 62 and older with 3% of the market.

All these indicate that there is a large opportunity for online coffee roasting in Arab countries, particularly Dubai and Saudi Arabia. Not only are young consumers driving coffee consumption, they are also the leading users of e-commerce in the region, proving that online coffee ecosystems have a chance to flourish in the market. It should be emphasized that young consumers specifically look for premium coffee experience coupled with convenience, both aspects that Newbeans CTAPS system can provide.

Of importance will be the provision of COD options and mobile-responsive e-commerce pages given the habits stated above.

In my next post, I’ll be sharing with you the strategy we’ve made for BigOnIT and Newbeans Coffee’s entry to the Middle East and North Africa.

Food Security and Food products in Saudi Arabia (Part 1)

With Saudi Arabia’s new leadership and notable economic reforms, the outlook  for foreign ventures and investment is promising. BigOnIT and Newbeans Coffee are exploring various opportunities in Food, Healthcare and Food Security in the Middle East.

This blog series provides an update on our ventures in the region, as well as the current business landscape as I see it.

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Traditional Arab coffee is usually purchased in markets and souks, and what sets it apart from coffees in other nations are the addition of spices. A variety of items such as cardamom, cloves, and saffron, in addition to coarsely grounded Arabic coffee beans, are used for its making. [5]

The recent years, however, saw the increasing variety of coffee becoming available in restaurants, cafés as well as retail outlets and they are more similar to the coffees consumed in Italy or the USA.

In Saudi Arabia, specialist coffee shops have nearly doubled in value between 2008 and 2013, due to their aspirational image and innovative coffee drinks. The interest in specialist coffee shops is also influencing the retail market, as young consumers seek to replicate the trendy coffeeshop drinks at-home. [5]

And while fresh coffee is the format used to brew traditional Arabic coffee, instant coffee is the most preferred category by young consumers in Saudi, due to its convenience and variety of flavour options. In particular, young consumers are drawn to instant coffee mixes like 3-in-1’s and instant Specialty Italian coffees that aim to emulate coffee drinks like cappuccinos and lattes. Again, this is with the desire to recreate the coffee shop experience without extra effort.

Meanwhile, in Morocco, instant coffee is still the most popular type of coffee, but fresh ground coffee pods are gaining so much popularity in Morocco as coffee pod machines are becoming more available in different large retail stores, like Marjane and Carrefour. [5]

In Dubai, the center of development and trends in the region, on-trade sales are also growing strongly, boosted by the influx of business and leisure tourism. Despite the growth of coffee shops and independent roasters, instant coffee still takes the cake. [5]

In my next post, I explore trends in the e-commerce industry in Saudi Arabia. They are now the biggest  mobile users in the world, and this opens a lot of possibilities in selling specialty coffee online in Saudi Arabia and other Middle Eastern market – making it a great time for Newbeans CTAPS system to enter the market.