Navigating Disruption: Lessons from Nigeria's Airtime Evolution
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Chapter 1: The Airtime Recharge Revolution
The journey of airtime recharge in Nigeria reveals significant insights into how we adapt to change. In 2007, when I moved to Lagos to seek opportunities, the primary method for purchasing airtime involved scratch cards, commonly known as recharge cards. These cards were typically about the size of a bank card, adorned in the colors of various service providers, with a silver panel on one side. Users would buy these cards, scratch off the coating to unveil a 12-digit code, and input it along with specific USSD prompts to add value to their accounts. Over time, these cards evolved into flimsy strips of paper, bundled together to hide the 12-digit codes. This change allowed service providers to cut printing costs while reducing the environmental impact of discarded cards.
The introduction of recharge cards spawned a thriving business ecosystem. Vendors sold these cards in bustling street corners, makeshift kiosks, and busy medians. One vendor, Stephen, was my reliable source for airtime whenever I needed it.
Then came the era of VTU (Virtual Top-Up).
VTU represents a significant advancement in digital technology, allowing users to send airtime directly to their phones, eliminating the need for scratch cards. VTU dealers established accounts with service providers to facilitate direct airtime transfers and earned commissions based on their transaction volume. This innovation also enabled dealers to sell various services, such as data subscriptions and utility bill payments. For consumers, the process became even simpler: pay cash to the VTU dealer and receive instant notification on their phones.
As VTU gained traction, I stopped purchasing from Stephen, who continued selling traditional recharge cards. I began buying airtime from Nike, a mother whose kiosk was conveniently located near my office. I could easily contact Nike to request airtime, which I would then pay for online. This shift meant I no longer had to leave my home for airtime; I simply needed my internet-enabled smartphone and sufficient balance to reach out to Nike.
... until online top-up emerged.
Online Top-Up
Banks introduced online top-up, allowing me to purchase airtime directly through my internet banking platform. This feature was also available at bank ATMs. Instead of contacting Nike for a VTU transaction, I could handle everything online with just a few clicks. Technology, in collaboration with the banks, made Nike's services redundant, just as it had previously sidelined Stephen.
Nike eventually reached out to ask why I was no longer buying from her. Despite my fondness for her and her daughter, I had to explain that the convenience of online top-up made our previous arrangement impractical.
With the introduction of short code top-ups, my need for intermediaries diminished entirely. I simply registered my phone number with my bank's online platform. Whenever I needed airtime, I would dial a short code, specify the amount, and the system would automatically deduct the funds from my account and deliver the airtime directly to my phone.
With the advancements in technology, both Stephen and Nike became irrelevant in my search for airtime recharges. This phenomenon exemplifies disruption.
Photo by Onur Binay on Unsplash
Understanding Disruption
Disruption is the gradual yet powerful force that eradicates the old and ushers in the new. It can render entire industries obsolete in a heartbeat and simultaneously give rise to new ones. It operates on a numerical basis, where an array of algorithms can displace countless jobs as their functions become irrelevant. The shift from Nokia chargers to Android chargers illustrates this change. Disruption is a reality we must acknowledge and prepare for, as it impacts everyone.
Everywhere we look, disruption is reshaping our world: bookstores are closing as Amazon expands; greeting cards are being replaced by digital messages; PCs are gathering dust as smartphones take over their functions; and physical music media is fading away as streaming services dominate. Disruption is omnipresent, so here are three strategies to stay ahead in an evolving landscape.
3 Strategies for Staying Ahead
Cultivate Curiosity: Disruption rarely occurs overnight. It usually results from a series of incremental improvements. For instance, the transition from scratch cards to short codes took nearly a decade. Remaining curious about your surroundings will help you identify these gradual changes before they culminate in major shifts.
Get Involved: While it may be daunting, staying relevant in a rapidly changing world requires active engagement. This doesn't mean you need to download every new app or technology, but it does involve taking an interest in new developments and understanding their potential impacts.
Be Proactive: Particularly for professionals, it’s crucial to consider the opportunities and risks posed by emerging technologies. I recall my first encounter with ATMs capable of both receiving and dispensing cash. It became evident that these machines would eventually render our roles as bank tellers obsolete. While discussions about workplace fairness are important, disruption is indifferent to such concerns. Instead of resisting change, we must adapt by acquiring new skills or learning to work alongside the technologies that are reshaping our industries.
The first video titled "Comeback Kid - Disruption (OFFICIAL VISUALIZER)" provides a visual representation of how disruption influences various industries.
The second video, "Get Dead - Disruption (Official Video)," further illustrates the theme of disruption and its impact on our lives.
For additional articles on technology by Osundolire Ifelanwa, click here.