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Final assignment or Term project

IT & E-Business

Salim Sayouri

ENPC EXECUTIVE MBA
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IT & E-Business : Tawfik Jelassi Final assignment or Term project
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“I (We) hereby declare that I (we) have neither given nor received unauthorized help on this assignment, that all work is my (our) own unless otherwise stated, and that all sources used in the preparation of this assignment have been properly cited.”

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Salim SAYOURI
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The M-PESA service is a tangible case study on an efficiency combination of technologies and inclusive business innovation to generate momentous revenues on a deserted market. From a professional point of view. traditionally not deserved by classical financial institutions are now addressed and generating a substantial profit from millions of small amounts of transaction but at high frequency. thanks to the mobile technology. 2 . Secondly by the flexibility of the Central Bank that allowed telecommunications providers to provide Mobile Payment solutions without being granted a formal agreement to offer financial services.Final assignment or Term project IT & E-Business Salim Sayouri 1. First by adopting early the Universal Service in Telecommunications which consists on providing the baseline of Telecommunications services to every resident in the country. The usage-based business model elaborated by Safaricom around M-PESA tailored a financial service to the needs of the financially poor people at a country level. M-PESA project was in the beginning a mean for Safaricom to enhance customer retention and the ARPU before appearing as a business opportunity and a customer unmet need. Millions of new customers. What lessons would you draw from the M-PESA case study? How relevant are these lessons for you personally and professionally? From the M-PESA case study. The Universal Service is a leverage of the State to promote Information and Communication Technologies (ICT) and therefore capitalize on it to improve the living qualities of financially poor people and drive the socio-economic development. personally I would like to highlight the Kenyan state’s role in preparing and promoting the basis and the ingredient of M-PESA product success. The role of the Kenyan state in these two decisions could be considered as a major reason on the success the M-PESA service.

in addition to Money Transfer.  Communication and brand development: continue developing on the brand strengthens and brand trust as they are major challenges for ensuring the M-PESA success. If you were Bob Collymore.  Product development: Introduce and enrich the M-PESA service with new features like: o o Cash collection. o To build a strategic partnerships with different financial institutions (Bank. 75% of urban dwellers are unbanked and are potential customers that can be seized by other competitors. 3 . which initiatives would you take to ensure the future success of M-PESA in Kenya? I would recommend to Leveraging the virtual value chain:  Market development: To continue investing in innovation and enhancement of the M-PESA solution: o To better compete in the internal market.e. already provided by Safaricom’s competitor. This could be done by developing partnerships with different financial institutions and cash-in-transit companies to efficiently deliver agents with sufficient cash to answer the need.Final assignment or Term project IT & E-Business Salim Sayouri 2. MoneyGram) and Mobile Operators abroad where important Kenyan Diasporas are installed.  Logistics: enhance distribution networks to balance the float between cash and e-value especially in the rural areas. the new CEO of Safaricom. between Safaricom’s subscribers. Airtime Transfer. Western Union. o To broaden the service to neighbor countries with similar economic and cultural atmosphere. Zain. Money Transfer companies (i.

Mobile transfer service in particular and Mobile money globally are tacking off in many emerging countries as it presents a good alternative for providing additional value services to millions of financially excluded people. almost. Attijariwafa bank and Groupe Banque Populaire.10 to USD 300. not existing in the rural areas2 where sustainable development of customer base should be axed. 1 2 http://www. Maroc Telecom has launched.Final assignment or Term project IT & E-Business Salim Sayouri 3. Nevertheless. Airtime account recharge and payment of bills and goods with reasonable fees1 ranging from USD 0. Also those later are more seen as a voice telephony shop rather a shop for a Value Added services including financial services. However. but we could at least point out some defects in the strategy of the legacy operator. Mobicash is still viewed from the Operator’s communication as a negligible product compared to the voice product.aspx 4 .aspx http://www. mobile payment services. To what extent would a system such as M-PESA succeed in the country where you are based? Defend your arguments.10 to USD 1. Mobicash. and without hesitation we can guarantee that the Mobile Money has a bright future ahead of it in the next coming years. in any other countries. In developed countries. my homeland. The customers who subscribed for the Mobicash service could perform the following service. money transfer. the Mobicash didn’t meet the same M-PESA success in Morocco and wasn’t acclaimed as killer service among the financial poor people. cooperated with two mastodons of the financial institution in Morocco. Maroc Telecom: o Marketing is more axed on consuming the airtime product. The main reason for this short success still need to be revealed.iam. cash-out.ma/Particuliers/Mobicash/Les-services/Transfert/Pages/Transfert-national. The Mobicash service was provided by the operator distribution networks. o o Customer education: insubstantial communication campaign to ensure brand awareness.5 for a transferred amount between USD 0. cash-in.iam. it’s more a new alternative for payment methods than a financial service enabler. with the same brightness. The M-PESA success has not yet been reproduced. In Morocco. Distribution: the Mobicash distribution channel is based on well-established network on urban areas while it’s.ma/agences/Pages/Agencelaplusproche. in early 2010.

Meditel.Final assignment or Term project IT & E-Business Salim Sayouri In analogous way. mostly for similar reasons that prevent its rival. flexible and pro-active regulatory environment coupled with efficient and strong distribution channels are. without doubt. 5 . well-prepared customer education. strong marketing strategy. to be highlighted among the success story of Mobile Money deployment. the most ingredients of the M-PESA service success. launched a mobile money service under the brand “Mobile Banking” and hadn’t attained the M-PESA success. Mobicash. Also we have to not forget the socio-economic situation of Kenya which facilitated the quick adoption of Mobile Payment services. In conclusion. the second largest operator in Morocco.