Digital Business Transformation in Silicon Savannah: How M-PESA Changed Safaricom (Kenya)

This case study investigates the phenomenal development of M-PESA in Kenya, the world's most successful mobile phone-based financial service, and the way it transformed its parent company, Safaricom from being an incumbent telecommunications operator to also becoming a digital platform working across different industries and sectors through an extensive business ecosystem. Safaricom, Kenya's incumbent telecom operator, developed M-PESA in partnership with Vodafone. The service was launched in March 2007 and has since been used by more than 23 million people in Kenya! It started off as a mere person-to-person remittance service and now provides a wide array of financial services for retail customers, businesses and government. Nearly a decade after its launch, M-PESA has drastically transformed the daily life of its users as well as Kenya's economic landscape, where it impacted the banking and telecom landscape, boosted the development of e-commerce and facilitated operations for thousands of small businesses, online and offline. Internationally, M-PESA has become a role model for mobile financial services and payment platforms as well as inclusive business practices. Learning objective: The case provides insights about the digital business transformation (DBT) of an incumbent telecom operator through the offering of mobile financial services. It helps to: Comprehend the why, what, and how of DBT; Assess the different dimensions of DBT; Appreciate the crucial role in DBT of leadership, lean management, talent development and organizational alignment; Understand the business opportunities enabled by leveraging breakthrough innovation, digital platforms, and big data.

• Computers and mobile devices
• Digital transformation
• Innovation
• Environmental sustainability