Digital transformation is playing a crucial role in shaping governments and economies around the world and the same rings true for the Middle East region. According to our research, 45% of Middle Eastern companies are feeling the impact of disruption today and 44% are susceptible to disruption in the future.
In the public sphere, governments in the region have launched several smart initiatives and solutions to enhance the quality of living. Accenture is seeing private sector companies aggressively pursuing the integration of modern solutions and technology such as cloud, drones, robotics and artificial intelligence, driving a new era of innovation.
In the public sphere, governments in the region have launched several smart initiatives and solutions such as Smart Dubai and Saudi Arabia’s National Transformation Program 2020 to enhance the quality of living.
We are already inching towards a post-digital era in the Middle East. As ICT spending is expected to rise to $213 billion this year compared to $208 billion in 2018, according to IDC, new expectations will emerge.
As per the Accenture Technology Vision 2019 report, companies will be presented with new levels of expectation from consumers, employees and business partners. In the next few years, the focus will shift from having the right technology to how do I set myself apart, as organisations become digitally competent with time.
Business leaders know that thriving in the digital age requires them to take on the disruptive forces changing their industry with speed, confidence and continuous innovation. But the reality is, only 6% of C-level executives say they have successfully managed to embrace new businesses activities without hesitation.
To get there, companies need a Wise Pivot, a strategy fit for the digital age that can help companies pursue new growth opportunities without abandoning their core business. Companies who pivot wisely know how to constantly calibrate their investments and assess their organisation’s investment capacity to grow new businesses at precisely the right time.
The most susceptible companies today are in the high-tech, chemicals, industrial machinery and equipment, infrastructure and retail sectors, with companies in the travel, auto and healthcare industries likely to be heavily affected in the coming years.
Accenture estimates that over $400 billion in value is at risk from disruption for Middle Eastern companies due to their limited innovation capabilities. Although many companies have increased their spending on innovation in recent years, these investments have not necessarily led to above-average growth.
Accenture has made significant investments in the GCC and is constantly striving to help businesses accelerate digital transformation. In line with the UAE Vision 2021, Accenture maintains its support to private and government businesses to further enable the UAE in becoming a leading technology hub, by helping establishments and governments apply technology to create positive change and transform business and society.
- Due to limited innovation, Accenture estimates $400 billion is at risk from disruption for Middle Eastern companies.
- Companies need a Wise Pivot, that can help companies pursue new growth without abandoning their core business.
- Only 6% of C-level executives say they have successfully managed to embrace new businesses activities without hesitation.
- Companies in the travel, auto, healthcare industries likely to be heavily affected in the coming years.
- The most susceptible companies are in high-tech, chemicals, industrial machinery and equipment, infrastructure and retail sectors.
By Xavier Anglada, Accenture Digital Lead, Middle East.