How Gulf companies can overcome the five biggest challenges to their digital transformation
By Dany Karam, Christian Kunz, Jigar Patel, and Joydeep Sengupta – By now, most companies in the Gulf region understand the necessity of going digital. After all, 82 percent of the region’s population already owns smartphones.
Yet despite this awareness, progress on digital transformations among companies in the Gulf Cooperation Council (GCC) has been limited, at best.
Some companies have tested the waters, while others have moved more aggressively but haven’t scaled their programs. Many companies, however, are still sitting on the sidelines wondering how to move from strategy to action.
Almost no GCC companies have reached the end goal where analytics drives everything they do, agile operations and a culture of failing fast are the norm, and a mature and flexible technology stack is available to continually evolve offerings.
Regardless of where a company stands now, Gulf executives need to act quickly to move their organizations to the next level. Based on our work with incumbents in the Middle East and across the globe, we have identified five of the most common challenges GCC companies face when trying to go digital, as well as strategies for overcoming them and dramatically increasing the chances of success.
It’s understandable that Gulf executives would be reluctant to hit the go button on digital transformations. These efforts are largely new to the region, require considerable capital expenditures, and can lead to very different ways of working. You can’t transform only a little. Leading financial-services companies, for example, spend more than 4 percent of their revenues on digital transformations (with some spending as much as 9 to 12 percent). And digital transformations can go on for at least five years, with a breakeven point that can be one to four years away. more>
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