7 minute read
Technology
Maurits Tichelman VP - Sales, Marketing, and Communications and GM - Global Markets and Partners, EMEA, Intel INTERVIEW
Explainer: Is data the new oil in the GCC?
Technology has now become a key driver of economic growth in the GCC, with data already defining the region’s future
Is the term ‘data is the new oil’ still relevant? Yes, data has practically become the ‘new oil’. Data is playing a significant role as a crucial source of wealth for oil-rich nations and territories such as the GCC, which has historically been particularly dependent on oil as the main contributor to the GDP.
We are witnessing a significant shift from oil to data in the region as governments embark on strategic initiatives to diversify towards more knowledgebased and tech-driven economies. Data is already playing a key role in this transformation. A concrete example of this process could be autonomous driving. Autonomous vehicles run on data in the same way that today’s cars run on gasoline. Therefore, undoubtedly, data will be the new oil.
In the GCC, oil has been crucial to economic growth. Will technology/data be able to provide the same level of economic prosperity? Countries in the region are heavily investing in diversified industries such as technology, manufacturing, education, and healthcare, among others. As the Gulf states transform and diversify, the importance and impact of technology will take on an even greater role. Data is already defining the region’s future, complemented by mega projects planned with greater focus on smart infrastructure (smart cities), advanced telecoms services, and somewhat accelerated by the rapid rise of remote learning and working due to the Covid-19 pandemic.
Furthermore, technology has now become a key driver of economic growth, from providing goods and services efficiently, to optimising advanced technologies to help businesses and governments access natural resources that can benefit people. Additionally, increased efficiency of labour has improved productivity and profitability.
149
zetabytes of generated data expected by 2024
While we are producing ample amounts of data in the region, are we currently maximising its benefits? We are surrounded by data and it continues to grow exponentially. According to estimates, in 2021 alone, there will be 74 zetabytes of generated data and it is expected to reach 149 zetabytes by 2024. As
a result, the need to understand and optimise data has become even more signifi cant as every business uses data to some extent. However, there is a lack of knowledge and skills in utilising the data to its full potential. With the rise of digitalisation, companies and governments across the region and worldwide are investing in digital transformation, a positive indication that more organisations are now realising the importance of data.
The Covid crisis has highlighted the importance of technology – but will it retain its relevance post-pandemic across industries? The pandemic has undeniably prompted companies to invest more in technology adoption across industries including healthcare, education, retail and real estate, among others. The use of innovation technology such as virtual medical/doctor consultation has helped people during lockdowns.
The Covid crisis has forced organisations and governments to adapt and prepare better to tackle future calamities with the aid of technology. Businesses have seen the advantages and have started deploying smart and intelligent technologies such as artifi cial intelligence (AI) to improve safety standards and increase productivity. Thus, it is clear that technology has become an absolute necessity rather than a mere option; its relevance has never been so crucial and without a doubt the use and benefi ts will play a bigger role post-pandemic across industries locally, regionally and internationally.
What are the biggest challenges hindering tech adoption/data-driven growth in the region? Although organisations are implementing advanced technologies, the vast majority still operate on outdated and traditional models, which prevent them from utilising the benefi ts of the latest available technologies.
Secondly, reluctance and resistance from employees in adopting technology poses challenges for companies. Lastly, a lack of skilled professionals is a key factor that has restricted organisations in the region from completing their digital transformation.
Looking ahead, GCC states are seeking to become global knowledge hubs. How can that journey be accelerated? GCC governments are accelerating their digital transformation journeys with progressive strategies and initiatives. Smart Dubai, Dubai Data Strategy, Saudi Arabia’s The National Strategy for Digital Transformation and the Qatar Smart Program (TASMU) are examples of the regional commitment and ambition to explore all possibilities of technology and its impact on daily life and business. These strategies, roadmaps and ambitions are the key drivers and accelerators of their technological transformation journey.
Alan’s Corner
Alan O’Neill Change consultant and speaker
Budgets are not plans
The purpose of an annual budgeting process is to be proactive and be in control of your own destiny. It focuses the entire leadership on the fi nancial goals of the business and it makes them accountable. Without these targets, how can a business know if it’s doing a good job or not? They are the score of the game.
In this process, organisations usually use their previous year’s numbers as a baseline to set fi nancial targets for the following fi scal year. These targets will usually show an increase on the previous year. But there is a better way.
The methodology used for setting targets is o ten a combination of a top-down and bottom-up approach. Top-down is where the organisation looks externally at what is going on in the marketplace and makes judgments on the implications of those external forces. Bottom-up is where the individual commercial teams set targets by customer segment, by product, by territory and so on. The bottom-up approach is typically based on a marginal upli t on last year’s numbers.
But it shouldn’t stop there. Far too many big and small organisations think that because the ‘numbers’ are agreed, the planning job is now complete. Let’s be very clear here. Budgets and targets are not business plans. If budgets and targets indicate ‘what’ we are aiming for, then we also need to consider ‘how’ we will achieve those targets.
E ective planning
Structured, detailed planning helps guide teams on the specifi cs of what it will take to ensure the budgets and targets are achieved. It should be a cross departmental team exercise to get commitment and buy-in.
Working recently with Dubai-based Gerab National Enterprises, I supported the senior team to develop its strategy using these structured steps:
1. Scan the external marketplace. We started with an appraisal of the external market. What’s happening in the macro economy and the industry? Who are the main competitors and what are they doing di erently that is relevant? How are customers changing? What are the new trends?
All of that feeds into what we call ‘Opportunities and Threats’ which should then be prioritised in terms of their impact on business. This exercise further helps to validate the fi nancial budgets and targets.
2. Identify the strengths and weaknesses of each key business driver. The next things to consider are the key pillars of the business in detail. For each pillar, identify your ‘strengths and weaknesses’. This inward navel-gazing has to be done in an honest and nondefensive way. The pillars would typically include: a. People. Think of headcount, payroll investment, recruitment, retention, allocation of duties, training, communications, welfare, morale and productivity. Also consider if any element of your culture and leadership needs attention. b. Product mix. Think of best and worst sellers, newness and innovation, product di erentiation, price architecture, customers and trends. c. Place. Consider your route to market and where there might be opportunities to open new markets, new industry sectors, online channels, mergers or acquisitions.
d. Brand communications. Develop a marketing and communications plan, around all relevant platforms – both via traditional channels (such as advertising and PR) and social media channels. Consider look and feel, tone of voice, frequency and cost/benefi t analysis.
e. Internal controls. Consider your own internal processes, controls, costs, margin management, IT systems, risks, etc. 3. Prioritise. From this list, agree on your priority projects for the year ahead. By negotiating with the relevant stakeholders, allocate an owner for each project. That will ensure good accountability, no ambiguity and that tasks don’t slip between two departments. 4. Agree measures. Set metrics for each initiative. Sometimes this exercise may reveal projects that will take more than a year to deliver. Nevertheless, for all initiatives you should consider metrics for the next 12-month period.
Be careful of how you go about this planning process. It is really di cult to lead it on your own, as all senior people need to be contributing to the process. Facilitating such meetings is an entirely di erent and objective role to be played and it’s hard to be both a contributor and facilitator. Whoever you use should have great empathy, objectivity and expertise in strategic planning.
Finally, before you leave the planning room, consider governance. How will you monitor progress and hold individuals to account for delivering on what has been agreed?
Check back in here over the next few months and I’ll go into more detail for each of my 7-Steps to Profi t.
