Many enterprises in the Middle East and Africa (MEA) are held back from fully realising digital transformation because of a lack of a clear digital strategy and a robust IT policy, inability to change with the rapid pace, and a shortage of technology skills.
This is according to Denis Klimashev, Windows and devices business group director for MEA at Microsoft, speaking at the Digital Transformation for the Modern Enterprise Media Event in Dubai yesterday.
Klimashev pointed out digital transformation is reshaping the world and has the potential to change everything - people, businesses, communities and nations.
It is also driving the fourth industrial revolution - with digital technologies like the Internet of things predicted to add $14 trillion to the world's 20 largest economies by 2030, said Klimashev, adding this is one-fifth of the current world gross domestic product.
According to the World Economic Forum, the fourth industrial revolution will bring about new business models, opportunities and markets, he added.
Klimashev said people who are currently studying will have jobs that do not exist right now when they finish university and many of these jobs will be created by the fourth industrial revolution.
He noted the core to successful digital transformation is leadership. "Digital orientation must flow from top managers to all levels of the organisation. Without vision or direction, businesses will miss the true digital opportunity."
Big data is fundamental because it gives leaders the insights needed to make more informed decisions, said Klimashev.
"For example, data on customer behaviour is opening a new world of opportunities to design new and better products and services, and develop new revenue streams.
"The Internet of things with sensors connected to a business's assets or 'things', is delivering cutting-edge insights to businesses; for example, predicting malfunctions in a manufacturing plant or gas pipe before they happen.'
However, for digital transformation to become a reality in MEA, CEOs need to "think digital" and make digital transformation their number one priority.
"Traditional companies want to behave like start-ups, but they usually don't have the technology infrastructure or operating models to keep up with companies that have been digital from the start."
Referencing PwC research, Klimashev said CEOs and decision-makers believe digital transformation is their number one priority and set to transform their businesses more than any other global trend.
Therefore, "they need to have business people not just people in IT thinking digital - technological advances should be the key priority for CEOs in this region".
Klimashev said business leaders need to align business strategy with digital strategy to benefit from this trend.
"It has to start from the top. Executives have to come in and set the strategy and at the same time they need to rally the entire organisation - every head of department in the company needs to be on the same page."
Also, it's not just about digitising one process, it's looking at the whole company - how it is going to operate in this new world and take care of its customers.
Companies that don't digitally transform risk losing talented employees. "Millennials will make up 75% of the workforce by 2030 and are on the lookout for the best digital opportunities."
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