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Most UAE, Saudi Businesses Concerned About Being Digitally Disrupted

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Nearly 85 per cent of businesses in the UAE and Saudi Arabia believe that digital start-ups will pose a threat to their organisation, either now or in the future, according to new research from Dell.

Over half (54%) of business leaders have already experienced significant disruption in their industries over the past three years as a result of digital technologies and the Internet of Everything.

Forty-five per cent fear they may become obsolete in the next three to five years due to competition from digital-born start-ups, with 44 per cent not knowing what their industry will look like in three years time.

The Digital Transformation Index

In terms of progress made, the report uses a Digital Transformation Index to benchmark the extent to which businesses are responding to the opportunties and threats presented by the digial revolution. Only 4 per cent of businesses are categorised as being ‘Digital Leaders’.

Where does your own business sit on the Index?

Are you a:

  1. ‘Digital Leader’ with digital transformation ingrained in the DNA of your business (4% of companies)?
  2. ‘Digital Adopter’ with a mature digital plan, investments and innovations in place (13%)?
  3. ‘Digital Evaluator’ adopting a cautious, gradual approach to embracing digital transformation (35%)?
  4. ‘Digital Follower’ with very few digital investments already in place, tentatively starting to plan for the future (37%)?
  5. ‘Digital Laggard’ with no digital plan, limited initiatives and investments in place (11%)?

From Arpal Gulf’s perspective, we are already seeing the early signs of a tidal wave of digital change sweeping the commercial cleaning industry in the Middle East and across the range of sectors we supply – hospitality, healthcare, facilities management and others.

A convergence of technology forces is threatening to disrupt existing value chains, business models and industry structures. These include social media, enterprise social, the cloud, big data and predictive analytics, Internet of Things (IoT), artificial intelligence, automation, additive manufacturing (3D printing), wearables, autonomous vehicles, drones, the Blockchain, market entry of new disruptive digital start-ups together with the rapid emergence of a new generation of constantly connected customers and constantly connected employees (Gen C).

Over recent months, Arpal Gulf have been studying these trends in some detail. We will publish our observations in future blog posts.

You can read more about the Dell study here.

The Arpal Group
www.rpadam.co.uk
www.arpalgulf.com

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