Consulting alumni helping to drive MENA's blooming tech start-up sector

12 January 2018 Consultancy-me.com

Alumni of consulting firms are playing a key role in the blooming tech start-up scene in the Middle East, with new research finding over one third of start-up founders have a background in management consulting or financial services.

As the tech start-up sector in the Middle East and North Africa (MENA) continues its ascent, raising over $400 million in disclosed venture capital deals announced in the first three quarters of last year (with the 169 deals surpassing total activity for 2016), a study from MENA start-up platform MAGNiTT has revealed consulting industry experience among founders as a major contributing influence.

In a breakdown of the professional and vocational backgrounds of the top 100 start-up founders in the region, the study found that, as might be expected, 41% of the entrepreneurs had graduated with a degree in IT or engineering, and a total of 35% had previous start-up experience in the region with companies such as Yahoo, Maktoob and Dubizzle. An equal number of founders, however, came to the field via a background in management consulting or financial services. 

MENA’s taxi app Careem was launched by former McKinsey consultants

This shouldn’t be surprising. As outlined by Philip Bahoshy, founder of MAGNiTT; “Entrepreneurship has multiple challenges, including growing a business, raising funds and developing a strong team and culture. The data highlights that founders in the region have often come from corporate backgrounds. This indicates that the experience and knowledge provides them with the tools to tackle and overcome such issues. Such individuals are likely to have the cash to bootstrap, experience to deal with the regulatory environment and perseverance to succeed in a nascent ecosystem.”

Careem, Fetcher and Souq.com

Of the $404 million in venture capital raised for the first nine months of last year, a rather hefty $150 million chunk was claimed by Careem – the Dubai-based ride-hailing platform which is outperforming Uber across the region and has now been valued at over $1 billion to earn itself unicorn status, or, as Careem co-founder Mudassir Sheikha has joked, ‘unicamel’.

Sheikha, and fellow co-founder Magnus Olsson, met as colleagues while working together at global strategy consulting giants McKinsey & Company. Prior to launching Careem in 2012, Sheika had been with the consulting firm for four years as an Associate Partner, where he advised on strategy and business-building. Olsson, meanwhile, served with McKinsey for six years, latterly in the capacity of Engagement Manager, guiding global clients from his UAE base on strategy, growth and business-building in the tech and IT/Telecom sectors.

Across town in Dubai (which plays host to 50% of the region’s start-ups, although only 1% of founders are UAE nationals – with 38% originally from Lebanon and Jordan) is Fetchr, known as the ‘next desert unicorn’. Like Careem, Fetcher deals in transport logistics, in this instance delivering packages rather than people to serve its e-commerce base. Its founder, Idriss Al Rifai, is an alumni of global management consulting firm The Boston Consulting Group (BCG). Born in Iraq and educated in Paris, Al Rifai returned to the Middle East to serve in BCG’s Dubai office, where from 2010 to 2012, prior to Fetchr’s 2013 launch, he worked for the firm across multiple industries throughout the GCC and Europe with a focus on strategy and people advantage. 

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And then there’s the online retailer Souq.com, the region’s first unicorn according to an early valuation, but which was ultimately acquired by Amazon for a cool $580 million. Some of its other figures are equally impressive; 1.5 million visits per day, 70,000 merchants featured on the platform, and a team of 3000 employees. Leading them are Souq’s CEO and co-founder Ronaldo Mouchawar, a former technical and systems consultant for Electronic Data Systems (EDS), along with fellow co-founders Samir Toukan and Hussam Khoury, who had both gained experience in Amman as technology consultants with Anderson Consulting, which would later become Accenture.

Toukan and Khoury would in 1994 go on to establish Business Optimisation Consultants (BOC), set up as the first consulting firm in Syria to specialise in internet and intranet technologies, before, with just $30,000 in capital, launching Arabic web portal Maktoob, which was later picked up by Yahoo and of which Souq was spun out of. And the rest, as they say, is history.

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EY launches advanced tool to assess trustworthiness of AI technology

12 April 2019 Consultancy-me.com

Global professional services firm Ernst & Young has announced the release of an advanced analytical tool to assess the trustworthiness of artificial intelligence.

Enabled by Microsoft Azure, the EY Trusted AI platform released by the global professional services firm Ernst & Young produces a technical score of an artificial intelligence system by leveraging advanced analytics to evaluate its technical design, measuring risk drivers including its “objective, underlying technologies, technical operating environment and level of autonomy compared with human oversight.”

Aimed at helping to resolve the issue of trust in technology, which the firm contends is the biggest barrier to wider AI adoption, the new tool’s risk scoring model is based on the ‘EY Trusted AI conceptual framework’ launched last year, which speaks to embedding trust mechanisms in an AI system at the earliest stages around the core pillars of ethics, social responsibility, accountability and explainability, and reliability.

“Trust must be a front-line consideration, rather than a box to check after an AI system goes live,” said Keith Strier, EY’s Global Advisory Leader for Artificial Intelligence. “Unlike traditional software, which can be fixed, tested and patched, if a neural network is trained on biased data, it may be impossible to fix, and the entire investment could be lost.”AI system overviewUsers of the new solution such as AI developers, executive sponsors, and risk professionals will be able to garner deeper insights into a given AI system to better identify and mitigate risks unique to artificial intelligence technology, with the platform score produced by the tool subject to a complex multiplier based on the impact on users – taking into account potential unintended consequences such as social and ethical implications.

According to the firm, it’s the first solution designed to help enterprises evaluate, monitor and quantify the impact and trustworthiness of AI, while an evaluation of governance and control maturity further serves to reduce residual risks and allow greater planning – helping to safeguard “products, brands, relationships and reputations” in the contemporary risk environment.

“If AI is to reach its full potential, we need a more granular view – the ability to predict conditions that amplify risks and then target mitigation strategies for risks that may undermine trust, while still considering traditional system risks such as reliability, performance and security,” said EY Global Trusted Artificial Intelligence Advisory Leader Cathy Cobey.

Offered as a standalone or managed service – which will be regularly updated with new AI risk metrics, measurement techniques and monitoring tools – the new solution will be available to clients globally this year, with further features including a guided interactive, web-based interface and a function to drill down for additional detail, as well as the ability to perform dynamic risk forecasting on when an AI component changes – such as an agent’s functional capabilities or level of autonomy.