Middle East leads the way in in digital transformation maturity

27 November 2023 Consultancy-me.com 4 min. read
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Middle East companies are global leaders in digital transformation, with an established culture for nurturing digital innovation and a steadily growing fintech sector. That is according to a report from consulting firm Monstarlab and researchers at FT Longitude, which gave the Middle East a top score for digital transformation.

The digital transformation score takes various factors into consideration, such as products, strategy, organization, and of course, technology. The report identified the top performers as among the top 21% of business, with the so-called ‘procrastinators’ – or those that are falling behind in digital – as the bottom 17%.

The Middle East was given a score of 7.7, the highest of all regions, and just slightly higher than the United States, which was given a score of 7.48. The overall index score for all companies analyzed is 6.61.

To what extent have yuor digital transformation efforts to date enabled you to achieve any of the following

“Defining the customer or business outcome you want is the most important step at the start of any digital transformation process. It makes you question, ‘Why are we doing things in a certain way?’ Then you reverse-engineer the process from the outcome you want to achieve,” said Mark Jones, CEO of International markets at Monstarlab.

Based on a survey of over 800 business leaders, the report found that the overwhelming majority of the top leaders in digital transformation reported that their digital advantage gave them the upper hand in areas like tracking their organization’s impact in the environmental and societal realms, improving diversity, and reducing their carbon footprint. The procrastinators could not attest to these positive developments at nearly the same rates.

The top leaders in digital transformation embody a mindset that does not just focus on technology itself. Monstarlab notes that the companies that most successfully leverage digital transformation to get ahead put their focus mostly on customers. The main winning strategy is to use newly adopted digital means to markedly improve customer experiences and to better address customer needs.

That, precisely, is where more work can be done by most organizations. The report shows that around half of the top digital leaders were able to achieve a seamless customer experience, but only 44% have fully personalized their products and services. Many companies reported still facing obstacles in successfully providing self-service capabilities and automating customer-facing processes.

“If you’re a traditional brick-and-mortar business with a limited digital presence and you suddenly promise 24/7 digital access, you’ve got to realize that customer expectations are going to increase tenfold,” said Bill Genoese, an executive leader surveyed in the report.

Which of the following statements are true of your organization?

Building a digital strategy

There was near unanimous agreement with a number of statements from the top leaders in regards to having a clearly defined digital strategy, assigning adequate budget, and having a clear idea of the value that digital strategies contribute. For procrastinators, these points were not nearly as clear.

Nearly all top digital leaders are on the same page on having an integrated approach to digital transformation and having teams that work collaboratively across all areas of digital transformation, among other points.

“As organizations navigate the complex landscape of digital transformation, it becomes clear that success hinges on a holistic approach that integrates technology, people, and strategy,” said the authors of the report.

Jones commented: “Our exploration of the DNA of digital transformation pioneers has highlighted the critical importance of defining clear goals, understanding the current landscape, fostering a culture of participation, and embracing flexibility and innovation. By following these key steps and learning from the experiences of industry leaders, organizations can position themselves at the forefront of the digital revolution.”

According to a study by Boston Consulting Group, only 30% of digital transformations worldwide are actually deemed successful.