It is confirmed here in The Brand Berries.comOPINIONS that Digital Transformation and its Implications on Brands and Consumers in The Middle East by Imad Sarrouf, Head of Publishers at DMS ( Member of the Choueiri Group) is as valid a statement as can be these days.
12 November 2020
The Middle East is showing the promise to scale to unprecedented levels apropos of its digital transformation market is no news. In 2016, along with Africa, this market was valued at USD 1,1 Billion and was estimated to achieve an implausible growth by 2024.
Major powers in the Middle East including UAE, Bahrain, and Saudi Arabia have shown impressive strides towards the goal, with their Governments setting precedents by integrating digital transformation in the public sector. The growth that these regions have achieved in terms of tech-savvy infrastructure has made some of the most powerful heads turn in the Gulf direction.
Clearly, the private sector and the public in themselves have taken the cue and are leaving no stone unturned in embracing the digital revolution. As more and more middle eastern companies pave the way for digital, such transformation is going to shape up the future of brands and consumers in this region.
The State Of Digitization Of Brands and Companies In The Middle East
At large, a territory’s adoption and adaptation to the digital era are measured with reference to the population’s access to smartphones, engagement with social media platforms, and availability of high-end digital technologies. While the Middle East has been making headlines for rising up these ladders, the scope of the implementation of digital transformation goes far beyond just that.
The digital transformation market in the middle east is basically divided into 2 regions; the GCC countries and other Arab countries. According to a survey report by Strategy And, hardly about 7.5% of the brands and companies in the GCC region understand the potential of digital transformation as a means to realize efficiencies.
Considering that building a digital strategy for future upscaling is the fundamental step for a company towards transformation, only about 37% of the major brands in the Middle East had teams working on one. The major employable channels across a vast range of sectors for brands include big data and analytics, IoT, Cloud Computing, Cyber physics, and technologies of similar likes. Popular frontrunners leading the race of transformation include Microsoft, Google Inc, SAP, Protiviti, Ixtel, Oracle among others.
Gulf Brands Go Smart: How The Middle East Is Accelerating The Digital Revolution
Closer technical analysis of the major Gulf countries like Saudi Arabia and UAE shows that digital initiatives have taken the front seat among leading brand growth agendas. These agendas have been presenting, and are expected to continuingly present themselves under three major brackets;
Adoption Of Smarter Projects And Initiatives
These comprise the entire smart market — right from smart homes, smart healthcare, smart hospitality, and tourism, to smart transportation, entertainment, business, and shopping. Some of the most successful digital initiatives include health monitoring wristwatches, virtual assistants as tour guides, IoT based interconnected home system, among others. While the scope of AR, VR, and advanced AI is still being explored and systematically implemented, work in progress projects in this area include AR/ VR enabled cars in the mobility segment, and some medical testing procedures in the healthcare sector.
Implementation Of Smarter Payment Gateways
The world is always in the need of a better and safer way to pay, and we have all been a witness to this when people furiously shifted to digital mode of payments as soon as they were introduced. With cryptocurrency in the picture, the only challenge is the lack of exposure and education in this area. However, several middle eastern companies are coming forward to give this option to consumers. In fact, in 2017, Dubai’s residential real estate project, Aston Plaza was the first in the world to allow full payment in the form of bitcoins.
Customization Of Production and Operational Convenience
The way the manufacturing sector has been catching up with digital opportunities is magnanimous. The drastic shift from mass production to customized production is one of the most obvious demonstrations of the same that runs alongside the heavy reliance on light mobile apps. These apps ensure higher accuracy, operational convenience, and shipment tracking; some of the features that have become manufacturing prerequisites in an ideal digital world.
For companies that can afford a drastic change, the digital initiatives in this sector also include transforming the entire ecosystem to be more optimized, increasingly sustainable, and minimally invasive.
In a capsule, the digital transformation scene in the companies of the Middle East is seen tracing three major models — digital business model, digital consumer model, and the digital operations model — of which the consumer model is observed to be spearheading the growth. Let’s now understand how this consumer model is being implemented despite regional limitations including the slowdowns due to the recent pandemic instituted lockdowns.
Digital Transformation Driving Middle Eastern Consumer Experience
Middle eastern companies’ digital strategies are highly driven by keeping consumer experience enhancement at the forefront. This includes micro-target marketing to improve customer engagement and channelizing customer feedback.
Some of the most dynamic and successful initiatives include:
Online to Offline Commerce is replacing traditional retail shopping hard and fast. Retail stores are being improvised to act as mere distribution centers while more and more investments are being concentrated towards online initiatives. The lucrative combination of browsing through hundreds of options on the screen, without having to move an inch, getting discount codes and coupons by shopping online, yet getting the look and feel of shopping by personally trying and collecting as per convenience has proved to be an instant hit in this region.
Chatbots and virtual assistants
This technology has proved to be such a huge success that it has become fairly common to find chatbots on every other website or app we use. What companies in the middle east are also empowering are pharma, healthcare, and hospitality sectors through this technology. You can know the right medicine to take for mild symptoms and problems, you can schedule and monitor your family’s health checkups and reports, and coordinate your entire stay with an expert assistant. These applications have particularly received widespread recognition because of its social-distancing friendly nature.
Middle Eastern Challenges To A Rapid Digital Adaptation
For any company, digital transformation is a major shift, that more than anything else will require capital and man-power investment. The most natural challenges that companies in the middle east are facing is the broad skill gap in the existing organizations, change in operating model to an agile one, and starting off on the right footing to make the transformation a profitable success.
Keeping skill-building, awareness, and education at the core, however, can be a unanimous way out of the hindrances posed by these challenges. As companies find access to greater resources; human and otherwise; proficient in the field, brands will gain more confidence to take the digital leap of faith.
Imad Sarrouf (in feature picture above) is a digital expert with over 15 years of experience in the digital media industry working across a large portfolio of publishers and ad technology platforms in the middle east. In his position, he leads digital innovation and transformation – responsible for the ad tech solutions business and process automation to drive business growth.
UNEarthmag with Assia Tej’s article on E-Waste in the Middle East and North Africa can be summarised as being relevant to all parts of the region. In effect, E-Waste in the MENA region with disparities between parts of it regardless of socio-economic strata could limit perhaps expectancies of theories based on Western countries cannot be copied to the MENA despite that countries are aligning to EU values. Not all values though as per Assia Tej.
While E-Waste has the potential to become a profitable enterprise, it remains under-utilized and marginalized in the Middle East and North Africa.
We buy them, use them, break or replace them, and finally throw them away. This is the cycle of electronic devices, the revolutionary gadgets that made our life easier and the recycling process harder. It is an undeniable fact that nowadays the waste from electronic devices, known as “e-waste,” has reached unparalleled levels and presents increasing new obstacles to recycling.
We buy them, use them, break or replace them, and finally throw them away. This is the cycle of electronic devices, the revolutionary gadgets that made our life easier and the recycling process harder.
The global situation is overtly alarming, and the lack of information or media attention on the subject is only exacerbating the matter. The problem is exceedingly apparent when it comes to sorting. Despite the fact that E-waste is just as environmentally devastating and pollutive as plastic, it is not included in primary recycling systems. As many countries in the MENA region have no centrally established waste-sorting systems, any hope for short-term improvement in their dealing with e-waste seems futile.
“E-waste management in the Arab region is in its startinE phase,” says the Centre of Environment and Development for the Arab region and Europe, a Cairo-based NGO.
In countries where recycling is not yet a habit and where environmental concerns are far behind, the question remains as to how this new type of pollution will be handled by governments?
E-waste as a new profitable business
Recycling stations for electronic devices does not yet exist in the MENA region for the simple reason that it requires expensive and specialised equipment. However, the establishment of such stations would not only create a much-needed breather from increasing pollution, but it would also generate new opportunities for employment. The road to improvement would require significant financial support, which to this date has been absent from any government plans. Any attempts to recycle e-waste manually would present a huge health risk, as it may be submerged in toxic acids.
But what if recycling started to benefit the economy? Many electronic devices, such as computers and phones, contain quantities of precious metal such as gold, silver and platinum, that could be extracted in special stations and be given another life.
Investment in recycling is hindered by the inability of some governments to cover the costs. According to Global Recycling, “cost recovery is partially implemented in Algeria, Egypt, Syria, Jordan, Lebanon (Zahlé only) and the Palestinian Territory; in Morocco, Tunisia, Yemen and Mauritania costs cannot be recovered by the services. In Egypt and in Jordan, cost recovery arrangements are made through the electricity bills.” But what if recycling started to benefit the economy? Many electronic devices, such as computers and phones, contain quantities of precious metal such as gold, silver and platinum, that could be extracted in special stations and be given another life.
Unfortunately, this new type of pollution is largely being disregarded by populations and no further action is taken by citizens to demand and ensure the restriction of e-waste. Meanwhile, old electronics are laying neglected in unsuitable locations, as their potential continues to be overlooked.
In the UK and Europe, companies like Apple offer financial compensation for the return of their old electronics. Discounts up to 500£ have been issued on new products in exchange for the recovery of older models. This initiative encourages people not to dump their old devices and allows companies to benefit from the reuse of worn ones. In the end, this process creates a new kind of business while being careful of environmental matters.
Some initiatives have been undertaken by governments, but there is a still a long road towards the establishment of a more complete recycling infrastructure and legislation. In Morocco, civil society played a significant role in demanding efficient e-waste solutions although overall, in the MENA region, the driving force comes from the private sector and cooperation with national and local governments.
With the assistance of the private sector, governments of various countries, such as Egypt, have addressed the need for recycling and “recycling programs” for end-of-life products, most of which are multinational companies such as Nokia or Dell.
However, national legislation is still very poor regarding e-waste. An important legislative measure is the passage of a law on the recycling of mobile phones in the UAE. Morocco has been looking into embarking on a national e-waste management strategy, although the present legal and recycling infrastructure is not yet adequate for it. Qatar’s telecom operator, Qtel, is in the process of drafting a law on e-waste management, which is supposed to be completed by the end of 2010. Further initiatives have been noted but nothing very determinative has emerged.
There is still a lack of a comprehensive regional e-waste strategy, and much work remains to be done at the national level. The national level requires a more extensive and process-oriented e-waste management policy, strategy. and implementation plan than what is provided by individual initiatives. E-waste recycling is a high-tech industry and will require more investment and management processes than are currently available.
This sector is a den of treasures capable of making a huge change all over the globe so investment is worth the try.
In the end, what is needed is a global mediatization of the phenomenon that is strong enough to push governments to review their policies regarding e-waste. This sector is a den of treasures capable of making a huge change all over the globe so the investment is worth the try.
Unlike traditional devices, the artificial hand can be customised for children and youths, who otherwise require an expensive series of resized models as they grow up.
The company Cure Bionics also has plans to develop a video game-like virtual reality system that helps youngsters learn how to use the artificial hand through physical therapy.
Mohamed Dhaouafi, the 28-year-old founder and CEO of Cure Bionics, designed his first prototype while still an engineering student in his home city Sousse.
“One team member had a cousin who was born without a hand and whose parents couldn’t afford a prosthesis, especially as she was still growing up,” he said.
“So we decided to design a hand.”
Dhaouafi launched his start-up in 2017 from his parents’ home, at a time when many of his classmates chose to move abroad seeking higher salaries and international experience.
“It was like positive revenge,” he told AFP. “I wanted to prove I could do it. I also want to leave a legacy, to change people’s lives.”
Dhaouafi pointed to hurdles in Tunisia, where it can be hard or impossible to order parts via large online sales sites. There is a lack of funding and, he said, “we lack visionaries within the state”.
But by pooling money raised through sponsored competitions and seed investment from a US company, he was able to recruit four young engineers.
They are now fine-tuning designs, writing code and testing the artificial hand.
‘Climb like Spiderman’
The device works with sensors attached to the arm that detect muscle movement, and AI-assisted software that interprets them to transmit instructions to the digits.
The hand itself has a wrist that can turn sideways, a mechanical thumb and fingers that bend at the joints in response to the electronic impulses.
To teach youngsters how to use them, Cure has been working on a virtual-reality headset that “gamifies” the physical therapy process.
“Currently, for rehabilitation, children are asked to pretend to open a jar, for example, with the hand they no longer have,” said Dhaouafi.
“It takes time to succeed in activating the muscles this way. It’s not intuitive, and it’s very boring.”
In Cure’s version, the engineer said: “We get them to climb up buildings like Spiderman, with a game score to motivate them, and the doctor can follow up online from a distance”.
3-D printing meanwhile makes it possible to personalise the prosthesis like a fashion accessory or “a superhero’s outfit”, said Dhaouafi.
Cure hopes to market its first bionic hands within a few months, first in Tunisia and then elsewhere in Africa, where more than three-quarters of people in need have no access to them, according to the World Health Organization.
“The aim is to be accessible financially but also geographically,” said Dhaouafi.
The envisaged price of around $2,000 to $3,000 is substantial, but a fraction of the cost of bionic prostheses currently imported from Europe.
Cure also aims to manufacture as close as possible to the end users, with local technicians measuring the patients and then printing individually fitted devices.
“An imported prosthesis today means weeks or even months of waiting when you buy it, and again with each repair,” the inventor said.
The bionic hand is made of Lego-like parts that can be replaced if damaged or to match a child’s physical growth.
It can also be solar-powered via a photovoltaic charger for use in regions without a reliable electricity supply.
The 3-D printing of rudimentary prostheses started about a decade ago and is becoming standard.
It is not a magic solution because specialised medical know-how is still crucial, said Jerry Evans, who heads Nia Technologies, a Canadian non-commercial organisation that helps African hospitals manufacture 3-D-printed lower limbs.
“3-D printing is still in its early stages,” he said, “but it is a major game changer in the field of prosthetics and orthotics.”
“Developing countries will probably leapfrog to these technologies because the cost is much lower.”
In Manama, 5G and edge: unlocking new possibilities could have been perceived by all elites of the Gulf media as a reassuring means to help reach landscapes of a better future.
With 5G we’ll see an entirely new range of applications enabled by low latency of 5G and the proliferation of edge computing – transforming the art of the possible, said professional services firm Accenture in a new report.
“5G standards have been finalized late last year. We’ll soon start to see a growing number of devices rolling out across the regions. By 2025, it’s estimated that there will be 1.2 billion 5G connections covering 34% of the global population,” said Tejas Rao, Managing Director – Technology Strategy & Advisory, Growth Markets at Accenture in the company’s Business Functions Blog.
From digital to augmented consumer
The evolution of the consumer is one major leap forward. 3G and 4G helped to create the digital consumer, always connected to the internet through their mobile devices. But with 5G we’ll see an entirely new range of applications enabled by the low latency of 5G and the proliferation of edge computing – transforming the art of the possible. Rather than simply experiencing digital through their devices, consumers will have their experience of the world around them enhanced and augmented through real time data and the technologies such as augmented reality/virtual reality (AR/VR) that it enables through edge computing.
The edge cloud forms
The evolution of the network in this context is synonymous with the evolution of the cloud. So rather than what we typically see today in the public cloud, which is services residing in centralized data centers, those cloud services will move to the edge of a mobile network – the ’edge cloud’ – to drive real time cloud computing capabilities. And that development will support a wide range of new use cases across every industry, with network connectivity itself becoming the platform on which others can build new services and solutions.
From capacity and coverage to network as a platform
Accordingly, we are starting to see the strategic intent of maximizing capacity and coverage that informed network build in the 3G/4G world shift. Instead the focus is now on how to unlock 5G to deliver innovative solutions and services.
With networks no longer having to be the same everywhere, they can be built or sliced to support new use cases and opportunities for specific industries. Today’s web platform companies are already exploring this and making investments in order to capitalize on the transformational changes that 5G’s low latency can offer.
Low latency–currency for the 5G world
Ultra-reliable low latency is the new currency of the network world, underpinning new capabilities in many industries that were previously impossible. And these are not in the realm of science fiction. They are becoming possible today, ranging from real-time language translation to remote robotics and from autonomous logistics to AR-enabled industrial maintenance.
As they plan their future networks, operators need to understand how to intelligently direct 5G network investments from just pure coverage and capacity, and towards unlocking new revenue streams and business value. This is a significant departure from previous generations of network deployment. The network has moved from being a pipeline to instead becoming a platform and gateway for solution innovation and real-time connectivity services.
Partnering and collaboration will become more important than ever as operators sit at the center of new ecosystems developed around the ultra-reliable low latency, real time data at scale and responsiveness that the ‘edge cloud’ delivers.
New landscape of opportunity–and challenge
This emerging landscape of mobile edge networks can unlock many new opportunities to create value. These consist of new services to drive revenue and new possibilities for managing network costs. But the new networks also pose some novel challenges to preserving margins.
Today’s cloud world is characterized by the presence of a limited number of mega data centers in remote locations with data travelling from device to cloud and back again in order to execute a computational process or data analysis. Data typically makes the round trip travelling at 50 to 100 milliseconds over today’s 4G mobile networks.
Data travelling over 5G at less than five milliseconds facilitates the edge cloud and the ability to create new services that it empowers. But achieving that requires a proliferation of micro data centers numbering in the tens of thousands. To support edge capabilities, these will need to be deployed closer to the consumers and enterprises that use them and densely installed in urban settings.
They will need to handle the progression from millions to billions of connected devices. And move from remote connectivity to providing ultra-reliable, low-latency capabilities at the edge as data flows accelerate to real-time in order to execute time-sensitive services, from autonomous vehicles to real-time visual analytics.
Deciding where and how to play
As they create these capabilities, operators need to understand where they want to locate the edge and what the operational implications of their choice will be. That means understanding the likely demands of the territories they cover and the use cases for specific industries that are likely to be most relevant.
The one-size-fits-all approach of the 3G/4G world is no longer useful. Instead, operators need to take a more targeted view of where they want to play and the likely returns they can generate from placing much more specific bets than in the past.
Anirban Bagchi Posted on October 21, 2020 in MEConstruction News that Euro Auctions reports rise in lot prices, bidders and online bids at September Dubai sale. What is the meaning of such a movement? Anirban Bagchi explains.
Internet buyers double in number as average lot prices go up 63% while first time bidders grow exponentially
Euro Auctions has reported a year-on-year increase of 63% in average lot prices at its September sale in Dubai while first-time bidder registrations rose by nearly 300%, with 20% of the new bidders placing successful winning bids.
The global machinery auctioneers said the results prove that there “is an appetite for good used equipment in the region” and that Euro Auctions is “fast becoming the auction of choice for buyers and sellers in the Middle East for the disposal of stock to a true international audience”.
According to Euro Auctions the Dubai sale on September 28th attracted increased number of bidders, doubling the number of internet buyers, and also increasing the number of UAE vendors. The one-day sale resulted in 33% of all bids being transacted online proving the success of the marketing reach for this sale.
Bidders for the sale came from 65 countries, of which, 21 countries successfully bought on the day. Online bids came from 19 countries around the globe, with the top bidding countries being the UAE, Saudi Arabia, the Netherlands, the UK and Africa countries as a whole.
Derek Bleakly, general manager of Euro Auctions, Dubai, said: “Euro Auctions has been working hard with consignors across the Middle East over the last three years to build awareness and trust, demonstrating that our auctions are the place to bring good equipment, which in the Gulf, is in high demand. Plant and machinery auctions are no longer seen as the place to dump old, poor quality, low-spec machinery. Quite the reverse in fact, with many rental companies sending entire fleets of good, well-maintained two- to three-year-old machines to auction, making ideal purchases for dealers, contractors, and civil engineering companies.
“In last 12 months since mid-2019, there has been a marked uptake in the Middle East market for good machinery and equipment. Contractors and rental companies in the Middle East have been buying relatively low levels of new machines for the last 4-5 years and, as a result, stocks of plant are aging. Not buying through dealerships, buyers have turned to auctions for good late-year machines as well as new unused stock.”
Euro Auctions added that now with Covid-19 affecting the global economy, the used equipment market could well boom in the next 12 months. The auctioneer projected that with major OEMs pausing production globally, as happened in 2008, it is likely that when demand increases, OEMs will be unable to accelerate production, fuelling a demand for good, late, low-hours equipment. Euro Auctions has several other sale events around the world for the remainder of this year, including another in Dubai on December 14th.
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