Digital technology has transformed business by rapidly eroding any and all barriers – physical, institutional or temporal – between customers and the satisfaction of their needs and desires.
By now, nearly all organisations are aware that they must either transform or risk being replaced by disruptive competitors. But the prospect of making sweeping changes paralyses many firms.
Specifically, two questions keep popping up in our sessions with executives: what are the guiding principles for successful digital transformation?; and where should we begin?
Regarding the first question: true digital transformation consists of an organisation leveraging technology across platforms and functions to radically and qualitatively improve the customer experience at the most important touchpoints. Organisations have to create value for customers before they can create value for themselves. To make this work, organisations need to have the right enablers in place (culture and leadership, IT-infrastructure, processes, for example).
And that is where the second question – where to start – comes in. The first step is an objective assessment of “digital readiness”, or where you currently stand as a digital organisation. Some companies are digital-savvy already; others are relative beginners. It makes no sense to adopt an advanced digital solution (Big Data, artificial intelligence, and so forth for instance.) without the infrastructure and top-level competencies to support it. When it comes to digital, the only thing worse than standing still is running in the wrong direction.
A brisk, purposeful walking pace is more effective than a desperate sprint. Just ask Silicon Valley. Software engineers innovate in stages, not in giant leaps. Instead of tackling several ambitious missions at once, they take a series of small steps, learn and then advance again. Their iterative processes – punctuated by periods of assiduous feedback-gathering – are responsible for products and platforms that have reshaped our world with surprising speed. They also understand that innovation is not one-and-done. Evolutions continue with each new round of feedback, product upgrade, or other input.
What would this sort of iterative, cyclical evolution look like for non-tech firms? We see four basic initiatives setting the stage for digital transformation:
1. Be clear on the mission.
It can help to look back in order to look forward. For example, the French insurance company MAIF has maintained its mutual insurance business model – founded on the core principle of solidarity – since its inception in 1934. It has recently become a digital transformation pioneer of sorts, in its own operations and by backing digital start-ups. Notably, in 2013 MAIF officially commenced a transformational period by convening a series of strategy sessions on the evolution of society. This was the foundation for a robust digital strategy that is linked to the business strategy. Yet MAIF’s digital endeavours – such as creating a MOOC and an app designed to help users take ownership of their digital data – are often less about growing the insurance business than about updating the notion of “solidarity” and mutual ownership to a contemporary context. MAIF’s trend-spotting team reviews the latest developments in the sharing economy to generate new business ideas.
If your business has a long history like MAIF, it might be fruitful to ponder what projects your organisation’s founder(s) would pursue, if they were just starting out today.
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2. Understand your customer journey to identify low-hanging fruit.
Imagine a broken floorboard in front of a shop’s counter. If a few customers badly stumbled and left their baskets behind in anger, it would be fixed forthwith. Digitalisation means a more complex and multiple customer journey, with many broken floorboards. Fixing the pain points is the most impactful way to shift customer perceptions.
The customer experience lies at the intersection of media (how and where), message (what it says) and mechanism (what it does). You can create outstanding experiences only by leveraging all three at the same time. And because so many digital experiences are rendered by software, the mechanism is often the key variable. Organisations often fail to understand their multiple customer journeys. But only when you have a clear understanding are you able to enrich them by leveraging digital trends.
And of course, the enablers discussed above – agile leadership, mission, vision, IT, and so on – are essential to the process of identifying “broken floorboards”.
Consider how your travel experience would be changed if, for example, a room key were pushed to your mobile phone before arriving at the hotel, so you could bypass the check-in desk. You might even see pictures or videos of your room while in the taxi, on the way to the hotel. Changes in this vein raise the experience of a brand – and the overall brand perception – to a different level.
3. Look for knowledge
Digital tools and data can profitably interact in three ways.
First, digital tools offer new ways to exploit the data that is already available. Some make business intelligence more granular and more accessible through user-friendly interfaces and powerful visualisation features. Others can streamline decision-making, such as Rolls-Royce’s service that computes optimal fuel levels for airlines, or the start-up Tinyclues, which predicts who is likely to be in need of a new product by identifying customers who have purchased similar products in the past.
Second, data that used to require human attention can increasingly be analysed by AI (artificial intelligence). For example, sentiment analysis software performs automatic and instantaneous customer service triage across reams of online comments, as well as statistical breakdowns and forecasting. AI is relevant when the rules are too complex to be pinned down, and when there are large sets of data to prime the software.
Third, digital makes it quicker and cheaper to produce new data. “C’est qui le patron” is a French venture that uses online surveys to build the specifications for food products. Highly actionable customer feedback removes a good deal of trial-and-error from managing the cost-quality trade off, enabling more agile production and happier customers.
4. Look for solutions
Digital tools can also improve processes, again in three main ways.
First, they improve convenience, e.g. through speed, 24/7 availability or personalisation. MAIF allows people to turn their auto insurance policy on and off with their mobile phone, so that they pay for coverage only when they drive. Amazon’s experiments with automatic purchasing promise to make checkout lanes at supermarkets unnecessary.
Second, by pooling data, digital tools deliver value at a fraction of the cost. For example, helping users to avoid traffic jams in real time (Waze) or estimate the worth of their flat (MeilleursAgents).
Third, digital technology enhances experience, for instance what's called the haptic feedback that brings video games to life with vibrations and movement.
Often, these three dimensions can combine to form an even higher-order solution. An example is vertigo treatments delivered via virtual reality for a more enjoyable and far cheaper cure.
These four initiatives are best performed in an agile, iterative style with constant testing and tweaks, as opposed to the sequential “waterfall” method. Companies should always be looking for “broken floorboards”, and using data and digitally optimised solutions to repair them.
Most importantly, companies should adopt a more flexible approach to their core mission and value proposition. You may learn that your relationship with your customers is not what you thought it was, or that the market has a different set of demands for your firm than in the past.
If your firm’s digital transformation has been successful, you will be able to receive and respond to changing signals.
Joerg Niessing is an Affiliate Professor of Marketing at INSEAD and a Programme Director of Leading Digital Marketing Strategy, one of INSEAD’s Executive Education programmes.
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Specs
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Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Day 1 results:
Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)
Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)
more from Janine di Giovanni
Surianah's top five jazz artists
Billie Holliday: for the burn and also the way she told stories.
Thelonius Monk: for his earnestness.
Duke Ellington: for his edge and spirituality.
Louis Armstrong: his legacy is undeniable. He is considered as one of the most revolutionary and influential musicians.
Terence Blanchard: very political - a lot of jazz musicians are making protest music right now.
Engine: 80 kWh four-wheel-drive
Transmission: eight-speed automatic
Power: 402bhp
Torque: 760Nm
Price: From Dh280,000
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
FROM%20THE%20ASHES
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
SUCCESSION%20SEASON%204%20EPISODE%201
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The story in numbers
18
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Torbal Rayeh Wa Jayeh
Starring: Ali El Ghoureir, Khalil El Roumeithy, Mostafa Abo Seria
Stars: 3
Superliminal%20
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Company Profile
Founders: Tamara Hachem and Yazid Erman
Based: Dubai
Launched: September 2019
Sector: health technology
Stage: seed
Investors: Oman Technology Fund, angel investor and grants from Sharjah's Sheraa and Ma'an Abu Dhabi
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
RedCrow Intelligence Company Profile
Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
Based: Ramallah, Palestine
Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
Top 10 in the F1 drivers' standings
1. Sebastian Vettel, Ferrari 202 points
2. Lewis Hamilton, Mercedes-GP 188
3. Valtteri Bottas, Mercedes-GP 169
4. Daniel Ricciardo, Red Bull Racing 117
5. Kimi Raikkonen, Ferrari 116
6. Max Verstappen, Red Bull Racing 67
7. Sergio Perez, Force India 56
8. Esteban Ocon, Force India 45
9. Carlos Sainz Jr, Toro Rosso 35
10. Nico Hulkenberg, Renault 26
Mohammed bin Zayed Majlis
COMPANY%20PROFILE
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