Half of businesses fear they could become obsolete in the near future
The emergence of digital technologies and companies could mean the end for many businesses in the UAE, according to new research from Dell Technologies.
An independent survey by Vanson Bourne of 4,000 business leaders across 16 countries and 12 industries, including the UAE, found that 85 per cent of businesses believe digital start-ups will pose a threat to their organisation, either now or in the future.
And almost half (45 per cent) of businesses surveyed fear they may become obsolete in the next three to five years due to competition from digital-born start-ups.
Mohammed Amin, Senior Vice President, Turkey, Eastern Europe, Africa and Middle East at Dell EMC, said: “We’re in the midst of the next industrial revolution that will fundamentally alter the way we live, work and relate to one another.
“This shift will transform the way every business in every industry operates.
“We are already witnessing a transformation of business priorities as both public and private sector entities across this vast region continue to invest in advanced new technologies to better meet changing customer needs and expectations. In the near future, almost every business will have software development expertise at its core. Many of these companies will be brand new; others – having not written a line of code in 20 years – will have been on a momentous journey.”
Some companies are feeling badly bruised by the pace of change.
More than half (54 per cent) of business leaders have experienced significant disruption in their industries over the past three years as a result of digital technologies and the internet, and 44 per cent of businesses don’t know what their industry will look like in three years’ time.
Some companies have barely started their digital transformation.
Many have taken a piecemeal approach. Only a small minority have almost completed their digital transformation. Only 7 per cent of businesses surveyed are performing critical digital business attributes well.