National Transformation in the Middle East A Digital Journey Abstract
Digital Transformation is playing a accessibility of resources for citizens, such fundamental role in shaping the way as e-learning content, event information, governments across the world are open government data and more. adapting to new opportunities and Governments are integrating services in challenges. Competition, cost and budget the form of mobile apps and one-stop- pressures, shifting citizen demands, shop e-service centers to create seamless among other changes are sparking customer journeys that encourage governments all around the world to paperless transactions and e-payment implement innovative ICT capabilities options for services. The digitalization to drive their transformation to digital. of content such as medical records, Digitally mature countries like Estonia, education curriculums and more is South Korea and Singapore have realized allowing for better operational efficiencies the value of Digital Transformation and across organizations. Finally, the rise of have successfully progressed to deliver autonomous cars is expected to ensure delightful customer outcomes. the connectivity of people and networks across cities. GCC countries are making the move to build on international best practice and The successful outcomes of these leverage opportunities to transform into programs will be driven by the rapid Digital Government models. The National adoption and well-planned execution of Transformation in the Middle East: A digital programs. They will be supported Digital Journey, identifies six high impact by technologies like artificial intelligence, themes relevant to the Public Sector in the robotics, cloud, Internet of Things, and UAE, KSA, Qatar and Kuwait: Smart Cities, virtual reality, and governed by digital Smart Tourism, Next Generation Care, program offices encompassing the cross Classroom of the Future, Smart functional impacts. These transformations Government and Future of Mobility. are long-term and each stage of maturity Across these themes, government is driven by specific steps to be strategies are emphasizing the role of undertaken across the digital business, digital in order to accelerate economic digital operations and digital customer diversification, promote sustainability and horizons. Building maturity across these enhance citizen satisfaction levels by domains is the way forward for the Public implementing exponential technologies. Sector to deliver sustainable public service growth aligned to the 4th industrial Smart solutions have emerged as a result revolution. of these efforts to incorporate digital into initiatives across each key digital theme. For example, national platforms have been successfully developed as a means of sharing information and enhancing
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Content
Forewords 01
1. Digital Transformation in the Public Sector 04
2. Digital at the heart of GCC transformation 14
3. The GCC on the Digital Transformation journey 60
4. Implementing Digital Transformation 68
5. Public Service in its broader ecosystem 76
6. Implications for Government and Industry 82
Appendix 83
Glossary 87
Endnotes 89 Deloitte | National Transformation in the Middle East | A Digital Journey
Foreword: Deloitte
Over the past decade, countries across Deloitte has developed in collaboration the world and in the Middle East have with Huawei to examine the role of Digital witnessed some of the most seismic shifts Transformation and Digital Government in in their economies, societies and the Middle East. environment. The financial crises restricted access to capital for billions, The paper analyses global and regional rapid population and urbanization growth Digital Transformation trends in the Public has led to the birth of mega-cities and Sector, and based on this, identifies six more extreme weather conditions have key high impact themes that are at the scarcened essential power and water top of policymaker agendas. Across more than ever before. these themes, the study explores how governments in the Middle East are At the same time, we have also seen applying Digital Transformation today, some of the greatest technological where they are on their Digital breakthroughs and advances ever made. Transformation journey in relation to Artificial intelligence, flying taxis and the international best practices, uncovers Internet of Things, once figments of our key challenges they need to overcome Emmanuel Durou imagination, have now become a practical as well as the opportunities they need to Partner, Head of Middle East reality, unlocking new answers to key capitalize on going forward. To support TMT Industry challenges, and new possibilities. Such this journey, the paper recommends a Deloitte & Touche (M.E.) advanced technologies have completely Digital Transformation pathway regional transformed the way we as citizens governments can take to help them interact, learn, move, live, work and earn. succeed towards achieving their national Entire industries from media, retail, and transformation goals. tourism to finance have become disrupted, and the Public Sector now is We are pleased and honoured to have also at the helm of a major Digital worked alongside Huawei on this new Transformation. study, a leading ICT player in the region and we thank them for their vision, Countries need to be at the forefront of expertise and support. We also express these changes to address the global and our gratitude to the government entities national challenges they face. Recognizing across the region that provided their this, governments the world-over are now invaluable insights in support of this harnessing new exponential technologies paper. and embarking on their own Digital Transformation journeys, some more While the study is based on Deloitte and advanced than others. Huawei research, international Digital Government surveys, interviews with To this end, governments across the regional governments and subject matter Middle East have launched ambitious experts, we do not however presume ours national transformation plans with a is the last word on any given topic: our major focus on enabling ICT and Digital intent is to catalyze discussions and Transformation technologies, to address positive developments in the area in the their own economic, social and best interest of regional governments, environmental challenges. As such, the businesses and civil society alike. new era of national transformation, is a journey that we believe is truly digital. From this perspective, we welcome you to “National Transformation in the Middle East – A Digital Journey”, a whitepaper Emmanuel Durou
01 Deloitte | National Transformation in the Middle East | A Digital Journey
Foreword: Huawei
Digital is having a profound impact across Digital Transformation, harnessing and the world’s economies, societies and integrating digital technologies to develop future sustainability. The rapid smarter cities and become smarter proliferation and adoption across the nations, a key outcome of their national world of the internet, including visions. broadband, mobile and digital technologies such as social media, Huawei is focusing on helping the Middle smartphone devices, big data, cloud and East region accelerate its National ICT the Internet of Things has given rise to a transformation plans from vision to reality new era of hyper connectivity: the growing through our broad ICT platform interconnectedness of people, capabilities of Cloud, Pipe and Device plus organizations, and machines. a rich ecosystem of global and regional solution partners. This increasing digitalization is enabling the growth of a new Digital Economy, the To help key stakeholders understand how economic activity that results from billions Digital Transformation can enable success of everyday online connections among in achieving national goals and the Safder Nazir people, businesses, devices, data and potential impact it can have, we partnered Vice President, Digital Industries, processes. It has completely transformed with Deloitte in the development of this Strategy & Marketing our urban transportation, social and whitepaper, leveraging on their expertise Huawei Technologies - Middle East government interactions, our learning and in Digital Transformation, Digital health experiences, the work we do and Government and experience working with the way we live. Mobile is now our first Middle East governments on their national screen, digital is now the primary channel, transformation journeys. We thank data is the new currency and automation Deloitte for their invaluable thought is our key to unlocking new efficiencies leadership and the regional government and productivity. entities that have provided their key insights in support of this paper. With the disruption of every major economic sector ranging from e- We invite you to explore with us the commerce in retail, on-demand “National Transformation in the Middle entertainment, travel and hospitality to East: A Digital Journey”, a paper which the advent of FinTech in banking and assesses the trends and benefits of Digital insurance, digital technologies also Transformation for the Public Sector and represent an unprecedented opportunity the role of New ICT as a key enabler for for the Public Sector to reinvent itself. As Digital Transformation. Middle Eastern such, governments are now digitally governments are on their Digital transforming the way they interact with Transformation journeys, learning from citizens, deliver public services and tackle successful digital use cases can help their greatest national challenges. them to accelerate the realization of their national goals to become more Middle East governments, in response to competitive, world leading smart nations. oil price pressures, rapid population growth, urbanization and rising citizen demands have also embarked on massive national transformation plans of their own. All of these plans are explicit about Safder Nazir
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1. Digital Transformation in the Public Sector Deloitte | National Transformation in the Middle East | A Digital Journey
1. Digital Transformation in the Public Sector
The future of governments – “Gov2020” Demographic changes, new societal Demographic changes, new societal behaviors and technological behaviours and technological breakthroughs are amongst the key drivers transforming the Public Sector. By breakthroughs are amongst the key 2020, 60 percent of the global population will be living in an urban area. New drivers transforming the Public Sector. innovative transport modes will be deployed, such as autonomous vehicles Governments will need to be at the and drones flying over cities 1. Governments will transform from a state forefront of these changes. of reactivity to proactivity in a variety of aspects ranging from policy decisions to emergency responses. Two billion people The role of digital and ICT in Public experience. For example, by using mobile without financial services will gradually Sector transformation applications, individuals can create enter the banking system, and education Whilst the drivers of Public Sector “service orders” to repair public will become more inclusive pushing for no disruption are manifold, for the purpose infrastructure. child to be left behind in a world where of this paper, it was chosen to place a illiteracy costs the global economy US$1.2 particular emphasis on digital In the future, these trends will increase trillion per year 2. technologies and their role in government exponentially as governments will be able transformation. Digital technologies to allocate funds in more efficient ways. Governments will need to be at the represent an unprecedented opportunity Using Internet of Things (IoT) to collect forefront of these changes. As part of a for the Public Sector to reinvent itself, and aggregate data through connected recent global report, “Gov2020: A Journey especially considering the convergence devices with sensors can collate mass into the Future of Government” 3, Deloitte of four prominent technologies: social amounts of information and predict the identified 204 Public Sector trends applications, mobile technologies, big data occurrence of events. Predictive modeling including 37 cross-sector and 167 specific analytics and cloud infrastructure. These will become more prevalent and data will sectorial trends which will shape the technologies represent a combined global be processed into valuable information to future of the Public Sector in the coming market of approximately US$1.2 trillion in increase the accuracy of Public Sector 4 years. Each of these trends will have the 2017 . Furthermore, this market will decisions. Smart services based on potential to reshape Public Sector witness a double digit compound annual remote devices connected to a mobile operating models with the aim to improve growth rate (CAGR) over the next few network will enable governments to service delivery experience, foster the years. enhance personal safety, sustainability, economy, enhance citizen well-being and health, wellness and sanitation. Finally, become more cost effective. Many of the Governments can now use cloud based with regard to Smart Cities, the world is on analyses and outcomes contained within environments to enable new public- the brink of a new wave of disruption the report have been used as a stepping private partnerships for the provision of considering that opportunities in this stone for this paper where future public services. Already, many government domain are still largely unexplored and government shifts will be analyzed services are being made available through have the potential to transform the way through the lens of Digital Transformation. mobile, enhancing service delivery cities operate.
05 Deloitte | National Transformation in the Middle East | A Digital Journey
Figure 1: Selected impact on ICT economies Digital technologies Economy Society Sustainability represent an unprecedented opportunity for the Public Sector to reinvent itself. +1.0% -1.0% -10% 26bn The convergence of four Growth in GDP, Lower unemployment Death toll from road Tons of net avoided resulting from rate recorded by cities accidents by using CO emissions from 2 prominent technologies: every 20 percent that invest in smart grid usage based insurance 2016 to 2025 by increase in technology and coupled with assisted launching digital social applications, ICT investment infrastructure driving technologies initiatives mobile technologies, big 5 Source: World Economic Forum data analytics and cloud
Digital maturity in the Public Sector Figure 2: Biggest drivers of Digital infrastructure represent a Transformation As pointed out earlier, Public Sector combined global market entities across the world are embarking on Question: What is the biggest driver of Digital a Digital Transformation journey to help Transformation? of approximately US$1.2 overcome the many critical challenges 5% trillion in 2017. they face. According to interviews 6% conducted with over 1,200 government 38% entities worldwide, Deloitte identified the 14% main drivers of Digital Transformation in the Public Sector shown in the figure on the right 6.
According to interviews conducted with over 1,200 government entities worldwide, 37% Deloitte identified 3 main Cost and budget Customer/citizen drivers of Digital pressures demands Federal government Others Transformation in the directives Public Sector: cost and Digital maturity of other agencies budget pressures, Source: Deloitte Global Digital Government customer/citizen Transformation Survey, “The Journey to Government’s Digital Transformation 2015”, demands and federal Deloitte University Press (DUP) government directives.
06 Deloitte | National Transformation in the Middle East | A Digital Journey
Many industries have experienced the Figure 3: Public Sector benefits from the lessons learnt in “Industry 4.0” impact of digital disruption before the
Public Sector. This advent of digital 50 technology is revamping the way of doing Lessons learnt business across industries, at different 45 Long fuse, big bang sectors paces and impacts. A comparison across ICT & m edia Retail industries based on digital impact and 40 trade Finance timing is presented in figure 3 7. Education Transport & 35 post )
s Professional services
s Health
Figure 3 outlines the main industry groups e n i s 30 that have been impacted at different u Agriculture Recruitment & b Arts and n
i cleaning times and different levels of disruption by
e recreation
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ICT and media for instance. The 10 Accommodation & Wholesale trade food services opportunity for the Public Sector is to Mining learn from the experiences of the “short 5 Manufacturing fuse, big bang industries” to best adapt to digital. 0
From a Public Sector 0 1 2 3 4 5 Timing (years) perspective, the relative Public Sector related industries absence of competition has delayed the With globalization, countries are In developed countries, Digital increasingly competing against each other Transformation serves primarily as a way decision to undergo for talent, foreign investment and to reduce budget pressure while comprehensive development. Ensuring that their digital enhancing customer experience. Certain infrastructure is in place has become a emerging markets (i.e. South Korea, UAE, transformation exercises major competitveness differentiator as Singapore, Estonia) have successfully been reflected in a number of international able to achieve great progress in their up until the “status-quo” competitiveness indices. This, in turn, has digital initiatives. One of the factors that became unsustainable. pushed countries both regionally and has helped these emerging countries to internationally to put in place national move quickly in their transformation is the However, in this day and strategies to enhance smart government absence of legacy technological age, transitioning to performance. infrastructure as compared to more developed countries. digital is no longer optional.
07 Deloitte | National Transformation in the Middle East | A Digital Journey
How to assess the digital maturity Figure 4: Deloitte’s Digital Maturity Assessment Framework of a sector As indicated above, while technology is an intigral part of a Digital Transformation, it requires a 360 degree operating model change. Digital Transformation is primarily about strategy supported by technology. STRATEGY It requires a focus on developing needed capabilities such as skills, culture and leadership.
As shown in the model on the right, digital OPERATIONS CITIZENS maturity should be viewed through the lens of five key pillars which form the core components of Deloitte’s Digital Maturity Assessment Framework.
These five pillars can support Public CULTURE, PEOPLE, TECHNOLOGY Sector entities in order to answer the ORGANIZATION following questions and assess their digital maturity: • Do you have the right vision and strategy for digital, and the leadership, communications and focus required to • Do you have the right technologies and support this vision? infrastructure as well as the ability to • Do you have the right people, talent, develop, manage and deliver? skills and knowledge to support your • Do you have the right approach to vision, products, and services? understanding and communicating with • Do you have the right processes, your customers to succeed in a digital controls and digital technologies to environment? support the operations of the organization? Digital Transformation is primarily about strategy supported by technology. It requires a focus on developing needed capabilities such as skills, culture and leadership.
08 Deloitte | National Transformation in the Middle East | A Digital Journey
Global challenges in the digitalization Budget and capability constraints remain unwilling to transition to newer of the Public Sector Budget constraints restrict organizations digital channels. Despite the pressure to change, Public from investing in the right resources to Sector organizations are facing challenges transform their operating models (i.e. Privacy and security in embarking on this journey. As per investing in new technology systems, Governments regularly deal with sensitive Deloitte’s Global Digital Government hiring new talent etc). In this context, data related to personal information such Transformation Survey 8, many many Public Sector entities struggle to as passport numbers, driver licenses and organizations recognize that they are find the necessary budget to fund Digital other classified information. neither ready to respond to digital trends Transformation initiatives, even though it nor satisfied with the progress on the can lead to substantial cost savings. New avenues that are offered by initiatives they are undertaking. According technologies such as cloud computing, to government entities, the main As per Deloitte’s Global Digital analytics (i.e. big data and open data) in challenges and barriers that are impeding Government Survey, culture, workforce terms of improvements are the implementation of these solutions and skills and leadership are areas that remain counterbalanced by greater risks programs can be categorized into the a challenge for Public Sector regarding data protection and following: organizations. As such, internal capabilities confidentiality. This can be seen by the are a constraint that hinders the journey number of security breach cases that have Policy bottlenecks and in transitioning to full digital maturity. made the news in the last few years. bureaucratic inertia Embarking on this journey requires hiring Notwithstanding, with considerable new talent and skills that were previously improvements in terms of security and Budget and capability constraints not available in-house and that are not privacy protection, many governments always readily accessible in the market. remain reluctant to further open up their Moreover, instilling a culture that is more data. Digital exclusion and divide innovation driven as opposed to operational is a challenge that many Public Transitioning government staff Privacy and security Sector organizations have not yet to new roles resolved. With regards to government service digitization, the primary stakeholders Transitioning government staff to new roles Finally, the digital understanding and affected are employees used to delivering commitment of leadership are key in manual tasks, but later require new types developing a foundation that will drive of skills. Too often, governments neglect to Policy bottlenecks and strategy and its implementation. Despite offer bespoke trainings to employees who bureaucratic inertia this fact, too often, entities face situations have transititioned to new roles and are Public Sector entities need to keep up to where leadership is not strong enough to left without the required capabilities to date with the rapidly evolving digital drive these changes. properly manage the new position. technologies and innovations, yet these developments often involve drastic Digital exclusion and divide Value at stake changes to their operating models. Given Digital literacy is the awareness and ability Digitizing government entities and their the complexitiy of such changes, some of people to use digital tools in their daily services can bring about major entities prefer to adopt a “status quo” lives. Overall, digital accessibility has improvements for governments, citizens approach and delay the decision making improved dramatically over recent years and businesses alike, and in turn, process. thanks to new, more tech-savvy contribute to the competitiveness of a generations and enhanced ICT content in nation. According to Deloitte’s National ICT Additionally, legislative and regulatory school and university curriculums. Index which measures a variety of ICT bottlenecks generate longer periods of Nevertheless, digital exclusion remains an readiness factors (i.e. telecommunications time and resources required before issue with a persistant lack of adoption of infrastructure, ICT regulation, government organizations can start implementing any these technologies by certain population ICT adoption and social ICT impact), the initiatives. categories. Individuals residing in rural GCC has made significant progress in areas remain secluded from basic recent years, but on average, lags behind technologies such as high speed internet. other developed economies in terms of Moreover, older generations at times Digital Government capabilities.
9 Deloitte | National Transformation in the Middle East | A Digital Journey
84% 84% Figure 5: The National ICT Index 77% 78% 78% 74% 75% 76% 72% 72% 72% 73% 73% 70% 70% 62% 66% 66% 67% 67% 68% 64% GCC 58% 55% 52% 47% 50% 51% 45% 40%
29%
Note: see Appendix for methodology and for calculation of National ICT Index for Canada Source: Deloitte research and analysis, based on various published national indices and indicators from World Economic Forum
The value at stake for governments can be According to the National measured in a number of ways that range from a cost saving perspective to the lens ICT Index, the GCC has of creating value for citizens and made significant progress businesses with better service delivery. Impact on the Economy Such improvements include citizen in recent years, but on Case study: business cost wellbeing (e.g. satisfaction with reduction in New Zealand government services), or ease of doing average, lags behind business (e.g. time to open a company). other developed The New Zealand Ministry of There are three main areas (economy, Business, Innovation and society and sustainability) where Digital economies in terms of Employment has launched a new Transformation of the Public Sector can initiative to improve Public Sector lead into tangible and quantifiable benefits Digital Government service delivery to business that are illustrated based on case studies capabilities. customers with the ultimate goal below: of decreasing costs to businesses (business cost to be reduced by 25 percent) when dealing with the government and enhancing the overall competitiveness of New Zealand’s businesses. Impact on Society Impact on Sustainability To achieve these goals, the Case study: combating Case study: safety for ministry launched several foodborne illnesses in the USA emergency services in the USA initiatives:
Chicago is using advanced In the wake of the 2014 • Making tax simpler: analytics combined with big and Washington State Oso mudslide, Businesses will be able to open data to combat foodborne the public, private and process their tax through illnesses. Using unstructured philanthropic sectors collaborated improved online services to fly drones with advanced datasets including 311 complaint • Accelerator: An accelerator has sensors using reality computing. It calls, sanitation inspections, and been launched where Public then developed and printed a 3D even weather help, health Sector staff collaborate with the surface model over the disaster inspectors have been able to private sector entrepreneurs, zone. Consequently, drones were forecast violations and focus on developers and mentors to able to map the entire area in food establishments most likely develop services with the goal of seven hours, an activity that would requiring attention. With this new solving major pain points for have normally taken two to three approach driven by prevention local businesses 11 . and anticipation, violations are days, and it kept responders safe 10 now being discovered on an in the process . average of seven days earlier 9.
10 Deloitte | National Transformation in the Middle East | A Digital Journey
Figure 6: Multi-layered architecture to address Digital Transformation for Public Sector
National Transformation Plans
Industry & Government Digital Transformation
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Note: trends are not exhaustive
The Public Sector’s key themes for trends identified in the “Gov2020: A Digital Transformation Journey into the Future of Government” 12 Digital has an impact across multiple report. Each trend was then derived by layers and levels of any organization. looking at a broad range of sectors (i.e. Identifying all the services that can be education, defense, transportation, energy digitized is an exercise that goes beyond and environment, healthcare, law and the scope of this document. For the sake justice) and was supported by the of this paper, the large universe of trends following intrinsic drivers that affect the that are shaping the Public Sector was Public Sector: digital and exponential analyzed in order to screen key themes to technologies, economy, demography and be assessed that are relevant for the GCC society. market. This paper leveraged the 204
11 Deloitte | National Transformation in the Middle East | A Digital Journey
For the purpose of this paper, these Figure 7: Methodology to screen the key digital themes trends were grouped into key themes which were then filtered in two phases to Deloitte’s 204 cross-sector and sectorial trends ultimately arrive at six of the most relevant themes (as described in the figure on the right).
The first filter reflects the theme’s Trends across sectors grouped by category relevance to digital and exponential technologies. This dimension underpins the importance of digital as an enabler for y g o governements and Public Sector entities l Filter - Digital Related Categories o in order to take on such opportunities. d o h
Twenty one digital-driven trends were t
e Key Public Sector digital identified which range from IoT in defense m
categories to smart cities, to the rise of robotics. r u O Filter – Relevancy to the Middle East
Key digital Public Sector categories in the region
6 key digital Public Sector themes (high impact)
Figure 8: Mapping of digitally-relevant themes
Trends were bucketed in various themes across sectors Government Themes
Additive Healthcare Intelligence & Army of Defense Asymmetric Rise of robot and Defense manufacturing in defense trans- surveillance top IoT in defense tomorrow spending threats drone armies defense formation priority
The classroom of Higher School Tomorrow's The evolution of Next gen. Education the future education Systems 2.0 curriculum learning teachers
Urban Energy & Smart data and Sustainable Sustainable Sustainable environmental Environment devices finance policy consumption innovation List of Additive Biometrics Next generation Healthcare Healthcare data Patient-powered 204 Healthcare manufacturing in evolution care systems revolution healthcare trends healthcare
Predictive crowd Law & Justice Security 2.0 flows
Real-time Human Digital Social location Services customer financing services
Innovation in Transport / Smart Alternative modes Future of pricing, funding & Tourism tourism of transport mobility payments
National Transformation of Government Smart Smart New basis for Alternative Cross Sectors Transformation government talent model cities government national prosperity funding models platform operating models revamp
Digital Trends
12 Deloitte | National Transformation in the Middle East | A Digital Journey
The second filter is an assessment of the • Smart Tourism: Smart Tourism is the • Smart Government: Smart relevance of these themes to the Middle use of ICT to promote travel and tourism Government refers to the use of East and their impact on economy, society by enhancing visitor experience integrated information and and sustainability. The final outcome communication technology in reflects the most relevant digital themes • Next Generation Care: Next government policies, services and related to Public Sector transformation in Generation Care is characterized as processes the region. Ultimately, the following key pervasive, preventative, efficient and themes were selected to be explored in personalized care through ICT usage • Future of Mobility: Future of mobility detail throughout this paper: leading to higher quality and improved represents both the physical and digital patient experience infrastructure and services that enable • Smart Cities: Cities that use smart people and goods to move more safely, technologies, data analysis and • Classroom of the Future: cheaply, quickly, cleanly and happily. innovation to improve quality of life, Classroom of the Future represents the Existing and new advanced technologies efficiency of urban operations, services transformation of traditional education are applied to improve mobility and and competitiveness systems to digitally-enabled learning and resolve age-old transportation issues curricula that enhances the learning such as congestion, capacity and experience sustainability.
Figure 9: Selection of key digital Public Sector themes for the GCC
Impact d High High ze aly an l e tai o b de Public Sector Trends s t er IoT ICT Technologies me rth Smart he fu 5G, 4G & 3G T in government Next gen. care POL Cloud computing Blockchain Smart tourism Future of Smart cities Analytics/Big Data mobility Artificial Social Patient-powered healthcare Classroom of the intelligence future Cyber security Robotics Healthcare data revolution OTN Tomorrow’s curriculum IoT in defense Integrated Sensor technology national National Transformation platform Autonomous vehicles Sustainable consumption platform
Rise of robot & drone armies Digital twins Unnamed aerial Digital customer Vehicles School Systems 2.0 SDN/ NFV
Real-time location services Augmented/virtual reality Smart environment data & devices LIFI Security 2.0 3D printing
Low Low Predictive crowd flows R East elev ddle ance e Mi to o th the
e t M L
anc idd o l w w lev e E
o Re ast L
High High
Note: trends and technologies are not exhaustive
13 2. Digital at the heart of GCC transformation Deloitte | National Transformation in the Middle East | A Digital Journey
2. Digital at the heart of GCC transformation Digital Transformation: no longer optional
GCC countries have been, The imperative for change have recognized and reignited their efforts and new ambitions to respond, improve and evolve. at various levels and The range and pace of social and economic challenges necessitating change GCC countries have been, at various levels points in time, confronted in the Middle East are unique. In the and points in time, confronted with a with a sense of urgency to aftermath of the Arab Spring, which sense of urgency to diversify their still precipitated significant shifts in the socio- largely hydrocarbon-dependent diversify their still largely political landscape of many Arab nations, economies. For the purpose of this paper hydrocarbon-dependent as well as in the new light of more recent we have focused our analysis on the four economic oil price shocks to national largest economies (GDP-wise) in the GCC economies. accounts, governments across the GCC as outlined in the figure below:
Figure 10: GDP and population analysis of the GCC
Nominal GDP (USD billions)
800 756 2014 2016 Focus countries
700 646
600
500 403 400 349
300 206 200 163 152 114 81 100 66 33 32
0 Bahrain Oman Kuwait Qatar UAE KSA Focus countries % GCC share Share of GCC GDP 2016 (%) 2% 5% 8% 11% 28% 45% 93%
Population 1.4m 4.4m 4.1m 2.6m 9.3m 32.3m 89% 2016 (millions)
Source: World Bank, Deloitte analysis
15 Deloitte | National Transformation in the Middle East | A Digital Journey
The imperative to change has prompted a wave of national vision upgrades, the most The region will see the emergence of recent being the Saudi Vision 2030 unveiled in 2016, the New Kuwait 2035 “Government 4.0”, harnessing and vision launched earlier this year, as well as the Qatar National Vision 2030 and UAE applying the latest technologies and 13A Vision 2021 visions established earlier . solutions to modernize, centralize and While endeavours towards national visions tend to follow a steady and incremental streamline government service delivery. path over the long-term in other countries and regions, the plans adopted by this Governments, like businesses, will have to group of hydrocarbon-rich nations in the disrupt or be disrupted. GCC are far bolder and more ambitious, seeking to make substantive impact in a This is most acute in the Middle East five-year time horizon. Saudi Arabia’s where the population base, especially in National Transformation Plan 2020, UAE’s GCC countries, rapidly adopted National Agenda 2021, Qatar’s anticipated smartphone devices, posting world National Development Strategy 2017- leading penetration rates and exhibiting 2022, and Kuwait’s Kuwait Development some of the fastest digital media adoption Plan (KDP) 2015-20 each represent rates in the world in just a few years. This massive modernization plans, which seek consumer-led Digital Transformation to accelerate economic diversification, ultimately disrupted and completely stimulate growth, foster sustainability and changed the way citizens communicate, unlock citizen happiness. consume media and information, and interact with governments across the In doing so, these countries not only aim region. to secure a viable long-term future for their citizens, but also build on their Governments, including in the GCC, have national competitiveness and credibility on since learned from this and are now the global stage. They seek to encourage embracing Industry 4.0 – the next foreign investment while continuing their industrial revolution based on Digital ascent towards becoming leading centers Transformation. By placing new digital and of knowledge, innovation and happiness. ICT transformation programs at the heart of their national plans, GCC governments Digital Transformation: the critical aim to reinvent themselves to better meet success factor the ever-changing needs not only of better The most critical success factor in realizing connected, informed citizens and such ambitious visions is Digital residents (G2C: Government-to-Citizen), Transformation. As device penetration, but also of businesses (G2B: Government- connectivity and new technologies to-Business), employees and other continue to proliferate, the rate of government entities (G2G: Government- disruption in traditional business and to-Government). operating models intensifies.
16 Deloitte | National Transformation in the Middle East | A Digital Journey
To this end, a number of ‘digital-ICT-first’ Plan 2020 (NTP), which highlights 29 As such, the region will see the emergence sub-strategies and programs have already essential digital initiatives for key sectors of Government 4.0, harnessing and been formulated. Notably, the UAE ICT as well as funding for national digital applying the latest technologies and 2021 Strategy and UAE National assets. The Qatar Digital Government solutions such as big data and analytics, Innovation Strategy prioritize digital 2020 Strategy targets the efficient and IoT, blockchain, augmented reality (AR) and technology as one of the top seven transparent delivery of government virtual reality (VR), artificial intelligence (AI), national sectors, including the application services, supported by a world-class ICT drones, robotics and 3D printing, to and rapid adoption of new disruptive infrastructure. Furthermore, Kuwait has modernize, centralize and streamline technologies across sectors. Digital also revealed an updated e-government government service delivery, positioning Transformation is also a top four priority in program. them as both innovators and disruptors, Saudi Arabia’s National Transformation as opposed to disruptees.
However, as highlighted in the previous Broadly in the Middle East, reports section, on average, the GCC Digital Government maturity level still lags behind suggest that only 6 percent of the a number of other developed economies. More broadly in the Middle East, reports population lives under smart suggest that only 6 percent of the population lives under smart governance. Governments including governance 13B . Overall, governments including those of the GCC have plenty of those of the GCC have plenty of work work to do. to do.
Figure 11: Cascade of national visions, plans and digital programs
GCC national visions and plans
Bahrain Oman Kuwait Qatar UAE Saudi Arabia
National visions
Bahrain National Oman National Planning Program for Enhancing National Development Economic Diversification Strategy plans
• e-government • ICT 2020 program • e-government • Digital Government • ICT 2021 strategy • NTP ICT programs program (e.g. (e.Oman) program 2020 strategy • Innovation strategy (e.g. broadband ICT and national datacenter, • National ICT plan • UAE TRA strategy expansion, ICT digital government data • e-government 2020 human capital, programs network, smart card) strategy (Hukoomi) e-commerce)
Source: Official government websites and press releases, Monitor Deloitte research and analysis 14
17 Regional Digital Transformation agenda Deloitte | National Transformation in the Middle East | A Digital Journey
Regional Digital Transformation agenda
Drivers behind Digital two important elements are required: - Modernization of other industries: Transformation plans - Inclusion in plans: Digital sectors such as education, healthcare Similar to other countries across the Transformation programs must be and tourism are also key to economic world, Digital Transformation in the GCC’s recognized and prioritized as such diversification. These governments are Public Sector is also driven by the same within national visions and plans already making significant investments factors as alluded to in the previous in Digital Transformation efforts to section: - Swift decisions: quick decisions from modernize these sectors and unlock the top will push government entities growth • Cost and budget pressures: since the to enact Digital Transformation plans drop in oil prices in late 2014 that has quickly and effectively • Security: over the years, the region’s now curbed the revenues of oil-rich governments have also been GCC countries, there is an increased A good example of this is the H.H. Sheikh experiencing and combatting increasing emphasis on curbing expenditures on Mohammed Bin Rashid Al Maktoum UAE levels of security threats: government assets and operations. m-government directive in 2013 requiring Cost-savings from more efficient government services to be available and - National Security: GCC governments government processes are therefore offered via mobile within two years. This have seen an upsurge in conflict zones a key driver behind new Digital promptly led to an explosion of over 300 surrounding their territories. National Transformation programs. Not only do UAE mobile government services security and citizen safety remain a such benefits improve governments’ developed and launched by various UAE priority, driving investment in state of ability to improve their budget balance, government entities across the country the art digital security systems and such cost-benefits also get passed onto within just 730 days 15 . solutions customers and businesses. In addition, the following region-specific - Cyber security: These governments • Customer and citizen demand: the dynamics are also compounding the need have also become increasingly afflicted emergence and popularity of social and urgency behind Digital by cyber-attacks. As national data, media among Arabs has opened up a Transformation, especially in the GCC: assets and operations become new channel, enabling governments and increasingly digitalized in the region, citizens to work together. Governments • Economic diversification: as cyber security becomes ever-more have actively exploited this as a key mentioned earlier, the GCC economies paramount. Recognizing this, channel to obtain citizen feedback, as remain largely reliant on oil. Building a governments are investing in citizens have also exploited this to viable future will require them to expand strengthening their cyber security demand greater and higher quality their focus on other sectors and develop capabilities. In turn, improved cyber government services (e.g. simplified new industries: security, not just in terms of improved online payments solutions for utilities, online defense systems but also in car parking, fines and toll gate credits). - Strategic focus on ICT sector: GCC terms of laws and regulations (e.g. countries are already the largest minimum security measures, data • “Federal” government directives: a spenders in the region on the ICT protection), will reinforce government top-down approach to decision making sector, which globally is also enabling and stakeholder confidence in the in GCC governments helps accelerate the birth of new technologies and continued digital advancement towards the pace of Digital Transformation solutions behind Industry 4.0 Government 4.0. programs, compared to more advancements. Focus and importance consultative processes in other nations. on this industry is therefore a key For Digital Transformation programs in enabler and driver behind national the Middle East to get budget approval, Digital Transformation efforts
19 Deloitte | National Transformation in the Middle East | A Digital Journey
• Mega events: although many programs Figure 12: Key digital initiatives under national visions and plans have arisen out of a need to address National plans new challenges, significant investments in Digital Transformation programs are ICT and Digital Initiatives also needed to enable as well as support Classroom of Next Generation Smart the successful delivery and management the Future Care Tourism of positive mega-events in the region taking place over the next five years. Future Smart Smart of Mobility Government Cities Namely the Dubai Expo 2020 and Qatar 2022 FIFA World Cup.
Key Digital Transformation initiatives Saudi Arabia Kuwait Transformation initiatives do not only aim to modernize governments, their reach 12 03 02 02 extends to entire industries, economies and the way society functions at large within these countries. 02 02 00 01
The first section looked at key future of 09 01 01 01 government trends (Gov2020) that were most prevalent in the Middle East, and clustered them as key regional themes: Qatar UAE Classroom of the Future, Next Generation Care, Smart Tourism, Future of Mobility, 04 04 08 09 Smart Government and Smart Cities. These were based on expert views, market 03 04 04 04 research and interviews with key government entities in the GCC. 05 04 04 03
These themes are at the core of the GCC
Digital Transformation agenda and are explored in more depth in this section. Note: The above represents a sample of key digital initiatives, which is not exhaustive Source: Official government websites and press releases, Monitor Deloitte research and analysis 16 Figure 12 gives an overview of key Digital Transformation initiatives across each theme that have arisen out of new GCC country visions, modernization plans and ‘digital-first’ programs.
20 Deloitte | National Transformation in the Middle East | A Digital Journey
In the discussion that follows, this section 1. Definition examines more closely the Digital 2. Key digital initiatives & outcomes Transformation journey of these 3. Delivery method governments while exploring the role, 4. Investment progress and impact of some of these 5. Status initiatives. As such, each theme is explored 6. Challenges & needs in depth based on a seven step 7. Outlook methodology:
Figure 13: Theme deep-dive content and study methodology t
n Key digital
e Delivery Challenges t Definition initiatives & Investment Status Outlook n method & needs o outcomes C Define the theme Highlight and Review how GCC Understand the Assess the level of Identify key Evaluate the n
o in terms of how analyze key digital governments are scale of spend progress GCC challenges GCC future potential of i t technology and initiatives in the approaching and and investment governments have governments are the theme in the p i
r digital solutions GCC and the implementing involved to deliver made in facing once GCC and highlight c
s are addressing key desired outcomes digital initiatives key GCC digital implementing key implementing key opportunities e
D issues disrupting these initiatives (e.g. delivery initiatives digital initiatives digital initiatives based on the the public sector seek to achieve models) theme’s analysis Types of digital Delivery models Indication of Progress Theme definition initiatives & Deloitte outlook used investment indicators
a outcomes GCC challenges t
a and needs D Industry GCC GCC GCC GCC GCC examples examples examples examples examples opportunities
Theme-Specific Study & Analysis e p
o Saudi Arabia United Arab Emirates Qatar Kuwait c S s
t Deloitte & Deloitte & Deloitte & Government Government
u Theme-specific Theme research Huawei Huawei thought Huawei subject interviews & visions, plans & p industry reports & analysis n
I experience leadership matter experts surveys data
21 Next Generation Care Deloitte | National Transformation in the Middle East | A Digital Journey
Next Generation Care
Definition Existing and new technologies are delivery, requiring large budgets to sustain At its simplest, Next Generation Care is fundamental towards achieving Next operations. characterized as: Generation Care (next-gen care), with numerous examples of use cases that This, coupled with new economic • Pervasive: accessible everywhere, include m-health apps, remote restrictions and other aforementioned low-cost monitoring, ingestible data-generating IoT Digital Transformation drivers, has led to a sensors, holographic and robotic assisted range of digital initiatives which not only • Preventative: information and surgery, to name a few. aim to resolve public health issues as awareness on vaccinations, pregnancies noted above, but also develop a world- and healthier lifestyles Key initiatives and expected class next generation public health outcomes service. This, in turn, stimulates innovation • Efficient: real-time health checks, Healthcare remains a top concern for GCC and economic growth in the sector as a diagnoses, health insurance claims governments, as citizens have been whole to support diversification. Through processing and emergency services increasingly suffering from major public such next-gen care initiatives, GCC health illnesses such as obesity, diabetes countries are also seeking to attract top • Personalized: tailored to individuals’ and heart-disease. Providing care is also medical talent and tourists from abroad to genetics or DNA, body-types, very costly as these governments offer develop their med-tourist markets. preferential or other needs national health services as a state benefit to citizens, employ a sizeable public health To this end, new digital initiatives of these • Higher quality: less invasive and less workforce (doctors, nurses), own and governments broadly cover four main painful for improved patient experience. operate many assets (hospitals and clinics) categories outlined in the figure below. and have to effectively manage service
Figure 14: Key types of Next Generation Care digital initiatives
NEXT GENERATION CARE
Key Initiatives 1 2 34 Virtual and mobile Online preventative National e-health Health-tech health services health systems innovation
Enable patients to access Digital awareness campaigns to Ongoing implementation of national Engage in R&D of ICT and new- healthcare easily online and on- encourage health checks and electronic medical records and technology-based healthcare services demand through digital devices healthier lifestyles integrated national health systems and solutions
23 Deloitte | National Transformation in the Middle East | A Digital Journey
Virtual and mobile health services: These services enable patients to access Saudi Arabia’s NTP plan is targeting healthcare easily online and on-demand through their mobile devices, without 70% of all Saudi citizens to have a having to visit hospital facilities only to wait in long queues to be served. Such services unified digital medical record by 2020. also reduce the burden and costs on state healthcare facilities by eliminating unnecessary hospital visits by patients. • Electronic medical records: The Qatar’s updated National E-Health and Similarly, telemedicine is another service process of centralizing patient data Data Program (QNeDP), formulated in enabling access to wider pools of across the health system. For example, 2015, outlines a blueprint and set of practitioners via consultations from UAE’s Ministry of Health and Prevention’s phased implementation plans behind the remote locations over digital media. National Unified Medical Record (NUMR) integration of various national health project (which started in 2016) aims to management systems (e.g. e-referral, For example, Qatar’s Smart Healthcare centralize patient data and analytics for pharmacy, virtual medicine), health data On-Demand initiative aims to offer new common use by all providers nationally systems, clinical repositories (e.g. clinical services which include a digital self- streamlining diagnoses and treatments 19 . data, medication inventory) and external diagnosis platform (based on algorithms Qatar’s Single Patient Record project (a consumer systems (e.g. patient medical to process step-by-step digital checklists unique national patient record system) records and accounts, population health pin-pointing various symptoms for seeks the same 20 . Saudi Arabia’s NTP systems) 22 . patients), Doctor Finder, an appointment aims to expand its efforts to digitize service, and virtual doctor consultations patient data, targeting 70 percent of all In the UAE, the Emirates ID and health through telemedicine (enabling patients to Saudi citizens to have a unified digital insurance services are also integrating, connect to doctors via online video chat medical record by 2020 21 . enabling residents to use their Emirates ID with digital transmission of medical as a national health insurance card across imaging and health informatics) 17 . UAE’s • E-integrated national health the country, whilst also expanding data on Abu Dhabi Telemedicine Centre also systems: connecting different the national citizen database 23 . The provides a similar service with a free healthcare ecosystem players (e.g. Mabrouk Mayak service by the UAE mobile application allowing patients to patients, practitioners, hospitals, clinics, Ministry of Health and Prevention remotely share photos assisting their pharmacies, test labs, investors, (MOHAP) is another good example. It diagnosis (e.g. photos of an affected area regulators) to provide a seamlessly enables rapid completion of all of the body, medication labels) 18 . connected experience for all, certifications for new-born Emiratis (e.g. representing a key step in digitally birth certificate, ID card, passport) by National e-health systems transforming GCC countries’ health reducing required interactions and visits Key initiatives include the ongoing systems. from seven different government entities implementation of national electronic to just one 24 . medical records and integrated national health systems:
24 Deloitte | National Transformation in the Middle East | A Digital Journey
Online preventative health Research Park, DuBiotech, is a new free of the Kingdom’s total healthcare spend by Initiatives include digital awareness zone for life sciences and health tech more than 10 percent by 2020 33 . The NTP campaigns to encourage health checks companies 29 . Government-backed Falcon also advocates shared public-private and healthier lifestyles. and Associates has also launched the business models 34 . Dubai 100 accelerator program, an For example Saudi Arabia’s newly intensive 100-day program to support and To this end, Saudi Arabia’s Ministry of launched Rashaka program, a major accelerate digital health start-ups and Health signed a Memorandum of health awareness campaign which aims to encourage the growth of young talent in Understanding (MoU) last year with help reduce obesity rates in the Kingdom the digital health sector 30 . Health-tech General Electric (GE). The partnership by 5 percent by 2020, is employing the use start-ups supported by this program focuses on enabling and accelerating of digital social media channels and include Singapore’s AEvice health, working Digital Transformation of KSA’s health includes organizing competitions in Saudi to develop a wearable device to diagnose sector, in which GE would provide schools to develop mobile health asthma earlier, as well as Argentinian advanced technical solutions such as awareness applications 25 . OTTAA, which is using predictive health system control centers, simulation algorithms to help speech-impaired centers, virtual hospitals, improved patient The Health Authority of Abu Dhabi’s people communicate through images 31 . experience in health facilities and (HAAD) Weqaya program for instance is a extraction of cost-efficiencies 35 . Similarly health screening program for Emiratis UAE’s MOHAP partnered with digital which allows them to check their health The “Dubai 100” health company Purehealth to implement status and obtain follow up consultations accelerator programme the NUMR system 36 . Qatar is also in the if at risk of any diseases. At the same time, tendering process for the implementation it also enables HAAD to rapidly extract is an intensive 100-day of the Smart Healthcare initiatives of its data from screening results for various programme to support TASMU program 37 . public health studies 26 . and accelerate digital Investment Qatar’s Connected Wellness initiative also Investments required to deliver such large includes a Digital Health Coach Service, health startups. scale and complex transformation which uses smartphones and wearables, initiatives are also significant. Analysts monitoring food consumption and activity Similarly, Saudi Arabia’s MiSK foundation report that MENA’s medical ICT spending levels to provide real-time user specific hosted the first ever UK-KSA dual-nation has reached a record high of US$3 billion, health advice. Data collected from the Medical Internet of Things hackathon last largely attributed to GCC countries 38 . service is even integrated with patient year to develop technology solutions to Saudi Arabia’s NTP for example has records and monitored by health the world’s most challenging health and reportedly earmarked almost US$1.6 professionals to provide continuous medical problems 32 . billion in investment in Next Generation guidance 27 . Further, Qatar’s Active Nation Care (electronic health) initiatives for the sports initiative also contains several Delivery method next five years (i.e. US$320 million per services encouraging residents to Healthcare is a specialized field and the year) 39 . UAE’s Innovation Strategy also participate in more sporting activities 28 . scale and complexity behind the range of requires government entities to set aside next gen care initiatives are significant. As at least 1 percent of their budgets for Health-tech innovation such, GCC nations are driving the innovation. With healthcare representing GCC governments are also actively development and implementation of Next 8.6 percent of the UAE’s US$67.5 billion engaging in and encouraging more R&D in Generation Care initiatives through 2017-2021 national budget, this ICT, as well as newer technology-based various public-private partnerships (PPP) represents a minimum potential US$58 healthcare services and solutions. with a wide range of private sector million in R&D investment 40 . Similarly, companies. In Saudi Arabia, the NTP Qatar’s drive for investment in health UAE’s Innovation Strategy for instance actually targets a significant increase in the system modernization has led to large cites health as a priority sector of focus. participation of the private sector, with the scale health system contracts. An example As such, Dubai’s Dubai Biotechnology and goal to increase the private sector’s share of this is the US$28 million contract signed
25 Deloitte | National Transformation in the Middle East | A Digital Journey
between TTP Middle East and Qatar’s Integrated Intelligence Services (IIS) to Saudi Arabia’s NTP for example has implement a nation-wide electronic health record (EHR) system 41 . reportedly estimated almost US$1.6
Status billion in investment in Next Generation As a result of the plans and investments, GCC governments are progressing Care (electronic health) initiatives for towards Next Generation Care and their strategic goals at their own pace. the next five years.
The UAE, as part of its more developed smart government program, has had the However, unifying thousands of healthcare • Rising patient expectations: for most time to develop its next generation hospitals and facilities is no small feat, and better access to higher quality of health initiatives, which are now largely in the as such will still require some time before care services that meet all patient implementation stage, if not live already. it is complete. Although Saudi Arabia laid demands. New and improved services For example, Abu Dhabi’s Telemedicine most of the groundwork required to emanating from Next Generation Care Centre is now a reality as it has, according implement its initiatives and has initiatives need to ensure they consider to reports, successfully engaged with and connected most public health facilities, it patient feedback, placing them at the screened most adult UAE nationals based still reportedly has to also reflect center of solution and service design. in Abu Dhabi. Other aforementioned improvements on areas such as patient services such as the integration of the experience. • Data integrity, privacy and security: Emirates ID with the health insurance patients still have several health records, systems have also taken off, but need Qatar, as reported in industry interviews, holding at least one per provider, some time to be fully adopted and is following its own journey. The country contributing to data fragmentation and accepted by all of UAE’s health insurance has upgraded its plans as part of its new the duplication of services. Sensitive providers. Mabrouk Mayak has also just TASMU smart government framework, and patient data also needs to be protected completed pilot testing and is poised to is now entering a pilot stage to test proof and secured. Governments will need to roll out across the country. of concepts behind Next Generation Care adopt clearer data and security initiatives. standards in their health systems, not Saudi Arabia, dealing with a much larger just to maintain the data, but also to population and scale of healthcare system Kuwait at the moment is focused on enable interoperability of data. has progressed in its own way as well. For developing its traditional physical Blockchain is being explored and applied example the KSA’s Ministry of Health has infrastructure (i.e. building more hospitals, as one solution. already launched systems of e-health clinics, medical facilities) and is yet to records, picture archiving, release further plans on digital health and • Rural connectivity: despite operators communications, cloud computing, and Next Generation Care. However, digital having expanded broadband networks telemedicine as well as an electronic health initiatives are inevitably expected to considerably, many rural areas are still system to register and follow up on critical be announced in the near future as part difficult to reach, as residents may not medical errors. Supporting this, it has also of health sector transformation drivers. pay high rates for such services. adopted data and interoperability Cheaper and more practical wireless standards, implemented digital health Current challenges and needs solutions will need to be employed to friendly regulations (around health IT, In developing and implementing Next ensure that affordable infrastructure is medical devices, data privacy, security and Generation Care initiatives, regional there for those that may need Next telecommunications) and has established governments face a number of challenges Generation Care the most. a dedicated department for overseeing and needs: and implementing e-health projects.
26 Deloitte | National Transformation in the Middle East | A Digital Journey
• Implementation rates vs. disease Outlook the scale of their healthcare systems and trends: Next Generation Care initiatives Looking forward over the next five years, corresponding demand for ICT services will have to be implemented faster than GCC countries are expected to sustain and solutions will increase. Data centers the rise in diseases (e.g. obesity, strong ICT investment levels towards Next with secure servers, security and privacy diabetes, heart diseases) afflicting Generation Care systems and protocols will be needed to store patients, if they are to meet outcomes developments, a central element to their increasing repositories of patient health and KPIs directed at reducing disease national e-health visions and plans. records. High performance telecom rates. Analysts are forecasting the MENA networks and services will be needed to healthcare market, predominantly driven connect data servers and facilitate health • Health and ICT expertise: there is still by GCC markets and their national health information exchange between expanding a heavy reliance on expatriate health budgets, to nearly double from US$40 numbers of hospitals, clinics, pharmacies, professionals and health technology billion in 2015 to US$71 billion in 2020 42 . ambulances and other medical facilities. specialists leading to a huge variation in This corresponds to ICT investment in the Data mining and analytics capabilities will healthcare quality. Governments Digital Transformation of the health sector be needed to draw insight, advance recognize this as a key issue and have which is likely to increase at least at a medical research and be used for public set targets for locally trained and similar pace. health policy measures. On top of the developed professionals. However, this foundation systems and networks, is a process that may take time, and This opens up a suite of opportunities for advanced technologies and solutions governments will have to work closely healthcare providers, telecoms players, ICT using IoT, VR and AR, once proven after with more experienced private sector vendors and health-tech start-ups alike. pilot phases, will also be needed to track providers to enable adequate e-health and improve patients’ health and progress and knowledge transfer. As national health in the GCC becomes experience. increasingly digitized and connected, both
Figure 15: Top opportunities in Next Generation Care and key impacts
Top opportunities Key impacts Major expansions to GCC health facilities Economic Health ICT will drive government spending on infrastructure installed devices, telecom & internet, • Catalyst to growth in health & ICT sectors servers, data centers, cloud and security for diversification services • Significant reduction in OPEX of public healthcare services Significant government demand to build/ Reduced CAPEX for physical health facilities National expand national systems that are in • and assets e-health infancy. Solutions for system systems interoperability between health players will also be needed Social Rising adoption of Electronic Medical Records and digital health is driving • Cheaper, easier and faster access to public Blockchain in demand for blockchain solutions to healthcare healthcare protect and maintain sensitive patient data • Employment opportunities • More efficient, effective care will slow disease trends, improving quality of life and Needed to accommodate growing happiness Virtual and population, smartphone adoption, rising mobile health patient expectations and reduce health solutions costs. Such services are emerging with fast Sustainable growth • Paperless documentation (e.g. electronic Digitization of patient data is creating a patient records, digital imaging, e-claims) Precision massive new market for data analytics • Reduced wastage (e.g. more accurate health services such as diagnosis, predictive prescriptions and consumption of analytics disease analytics, AI, cognitive assistance medicines, hospital supplies)
27 Classroom of the Future Deloitte | National Transformation in the Middle East | A Digital Journey
Classroom of the Future
Definition Figure 16: Classroom of the future ecosystem Classrooms of the future represent the Digital Education Ecosystem transformation of the traditional education systems that are based on learning techniques driven by textbooks Schools Federal and standard teacher-student learning entities interactions to modern, digitally-enabled Tablets Ministries of Education Colleges & Schools learning that exponentially enhances the institutions student experience. Forming a critical Devices and Laptops Ministries of driver to digital education, it ensures full Ministries of edugadgetscation ICT ICT and circle access to information and technology Colleges & Institutions providers Non-profit knowledge for students while also Software Mobile apps organizations preparing them to adapt to new Ministries of ICT Teacher and technology and skills to eventually Teachers and professors Vision Offices professors contribute into society and the economy. Online platforms ED Tech SMEs AR applications will be a common feature Education centers in this classroom of the future, where textbook diagrams are replaced by Incorporation of apps, applications driving AR-supported, Influence of ICT technologies across Use of ICT technologies by relevant platforms, devices in education all sectors of the economy entities immersive learning experiences. The curricula digitalization of the classroom inherently builds its capabilities, leveraging digital and ICT technologies across cloud computing, mobile, social media and analytics among Figure 17: Key types of Classroom of the Future digital initiatives others that work in an ecosystem of providers, federal entities and institutions CLASSROOM OF THE FUTURE to deliver the experience. Key Initiatives Key initiatives and expected outcomes Regional education initiatives across KSA, UAE, Qatar and Kuwait are focusing on 1 2 3 shifting the cultural paradigm of education Smart Education Online ICT Content from the traditional model of fixed Systems Platforms Focus curriculum and textbook-based classes to Education that is based on digital Self-taught flexible learnings through Enhanced ICT content in school applying new creative methods of learning devices rather than textbooks available online courses curricula and an emphasis on digital and enhancing the classroom experience. literacy Some of the trending initiatives undertaken by the Public Sector across the GCC are shown in figure 17.
29 Deloitte | National Transformation in the Middle East | A Digital Journey
Smart education systems Online platforms as part of KSA’s NTP, the Kingdom Governments are focusing on Governments have also mobilized efforts launched a national program for e-training transforming classrooms to become more to address the rising cost of education under the Institute of Public technology-centric and improve on and the large gap between the quality of Administration 44 . Similarly, Doroob, an information access by incorporating the education supplied and the rising demand education and professional training use of technologies throughout learning in growing GCC populations. Efforts are platform sponsored by the Saudi Ministry activities in schools. The importance of being made to ensure learning is of Labor and Social Development (MOLSD) digital literacy at younger ages is also accessible and flexible to all individuals focuses on bridging the gap between the imperative in preparing students for life across a vast range of both subjects and educational system and the requirements after school. skillsets through available e-learning and of the labour market to achieve higher online courses. employment rates specifically among A good example of this shift is the youth and women. Updates of the NTP 2.0 application of digital in reforming the Furthermore, cost-effective solutions such focus on female participation and education systems from the traditional as e-learnings, e-trainings and Massive productivity in the workforce, where textbook-based classrooms to ‘online Open Online Courses (MOOCs) have platforms such as Doroob are likely to be flexbooks’. The Mohammad bin Rashid emerged across the GCC. For example, emphasized further. Smart Learning Program in the UAE 43 ,
KSA’s Ministry of Education (MOE) and Figure 18: Doroob program and ambitions Qatar’s Supreme Council have already replaced textbooks with tablets and gadgets with the intent to enhance overall education systems to be more digitally oriented. Explore our New Courses under The Following Sections These digital systems are creating more interactive classrooms where teachers effectively communicate and retain EMPLOYMENT SKILLS students’ attention while increasing FINANCE AND BUSINESS AND SOFT SKILLS AND ECONOMICS MANAGEMENT LEADERSHIP student interaction. For the KSA’s MOE, this initiative delivers on a key KPI which is • Financial awareness • Sales process • Fundamentals of • Professional plan enhancing student and parent • Riyali • Project risks Management • Self-Empowerment • Leadership satisfaction.
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30 Deloitte | National Transformation in the Middle East | A Digital Journey
The success of these online platforms is these type of programs. The TRA in the establish the Etisalat Education driven by underlying digital initiatives UAE has made collaborative efforts with Technology Center 47 . The center focuses undertaken by GCC federal entities. the Ministry of Education and the United on continuous efforts in R&D to A good case is the Noor Education Arab Emirates Computer Emergency experiment with and design new Management System from the MOE in KSA Response Team (aeCERT) in providing education tools in line with the country’s where schools, teachers and parents are content learning programs on cyber direction to implement digital schools and being digitally linked into an education security as well as contributing to core IT smart learning. The UAE’s ICT Fund is management system. curricula developments such as coding 45 . playing a role in enhancing the overall ICT focus in universities by funding specific ICT content focus and digital literacy Furthermore, initiatives that aim to programs. With global changes emphasizing the improve digital literacy skills are expanding importance of technology and beyond schools and youth. Elderly are Moreover, to realize the future classroom communication, the Middle East has now being encouraged to learn and adapt initiatives, governments are working very become increasingly aware of to modern technology and overcome the closely with key private sector players, incorporating more technical ICT skills in digital generation gap. The Ministry of forming PPPs, which include educational school curricula. There is an enhanced Transport and Communication (MOTC) in technology vendors and specialists. For focus on subjects related to IT, Qatar launched Wasla, a project example, in Saudi Arabia, the government programming, digital technology and encouraging youth to teach digital literacy has partnered with EdX to deliver the design innovation, fueled by GCC visions skills to the elderly. The young ‘teachers’ Doroob MOOC initiative based on more that prioritize digital and connected are trained and equipped with tools to than 1,600 courses and programs from societies. guide the elderly through digital and EdX’s extensive course library 48 . technical material 46 . Governments are investing in initiatives that increase awareness of ICT and digital Delivery method In Saudi Arabia, the programs such as exponential Governments are proactively exploring government has technologies, digital technologies and new ways to modernize their education cyber security. Through entities like the systems. A popular method being adopted partnered with EdX to UAE’s Telecommunications Regulatory by regional governments are specialist deliver the Doroob Authority (TRA), and the Communication digital learning R&D centers which serve and Information Technology Regulation as innovation labs to test new learning MOOC initiative based on Authority (CITRA) in Kuwait, for example, methods and tools. A good example of there are efforts under way in this is the UAE Ministry of Education’s more than 1,600 courses collaboration with universities to fund partnership with Etisalat and Microsoft to and programs from EdX’s extensive course library. The Middle East has become Furthermore, a national center for e- increasingly aware of incorporating learning has also been launched in Saudi Arabia under the MOE promoting the more technical ICT skills in school learning of specific technical skills, tools and programs. The center provides curricula. There is an enhanced focus in services ranging from training services on designing content, upgrading quality e- subjects around IT, programming, digital learning standards, teaching users how to design and manage modules and setting technology and design innovation. standards for digital content 49 .
31 Deloitte | National Transformation in the Middle East | A Digital Journey
Investment Given the scale of change, the new Government spending on initiatives to national transformation plans seek to involve various third parties (NGOs, Ed deliver classrooms of the future were Tech, small and medium-sized enterprises (SMEs), tech giants, telecom operators) approximately US$ 272 million over required to deliver these initiatives. The level of government investment is a 5-year period in the UAE and is significant, exceeding hundreds of millions of dollars. To complete smart learning approximately US$ 430 million in KSA programs, government spending on initiatives to deliver classrooms of the over the next 4 years. future is approximately US$272 million over a five-year period in the UAE 50 , and approximately US$430 million in KSA over Figure 19: UAE Smart Learning Programme report the next four years 51 . The UAE’s investment in digital is in line with its ﺑﺮﻧﺎﻣﺞ ﻣﺤﻤ ﺪ ﺑﻦ راﺷﺪ ﻟﻠﺘﻌﻠﻴﻢ اﻟﺬﻛﻲ overarching aim to invest US$2.72 billion in education with a focus on transforming Mohammed Bin Rashid Smart Learning Program the IT infrastructure in schools 52 . UAE PUBLIC SCHOOL GOALS Progress of Smart Learning Status GCC government efforts focusing on Mohammed Bin Rashid Smart Learning Program plan 2015-2018 2018 transforming current education systems 423 schools to classrooms of the future have been 2017 progressing in the right direction. While 423 7,606 schools classes the UAE and KSA have made obvious 2016 12,320 efforts to fully adopt digital classrooms, 423 6,829 schools classes teachers each country has progressed differently 2015 121,205 based on its vision and scale. 5,314 students 283 classes schools , 3 8,964 students Given the smaller market and its five-year 1,760 teachers classes old vision, the UAE seems to be the most 99,912 advanced GCC country in its adoption of 6,349 students teachers smart classrooms. The Smart Learning 34,513 Program, implemented in 2012, students succeeded in fully adopting digital devices across all public and private school Source: UAE “Smart Learning Programme” report, UAE Government classrooms. UAE schools are utilizing Samsung tablets and Smart Boards installed with tools by ITWorx, allowing The KSA, while progressing towards smart complete over a four-year period. teachers to develop and teach interactive education, is still in its early stages due to Furthermore, the possibility of setting lessons and communicate with students the scale of implementation. Phase 1 of its up a tablet factory collaboratively with and parents alike. Students also have the smart classrooms was expected to begin a specialized company is still under flexibility of reviewing e-lessons and this school year, covering 150 schools, consideration. Surveys have been accessing textbooks offline and at home 53 . while Phase 2 will include 1,500 schools conducted globally that demonstrate that until all 30,000 schools in the Kingdom are mind sets are becoming more accepting of
32 Deloitte | National Transformation in the Middle East | A Digital Journey
technological transformations in the which is currently being addressed via leverage the private sector, non-profit education system 54 . 90 percent of PPP’s where the private sector is also sector, universities and schools to foster students are already using digital material helping to drive this Digital creative thinking towards technology and as they are more inclined to learn in these Transformation. its influence on institutions. interactive methods. Moreover, 75 percent of teachers believe that digital learning Public Sector entities have the opportunity Science, technology, engineering and math content will completely replace printed to engage in further developments to (STEM) subjects will become a priority books over the next 10 years. Such grow the educational technology sector across the GCC as students will be studies are convincing of the behavioral with more progressive initiatives such as increasingly encouraged to follow a path shift towards digital education across Alef, a more advanced online training that guarantees secure, demanded jobs. populations 55 . platform that leverages content powered Furthermore, the UAE has just announced by AI and big data analytics. its plan to establish approximately 122 Current challenges and needs Innovation Libraries in schools, while a There still remains a vast opportunity for The centralization of education data and similar investment in innovation labs Public Sector entities to transform the its governance through designated bodies across schools is expected to support education sector. Connectivity across is another critical need in the GCC for the technology related programs and enhance educational institutes among themselves classroom of the future to succeed. students’ technological skills 56 . and in relation to government entities remains a major challenge in most of the Outlook Education for the disabled supported by GCC. There are efforts underway led by The opportunity to enrich the education new digital technologies will also be federal entities to bring service providers sector’s digital advancement is evident in prioritized by government entities in the and other connectivity players such as ICT the GCC, especially for Qatar and Kuwait, GCC. Assistive technologies such as vendors to address this. whose education sectors are still speech synthesizing software, text-to-voice developing towards more technologically tools and electronic worksheets will take Driving innovation into the public oriented systems versus that in the UAE precedence for investments to ensure education system is another challenge and KSA. Governments will need to quality learning.
Figure 20: Top opportunities in Classroom of the Future and key impacts
Top opportunities Key impacts Major expansions to education institutions Economic Education ICT will drive government spending on installed devices, telecom & internet, infrastructure • Growth in education, ICT sectors servers, data centers, cloud services • Innovation and productivity • R&D and focus on knowledge economy Significant government demand for digital • Reduced public education OPEX Smart devices and digital solutions to enhance • Reduced CAPEX for physical education education classroom interactivity and learning (e.g. facilities and assets systems digital flex books, touchscreen) Social Visions to convert curriculum into digital Digitization of content. Enhanced efforts to drive a • Digital literacy and skills curriculum & ICT knowledge economy through subjects • Cheaper, easier, more flexible and faster focus related to IT, software & digital access to education • Employment opportunities • Social cohesion, development Driven by smart education systems Augmented • Quality of life and happiness leveraging AR & VR to act as interactive and virtual teaching tools, hence delivering the next reality generation of immersive learning Sustainable experiences • Paperless documentation (e.g. electronic Increased online learning will generate data student records, flexbooks , e-applications) on course & student performance. Analytics Reduced wastage (e.g. stationary, school AI powered • & AI can improve course & curriculum supplies) data analytics design to fill knowledge/skill gaps • Sustainable literacy growth
33 Smart Tourism Deloitte | National Transformation in the Middle East | A Digital Journey
Smart Tourism
Definition In the UAE, tourism is so important that religious tourism market, seeks to boost Smart Tourism is the use of ICT to individual tourism visions are outlined for its Hajj and Umrah tourist figures promote travel and tourism by enhancing each emirate. Abu Dhabi, for example, (domestic and foreign) from 7.5 million a visitor’s overall experience. aims to become one of the world’s most per year in 2016 to 17.5 million per year attractive places for tourists 57 . Dubai is by 2020 62 . It also wants to increase its Key initiatives and expected targeting 20 million per year by 2020 overall tourist figures (domestic and outcomes (double 2012 levels) 58 , Sharjah is targeting foreign) from 64.5 million in 2016 to 81.9 Tourism is a highly strategic sector as it is ten million tourists per year by 2021 59 and million per year by 2020 62 . Kuwait, as part not only key to unlocking economic Ras Al Khaimah aims to attract one million of its new vision, has also highlighted the diversification and growth for GCC tourists per year by 2019 (end of 2018) 60 . development of its national tourism sector countries, but also instrumental in as an economic priority 63 . building a nation’s image and positioning Qatar, in the year of the FIFA World Cup, it on the world stage. aims to attract four to five million visitors Digital initiatives to support these in 2022 61 . The KSA, with its captive outcomes fall into four main categories:
Figure 21: Key types of Smart Tourism digital initiatives
SMART TOURISM
Key Initiatives 1 2 34 Advanced Digital Smart Loyalty & Unified Travel Event Tourist Guides Incentive Programs Passes Platforms
Application of mobile and advanced Universal platform for loyalty and Use of a single digital device or online Digital platforms designed specifically to technologies such as Internet of rewards applied through blockchain service to minimize manual support key events and visitors being Things and augmented & virtual technology, enabling tourists to interactions when moving through hosted in the country (e.g. concerts, reality to provide tourists more collect points and redeem rewards various travel checks (e.g. security, matches). This can include digital media personalized travel, tourism and across the city for sites and attractions immigration, tickets) coverage, e-ticketing, event data navigation information to help they visit, promoting tourism activity gathering & analytics and visitor services facilitate and ease their trip (e.g. virtual guides)
35 Deloitte | National Transformation in the Middle East | A Digital Journey
Advanced digital tourist guides Qatar also aims to upgrade its digital new Smart Wallets and One Gate Application of mobile and advanced tourist guides. Its new Digital Travel Guide, initiatives will also allow travelers, based technologies such as IoT, AR and VR for example, aims to deliver location and on automated biometric facial recognition provide tourists with more personalized preference-based points of interest, technology, to use their smartphones travel, tourism and navigation information events, public transportation schedules instead of their passport or express gate to help facilitate and ease their trips. and offers. The service features Near Field cards at Dubai International Airport to Communication (NFC) and biometric move through immigration, access In the UAE, the tourism and culture enabled identification, an automated day lounges and other touch-points more authorities of Dubai and Abu Dhabi have planner service and online tourist seamlessly 71 . New smart gates that each developed award winning digital tour feedback. In conjunction with this, Qatar is supplement existing e-gates will offer an guides to showcase and enhance the also launching Contextual Indoor automated border control system as visitor experience. Dubai Culture and Visit Navigation, providing indoor information security. Furthermore, immigration checks Abu Dhabi smartphone services both delivery and ‘turn-by-turn’ navigation for will integrate through biometric validation integrate a range of tourist information key points of interest such as the airport, as travelers pass through the new gates 72, 73 . and services (e.g. tourist tips, interactive malls, stadiums and landmarks. Qatar’s Last year, Saudi Arabia’s Ministry of Haj tourist maps, day trips, in-app hotel, travel Augmented City service based on introduced mandatory ‘e-bracelets’ for Hajj and taxi bookings, experience sharing via geospatial information and mobile video pilgrims – QR and barcoded wristbands, social media) and apply technologies such recognition technologies will also provide enabling authorities using smartphones to as AR to enhance interaction with points assistive contextual real-time information tag, identify and track pilgrims, as well as of interest and key attractions 64, 65 . To this (e.g. descriptive text, interactive videos, to differentiate between genuine and end, the RTA has also released a new targeted offers and event information) on illegal pilgrims 74 . Nahaam tour guide system, giving top of smartphone device screens 69 . information about landscapes and routes 66 . Unified travel passes Dubai’s new Smart Use of a single digital device or online Wallets and One Gate Saudi Arabia’s tourism authority also service to minimize manual interactions released an award winning mobile tourist when moving through various travel initiatives will also allow guide called Saudi Tourism 67 . Moving checks (e.g. security, immigration, tickets). travelers, based on forward, the Saudi Ministry of Haj and Umra is developing e-learning programs to Qatar’s Single Transport Pass, for example, automated biometric raise awareness for visitors and provide e- will create a single traveler profile which training for its workers and volunteers to enables tourists to travel using Qatar's facial recognition continue improving information and diverse transportation mediums through technology, to use their guidance services for pilgrims 68 . e-ticketing and e-payment functionalities on NFC based cards, smartphones and smartphones instead of wearables devices 70 . In the UAE, Dubai’s their passport.
36 Deloitte | National Transformation in the Middle East | A Digital Journey
Smart loyalty and incentive programs assistance and tour guides 76 . In addition, entities (Dubai Future Foundation), A universal platform for loyalty and Dubai’s Department of Tourism and telecom players (du), blockchain start-ups rewards applied through blockchain Commerce Marketing (DTCM) has also (Loyyal, DigitUs) and participating entities technology, enabling tourists to collect introduced e-permit and e-ticketing related to travel, hospitality and leisure points and redeem rewards across the city platforms to support and develop Dubai’s locations for points redemption and for sites and attractions they visit, growing events sector 77 . issuance (e.g. Jumeirah Group) 81 . promoting tourism activity. In the build up to the FIFA World Cup, Investment Dubai Points, a new scheme supported by Qatar as part of its TASMU smart With GCC governments allocating multi- the Dubai Future Foundation, allows government program is also developing a billion dollar budgets to major tourism tourists to dynamically earn and redeem suite of digital sports services to support development projects and events over the points at participating locations based on the event. Examples include a universal next five years, spending on supporting their unique preferences, lifestyle and Digital Fan Pass, a social Fan Connect ICT infrastructure, major tourist events other data points (e.g. time of day, past platform, Event Visit Planner and Event and digital smart tourism services is also behavior, location, age). Points in Companion application to provide event- significant. For example the UAE has exchange for tourist data also enable specific information to visitors 78 . allocated US$100 million for its Expo Live more customized and personalized initiative, used to identify and fund incentives. They can be aligned with Saudi Arabia’s Ministry of Culture and technology-inspired solutions for global preferences to encourage tourists to visit Information (MOCI) this year also issues to be showcased at Expo 2020 (e.g. other locations that would maximize their introduced two new platforms to support mobility, sustainability) 82 . Not only would visit, while being rewarded with points. The the annual Hajj pilgrimage. The new this encourage domestic and international advanced incentive scheme is claimed to platform SaudiWelcomesTheWorld.org, businesses to attend, it would also attract be a world-first in the tourism industry, tells the stories of the millions of Hajj many visiting spectators and technology supporting national happiness ambitions pilgrims across the world, providing an enthusiasts, similar to other major and Dubai’s objective to be the world’s insight into their journeys and inviting the international technology events such as happiest city by 2020 75 . world to learn, understand and appreciate the Global Mobile World Congress or the Islamic faith and tradition 79 . It was Technology ‘Disrupt’ events. Event platforms designed in tandem with Hajj2017.org, a Digital platforms designed specifically to media portal providing journalists and the Status support key events and visitors being general public with information, updates, GCC governments have progressed in hosted in the country (e.g. entertainment news, live streams and infographics about some smart tourism initiatives, while they concerts, sports matches, conferences, the event 80 . are still in their nascent stages on others. meetings, exhibitions, conventions). This Most, for instance, already have mature can include digital media coverage, e- Delivery method award-winning digital tourist guides in ticketing, event data gathering and As with other digital themes, smart place and are only working on incremental analytics and visitor services (e.g. virtual tourism initiatives, while led through enhancements with new technologies (e.g. guides). government visions and objectives, are AR, VR). The emergence of digital unified also primarily implemented and delivered travel passes are another major step For example, Dubai’s Expo 2020 aims to through public-private partnerships. They forward, as these initiatives are now be ‘one of the fastest, smartest and most involve a consortium of different partners entering pilot and early implementation connected places on earth’. The event will in order to deliver a seamless visitor phases. For example the UAE’s Smart be designed to offer a complete and experience. For example the new Dubai Wallets and One Gate initiatives are now seamless digital experience for visitors Points scheme is one of the largest-ever being piloted in Dubai’s International with digital services ranging from public-private sector collaborations using Airport, and reportedly mark a ‘stepping- information security, customer relations, blockchain and smart contract technology. stone’ towards the project’s wider aim to geolocation, augmented as well as virtual The initiative brings together government reduce and minimize travel clearing
37 Deloitte | National Transformation in the Middle East | A Digital Journey
procedures 83 . On the other hand, event share customer data across a common and theft increases. Security regulation platforms, smart loyalty and incentive neutral industry platform, facilitating and solutions will have to be employed programs are initiatives seeking to elevate partnerships to serve mutual customers to ensure that tourist information the tourism experience to new frontiers. and digitally co-market to provide end- remains secure, but in a seamless They are primarily still in the development to-end offerings to attract tourists. manner so that it does not disrupt the phase, with the exception of Hajj Governments could be the custodians of tourist experience. Regulation is also platforms, which were only launched such data and contribute to enhancing it needed to define who may use what this year. further by sharing customer journey and data, what purpose it can be used for, behavior patterns in public spaces. where it can be used and who is Current challenges and needs protecting it. In developing and implementing smart • Tourist engagement: most new digital tourism initiatives to enhance the tourist initiatives are either in development, Outlook experience and attract higher visitor beta-stage or have been recently Many of the GCC’s digital and smart figures, regional governments face a launched; they are yet to be proven by tourism initiatives cover discrete parts of number of challenges and needs: their end customers – tourists. To the tourist journey and are simple services ensure these new services are optimized in nature. New smart gates that facilitate • Digitally-savvy tourists with higher and successful, governments must swift immigration and unified travel passes expectations: the rise in digital tourist embed mechanisms to engage tourists serve as an example. Going forward, the services (e.g. online bookings, ratings in a user-friendly and simple manner for next stage in smart tourism is in co- and reviews) and the increasing trend in their feedback. This also enables creating customized and more meaningful millennial tourism has made the world government to collect better information experiences with tourists across as much much smaller and has risen customer regarding tourists’ user journeys and of the tourist journey as possible. This expectations. Younger more digitally- identify new ways to enhance their customization would best take place savvy tourists now expect widely experience. where there are touch-points with public adopted e-gates to work smoothly and government provided services. Significant have less tolerance for waiting in queues • Seamless data security and privacy: coordination and partnership between the for example, and need higher levels of as identity management becomes more public and private sector are required, as digital engagement than traditionally digital with e-passports, e-IDs, alluded to earlier, and new solutions will older segments to enhance their biometrics, new generations of smart have to consider an integrated, end-to- experience and encourage spending. gate systems, and more digital touch- end hyper-customized experience. points (e.g. public Wi-Fi hotspots), the • Integrating the tourism value chain: risk of unauthorized tourist data access the tourism ecosystem is very fragmented and competitive, consisting of many entities in aviation, travel, The next stage in smart tourism is in hospitality and leisure. Tourists are still challenged with coordinating amongst co-creating customized and more many players to create their own personalized experience. GCC meaningful experiences with tourists, governments can play a role in enabling better coordination and partnership across as much of the tourist journey amongst players to help create a more simplified and customized end-to-end as possible. tourist experience. For example, regulation could encourage players to
38 Deloitte | National Transformation in the Middle East | A Digital Journey
GCC governments such as the UAE’s Dubai Ongoing GCC government investment on exchange platforms and augmented Future Foundation are exploring emerging new tourist attractions, events, digital package design solutions involving technologies and new partnerships to infrastructure as well the next drive tourists. Data analytics and real-time provide a more integrated experience 84 . towards providing the ideal tourist digital marketing services will be needed Equally, they are also starting to experience leave a range of new to provide interactive on-the-spot participate in new initiatives led by the opportunities and whitespaces to fill. contextual suggestions to tourists (e.g. private sector. The Together initiative, for Telecom operators and ICT vendors will pop-up meal offers for hungry, price instance, involves multiple government need to expand their network and sensitive tourists walking to their gate in entities (e.g. Dubai Customs, Dubai Police, infrastructure across new tourist sites and an airport). Dubai Airports) exploring advanced events. Advanced technology vendors will technologies to improve Dubai offer new solutions to streamline the International Airport’s passenger journey tourist journey and collect data (e.g. walk- (e.g. automated check-in, baggage drop- through security scanners vs. manual off and tracking) 85 . security searches). SMEs can explore new G2B, B2B, G2G customer data hosting and
Figure 22: Top opportunities in Smart Tourism and key impacts
Top opportunities Key impacts Smart tourism initiatives will drive demand Economic Next-gen IoT for installed IoT devices, supporting 5-6G & connected ICT telecom & broadband services, servers, • Catalyst to growth in tourism, leisure, infrastructure data centers, cloud services hospitality & ICT sectors for economic diversification • Significant reduction in OPEX (e.g. airport Integrated Solutions for common platform security, immigration staff) integration and interoperability is tourist GDP growth via more tourist spend driven by the need to bring together • experience many new and legacy tourism systems • Boost foreign direct investment platform and services Social Annual & upcoming mega-events driving need for event platforms to attract • Cheaper, easier, faster services Event platforms tourists, meet custom needs to maximize • New employment opportunities (e.g. event goals (e.g. event spend, trade deals) behavioral data scientists) • Enhanced tourist experience, satisfaction, happiness Big data from more connected tourists and Big data and • Attract growth in expat population the need to enhance experience is creating • Improved country reputation AI powered a new market for solutions to engage behavioral tourists and obtain tourist feedback Sustainable analytics • Paperless tourist processes (e.g. paperless documentation renewals, auto-insurance) New pricing, Largely a whitespace, the GCC is Reduced waste (e.g. on water and funding & experimenting in blockchain based • incentives. Integrated experience solutions electricity usage from new more efficient, payments will unlock new models to attract tourist greener airports) solutions spend and loyalty
39 Deloitte | National Transformation in the Middle East – A Digital Journey
Future of Mobility
40 Deloitte | National Transformation in the Middle East | A Digital Journey
Future of Mobility
Definition Physically, transport infrastructure and Key strategic goals and benefits include: The Future of mobility makes networks across the GCC are undergoing transportation as much about bits and major extensions and additions. New • Reduction in road traffic deaths: bytes as it currently is about the physical ‘state-of-the-art’ projects include terminals in Saudi Arabia at least 25 percent infrastructure people walk, bike, drive and and airports (e.g. King Abdul Aziz reduction by 2020 92 , in Qatar 50-60 ride on. Existing and new advanced International in Jeddah, Kuwait City percent by 2022 93 , and in UAE technologies improve mobility safety, International Airport), roads, bridges, elimination of road deaths. For example efficiency and experience, resolving age- waterways (e.g. Dubai canal), railways (e.g. Dubai Police target zero road deaths by old transportation issues such as GCC Rail) as well as tram and metro 2020) 94 and the Dubai’s ATS also aims to congestion, capacity and sustainability. systems (e.g. Doha, Riyadh, Kuwait City). reduce traffic accidents and losses by 12 This includes 86 : This also includes new alternative modes percent, worth around US$545 million of transport, notably the Abu Dhabi-Dubai annually 95 . • Digital-age transportation: social Hyperloop project and Dubai’s drone taxi transport, connected and driverless project; both world-firsts. Dubai’s electric • Increased network adoption and vehicles, real-time traffic management, vehicle and bike projects serve as another capacity: for example UAE’s RTA aims to shared transport, online transport example. raise the share of public transport in the services (e.g. smart parking, smart tolls, mobility of people to 30 percent by smart traffic lights, smart signs) Digitally, GCC countries are also 2030 96 . transforming their ever-expanding • Innovations in pricing, funding and transport networks through mass • Reduced congestion and emissions: payments: dynamic pricing models digitalization, high-speed connectivity, and migration from fossil-fuel driven cars to based on sensor data, unified travel introduction of newer, smarter, more electric cars and greener and smarter pass, PPP transport models, incentive- integrated services and management public transport alternatives. Dubai’s ATS based pricing (e.g. price per mile driven systems. aims to reduce pollution by 12 percent, vs. per gallon of gas to refuel) worth around US$400 million per year 97 . Proactive ‘digital-first’ transport strategies • Rise of the alternatives: electric are driving new digital initiatives towards a • Revenue and cost benefits: such as vehicles and bikes regional future of mobility. reduced fuel subsidies and new e-ticket revenue streams. Dubai’s ATS aims to • The airport re-imagined: swift Good examples include the UAE Road and cut transport costs by 44 percent, worth security, civilian drones, augmented and Transport Authority (RTA) Smart Transport US$245 million annually 98 . The Saudi self-service airports, mobile air travel Strategy 2017-2021, Dubai Autonomous Ministry of Transport aims via new apps (covered also in the Smart Tourism Transportation Strategy 2030 (ATS), Abu income streams to increase its self- section) Dhabi Transportation Mobility funding from 5 percent currently to 20 Management Strategy 2030 (TMMS) 88, 89 , percent by 2020 99 . Key initiatives and expected Smart Qatar Transportation Plan (part of outcomes TASMU) 90 and KSA’s Ministry of Municipal • Faster mobility: reduced commuter Globally, the GCC is one of the world’s and Rural Affairs (MOMRA) recently times, saving millions of hours wasted in fastest emerging transport markets, driven announced Smart Transport Systems (part conventional transport (around 400 by national plans to significantly expand its of its smart cities program) 91 . million hours annually in Dubai 100 ) infrastructure, modes of transport and services 87 .
41 Deloitte | National Transformation in the Middle East | A Digital Journey
• Economic diversification impact: • Autonomous transport and services: powered, the pod is a new ‘door-to-door’ increased private sector involvement all types of unmanned transport and mode of transport which picks-up and overall economic contribution of the vehicle-based public services, which are residents from different locations via the transport sector. Dubai’s ATS aims to either pre-programmed or controlled Careem app and connects to other pods generate US$4.9 billion in annual remotely. This can include individual heading in the same direction. Like a returns 101 . modes of unmanned transport such as metro-interchange, residents can switch cars, but also unmanned collective to other connected pods that will later • Multiplier effects: across other sectors transport such as metros, trams and separate and head to different such as tourism and real estate (e.g. aerial vehicles. destinations. The new solution is fewer car parks for more efficient use of designed to significantly reduce traffic prime real estate). This initiative is central to UAE’s future congestion, where instead of having 80 strategy. To this end, Dubai is targeting cars for 80 people, 10 pods can move To realize these outcomes, GCC 50 percent of private cars to have self- 80 people 107 . governments, especially the UAE and driving features within the next 10 years Qatar, have introduced a range of new (by 2027), 12 percent of city trips to be Other use cases include Dubai Police’s advanced digital initiatives highlighted in driverless by 2021 and 25 percent of all Driverless Mini Police Cars scheme, figure 23. trips to be driverless by 2030 105,106 . which, powered by robotics and biometric recognition software, can Connected autonomous transport Dubai is targeting 25 patrol different areas of Dubai to detect Includes manned as well as unmanned and track any unusual activity, objects, connected vehicles of all types (e.g. cars, percent of all trips to be people, suspects and known criminals. trucks, boats, bikes, drones). The vehicles are accompanied with their driverless by 2030. own assistant drones, both of which can • Connected vehicles: usage of built-in be controlled remotely by a police IoT sensors and mobile machine-to- Notable examples include the RTA and officer, via a link to the central command machine (M2M) communications to Careem joint Driverless Electric Modular room 108 . connect all types of transport vehicles to Pods project in the UAE. Electrically each other, central transport control, users, and other transport ecosystem players (e.g. insurance providers). Figure 23: Key types of Future of Mobility digital initiatives
Qatar’s Safe Journey initiative introduces FUTURE OF MOBILITY a range of new services to enhance car safety and risk management. For Key Initiatives instance, it’s Connected Vehicle (V2V) project enables vehicles to sense and share perceived threats with other vehicles, based on telematics data 102 . It’s 1 2 3 Smart Vehicle Monitoring service aims to Connected Autonomous Connected Transport Shared monitor driving, equipment and Transport Infrastructure Transportation
maintenance patterns in cars, the data Includes manned as well as unmanned Government controlled transport and Services such as ride-sharing, car- of which can be leveraged to generate connected vehicles of all types such as user-based mobility services based on sharing, and bike-sharing to help demand forecasts for parts, cars, trucks, boats, bikes, and drones the application of continuous streams of urbanites get around without owning crowdsourced data from connected a car maintenance services as well as inform vehicles, traffic nodes and sensors car insurance schemes 103 . It’s Mobility installed across the physical transport infrastructure Guardian service provides end-to-end visibility for families to track dependents, a service that can also be used on school and public transport buses 104 .
42 Deloitte | National Transformation in the Middle East | A Digital Journey
RTAs Flying Taxi project is another notable • Central transport control networks: Shared transportation use case. The Volocopter is a mini a single command center that centrally These are services such as ride-sharing, helicopter powered by drone technology monitors and controls all modes of car-sharing, and bike-sharing to help with autopilot capability. Measuring two transport. Through centralized data urbanites get around without owning a meters in height and seven meters in gathering and analytics, such centers car. GCC governments have jumped on width, the flying taxi can seat two people, can perform real-time and predictive the bandwagon with taxi sharing services cruise at a speed of 50-100km/h, with a 30 traffic management, faster emergency such as Uber and Careem. min flying time and 40 min battery charge response, and hazard prevention via time. For passenger safety it comes with automated enforcement of road safety In the UAE, RTA signed an agreement with an emergency parachute in case of standards (e.g. controlling cars to remain Careem to allow users to book an RTA taxi, malfunction. The flying taxi service, the within speed limits). track it and check details of their bookings world’s first, will eventually be made via the Careem app 113 . Saudi Arabia’s available to the public, which can be A good example of this is in Dubai, Public Investment Fund (PIF) also invested booked and tracked via a smartphone where RTA launched its new Enterprise in the ride-sharing app Uber, encouraging app. It is hoped this service will ease Command Control Centre (EC3). EC3 is a its usage 114 . On the other hand in Qatar, transport, for example, between high-rises unified mobility platform of platforms government-owned taxi company and key destinations within the city 109, 110 . linking all city transport networks and Mowasalat has launched its own ride- traffic control systems (e.g. Dubai Metro, sharing service Karwa, offering an Qatar’s planned Autonomous Dubai Tram, Dubai Taxis and various RTA alternative to Uber and Careem in the Neighbourhood Fleet project is a ‘door-to- agencies), integrating even ride-sharing country. In addition to the core taxi door’ pick-up and drop-off service that platforms Uber and Careem. The center service, users can also use it for other bridges the last mile of the transportation aims to help ease traffic congestions, transport services such as public buses, gap between public transport drop-off reduce transit time and cost, fend off school buses and private hire points (i.e. metro and bus stations) and traffic accidents, and curb environmental coaches 115,116 . final traveler destinations. These fleets will pollution by adopting smart planning in be deployed as feeder transport systems, addressing transport challenges of the Delivery method with their own special lanes allowing emirate. The creative new mobility initiatives passengers to reach metro and bus launching in the region have only been stations more conveniently and safely 111 . • Transport network-based services: made possible through a number of PPPs user services such as journey planning and collaboration efforts between GCC Connected transport infrastructure based on real-time location and governments, telecom operators, private Government-controlled transport and contextual information downloaded sector tech giants, SMEs and other user-based mobility services are based on from the central transport network. ecosystem players. Under these the application of continuous streams of partnerships, digital initiatives are each co- crowdsourced data from connected Qatar’s new Connected Transport designed and implemented in a phased vehicles, traffic nodes and sensors Network service under its seamless manner. installed across the physical transport mobility initiative is an example of this. infrastructure. It is a fundamental initiative The service guides user journey planning RTA in the UAE for example have required for future mobility to be a and booking by recommending the partnered with a number of private sector successful reality and is especially optimal transit package based on real- organizations across the various initiatives important in the GCC, given rapidly time transport network data and user and projects they are working on. Careem expanding transport networks and preferences (e.g. price, distance, time, is a key partner for RTA, which has enabled advanced new transport modes such as preferred transport) 112 . RTA ride-sharing services on the Careem Hyperloop. Use cases coming to light in platform as well as the new Driverless the region include: Electric Modular Pods project. RTA has also partnered with German company
43 Deloitte | National Transformation in the Middle East | A Digital Journey
Volocopter to bring its dream of flying optimization over the next ten years, the mobility services in 2018. Saudi Arabia and taxis to life. Additional deals to bring largest share of which is reported to be Kuwait, dealing with much larger scale alternative sustainable transport have on traffic management and public expansions in their transport networks are been signed with Tesla for self-driving transport 120 . In addition to the multi-billion following a more steady and gradual path. electric vehicles and with Hyperloop One dollar new transport construction projects as a new alternative mode of transport 117 . in Saudi Arabia, the PIF invested US$3.5 Qatar, Saudi Arabia and Kuwait have also billion in the taxi-sharing service, Uber, Dubai for example was signed major deals with transport and ICT last year 121 , and government-owned the first city in the world developers in pursuit of their smart incumbent Saudi Telecom purchased a transport networks. 10 percent stake in Careem. to successfully field test a new flying taxi service. Interviews also reveal that cross- Saudi Arabia has coordination between government entities and authorities is essential as these future reportedly earmarked However, even with such progress, wide- services need to be properly regulated, US$140 billion on scale connected autonomous transport field tested and carefully managed. As deployments should not be expected such, RTA has coordinated with Dubai Civil mobility optimization over before 2020. Many of the new initiatives Aviation Authority (DCAA) to define flying (with the exception of shared taxi regulations, governance and obtain the next ten years. transportation which is well established approval for the usage of the new service across the GCC) are still in their airspace in Dubai. Similarly, RTA has joined Status experimental stages, and will require forces with Dubai Silicon Oasis Authority GCC governments have made good adequate time to be rigorously tested (DSOA) to allocate and launch dedicated progress on the future of mobility before being accepted as ‘proven’ and fit transport routes in the DSOA park to pilot initiatives they have embarked on. While for public use. In addition, major aspects and test new autonomous vehicles in the dreams of autonomous mobility may of the future of mobility, namely field. In addition, DSOA will contribute seem ambitious and distant, in some ways innovations in pricing, funding and towards autonomous mobility R&D 118 . it is already here. For example UAE has payments are yet to be conceptualized been operating a driverless metro system and implemented to develop a real Equally, involving various ecosystem since 2009, and has recently ecosystem around connected players in the Digital Transformation complemented that with a new tram autonomous transport. Some progress journey is also key. The Dubai World system 122 . Qatar, Saudi Arabia and Kuwait has been made on this, but much more Autonomous Transportation Challenge for have all also made significant progress in remains to be done to effect the Digital instance, launched by the Dubai Future developing similar new smart transport Transformation of the transport sector. Foundation, reaches out to the broader infrastructure and networks. GCC international community of vehicle countries have also seen the rise and Challenges and needs manufacturers, SMEs and R&D centers, quick adoption of shared transportation, In developing and implementing future inviting them to compete and work which are being harnessed by mobility initiatives, GCC governments also towards innovative solutions for ‘last-mile’ governments in different ways. need to tackle a number of challenges and transportation from metro stations as well needs: as autonomous neighbourhood buses 119 . However, the UAE, and Dubai in particular, has established itself as a clear leader in • Supporting policies, regulations, Investment this space, with the most defined standards: public policies need to be While total figures on future of mobility autonomous transport strategy and plan defined to support new solutions, and budgets remain undisclosed, it is clear in place, having signed agreements with a their adoption with regulations and that significant planning and investments range of organizations for multiple standards need to be defined to govern in new mobility infrastructure, solutions projects. Many of these are already them (e.g. safety regulations for and services have been made. For prototyped and are being piloted. Dubai, driverless cars and drones, example, the UAE invested over US$91 for example, was the first city in the world communication and data interoperability million to build Dubai’s new EC3 mobility to successfully field test a new flying taxi standards for connected vehicles). center. Saudi Arabia has reportedly service. It is followed closely by Qatar, earmarked US$140 billion on mobility aiming to release its own range of future
44 Deloitte | National Transformation in the Middle East | A Digital Journey
• Integration and consolidation: many • Car-centric usage: higher incomes and various reasons already, which could services have migrated to smart e- lower fuel prices compared to other push-back future mobility government and m-government countries enables people to afford their advancements. platforms. However there are more than own cars for transport. Coupled with the 170 transport services in UAE, which fact that current public transport Outlook need to be further consolidated. networks are not developed to the last The GCC auto market will expand mile, private cars remain the primary significantly to the extent that by 2021, • Public safety and security: from a mode of transport. This could generate more stringent regulations and standards physical perspective, the public still inertia in the adoption of new public could drive auto-makers to manufacture needs to be convinced over the ‘smart’ transport networks and services, nearly 3 million cars in the region. This reliability and travel-worthiness of which stood at only 13 percent in creates an opportunity for GCC autonomous vehicles and from a digital 2013 123 . governments to establish a new home- perspective, transport network data and grown industry and ecosystem around control over all vehicles within that • Tight timescale and delays: many connected autonomous vehicles 125 . The network need to be strongly protected. new ‘smart’ public transport projects figure below depicts the potential (e.g. airports, metros, railways) are being opportunities a new autonomous • Coordination: integrated mobility developed from scratch within very short transport network could provide, solutions require close and consistent timelines to meet GCC envisioned illustrating business transformations in coordination across the transport ambitions. Transport developers cite this adjacent industries that could emanate network and ecosystem. Both as a key challenge as such ‘state-of-the- from this. With the great progress already government entities and private sector art’ projects are large-scale and complex, made by the GCC and pathway of agencies need to focus on broad require thorough testing and are opportunities ahead, what is clear is that coordinated development, sensitive to delays without full the governments in this region have only implementation, operations and government support and financing in begun to scratch the surface. maintenance, which could take time. place 124 . A number of projects across GCC states have been delayed for
Figure 24: Top opportunities in Future of Mobility and key impacts
Top opportunities Key impacts Mobility initiatives will drive demand for Economic Next-gen IoT installed IoT devices, supporting 5-6G & connected ICT telecom & broadband services, servers, • Productivity: Dubai to recover infrastructure data centers, cloud services approximately 400 million lost travel hours • Revenues: Dubai to generate US$4.9 billion in annual returns Solutions for common platform Reduced transport OPEX & CAPEX (e.g. bus Integrated integration and interoperability is • drivers, call centers) transport driven by the need to bring together systems many new and legacy transport systems • Catalyst of growth in ICT and transport and services sectors Social Mobility initiatives are generating huge Connected demand for connected autonomous • Cheaper, easier, faster mobility: approx. autonomous vehicles (e.g. Dubai targets 25 percent of 70 percent cost reduction per mile vehicles all mobility to be driverless, including • New employment opportunities (e.g. flying taxis) mobility control managers) • Reduced road deaths: globally 1.24 million Driven by connected mobility network. Big lives saved annually Big data and data and AI analytics enable real-time, • Citizen satisfaction, happiness AI powered cognitive decision support for citizens, predictive authorities, providers Sustainable analytics • Greater use of viable alternatives (e.g. Currently a whitespace in the GCC, it will Hyperloop, electric vehicles, clean public New pricing, transport) funding & surge in demand as migration towards autonomous transport gathers pace (e.g. Emissions: 40 to 90 percent decrease from payments • price models on vehicle-telematics data) automobiles solutions • Paperless mobility processes (e.g. vehicle documentation renewals, auto-insurance)
Source: “Future of Mobility” report, Deloitte University Press, 2016
45 Smart Government Deloitte | National Transformation in the Middle East | A Digital Journey
Smart Government
Definition its development of smart services 128 . individuals across all electronics. Smart government refers to the use of Similar initiatives adopted by the rest of Governments, across a wide range of integrated information and the GCC reveal better business outcomes sectors (i.e., transport, communication, communication technologies in and subsequent cost saving opportunities. security, health, education, social affairs) government policies, services and are developing mobile applications to processes to enhance customer Key initiatives and expected provide on-the-go services with enhanced experience and satisfaction, develop outcomes user experiences. efficient and cost-effective ways of doing This paper chose three initiatives that are business and improve policy making. the most prevalent as part of GCC Mobile apps provide individuals with easy planning towards smarter governments: access to information, the ability to Smart government programs communicate with relevant personnel implemented globally have delivered Customer-centric one-stop-shop from government entities, receive advance significant and tangible benefits to their platforms notifications, complete their government economies. Digitizing more than 1,100 Governments are making strides in their linked transactions and more. Likewise, services has saved the state of Utah technology choices to simplify processes these apps allow government officials to US$500 million annually 126 . It also for citizens. Across the GCC, Public Sector keep track of activity, increase efficiency in converted 99 percent of public services in entities have emphasized the processing transactions and foster real- Estonia to e-services, saving 800 years of development of mobile applications as a time public engagement. working time 127 . The government of Dubai means of conducting government services has also saved approximately US$1.17 at any point in time. For instance, mobile billion over the past twelve years through phones are the most used device by
Figure 25: Key types of Smart Government digital initiatives
SMART GOVERNMENT
Key Initiatives 1 2 3 Customer-centric one- Government Data analytics stop-shop platforms collaboration
Integrating service delivery by Implementing new data standards Processing and analysis of information leveraging ICT across various entities around sharing, hosting and to allow for enhanced decision and for a seamless customer journey governance; federal entities enable policymaking through predictive collaboration effectiveness across analytics public services
47 Deloitte | National Transformation in the Middle East | A Digital Journey
After enabling m-services, governments Platforms such as Dubai Now have Delivering on its customer-centric are collaborating together and in some emerged, allowing citizens in Dubai to approach and happiness metric, Dubai’s cases, with private sector entities, to access various government services in one smart e-service center is driven by IBM create fully integrated platforms. These single location. The app integrates more Watson artificial intelligence and a robot smart apps or e-government services act than fifty services such as payment for that provides more than 100 services as a one-stop-shop for all day-to-day traffic violations, utility bills, top-up ensuring only one time visits. Some customer services, such as payments, top- options, charity donation and visa services include ID renewal, marriage ups, location finders and information application tracking 129 . certificates and birth certificates 130 . directories.
Figure 26: GCC mobile Smart Government applications
Country Application Name Developed By Description
Integrates over 50 smart services across 22 government entities to Dubai Now Dubai Smart Government enable user access to a comprehensive list of services across the city
Allows users to view social security status & application instructions, MyGOSI GOSI track and cancel applications, and file complaints
Provides users with a list of attractions, hotels, restaurants and Abu Dhabi Tourism & Visit Abu Dhabi interactive maps; options to book taxis, hotels and flights are Culture Authority available in 10 languages
Allows users to view and pay bills, access lists of services, track the Qatar General Electricity & Kahramaa status of services demanded, locate service centers and send Water Corporation suggestions & complaints
Allows users to view all events and festivals; it provides relevant Kuwait Festivals Ministry of Information details and manages a personal calendar of interested events
Source: Deloitte research and analysis, GCC government websites
Figure 27: Dubai Now mobile application 50+ Services
Utilities & Bills Public Transport Security & Justice Residency Business Health Driving Islam Education Housing General Visas Employment
22 Government Entities
Source: Deloitte research and analysis, Dubai government websites
48 Deloitte | National Transformation in the Middle East | A Digital Journey
Dubai’s smart e-service information sharing services across all Delivery method federal entities through smart clouding Integrated delivery is a result of efficient center is driven by IBM solutions 134 . and effective collaboration between all entities – public (federal and local), semi- Watson artificial From a regulatory standpoint, the UAE’s government, private and non-profit intelligence and a robot TRA has undertaken work to review sectors. Across all entities there remains a existing data legislations, update the high demand for IT programmers as well that provides more than guidelines and conduct an outreach as web and app developers. Government 100 services ensuring program in order to adopt data standards organizations are able to better integrate for seamless data integration and data through this collaboration to leverage only one time visits. analytics. Regional data hubs are the way integration into a seamless service in which future governments would delivery. Qatar’s Hukoomi is another step in this leverage data integration. In that context, direction. Customers will be able to the UN recently designated Dubai as the Dedicated programs are also a means for complete more than 650 government local data hub for the MENA and South enhancing e-government services and related transactions from their mobile Asia regions. On one hand, this solidifies initiatives. For example, KSA recognized phones 131 . Dubai’s positioning and vision on the essential role of e-government and government data collaboration, while on consequently created Yesser, the Government collaboration the other, brings GCC into the foreplay of designation program governing the The evolving use, storage and sharing of data governance 135 . implementation of e-government data along with its regulatory standards is initiatives in the Kingdom 137 . Similarly, picking up as a major enabler for Data analytics Dubai is allocating Area 2071 as a mini government collaboration. Although GCC With data sharing becoming more Silicon Valley to empower start-ups, countries are still maturing in this initiative common, the use of data analytics to track venture capitals and other digital with their current ranking all below the patterns, predict outcomes and adapt to enterprises that contribute to the digital 50th position in the Open Data changing conditions is becoming more sector in the UAE. Barometer 132 , there is a strong emphasis critical in the GCC. Data analytics will on the importance of transparency enable better and faster decision making Investment between governments and citizens to amongst government entities as well as Investing in digital innovation to establish promote development. This transparency adhere to the requirements of citizens. smart governments can reap great returns contributes to the provision of public While still popularizing across the region, for the country, as seen in best practice service, ease of doing business for SMEs, the UAE has already made plans to adopt examples. Predictions estimate that if the start-ups and other enterprises as the these technologies. UAE government and businesses alike availability of public data and information optimize their digital skills, technologies allows for more innovation and growth Dubai just launched the Dubai Pulse and accelerators, its GDP would increase while reducing challenges. Platform initiative in an effort to switch to by US$13.8 billion by 2020, 3 percent of smarter technologies in the Public Sector GDP. Saudi Arabia could add more than Aiming to achieve smarter practices, space. This central platform will aim to US$31 billion (4.1 percent of GDP 138 ) and Dubai’s Open Data platform addresses house government data and will be Qatar US$7.8 billion (3.6 percent of GDP) this development by sharing all available to all relevant government by 2020, through these investments 139 . government-related, non-confidential officials allowing them to aggregate, data and information with the public 133 . process and analyze information to make Similarly, Qatar has established Open Data more informed decisions, enhance policies giving entities a framework and operational efficiency and lower data approach for releasing different types of access costs 136 . data. Moreover, the UAE Federal Network (FN), a G2G network is now available for
49 Deloitte | National Transformation in the Middle East | A Digital Journey
Status Kuwait improved its e-government ranking KSA has risen rapidly in the rankings over According to the UN E-Government drastically by increasing nine ranks. Qatar, the years and despite its fallen rank over Index 140 – an index assessing a country’s although downgraded by four, is moving in the past two years, the country is currently e-government development based on the the right direction. MOTC’s establishment making great efforts in enhancing its ICT adequacy of its ICT infrastructure, the UAE, of TASMU, which encompasses over 80 infrastructure and digital ecosystem in line KSA, Qatar and Kuwait all rank in the top digital initiatives, aims to launch in 2018, with Vision 2030. 50 in terms of education and adaptability picking up the pace of digital in the to ICT. While the ranks have varied over country. Dubai, ranking the highest at 29, has made the years, efforts are being made in line plans to become the smartest city in the with government visions to ensure world by 2021. Its platform, ‘Dubai Now’ smarter governments. was named the Best Mobile Government Service in the UAE at the World Government Summit in 2016 141 . Figure 28: GCC ranking in the e-government Index UN e-government Current challenges and needs Index ranking Digital talent is a global challenge that is also prevalent in the UAE. Expertise in app development, software development, digital manufacturing and other related services is required for markets to keep up 29 with the pace of global transformation. 36 36 This expertise is especially crucial for in- 40 house initiatives. Entities need skilled 44 44 48 employees to manage, maintain and 49 troubleshoot these digital applications regularly. 2014 2016 2014 2016 2014 2016 2014 2016
Stronger promotional efforts, especially among older generations, are crucial to increase awareness and assure individuals Source: “e-Government Survey” 2014 and 2016 reports, United Nations that online transactions are more efficient, safe, up-to-date and reliable. Figure 29: KSA e-government rankings (2003–2016) Data ownership and data sharing are also 36 challenges in the GCC, specifically for 41 44 integrated information. The large number of entities participating in integrated 58 information and service delivery contributes to issues of bureaucracy and 70 in some cases, reduces stakeholder 80 interest in taking ownership and 90 responsibility.
105
2003 2004 2005 2008 2010 2012 2014 2016
Note: after 2005 e-government survey was next done from 2008 on a bi-annual basis Source: “e-Government Survey” 2014 and 2016 reports, United Nations
50 Deloitte | National Transformation in the Middle East | A Digital Journey
Entities are reluctant to share their data Outlook GCC countries are aiming specifically when it relates to a project or GCC countries are aiming to achieve a an initiative that they are not taking model similar to more advanced smart to achieve a model similar ownership of. government implementations like Estonia, where all government services are made to more advanced smart The security and privacy of content plays a available online and can be completed government major role in the ability of governments to within minutes. GCC governments are implement these programs. Governments testing digital and exponential implementations like must ensure the highest level of technologies to encourage effortless, Estonia, where all sophistication in digital security to secure quick and paperless integrated data, personal credentials and other transactions. government services are confidential information input into their systems. Moving forward, the focus and interest in made available online data warehouses, cloud platforms, and can be completed Finally, government regulation is a key enhanced data, cyber security, smart concern in fully digitalizing and adopting devices and applications, blockchain, within minutes. emerging technologies as part of an e- robotics and big data analytics are a few government. Legislation must be clear and areas of high impact and certainty when it effective covering all types of e- comes to ICT investment. These will play a transactions and functionalities, while also critical role in enabling governments to ensuring that it does not limit the deliver on the smart government promise. adoption of new technologies, such as drones.
Figure 30: Top opportunities in Smart Government and key impacts
Top opportunities Key impacts Smart government initiatives will drive Economic Next-gen IoT demand for installed IoT devices, support & connected ICT 5G telecom investments, broadband • Increased productivity and output services, data centers & cloud services infrastructure • Significant reduction in OPEX of public services (e.g. staff) Reduced CAPEX for physical assets (e.g. call Solutions for common platform • centers) Integrated integration and interoperability is national platform driven by need to bring together many • Catalyst to growth in ICT sector of platforms new and legacy systems across many government entities Social Smart government initiatives are generating huge data volumes, creating a • Cheaper, easier and faster access to Big data massive new market for data storage, government services sharing and analytics services • New employment opportunities (e.g. high value robot managers) • Greater transparency and trust Need for large–scale operational efficiency • Citizen satisfaction, happiness Artificial across many government entities and intelligence & services will require AI based Robotic robotics Process Automation (e.g. Chatbots in Sustainable service centers) • Paperless documentation Migration to Digital Government & e- • Reduced wastage via more efficient Services creates more access point government processes (e.g. time, utilities, Cyber vulnerabilities for hackers, which needs to supplies) security be countered with stronger cyber security • Reduced carbon footprint (e.g. minimizing services need to visit government offices)
51 Smart Cities Deloitte | National Transformation in the Middle East | A Digital Journey
Smart Cities
Definition some of the innovations enabling Key initiatives and expected As the world is becoming far more governments to implement new smart city outcomes urbanized, and mega cities with programs. The demographic change In line with other developed countries populations greater than ten to twenty component is a key driver in smart city across the world, the GCC is also million people are emerging, there is a developments as also seen in the GCC leveraging digital technologies to greater need for large-scale operations where the cities are being shaped by the accelerate the development and and management for cities to effectively youth who are growing up in such an implementation of smart city solutions to serve its inhabitants. As societies are integrated society. enhance their current and future urban becoming more connected through digital development. and mobile, they are also becoming much busier. With this comes an increasing Figure 31: Deloitte Smart Cities framework number of demands and challenges to be met in an ever-more dense and active city life. These conditions make ‘Smart City’ living the next necessary evolution in the way of life.
Smart cities are cities that use smart technologies, data analysis and innovation to improve the quality of life, efficiency of urban operations, services and competitiveness, while ensuring the city meets the needs of present and future generations with respect to economic, social, environmental and cultural aspects.
For a city to be ‘Smart’ it needs to be digitally connected and integrated across the key domains of society. Offering the people, businesses and governments a seamless and outcome driven experience across key levers of economy, mobility, security, education, environment and living.
Digital and exponential technologies ranging from AI integrated sensors, robotics, big data analytics and IoT are just
53 Deloitte | National Transformation in the Middle East | A Digital Journey
As such, GCC governments have city regulators’ ability to track economic Dubai has made a smart introduced various digital initiatives along performance and outcomes. the six smart city pillars: economy, economy initiative to mobility, security, environment, education The economy pillar is arguably the most and living. significant dimension as GCC countries implement blockchain adopt technologies that optimize internal technology to save and Economy processes and develop new industries. The economy pillar represents the Dubai, for example, has made a smart redistribute 25.1 million prosperity and wealth of a city and its economy initiative to implement hours of economic residents. Cities with a ‘smart economy’ blockchain technology to save and have an edge to prosper via easier ways of redistribute 25.1 million hours of productivity. doing business, finding work (meeting the economic productivity. In the KSA, MOMRA needs of a borderless workforce), and has announced its plan to implement ten gaining access to financial opportunities, smart cities across the country. all empowered through ICT. For instance, Operations in such cities would include robotics automating government improving efficiency on city management, procedures (e.g. permitting and licensing). attracting local and foreign investment as Digitization and big data analytics improve well as creating job opportunities.
Figure 32: Smart Cities ecosystem and stakeholder map
National City & federal Businesses and Telcos, technology government & Professional services leadership citizens & engineering Stakeholders agencies
Energy & infrastructure Administration, planning & management People and communities
Public works Administration Public safety City Building Land use Education Grids Functions Environment management Healthcare Water Licensing and inspection Consumer services
Enabling Cloud Big Smart IOT Next Gen Cognitive Sensors Robotics Social 3D Virtual Energy Technologies Data Phone/card Security Systems Media Printing Reality Efficiency
Smart Services, aligned with a city’s strategy would lead to smart governance that facilitates efficient planning and decision making, improves democratic processes and transforms the delivery of public services
Economy Mobility Environment Living Efficient power distribution • Intelligent transport systems • • Smart meters • Financial services Virtual power plants • Advanced traffic management • • Smart building systems • Public services Distributed generation • Fleet management • • Heating and ventilation • Traffic management applications Smart substations • Connected cars • • Access control systems Smart • Administrative operations Leakage detection sensors • Electronic road pricing • • Green buildings Governance • Predictive analytic flood warnings • Smart homes & appliances • Data driven waste collection Security Education • e-health • Recycling • m-health • Command center • Adaptive learning • RFID based waste collection • Medical equipment • Advanced video a nalytic s ystems • e-classrooms • Hospital equipment • CCTV surveillance • Open online courses • Insurance company • Smart IT security • Digital infrastructure and educational • Anti fraud s ystems material
Source: Deloitte research and analysis, MI analysis, Technavio
54 Deloitte | National Transformation in the Middle East | A Digital Journey
Mobility the city (e.g. prevention of identity theft, GCC governments are attempting to Mobility, as alluded to in the Future of digital financial theft). Secure data incorporate smart technologies specifically Mobility section, represents both the platforms, clear governance and smart in the education sector. Digital initiatives physical and digital infrastructure that access protocols ensure that data is broadly fall into the following categories: supports services and help people and safeguarded against cyber threats. Big smart education systems (based on digital goods move more safely, cheaply, quickly, data and predictive analytics are helping devices rather than textbooks), online cleanly and happily. A smart city with true security agencies to proactively control platforms (self-taught, flexible and advanced mobility is equipped with digital- crime rates. accessible learning via online courses) and age transport (e.g. autonomous vehicles digital literacy (ICT content focus in school and drones), applies innovations in This domain is arguably top of the agenda curricula). mobility service pricing, funding and for the GCC countries as they have payments (e.g. sensor-driven dynamic introduced a number of digital initiatives Environment pricing models), uses alternative to develop smarter, tougher and stronger Environment represents the natural sustainable modes of transport (e.g. national and city level security to fight ecosystem and surroundings of a city’s electric vehicles) and re-imagined and prevent crime at home and on their inhabitants, encompassing components infrastructure (e.g. airports). borders. Examples of initiatives include such as vegetation, air quality, climate and MOMRA’s plan to implement smart-street livestock. Cities today are notorious for GCC countries have some of the most lighting systems which not only reduce being a source of pollution, ultimately rapidly advancing transport systems in power consumption but also enhance causing environmental damage and the world, and in many ways are leading security by increasing light brightness climate change. Smart cities, however, aim new mobility innovations. Key digital when movement is detected. In Dubai, the to shift the paradigm from harming to initiatives in the GCC include connected police recently deployed a smart controller supporting by applying new technologies autonomous transport, connected device that can assist officers from traffic to preserve, protect and even to enhance infrastructure as well as shared departments to maintain safety on the the environment. This could include transportation. Notable examples include roads, improve electronic road sensors that detect leakage of preserved Dubai’s recently tested flying taxi project surveillance and capture serious natural resources, such as water, or and its integrated transport control center violations by drivers. responsive devices (e.g. washing (EC3) 142 . For a detailed review of mobility machines) that temporarily stop and examples see the “Future of Mobility” Education consuming energy when demand for theme. Education, which was outlined in the energy (and prices) increase. Classroom of the Future theme, is the Security learning and application of ICT to As concerns about sustainability and Security is paramount for any city before it transform one’s way of learning. energy conservation arise across the can thrive. Over time, ICT has played an Technology solutions such as virtual world, GCC governments are taking increasingly central role in security, both learning, digitization, and AR transform the serious measures to ensure more efficient physically and digitally. Physically, way individuals learn. Unbundled, practices are being exercised through the technologies such as security drones, personalized, and blended education can use of new technologies. These come facial-recognition and predictive analytics be more accessible thanks to rich data from sensory and monitoring tools, are applied to ensure a city and its and analytics, which helps shift the focus including resource saving systems and inhabitants are protected from any of education from digital content in the offer more reliable and efficient services. physical breach or harm (e.g. prevention classroom, to real-world experiential Furthermore, such technologies are of street crimes). Digitally, cyber security learning. In a smart city context the smart prioritized to achieve lower pollution, gas technologies are equally critical to ensure connectivity of digital education platforms emission and cleaner resources to ensure the protection of sensitive data relating to in government service offerings delivers a sustainable and productive lives. business, people and operations within seamless citizen experience.
55 Deloitte | National Transformation in the Middle East | A Digital Journey
With plans to become the smartest city in order to ease the day-to-day processes for The development of integrated smart city the world, Dubai, is working on connecting home owners, all while minimizing energy projects in the region such as Dubai’s all of its resources and infrastructure. consumption and inefficient energy Design District, Dubai Silicon Park, Qatar’s Water, energy, drainage, waste distribution practices. Smart homes also have Lusail City development project, and networks, buildings and traffic lights will be capabilities that allow residents to monitor Yanbu City also encourage enhanced connected and monitored to provide the environment inside and outside their digital integration across sectors. Such more reliable and efficient services. This homes remotely, and provide sensors developments also aim to develop network of connectivity allows for easier that activate alerts based on changes in intelligent green solutions, improve detection of outages, leaks and temperature, leaks, movements and process and operational efficiency and consumption levels. motions. leverage ICT capabilities to contribute to overall growth. Furthermore, the Dubai Electricity & Water Telecom service providers including du Authority (DEWA) is the region’s smart and Etisalat are already making way for utility pioneer. It is focused on upgrading smart homes integrated offerings through its infrastructure and is planning to connectivity, networking, managed The Royal Commission of implement smart grids which will include services and automation as well as a Jubail and Yanbu have high-tech energy efficient resources, mobile apps that connect to devices, thirteen photovoltaic solar power facilities equipment and kitchen appliances 144 . signed a milestone and a planned investment of 250,000 agreement with Huawei smart meters by 2021. The city aims to Delivery method ease residents’ lives by providing 90 Smart city developments are large scale to establish a training percent of day-to-day requirements projects with a complex ecosystem and an through digital services 143 . impact on multiple economic sectors. To academy and a smart city deploy a smart city, an ecosystem of innovation center in the Living technologies, service providers and Living encompasses the sustainable operators must be in place to enable Yanbu region to analyze health and quality of life of each person. these programs. Operating as an and collect data which will Smart cities apply ICT technologies to integrated city plan of smart programs is improve the lives of its inhabitants to critical in order to deliver smart city allow developers, achieve greater citizen happiness and outcomes. students, and academics social cohesiveness. Applications of smart living include connected communities To ensure these components are provided to benefit through open through smart buildings, health care effectively, GCC governments are innovation and the use of data to monitor proactively seeking partnerships with ICT data technology. and enhance social programs, all of which experts across developers, suppliers and contribute to improved health, quality of service providers to help deliver efficient life and sustainability. infrastructure. For example, the Royal Commission of Jubail and Yanbu (KSA) Alongside its interest in sustainability, have started a strategic partnership with increasing attention is being directed by technology providers to implement a the GCC in the form of smart homes. smart city. They have signed a milestone Smart home and smart building solutions agreement with Huawei to establish a are becoming increasingly prevalent in the training academy and a smart city GCC and consist of sensory technologies innovation center in the Yanbu region to that automate systems. Such technologies analyze and collect data which will allow can automate televisions, lighting, air developers, students, and academics to conditioning and even grocery lists in benefit through open data technology.
56 Deloitte | National Transformation in the Middle East | A Digital Journey
Investment contribution to GDP (20 percent of GDP) While Riyadh and Jeddah rank lower As outlined above, GCC countries are and create over one million jobs by (123rd and 115th respectively), these cities focusing on investments in upgraded 2020 147 . are making improvements and prioritizing network infrastructure, ambitious smart initiatives as a part of the Saudi NTP. city projects and complementary digital Furthermore, Qatar’s Lusail City initiatives. The UAE’s telecom provider, development project, which will build a Doha currently ranks 117, but has Etisalat, plans to invest more than US$820 fully integrated smart city from scratch has ambitious plans to create a smart city million in 2017 to develop infrastructure a total investment of US$45 billion. (Msheireb Downtown) which will equate to and to expand its mobile and fiber-optic the largest project in Qatar dedicated to networks to improve coverage across the Status future innovative developments. The country as well as prepare the network for Dubai and Abu Dhabi rank the highest out smart city will aim to have one principle 5G 145 . Another example includes the Dubai of Middle Eastern countries (66th and control center, 500,000 sensors, 33 Silicon Park project, valued at US$350 64th respectively) in the world smart city services and 2 data centers. million which will be built in Dubai Silicon rankings, according to the IESE Cities in Oasis and aims to create intelligent Motion Index 2017 – an index that Current challenges and needs solutions across the smart city 146 . analyzes all aspects that make up the The first group of challenges are related to sustainability and quality of life in 180 key a smart city strategy. It is paramount to In an attempt to move away from an oil- cities 148 . The UAE is moving fast with understand for each specific city what based economy, KSA is also investing in initiatives such as smart school buses, in services can be smart according to its smart city projects that aim to create a which it aims to cover all 383 public school ambitions and constraints. There are knowledge-based economy. It is expected buses in Dubai 149 . Its smart home market various cases of cities with a few so-called to invest US$70 billion toward smart cities, is expected to grow at a 14.8 percent smart services only to justify receiving the with a vision to generate a US$150 billion CAGR between 2016 and 2022 150 . smart city title. Moreover, a smart city boils
Figure 33: Smart multi-layered ecosystem
Smart City Domains Economy Mobility Security Education Living Environment
Smart Smart Smart Smart Smart
r Smart City / Smart living
e economy mobility security education environment t IoT Platforms platform n e
e platform platform platform platform platform c C n
a d n n r a e v m IT architecture – operational and business support systems, analytics o m G o
C
m
a Network architecture – backhaul, backbone, mobile and fixed access d r e ICT t g a o r r Infrastructure g P Datacenter infrastructure (Cloud distributed infrastructure) e t n I Passive network infrastructure
Smart City End Components Videos Mobile Devices Sensors Wi-Fi AP Wi-Fi AP
57 Deloitte | National Transformation in the Middle East | A Digital Journey
down to collaboration between all parties Outlook The first group of that comprise a society, meaning an Emerging technologies will play a relevant engaged citizen is required to transform a role in Digital Transformation, and hence challenges are related city into a smart city by engaging with on Smart cities. Take 5G network mobility Public Sector entities using smart services. as an example, forecasted to be ready by to a smart city strategy. Digital inclusion also comes into Q2 2018. 5G will be a flexible technology It is paramount to consideration in determining which part that smart cities will rely on for of society will benefit from smart services. connectivity, dealing with very high data understand for each A government strategy also needs to throughput, massive connections with specific city what services address this issue to cater to the larger very low throughput (IoT, for example), and population. ultra-reliable, low latency communication can be smart according (critical public services). Creating a safe and reliable smart city is to its ambitions and also replete with challenges related to Looking forward, smart city investment is constraints. There are technological matters such as information positioned to grow in most of the GCC security, privacy, and seamless with an increased focus in KSA and UAE. various cases of cities connectivity across all aspects of the smart Smart building and smart transportation with a few so- called city ecosystem. A major concern when programs are leading the way with CAGRs implementing smart city initiatives is to estimated at 10 percent and 9 percent smart services only to 151 develop an ICT master plan that will respectively by 2020 . justify receiving the smart enable smart service deployment. When it comes to GCC ICT development levels, By 2018, there will already be a few smart city title. ITU’s 2016 index (analyzing 175 countries) city projects that will have launched in the positioned the UAE and KSA at the 38th GCC. One of the most audacious projects and 45th rank, meaning these countries will take place in Jeddah, valued at US$1.2 are investing, but there is space to billion, and estimated to be completed by improve. Specifically, the KSA’s scale in size 2020. compared to rest of the GCC adds a complexity to the challenge to speed up Such initiatives generate a positive outlook ICT development due the sheer cost of for the overall sector and for ICT players in expanding the country’s optical backbone. specific. Innovative technologies such as 5G, IoT, AI, blockchain and VR will serve as key enablers to many of these regional programs.
Looking forward, smart city investment is positioned to grow in most of the GCC with an increased focus in KSA and UAE. Smart building and smart transportation programs are leading the way with CAGRs estimated at 10 percent and 9 percent respectively by 2020.
58 Deloitte | National Transformation in the Middle East | A Digital Journey
Figure 34: Global market size and outlook of smart city domains 2015 2020 UUS$25S$25 bbillionillion 26% Building Energy Adoption of automation systems that remotely Power companies are collaborating with ICT providers to adopt VPPs and micro- 24% control and monitor electrical equipment grids M2M communication via IoT to increase energy Water and waste efficiency building management 22% Smart water management systems using ICT to save resources for the future 20%
18% Mobility Healthcare Governments are collaborating with Wearable devices enable people to private players to develop greener maintain healthier living. Electronic health 16% transportation options and improve traffic records would ease patient care and Security and parking congestion increase connectivity between hospitals Data-driven models are used to predict scenarios and the likelihood of crime. Smart 14% S security also safeguards user information m Education a r t Economy Data-driven technologies along with open c 12% i t education resource systems to help tailor y Combining broadband and the Internet of Things education content and experience for s e (IoT) to improve delivery of public services and student needs g foster economic growth m 10% e n
t 0% 5% 10% 15% 20% 25% 30% C
A
G R Smart city domains – Share of global smart city market
2
0
1
5
- Note: Size of the bubble represents the global market size in US$ billion 2
0 2 Source: Deloitte research and analysis, based on data from Technavio, Automation.com, Techcrunch, Smart City Council, “ Global Smart Cities Market 2016- 0 2020” report, “Global Smart Water Network Market 2015-2019” report
Figure 35. Top opportunities in Smart Cities and key impacts Top opportunities Key impacts Use iBeacon technologies to integrate Economic systems in the city to enable better living, IoT Devices and Solutions environment, economy, security, mobility • Data-driven policymaking resulting in and education favorable environments for businesses and citizens i.e., supporting governments in predicting factors of natural disasters Use of smart metering, high-tech sensors, • Digital government services results in better integrated data centers, etc. to enable Digital City savings for governments such as Dubai digital in city master planning and ensure Planning (US$1.17 billion savings) and paperless environmentally sustainable civil structures transactions Social Develop an ecosystem that is required to build smart cities. Leverage platform of • Implementation of Blockchain technologies Platform of platforms solutions to enable city can result in 25.1mn hours of productivity Platforms dashboards for authorities to ensure redistributed and saved in Dubai better communication • 50-60% reduction in travel deaths by 2022 in Qatar by applying technologies such as Analytics used to tap into big data for each autonomous cars sector and develop integrated city Integrated Big management systems e.g., crime, security. Data Analytics Generate recommendations for future Sustainable security using AI • Efficient waste collection using sensors in Use of cyber and cloud security as a means waste containers of securing information to mitigate fraud, • Lower congestion and pollution levels Smart Security cyber attacks, leakages, etc. as well as through optimal use of transportation implementing Blockchain solutions as a infrastructure secure means of ledger
59 3. The GCC on the Digital Transformation journey Deloitte | National Transformation in the Middle East | A Digital Journey
3. The GCC on the Digital Transformation journey
Assessing the digital state in GCC Overall, this framework is used as a way to As presented in the previous section, measure the progress achieved by each digital ranks very high on Middle Eastern GCC country across the different themes. agendas as it is regarded as a key enabler They are shown on the table of selected in the successful implementation of GCC countries for each key theme transformation plans. This being said, as (Classroom of the Future, Next Generation per the Digital Government Index Care, Smart Government, Smart Tourism, presented earlier, countries in the region Smart Cities, Future of Mobility) and is are not always at a similar stage of complemented by key learnings from best development with regard to government practice countries. digitization levels.
Figure 36: Deloitte’s Digital Transformation Each country has taken a different path on assessment framework and criteria its respective Digital Transformation journey. For this reason, complexity arises when attempting to compare the maturity level of digitization across countries on Customer Digital both a regional and international basis. Feedback Strategy Keeping this in mind, Deloitte’s Digital Transformation Framework highlights the digitization status achieved by Public Sector entities across their transformation. Particularly, the Customer Involvement Regulation framework assesses multiple layers of each entity’s operating model, business Digital Customer model, and customer model while also Model Digital mapping to the TM Forum Frameworx Business criteria (strategy, organization, culture, Model Deloitte Digital customer, technology). Framework Digital Ecosystem Additionally, each level of transformation Operation has a specific set of criteria as presented in Deloitte’s Digital Transformation assessment framework (see appendix for Digital detailed assessment criteria). This Operations Model assessment ultimately presents a holistic overview on what steps need to be taken Digital Technology while showcasing the missing milestones Talent to reach the next level. Digital Governance
61 Deloitte | National Transformation in the Middle East | A Digital Journey
For each key theme, one country was selected based on the below rationale which will be subsequently assessed across Deloitte’s Digital Transformation layers:
Figure 37: Selected GCC countries for each key theme
Key themes Selected Rationale countries*
With more than 60 percent of the Saudi population under the age of 30, the Kingdom is putting an Classroom of the Future increasing focus on its education sector 152
Next Generation With the recent launch of TASMU, Qatar is going through transformational changes, especially in the Care healthcare sector
The UAE has the highest regional ranking in the National ICT Index and as such is introducing innovative Smart Government services and solutions to become a Smart Government
With the NTP and an increased focus on religious tourism, the Kingdom has launched multiple digital Smart Tourism initiatives such as e-bracelets and digital platforms for pilgrims
Smart Cities Dubai has launched a Smart City program with the ambition to become the Smartest City
In addition to Dubai’s smart city plan, the UAE is introducing innovative transport solutions such as Future of Mobility Hyperloop, driverless cars and flying taxis
Note: not exhaustive
The below Digital Transformation framework is a four step journey which maps the digital stage of an entity across the following three models: business, operations and customers.
Figure 38: Deloitte’s fr am ework to a ssess t he Digital Transf ormation journey
Exploring Being Transformation Benefits Digital Business Model Leverage traditional Business, operating and technologies to customer models are Organizations, ecosystems as well as automate existing leveraged for digital, new engagements, products and capabilities and are profoundly business models disrupt the different to prior traditional. Re-creating new business Enhanced economic Doing business, operating models are critical to business success competitiveness Leverage digital or customer models in the digital world. technologies to extend capabilities, focused Digital Operating Model on current business, operating and customer New digital operating models rattle the models Greater citizen legacy environment - creating the need happiness to “rewire” how new digital operating Becoming models will interact and infuse with the Leverage digital technologies - legacy business and the digital becoming more synchronized ecosystem. and less siloed - with more advanced changes Digital Customer Model Improved industry sustainability Businesses must be laser-focused and integrated in how each and every customer interaction occurs. To boost the customer experience and capture real value – customer engagement must be energized. Exploring Doing Becoming Being
62 Deloitte | National Transformation in the Middle East | A Digital Journey
Digital evolution and maturity across the world Several countries were selected and benchmarked to the six key themes by not only looking at their ranking in the National ICT Index, but by also assessing specific use cases undertaken by these countries with regard to digitization.
Figure 39: Map of countries assessed against National ICT Index
Finland
Norway Russia Canada Sweden Estonia
Netherlands Denmark GCC United Kingdom South Korea Germany Kuwait Bahrain France United States Qatar Switzerland China UAE Algeria Japan Saudi Egypt Arabia India Singapore Nigeria Oman Pakistan Brasil
>79% Australia 70-79% New Zealand Chile 60-69% South Africa 50-59% <50%
Source: Deloitte research and analysis, based on various published national indices and indicators from World Economic Forum
Classroom of the Future
Figure 40: Digital Transformation journey assessment for Classroom of the Future
Benchmark:
High Tech High (HTH) operates 12 charter schools in San Diego and Exploring Doing Becoming Being Chula Vista counties. These schools bring together students, teachers, administrators, and parents through practical hands-on training, experiential learning, coupled with • The KSA is undertaking several initiatives to introduce digital in education (i.e. Safeer for Saudis traveling abroad, Noor traditional academic education to to digitize student grade records) Digital prepare students for college. • Doroob is one of the most ambitious initiatives launched by the Kingdom which aims to upgrade workers’ skills to Business develop programs catered to Saudi needs The schools are textbook free and Model • Initiatives are selectively focusing on certain trends related to digital education; however, an overarching strategy has employs digital tools including yet to be announced PowerSchool, a web-based student information portal for real-time Digital • Multiple bodies have been created to spearhead digital initiatives. A national center for e-learning was launched learning and communication. under the Ministry of Education ( MoE) Operating • MoE participated in the development of the digitization strategy with the MEP digitization unit Model Key Outcomes: • Tatweer , through its subsidiary holding has also been involved as the execution arm • Enhanced Student Skills Development Digital • KSA has focused on internal digital initiatives to resolve pressing challenges faced by Saudi citizens (i.e. Doroob , for example, has based an all-inclusive approach to help solve Saudi employment) • Learning Personalization Customer • Broader opportunities to harness digital across the student journey are yet to be leveraged (using further web-based Model education platforms, developing ICT courses such as coding)
Source: Deloitte research and analysis, government websites and reports 153
63 Deloitte | National Transformation in the Middle East | A Digital Journey
Smart Cities
Figure 41: Digital Transformation journey assessment for Smart Cities
Benchmark:
Singapore is deploying sensors and cameras across the city-state that will Exploring Doing Becoming Being allow the government to collect information on everything from the cleanliness of public spaces to the density of traffic and energy consumption. • The UAE and Dubai, in particular, have set a bold vision to embrace Smart Cities and become the smartest city in the Digital world by 2017 . The strategy is comprised of 200 smart initiatives across 6 Smart City dimensions An online platform, Virtual Singapore, This strong drive has also influenced other entities such as the Dubai Silicon Oasis Authority to launch its own is being built to gather and aggregate Business • initiatives in partnership with Smart Dubai data coming from sensors. As a Model • Despite this, based on the latest IESE Cities in Motion Index, Dubai is ranked 66 th in the world result, the government in collaboration with the private sector will be able to enhance services such as better planned transportation, and Digital • Smart Dubai has been created with the mandate to collaborate and orchestrate with both government entities and the private sector in relation to Smart Cities monitor the spreading of infectious Operating • The entity is also creating innovation labs to build artificial intelligence skills within the government and private diseases. Model sector Key Outcomes:
Customer centricity is an important pillar across all initiatives since “Happiness” serves as a key theme introduced in • Improved City Planning Digital • the Dubai Plan 2021 and Smart Dubai Strategy Customer • Enhanced Disaster Prevention • The “Happiness Meter” represents a measurement of citizens’ happiness which is linked to a dashboard map. Model Customer satisfaction is then monitored in real time with the option to act based on data results
Source: Deloitte research and analysis, government websites and reports 154
Smart Government
Figure 42: Digital Transformation journey assessment for Smart Government
Benchmark:
Estonia is often described as the Exploring Doing Becoming Being world’s most digitized government. It was the first country to enable online voting. Estonian citizens can access and use all kinds of local and central government services in a matter of • The UAE has established a clear strategy to be at the forefront of smart government. This began when HH Sheikh minutes such as filing taxes or using a Digital Mohammed Bin Rashid Al Maktoum announced that all services must go mobile, resulting in a 96.3 percent overall digital signature to complete a form. transformation. The nation is also moving forward and building one-stop-shop platforms through integrated Business Entrepreneurs can register a company service delivery Model in 18 minutes, and every citizen has a Despite these accomplishments, the country ranks only 29th in the UN e-government index ranking (2nd in the GCC) • unique online identity, meaning there is never a need to enter the same Digital • The Prime Minister’s Office is taking a very hands-on role with the TRA to manage digital initiatives across federal information twice when transacting entities across government services. Operating • The UAE is constantly launching new projects and initiatives to instill a digital culture within the government (i.e. Model World Government Summit etc.) Key Outcomes: • Enhanced Customer Satisfaction Digital • Its initiatives are placing a high emphasis on enhancing citizen experience (e.g. UAE plans to increase the number of m-Service users to 80 percent by 2018) • Costs Savings Customer • The UAE launched a Star Rating program to measure government department service satisfaction which is currently • Faster Service Delivery Model being broadened to the private sector as well
155 Source: Deloitte research and analysis, government websites and reports
64 Deloitte | National Transformation in the Middle East | A Digital Journey
Future of Mobility
Figure 43: Digital Transformation journey assessment for Future of Mobility
Benchmark:
Given its relatively small area, mobility is a crucial subject for Singapore. In Exploring Doing Becoming Being this context, the city-state has launched multiple initiatives to harness digital in its residents’ daily commute.
• Large investments are being made for mobility solutions to serve as a priority initiative That said, Singapore has launched The UAE is continuously introducing integrated, innovative mobility solutions including carpooling, smart car services several apps to better plan daily Digital • and digitized payments. It is also introducing new innovations not yet available elsewhere (driverless cars, Hyperloop, commute and uses crowdsourcing as Business Dubai Integrated Mobility Platform) well as public transport data to come Model • Initiatives are delivered through an ecosystem of partnerships between the private sector (Tesla, IBM, etc.) integrated up with new options for commuters. with the public (DEWA, Dubai Police, etc.) Additionally, it has started trials for Digital • The RTA has a central higher committee for Smart Transport comprised of members that represent each area or autonomous mobility-on-demand aspect of smart RTA. Also there is a centralized PMO managing the digital initiatives with functional resources from services, envisaged to include shared Operating other departments self-driving shuttles or pods that can be Model • Innovation labs have been introduced to think about future mobility solutions booked through smartphones.
Digital • The “Happiness Index” is a key KPI for RTA as it focuses on providing seamless customer service and ensuring that Key Outcomes: customer needs and expectations are met Customer • Improved Traffic Management • Initiatives are methodically selected based on key criteria including, which smart services/areas will make the greatest Model impact on customers, and which are demanded the most • Increased Commuters Satisfaction
Source: Deloitte research and analysis, government websites and reports 156
Next Generation Care
Figure 44: Digital Transformation journey assessment for Next Generation Care
Benchmark:
In Estonia, hospitals have made patient data available online since Exploring Doing Becoming Being 2008. The country has leveraged blockchain technology to digitize to date more than 95 percent of the health data generated by hospitals and doctors. Multiple initiatives have been launched by the MoH as well as MoTC as part of the Qatar Smart Program (TASMU) • Every citizen in Estonia has an online Digital which is the arm that serves the realization of its digital economy e-health record which includes • The MoH is refreshing its e-health strategy as TASMU continues developing Smart Healthcare initiatives to be launched Business medical case notes, test results, digital in 2018 Model prescriptions and X-rays. • Nonetheless, to date very little digital initiatives have been implemented, apart from the Electronic Medical Records
Key Outcomes: Digital • TASMU has been created with the objective of serving as a platform for economic growth and orchestrating initiatives in the country More efficient preventative Operating • • A future Platform of Platform is being built, managed by TASMU, and will be connected to specific sectorial platforms measures Model that will collect data of each relevant entity • Greater patient safety and experience • Qatar’s e-health strategy aims to collect and store data from customers across various touch points along each Digital patient’s journey (i.e. primary care consultation, laboratory testing, pharmacy prescription pick-up), but has not been Customer fully implemented yet Model • TASMU is also looking at personalized healthcare and improving the overall patient experience, but its initiatives are still under implementation
Source: Deloitte research and analysis, government websites and reports 157
65 Deloitte | National Transformation in the Middle East | A Digital Journey
Smart Tourism
Figure 45: Digital Transformation journey assessment for Smart Tourism
Benchmark:
K-Style Hub is a one-stop-complex that offers information tailored for Exploring Doing Becoming Being tourists. It has a tourist information center, a Korean food exhibition and experience & cultural halls. One hall provides a virtual reality • KSA is the 17th most visited country in the world, mainly due to religious tourism; notwithstanding, the country is attraction where visitors can immerse looking at opportunities to introduce more digital applications Digital themselves in 40 major tourist • Recent initiatives have been focused on enhancing the religious pilgrimage experience which include apps and Business attractions through a 360-degree websites that provide information and insight to pilgrims Model panorama gallery. • With the launch of Vision 2030 which aims to open up new tourism destinations, opportunities for new applications and digital platforms will grow significantly Accordingly through virtual reality, visitors can experience ski jumping in the 2018 PyengoChang Winter Digital • Digital initiatives for tourism in KSA remain at the infancy stage Olympics, or can walk around popular Moreover, they are scattered across different entities (e.g. Ministry of Commerce & Industry, Saudi Commission for Operating • sites. Model Tourism & National Heritage) Key Outcomes: With more than 2 million Hajj visitors in 2015, KSA’s NTP looks to target more than 2.5 million Hajj visitors and • • Enhanced Tourist Experience Digital 15 million Umrah visitors by 2020. The Kingdom has introduced digital initiatives to enhance the experience, Customer however applications remain limited Model • For example, e-Bracelets for Hajj pilgrims could connect to smartphones and provide visitor information, GPS assistance and a help desk connection
Source: Deloitte research and analysis, government websites and reports 158
Best practice countries (i.e. Estonia, limiting their ascent in the National ICT Singapore, and South Korea) have set high Index. Some of these challenges are standards in terms of digitization, and common across the region whereas provide insightful case studies for regional others are only applicable to specific countries to help drive national digital countries. agendas. Only by addressing these challenges With regards to the regional context, methodically can the region move forward multiple initiatives are being undertaken with their digital plan and fulfil their to ramp up digital capabilities. However, ambition to become fully digitized nations. GCC countries often encounter hurdles
66 Deloitte | National Transformation in the Middle East | A Digital Journey
Fig ure 46 : Digital ma turity a ss essmen t of selec ted coun tries a cross the six themes
Selected countries Comments Exploring Doing Becoming Being
With more than 60 percent of the Saudi Classroom of population under the age of 30, the Kingdom the Future is putting great focus on its education sector
Smart The UAE is introducing innovative services Government and solutions in becoming a smart government
Dubai has launched an ambitious Smart Smart City program with the aim to become the Cities smartest city by 2017
In addition to Dubai’s Smart City plan, the Future of UAE overall is introducing innovative Mobility transport solutions
With the recent launch of TASMU, Qatar is Next Generation going through transformational changes Care especially in the healthcare sector
With the NTP and an increased focus on Smart religious tourism, multiple digital initiatives Tourism are being set up
While the Middle East Public Sector entities are likely to spend over US$15 billion in Digital Transformation enabling technologies in 2018, the GCC overall lags behind many developed countries in Digital Government. Countries in the region are not all at a similar stage of development with regard to government digitization levels.
67 4. Implementing Digital Transformation Deloitte | National Transformation in the Middle East | A Digital Journey
4. Implementing Digital Transformation
“Customer-centric design: Overview of challenges processes, people, technology to engaged GCC economies are undergoing a customers. a government decides on profound transformation in adapting to the needs of the fourth industrial Digital business having many smart revolution. As described in the previous • Regulation is too often “reactive” services in theory, but sections, there are visions, strategies and and not “proactive” enough: with initiatives in place to run the rapid, innovation-driven digital customers are rarely implementation of this transformation. technologies, regulators across the involved in the design Yet, any long-term transformation world struggle to anticipate the program comes with an even greater magnitude of the shifts brought by stage “, UAE government challenge in managing the actual initiatives disruptive technologies. to the desired outcome. entity. • Difficulties to launch initiatives Indeed, these challenges vary on a country based on the funding / governance basis depending on both the local context model: due to the exponentially and its overall position on the National ICT evolving nature of these technologies, Index. Nevertheless, common patterns elaborating a viable business case is can be extracted and categorized across often a challenge. Moreover, in certain business, operations and customers in the countries, budget allocation between digital framework. These common federal and local level entities remain patterns relate to the entire operating an issue. model layers from strategy, channels,
Figure 47: Digital Transformation challenges faced by Public Sector entities in GCC
Digital Digital Digital Business Operation Customer
Time lag in regulation Critical skills are not Entities are reluctant Services are not Kuwait of emerging available internally to share data always built with a technologies 4 5 customer-centric perspective Qatar 1 Entities are not clear Transition from a 11 regarding the ownership “conventional” to an of digital initiatives “agile” organization Saudi Difficulty in launching 6 7 Limited insight on and Arabia initiatives based on feedback from citizens UAE current funding models Basic ICT infrastructure is Lack of integration across 2 not always in place systems and 12 infrastructure inhibits 8 agility and efficiency 9 Translating exponential Customer data privacy technologies into Cloud security and policies need to be adapted to is an increasing government use cases current and future context concern 3 10 13
69 Deloitte | National Transformation in the Middle East | A Digital Journey
Technology “Innovation exists but more at an • Basic connectivity infrastructure is not always in place: due to the individual level as opposed to a group geographic spread and population distribution of some countries and level“, KSA government entity. difficult landscapes, basic ICT infrastructure is not always accessible across certain parts of the country which • The GCC is not leveraging the full of executing the digital agenda are not becomes a challenge to deliver digital potential of exponential always empowered with the right cross- services. technologies: understanding the entity mandate to ensure that initiatives business viability and feasibility of are implemented. several exponential technologies is still a “Security is also a major challenge in some of the GCC countries, • Transition from a “conventional” to concern, data sharing can especially when it comes to big data, AI an “agile” organization: bureaucratic and blockchain. inertia is a common challenge in pose a threat to security government organizations. When they Indeed, these challenges vary on a reach a stage where the “status quo” is and privacy“, Qatar country basis depending on both the not an option anymore, these entities government entity. local context and its overall position on face usually the greatest challenge to the National ICT Index. Nevertheless, re-adapt their organization. Moreover, common patterns can be extracted and effective application of agile • Full automation, agility and categorized across the layers of the methodologies requires cross- flexibility cannot be unlocked digital framework: business model, collaboration across departments. Yet, without the integration of ICT operations model and customers model. too often, departments are launching systems: the type, configuration and These map with the TM Frameworx initiatives without consulting other impact of technology is changing at a Operation operating model layers, entities. rapid pace in which two major challenges namely, strategy, digital, citizens, unfold. One, regarding the backward technology and Operations compatibility of new technologies with people/organization/skills. • Entities are reluctant to share data legacy. And second, which comes with a between themselves: data is a lack of overarching integration platforms Digital operations sensitive topic in the region for cultural needed to bring the underlying People reasons. Despite the push by technologies to a bigger impact. • Critical skills are not available governments to start making data internally: sourcing talent has always accessible through, for example, open Digital customer been considered a top challenge by the data portals, entities remain reluctant to • Services are not always built with a Public Sector. This is even more relevant open up and little progress has been customer-centric perspective: too to finding digitally savvy skills (i.e. data witnessed on this front. often digital services are launched with science, coding, digital marketing) which little focus on end users resulting in low are scarce resources in the region. • Cloud Security and policies needs to adoption and little impact. Moreover, as be adapted: with the sharp rise of cyber entities are shifting their focus to • Entities are not clear about the attacks in the region, cyber security digitizing services, certain segments ownership of digital initiatives: given remains a key risk for regional chief remain secluded from these changes as the scale of changes and integration information officers (CIO) that often they have not adopted these required for the full implementation of hinder adoption and investment in digital technologies yet. government initiatives, project ownership platforms and cloud computing. is critical. Nevertheless, entities in charge
70 Deloitte | National Transformation in the Middle East | A Digital Journey
A phased approach through each step Jumping steps bears the risk of missing This will give a clear roadmap with of the Digital Transformation journey critical components while also overlooking concrete steps and actions to become Transforming from legacy to digital, a key dependencies. For these reasons, it is a good practice digital organization. country’s journey requires time, patience important to detail the necessary actions and most importantly a clear vision and that need to be undertaken across each objectives complemented by rigorous stage of the Digital Transformation execution. framework and operating model layers.
Figure 48: Roadmap to Digital Transformation
Exploring Doing Becoming Being
Play to win - aim for a digital Digital leadership position across strategy private and public sectors
Collaborate with ICT players to define next gen Regulation Digital policies for emerging tech 1 Business Model Co-create with digital value chain players on Ecosystem government services 3
Instill a culture of innovation Digital and start applying agile on operations pilot new/improved services 7
Promote digital literacy through tailored trainings. Develop incentive Digital mechanisms to attract digital talent talent 4
Digital Create a governance body in Operation Digital charge of the digital agenda Model governance and empower to execute 6
Promote national infrastructure rollouts. Technology Develop national platforms to facilitate integration 8 9 10
Listen to customers in service design to create a bespoke experience and Customer favor adoption involvement 11
Digital Customer Implement systems to Model Customer capture real-time data and feedback draw insights to enhance services 11 12
Current status of digital maturity in GCC Potential digital maturity in GCC (average based Roadmap steps mapped to (average based on four focus countries) on four focus countries) if roadmap adopted challenges addressed
71 Deloitte | National Transformation in the Middle East | A Digital Journey
Digital Transformation governance assessments undertaken and roadmaps Digital Transformation implementation developed during the sourcing stage will programs are a complex set of cross feed into the DVO’s ideation process to functional activities that require produce minimum viable products (MVPs) management office structures which at each stage of development. blend in the mandates to strategize, plan, innovate and implement change. One This ensures that the customer’s persona such concept is a digital value office (DVO) is brought into context. Consequently with that combines these functions into a a viable business case and executive purpose built agile organization. approval coupled with a solid concept plan (including market research, customer The implementation of the digital value persona), these products will be scaled office, empowered to support and enable and receive funding support. the full lifecycle of a transformation, addresses a wide variety of digital Responsible for the overall implementation challenges for implementation of Digital Transformation governments. in Public Sector organizations, the DVO will deliver success across the lifecycle in two The transformation lifecycle begins with key approaches: 1) govern all stages and a clear blueprint of strategic initiatives, enable the digitalization of functions, 2) involved stakeholders, governance apply rapid innovation to ensure the structures and funding plans for the feasibility, viability and desirability of digital implementation of digital initiatives. The outcomes.
Figure 49: Role of DVO in the Digital Transformation lifecycle
Digitisation – Initiation Digital factory – Operations
Blueprint Sourcing Development Scaling
Strategy Concept to MVP MVP to Reality articulation
Funding & Track & Measure Outside-in Consult key Implementation Benefits stakeholders Change Digital Value Initial Digital Management Office Steercom Review Determine Digital governance Maturity structure Ideas in Value Proposition Minimum Business Executive Partner Viable Product Case Approval Secure Ecosystem funding Design & Assurance Prioritize Predefined initiatives and Technology Annual Budget develop roadmap & Platforms
72 Deloitte | National Transformation in the Middle East | A Digital Journey
Application of DVO to successfully Operating across its six dimensions, the implement Digital Transformation in DVO first becomes the agency to bring an the Public Sector outside-in view to the federal entity. A The DVO is set up to incubate all the good example is assessing the level of enablers required for a successful Digital customer satisfaction with potentially fully Transformation. Enablers can include automating e-service centers. identifying strategic direction, understanding citizen needs and trends, The DVO acts as a change champion to instilling an innovation culture in overcome the issue of status-quo mind organizations, regulating policies, sets that create inertia to the pace of developing agile solutions, monitoring change. New regulation and policies digital maturity and securing suitable around data sharing, managing and technological and ICT infrastructure and hosting is a good case in point. partnerships. Through these enablers, the DVO acts as the custodian of entities’ Technically, the DVO drives innovation maturity to digital and the prime authority through its ideation of new digital use responsible for delivering the digital cases and agile development to outcomes. continuously enhance solutions (i.e. the use of robotics in government services, automation in smart buildings). To complement this evolution of ideas, the DVO ensures data management, security,
Figure 50: DVO enablers for Digital Transformation
DVO Dimensions Enablers Description
Monitoring exponential technology trends across sectors with a focus on customer needs
Outside-In View Research Trends Citizen Needs
Driving change and encouraging the adoption of digital in organizations to make an impact
Change Management Culture of Innovation Buy In + Awareness Efficient Organization
Measuring and tracking digital maturity and managing risks of adoption and transparency
Measure & Track Digital Maturity Digital Maturity Transparency Risk Management
Ideation of new digital use cases with an agile approach against the digital roadmap
Design Thinking and Delivery Assurance Agile Approach Best Suited Delivery Evolve Roadmap
Deliver solutions with partners across the full value chain with funding and expert support Integrating and Establishing the Partner Ecosystem ICT Vendors Start-Ups Platforms
Enabling better ICT infrastructure, security and managed services Digital Technology Information Management Digital Design Authority Infrastructure & Architecture Architecture Security
73 Deloitte | National Transformation in the Middle East | A Digital Journey
networks and infrastructure are updated Innovation as a key success factor to of working in sprints begins with and aligned to the technologies they were enable fast-paced Digital innovatively imagining an idea, delivering designed for (e.g. cloud computing, Transformation the desired product and continuously blockchain). Innovation management sits at the core of improving to match customer needs and a successful Digital Transformation plan, desired outcomes For the effective implementation of digital and inherently, Public Sector entities in initiatives with minimized costs and the region and across the globe are Through this approach, DVO delivers expedited delivery, the DVO forms challenged to be the best at incubating innovative solutions across that are partnerships across all relevant entities. innovation. Transformation will ensure the feasible – designed with sound IT For example, governance authorities such optimization of organizations, however infrastructure, viable – aligned with the as the DVO will increasingly play an without innovation, governments will business operating model, desirable – important part of bridging the gap struggle to rapidly create ideas that adhered to shifting customer needs and between local and federal entities in the simultaneously adhere to changing requirements. UAE by enabling policies and decisions customer behaviors, adopting emerging that encourage local entities’ joint digital and exponential technologies and collaboration with federal entities. achieving strategic business plans.
Cutting across all these critical DVO drives an agile approach into the implementation functions, the DVO innovation stages of the implementation delivers a consistent mechanism to ideate, program. This is achieved by introducing conceptualize, run and manage the minimum viable products delivery transformation implementation program. throughout the lifecycle. This iterative way
Figure 51: Pathway according to the DVO agile approach to launch a MVP
Market research & Segmentation and Service design & MVP Finalize MVP, brand key consumer validation customer journey mapping development & omni channel GTM planning
DESIRABILITY
Deep dive on concept Assess legal & regulatory Design pricing Define organization Fine tune business & business case requirements program & case & roadmap booking structure
VIABILITY Launch the Define business MVP 1.0 IT architecture Design functional Evaluate Design solution Define IT delivery operating model design & solution components scenarios architecture & select IT organization selection architecture solutions
FEASIBILITY
74 Deloitte | National Transformation in the Middle East | A Digital Journey
Outcomes and impact Successful Digital Transformation, when Successful Digital Transformation, implemented in the Public Sector delivers a high impact both on economy and when implemented in the Public Sector society. Implementation of digital technologies enable governments to delivers a high impact both on economy deliver sustainable solutions to lower operational costs and contribute to and society. Implementation of digital savings. Dubai, through its transition to e- government services has made a savings technologies enable governments to impact of US$1.17 billion 159 . Similarly, Chicago’s smart solutions to vehicle traffic deliver sustainable solutions to lower are aimed to deliver US$14 billion to GDP under energy efficiency, traffic congestion operational costs and contribute to and fuel costs 160 . savings. Implementing digital solutions further drives the knowledge economy agendas again contributing to the skills and learning impacts.
75 5. Public Service in its broader ecosystem Deloitte | National Transformation in the Middle East | A Digital Journey
5. Public Service in its broader ecosystem
The digital transition of the Public • Experience and engagement: interact in ways that are seamless and Sector value chain governments will re-think customer and digital. Integrated national platforms The journey to maturity in digital services citizen engagements; customer-centricity that encompass emerging technologies, is charted by re-defining ambitions with will be able to be put to use through digital ecosystem players and the whole matched scales, engaging in new levels of design thinking, technology and digital of government will enable this new experience, evolving to achieve more best practices future. efficient operations and finding ways to engage with new ecosystems. The ICT • Operational evolution: The role of ICT in the Public Sector service sector plays a key role in innovation and governments will continue to undertake delivery value chain will dramatically integration to lay the foundation across large scale operational transformations. change in the digital age. This role is being this journey from ambition to This will be driven by changes to rapidly redefined from that of a passive, engagement. organizational DNA, employee supporting enabler to that of a matrix that engagement and automation. ICT players feeds the entire value chain while actively • Ambition and scale: will lead in innovation across digital driving how governments operate and governments in the GCC are focused on technologies to enable this evolution serve their citizens. New technologies will defining new horizons of play. It is critical be closely embedded in the fulfillment of for these governments to strike the right • Engagement platforms: core government activties. This applies to balance between ambition and scale in last but not least, the ecosystem the entire value chain from policy terms of where they stand on the digital dynamics of the Public Sector will change formulation to service delivery. maturity scale and ICT adoption profoundly. Suppliers, customers, providers and governing bodies will
Figure 52: Legacy and future Public Sector value chain
Current Public Sector Value Chain – Technology as support New Public Sector Value Chain – Technology at the core
s People Service Trust e s i t People Service Trust e i i t v i i t v i c t a c
a e
r
Employee Client Citizen e s o r e C o engagement satisfaction trust i Employee Client Citizen C g
o l engagement satisfaction trust o n h
Human Resources Management c e s t
s e l i e a t i i
t Government Service Management with Data visualization t
Financial Management i i v i g v i t i t c D c a
a
Data Analytics & Information Management
Procurement t
t r r o o p
Financial Management p p Technology HR and Procurement p
u
u S
S Infrastructure Integrated ICT Infrastructure Cyber security
77 Deloitte | National Transformation in the Middle East | A Digital Journey
Embedding emerging technologies and 5G and cloud services combined with Embedding emerging customer-centricity in an agile, prototype- applications based on AI and analytics. based approach will give regional technologies and governments the opportunity to resolve As expressed earlier in this paper, certain challenges faced when delivering governments and regulators face a customer-centricity in an core services. Such activites will increase daunting task of coping with the fast agile, prototype-based the GCC’s position as a leader in Public moving pace of emerging technologies, Sector innovation across the world. especially when it comes to identifying approach will give their relevance in policy making or service regional governments the Redefining the ecosystem: from delivery. Data analytics will likely shape technology enablers to platforms policy and decision making through opportunity to resolve The emerging technologies layer in the predictions of health diseases, consumer new Public Sector value chain is complex behaviors and trends, and scenarios for certain challenges faced and rapidly evolving. Public Sector the likelihood of crimes. The use of cloud when delivering core technology domains have emerged as a computing and blockchain solutions will common set of verticals that are high emerge in response to the demand for services. impact with regard to ICT investment data sharing between the government and areas. These include social, mobility, data public. Cyber security and smart security driven policy, platforms and security. In services, in some cases are already being turn, each of these domains consist of a implemented to complement data sharing number of ICT solutions ranging from platforms and safeguard user information, analytics to cloud. More often than not, while cloud computing and blockchain such ICT solutions are also tailored to key also have the potential to be used for themes, or sectors, as discussed earlier in integrating medical records, tourism this paper. For instance, plans to develop bundles, e-learning content and the smart cities include the implementation of majority of e-government services for next generation infrastructure such as IoT, citizens.
Figure 53: ICT mapping to Public Sector domains
Public Sector Trends Target ICT Solutions
Defense Key Themes Public Sector Data Analytics Technology Domain Education Smart City AI
Energy & Environment Smart Tourism Robotics y c i l
Healthcare o Next Generation Care s 5G P y y
l t t m i i a n l r r i i e c o u b v f c i Law & Justice o t o
Classroom of the Future r Integrated Platforms e S a l M S D
P a t
Human Services Smart Government a Blockchain D
Transport/ Tourism Future of Mobility AR / VR
Cross Sectors Cloud Computing
78 Deloitte | National Transformation in the Middle East | A Digital Journey
Other examples include: AR and VR, which One element of response is the concept In a platform orientated can be leveraged in education systems to of Platform of Platforms (figure 54). By drive immersive learning and a more easing the integration between world, supposed by a new inclusive environment in digitalized government stakeholders, digital private classrooms. AI can be applied in sector providers and technology players, digital ecosystem, the classrooms to develop better curricula as the Platform of Platfor ms concept flow of value and well as in the development of autonomous addresses a number of the key concerns relationships between cars. Robotics, an emerging technology outlined earlier. Furthermore, it decreases that exists in the form of Robotic s P rocess risk in Public Sector investment by moving governments, citizens Automation reduces the rate of human to a platform concept, it accelerates the errors and automates smart buildings adoption of data sharing between entities and private entities will through remote-con tro ll ed electrical (through a da ta lake or serv ice bus) , it be redefin ed ar ound the equipment that reduces energy promotes closer collaboration between consumption. partners in the ecosystem, and lastly, it “government cloud”. reduces the hurdles of technology
How can governments overcome the adoption by government players. complexity of fast evolving technologies as the digital ecosystem is becoming In a platform oriented world, supported by increasingly complex (pure play digital a new digital ecosystem, the flow of value players, start-ups etc.)? How can they and relationships between governments, best address daunting stakeholder citizens and private entities will be management tasks with multiple redefined around the “government cloud” government agencies and scattered data? as described in figure 55.
Figure 54: Platform of Platforms
Public Sector Applications
Next Future of Classroom Smart Smart Smart Generation Mobility of the Government Tourism Cities Future Care API API
Technology as a Platform Whole of Government Platform Digital Ecosystem Platform Vertical Horizontal
API API Other Mobility: Tourism: Amazon AI IoT Big Data Other MoE MoH MoI Ministries Uber, Airbnb, Platform Platform Platform … Platforms Hub Hub Hub … Hub Careem Hoojoozat Noon
Device Pipe Cloud
79 Deloitte | National Transformation in the Middle East | A Digital Journey
Figure 55: Flow of value in an ecosystem-based government services model 161
Traditional Government Services Model Future Government Services Model: Ecosystem Curation
2 m Government e Government t s y s Association o c E
3 m e t E s Government cy s o Third Party o s Cloud c y E s t Platform e m
1
E c o s Association y s t Citizen e Citizen m 4
Flow of value Application Platforms Industry Solutions Services Orchestration
The digital opportunity: from concept technologies in these countries currently. Figure 56: Digital contribution to GDP* to reality This, in turn, fulfills the objectives of 8.0% The opportunities presented by digital increased economic diversification technologies are substantial and have the objectives set out in national strategies. potential to reshape Middle Eastern economies. Governments have an Going forward, national digital strategies Growth extroardinary role to play in building the must be underpinned by four key Potential industry organically. They have the power principles: to not only expand partnerships with 4.1% major technology players, but also to roll • Riding the disruption wave: Public out tailored incentives to encourage an Sector entities should adopt disruption ecosystem of startups, accelerators, VCs, not only as a mode of operation, but and other relevant players. as a way of formulating policies. Governments should not consider these By catalyzing these changes, the potential changes as threats to their business contribution of digital to GDP could model, but as an opportunity to redefine double in the years to come if it were to themselves and their economies. An Middle East United States reach that of more advanced countries. example would include breaking up For the GCC only, this could represent a economic bottlenecks in certain US$50 billion increment, to be compared industries which could ultimately help Note: *As measured by digital share in private with the US$15 billion of yearly investment attract new players and foster consumption, private investment, government expenditure, imports & exports in Digital Transformation enabling innovation. Source: Deloitte research and analysis, based also on data from multiple sources: Euromonitor, IDC, UN, World Bank, others 162, 163, 164
80 Deloitte | National Transformation in the Middle East | A Digital Journey
• Creating new horizons: Making sense concept from that of traditional service Going forward, national of new technologies is not always easy. delivery, to that of experience delivery. Exponential technologies open up new By doing this, governments will not only digital strategies must be avenues and applications that have the be able to enhance citizen satisfaction, potential to dramatically change the way but also have other indirect effects such underpinned by four key services are being delivered. As opposed as an increased adoption of services and principles: riding the to other parts of the world, governments population digital literacy rate. in the GCC play the role of a catalyst with disruption wave, creating regards to technology adoption. Rather, • Fail fast, adjust quickly: Incorporating new horizons, delivering staying at the forefront of technology strategies for agile methods of “concept adoption would incentivize regional to service” development (as detailed in an experience and fail private sector companies to embrace figure 57) when designing a new service the wave and increase their share of translates into enhanced delivery speed, fast, but adjust quickly. digital technology spending. and greater service performance that is more adapted to customer expectations, • Delivering an experience: Bringing translating ultimately into greater customers into the heart of innovation satifsaction and adoption. will change the entire service delivery
Figure 57: Delivering Digital Transformation from concept to reality 165
Ecosystem National State Business Telcos & Professional government leadership and citizens service providers services
Concept Reality
Concept to Service Feasibility Build Launch minimum Scale concept prototype viable product successfully
Creation lab
Technologies Cloud Big Data Analytics Integrated platforms Internet of Things NextGen security 5G Data Dashboard Artificial Intelligence Sensors Robotics SDN 3D printing AR/VR Blockchain Machine Learning
By catalyzing these changes, the potential contribution of digital to GDP could double in the years to come if the region were to reach that of more advanced countries. For the GCC only, this could represent a US$50 billion increment, compared to the US$15 billion currently spent on Digital Transformation enabling technologies.
81 6. Implications for Government and Industry
Digital Key Issue Implication maturity area
Digital Time lag in regulation of emerging Collaborate with ICT players to define next gen policies technologies for emerging tech Business Difficulty in launching initiatives based on Model current funding models Co-create with digital value chain players on government services Translating exponential technologies into government use cases
Digital Critical skills are not Promote digital literacy through tailored trainings. available internally Develop incentive mechanisms to attract digital talent Operating Entities are not clear regarding the ownership Create a governance body in charge of the digital Model of digital initiatives agenda and empowered to execute
Basic infrastructure is not Promote national infrastructure rollouts always in place
Entities are reluctant to share data Create a governance body in charge of the digital agenda and empowered to execute and develop national platforms to facilitate integration
Transition from a “conventional” Instill a culture of innovation and start applying to an “agile” organization agile on pilot new/improved services
Lack of integration across systems Develop national platforms to facilitate integration and infrastructure inhibits agility and efficiency
Cloud security and policies need Develop national platforms to facilitate integration to be adapted to current and and develop overarching cloud policies on these future context platforms
Services are not always built with Listen to customers in service design to create a Digital a customer-centric perspective bespoke experience and favor adoption Customer Limited insight on and feedback Implement systems to capture real-time data and Model from citizens draw insights to enhance services
Customer data privacy is an Enforce data privacy legislations and include increasing concern anonymization rules in big data policies Deloitte | National Transformation in the Middle East | A Digital Journey
Appendix
Appendix 1: Deloitte National ICT Each of the ICT readiness factors are Index methodology calculated as an average of ICT indices Deloitte’s National ICT Index is a metric that are indicators of Digital Government that indicates the Digital Government capability. These indices have been capabilities of a country. It is an average of compiled and averaged from global ICT a variety of specific ICT readiness factors reports and national government statistics related to Digital Government: to calculate the National ICT Index.
• Infrastructure adoption (i.e. This methodology, components and telecommunications infrastructure calculation of the Deloitte National ICT adoption) Index are illustrated in the following figure. • Political and regulatory ICT environment • Government ICT adoption • Social ICT impact • ICT knowledge
Figure 58: National ICT Index methodology, components and calculation
ICT readiness ICT indices that are factors indicators of Digital Government capability
National ICT infrastructure Average % Smartphone penetration % Mobile BB penetration % Fixed broadband adoption
Political and regulatory ICT Average Laws relating to ICT Intellectual property protection environment
National ICT Government Importance of ICT to ICT use and government Average Average Government online services Index ICT adoption government vision efficiency
Social ICT Impact of ICT on access to basic Average Internet access in schools e-participation index (0-1) impact services
National ICT Average Tertiary education gross Quality of math and science Secondary education gross ICT patent applications knowledge enrollment rate education enrollment rate per million people
Note: No figures for the Tertiary education gross enrollment rate criteria were available for Canada as per the 2016 WEF Global Information Report. Consequently, the average index calculation did not include this criteria.
Source: “Global Information Technology Report 2016”, World Economic Forum – for all components except smartphone penetration. Sources for smartphone penetration include eMarketer, GSMA, Statista and GCC government statistics (e.g. Qatar Ministry of Transport and Communications in Qatar)
83 Deloitte | National Transformation in the Middle East | A Digital Journey
Appendix 2: Digital initiatives list
Classroom of the Future Future of Mobility Smart Tourism Next Generation Care Smart Cities Smart Government
Saudi Arabia
• University e-services • Expansion of Hajj & Umrah • Info platform for Hajj & • e-Appointments • Yanbu Smart City • Automate customs framework (Jame 3a) capacity Umrah visitors and referrals procedures • Digital education for • e-transport customer • e-Training for Hajj & Umrah • Electronic Health Record • e-Service center students & teachers services workers for investors • e-Health program • ICT training centers • e-Services for SMEs • Digital innovation contests • New Authority for Yasser for schools e-Gov program • Guidance for ICT industry • Smart Government service job seekers center • Modern curriculums • Charity platform (Namaa System) • Training for ICT industry job seekers • e-Commerce stimulus and support program • Digital literacy program New e-commerce council • Education platform • (Doroob) • Civil Service information center • National e-Training program • Digital government capability building • Central national students database
United Arab Emirates
• Smart equipment for • Adopt autonomous • Mobile passports & wallets • Electronic medical records • New integrated free zone • Remote, paperless & schools & universities mobility technologies for travelers (NUMR) technology park cashless e-Services • Digital classroom platform • Integrated IoT based • Mobile biometric & facial • e-Health checks • Integrated IoT-enabled city • Integrated gov. data & transport systems recognition infrastructure collaboration platform • Schools innovation libraries • Telemedicine center • Driverless vehicles • Integrated airline and • Innovative business • Smart government cloud • Smart learning partner services • Mobile healthcare community services infrastructure (CloudOne) and teaching technologies • Unified transport & traffic control center Automated border control • Integrated healthcare Digitalize gov services with • e-learning between • provision • government schools and (one gate) mPay platform • Develop talent for digital ICT firms health sector • Educational apps accessible offline • Paperless hospitals • e-store for medical • Training & learning equipment & supplies solutions provider • Develop e-Health solutions • Smart school buses with ICT sector
Qatar
• ICT learning platform for • IoT-based smart parking • Augmented reality city • Smart health services • Lusail Smart City • Automate government HR elderly (Wasla) solutions system for visitors (TASMU) operations • Smart water network • e-education learning & • Connected transport • Indoor navigation for key • Healthcare innovation (Your • e-business program to • City pollution watch (data services program network locations Health First) & analytics) connect businesses • e-training program for • Digitally-enabled high • Single Transport Pass for • eHealth solutions • Integrated government graduates quality taxi systems universal ticketing implementation • Next generation broadband data sharing platform • Integrated education • Intelligent transport • Integrated system of • Enrich ICT environment infrastructure systems healthcare providers • Expand e-Gov services
Kuwait
• e-learning platform for • Build ICT-enabled transport • e-Health services & • Build Smart Cities • e-Government program education system systems management system • Smart education products • IoT-enabled personal health and services solutions
Note: digital initiatives list above is not exchaustive Source: Official government websites and press releases, Monitor Deloitte research and analysis 166
84 Deloitte | National Transformation in the Middle East | A Digital Journey
Appendix 3: Deloitte Digital Maturity Assessment framework
The tables below define each of the digital maturity stages across each organizational layer (business, operations, customers) and criteria.
Figure 58: Digital business model
Digital Business Model Exploring Doing Becoming Being
Digital initiatives are undertaken in Clear and ambitious strategy with Digital is not seen as a priority and A clear digital strategy is in place a siloed way with no clear initiatives being implemented very limited initiatives are being with key digital initiatives under Digital strategy strategic framework to follow that placing the country at the undertaken implementation cuts across the organization forefront of digital
A regulatory framework has been No regulatory framework is in A best in class regulatory A regulatory framework is being implemented favoring the place and organizations that do framework has been implemented developed by consulting partners development of an innovation- Regulation have this in place have not fostering innovation across all the across the ecosystem driven ecosystem across certain adapted it to current needs technology dimensions technology dimensions
No or very limited supporting The private sector and other Specific digital initiatives are built An organized framework is in digital ecosystem in place (i.e. the entities play an integral role in the in cooperation with the private place to ensure that broader organization is not leveraging digital initiatives being undertaken Digital ecosystem sector and other governmental stakeholders are involved in digital ecosystem players to by the organization to ensure entities implementing digital initiatives enhance their business) success
Figure 59: Digital operating model
Digital Operating Model Exploring Doing Becoming Being The organization is leveraging Very few applications of digital Digital technologies are being Digital technologies are enabling exponential disruptive technologies and very limited deployed and integrated with the agility, efficiencies, flexibility, and technologies (e.g. AI, AR, Technology exploration of use cases through organization’s systems (legacy and the benefits are transforming the blockchain , machine learning, 5G) proof of concepts new) organization’s business to be an industry leader
Some functions/aspects are Significant application of agile Organization is an industry leader Internal processes are mainly looking to embrace agility and are processes, technology & through its universal Digital operations manual more agile in their approach than operations for greater flexibility embracement of agility as the way others and performance of getting things done
Limited talent available but the Some digital talent is already in- The organization has a very strong organization is seeking to enhance house and an agile learning digital talent force both in terms No digital talent available in-house Digital talent its digital capability with digital approach is increasingly used to of size and the wide range of talent recruitment plans in place train current and new employees digital skills it commands
A central digital entity/function is A digital entity/function is being A central digital entity/function is in place with a strong governance No dedicated entity/function set up but is not yet empowered in place with a governance body Digital governance body with the authority to push related to digital with the right mandate to truly allowing it to explore and pursue and drive Digital Transformation embark on Digital Transformation Digital Transformation efforts across the organization
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Figure 60: Digital customer model
Digital Customer Model Exploring Doing Becoming Being Digital services are designed for The organization is fundamentally The organization actively engages Customers are taken for granted customers to an extent. Second hand customer-centric, placing the with customers to solicit first hand and their needs are not gauged. customer behaviors and feedback are customer at the heart of the customer feedback, involving The organization does not offer analyzed (e.g. via analytics and social design process of all products and Customer Involvement them in the design process to digital services of value to sensing) to develop an services. Customers express loyalty shape the organization’s products customers understanding of the customer’s and are highly satisfied with the and services together needs in the design stage experience
The organization has a defined Customer feedback processes and The organization across all customer feedback process and mechanisms are centralized in one functions adopts iterative No initiative / process in place for mechanism in place to receive place to capture real-time and processes to incorporate customer Customer Feedback improving digital services based feedback and complaints. infrequent feedback which is used feedback from a wide range of on customer feedback Customer feedback is to drive customer insight based sources (e.g. social medial, survey) incorporated to identify improvement in the organization’s to continuously improve product opportunities to improve offerings offerings and service quality
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Glossary
aeCERT UAE Computer Emergency MOCI Saudi Ministry of Culture and Response Team Information AI Artificial Intelligence MOE Ministry of Education API Application Programmable MOH Ministry of Health Interface MOHAP UAE Ministry of Health and AR Augmented Reality Prevention ATS Dubai Autonomous MOLSD Saudi Ministry of Labor and Transportation Strategy Social Development CAGR Compound Annual Growth Rate MOMRA Saudi Ministry of Municipal and CAPEX Capital Expenditure Rural Affairs CIO Chief Information Officer MOOC Massive Open Online Course CITRA Kuwait Communication and MOTC Qatar Ministry of Transport and Information Technology Communication Regulatory Authority MoU Memorandum of Understanding DCAA Dubai Civil Aviation Authority MVP Minimum Viable Product DEWA Dubai Electricity & Water NFC Near Field Communication Authority NGO Non-governmental Organization DSOA Dubai Silicon Oasis Authority NTP Saudi National Transformation DTCM Dubai Department of Tourism Plan and Commerce Marketing NUMR UAE National United Medical DVO Digital Value Office Record Project EC3 Enterprise Command Control QNeDP Qatar’s Updated National E- Centre Health and Data Program EHR Electronic Health Record OPEX Operating Expenses FN Federal Network PIF Saudi Public Investment Fund G2B Government-to-Business PMO Project Management Office G2C Government-to-Citizen PPP Public-Private Partnership G2G Government-to-Government RTA Road and Transport Authority GCC Gulf Cooperation Council R&D Research and Development GDP Gross Domestic Product SME Small & Medium-Sized HAAD Health Authority of Abu Dhabi Enterprises ICT Information & Communications STEM Science, Technology, Engineering Technology and Math IIS Qatar Integrated Intelligence TMMS Abu Dhabi Transportation Services Mobility Management Strategy IoT Internet of Things TRA UAE Telecommunications IT Information Technology Regulatory Authority KDP Kuwait Development Plan UAE United Arab Emirates KPI Key Performance Indicator UN United Nations KSA Kingdom of Saudi Arabia US$ United States Dollars M2M Machine-to-Machine VR Virtual Reality MENA Middle East & North Africa
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Endnotes
1. “Gov2020: Explore the Future of Government 13B. “Waking up to new reality, Middle East 24. “Experimental phase of ‘Mabrouk Mayak’ 2020” website, Deloitte University Press: undergoes massive transformation”, service concludes”, Gulf Today (31 Jul 2017): http://government-2020.dupress.com/ TrendsMENA.com, Trends Magazine (12 Apr http://gulftoday.ae/portal/349e86b5-884e- 2017): https://trendsmena.com/social/waking- 4cb9-adbd-3a19cf650970.aspx ; “Ministry of 2. “Illiteracy will cost global economy $1.2tn in new-reality-middle-east-undergoes-massive- Health and Prevention completes 2015”, Guardian (25 Aug 2015): transformation Experimental Phase of ‘Mabrouk Mayak’ at Al www.theguardian.com/global- Qassimi Hospital”, Day of Dubai (30 Jul 2017) development/2015/aug/25/illiteracy-will-cost- 14. Official government websites and press www.dayofdubai.com/news/ministry-health- global-economy-1-trillion-dollars-in-2015 releases. See: Saudi Arabia Vision 2030 – prevention-completes-experimental-phase- www.vision2030.gov.sa/en ; UAE Vision 2021 – 3. “Gov2020: Explore the Future of Government percentE2 percent80 percent98mabrouk- www.vision2021.ae/en ; Qatar Vision 2030 – 2020” website, Deloitte University Press: mayak percentE2 percent80 percent99-al- http://www.mdps.gov.qa/en/qnv1/Pages/defaul http://government-2020.dupress.com/ qassimi-hospital t.aspx ; Kuwait vision and plans – 4. “IDC Forecasts $1.2 Trillion in Worldwide www.newkuwait.gov.kw/en/ 25. “Rashaka’ launched to combat obesity among Spending on Digital Transformation students in KSA”, Saudi Gazette (Feb 2017): 15. “UAE achieves 96.3 percent success rate in m- Technologies in 2017”, IDC (23 Feb 2017): http://saudigazette.com.sa/article/173865/Ras Government”, Emirates 24/7 (24 May 2015), www.idc.com/getdoc.jsp?containerId=prUS423 haka-launched-to-combat-obesity-among- http://www.emirates247.com/news/governme 27517 students-in-KSA nt/uae-achieves-96-3-success-rate-in-m- 5. “Understanding the impact of digitalization on government-mohammed-2015-05-24- 26. “What is the UAE doing right with healthcare society” report, World Economic Forum: 1.591686 that the rest of the world can learn from”, http://reports.weforum.org/digital- Future Health Index (24 Jan 2017): 16. Official government websites and press transformation/understanding-the-impact-of- www.futurehealthindex.com/2017/01/24/uae- releases. See: Saudi Arabia Vision 2030 – digitalization-on-society/ right-healthcare-rest-world-can-learn/ www.vision2030.gov.sa/en; UAE Vision 2021 – 6. “The Journey to Government's Digital www.vision2021.ae/en; Qatar Vision 2030 – 27. Healthcare Section, TASMU - Smart Qatar Transformation” report, Deloitte University http://www.mdps.gov.qa/en/qnv1/Pages/defaul website: http://Tasmu.gov.qa/en Press (2015) t.aspx ; Kuwait vision and plans – 28. Sports Section, TASMU - Smart Qatar website: www.newkuwait.gov.kw/en/ 7. “Digital Government Transformation” report, http://Tasmu.gov.qa/en Deloitte commissioned by Adobe (2015) 17. Healthcare Section, TASMU - Smart Qatar 29. UAE Innovation Strategy website: http://Tasmu.gov.qa/en 8. “The Journey to Government's Digital 30. “Dubai 100 accelerator helps health tech onto Transformation” report, Deloitte University 18. “What is the UAE doing right with healthcare the scale”, The National (18 Jun 2017): Press (2015) that the rest of the world can learn from”, www.thenational.ae/business/dubai-100- Future Health Index (24 Jan 2017): accelerator-helps-health-tech-onto-the-scale- 9. “Tech Trends 2016, Innovating in the digital era, https://www.futurehealthindex.com/2017/01/2 1.28507 ; “Dubai 100: the emirate launches A Public Sector perspective”, Deloitte (2016) 4/uae-right-healthcare-rest-world-can-learn/ new generation of health start-ups”, Vision.ae 10. “Tech Trends 2016, Innovating in the digital era, 19. “UAE e-health week 2016 showcased best (Aug 2016): https://vision.ae/innovation- A Public Sector perspective”, Deloitte (2016) practice award winning hospitals and best learning/Dubai-launches-new-generation-of- innovation for UAE Vision 2021”, UAE Health health-start-ups ; “Dubai 100: the new faces of 11. “Better public services for business, better Week (8 Nov 2016): http://emirates- digital health”, Vision.ae (Oct 2016): public services result 9, Business gains value business.ae/medical-it-spend-in-mena-hits- https://vision.ae/business/dubai-100-the-new- from easy and seamless dealings with 3bn/ faces-of-digital-health government, Result action plan, Ministry of Business, Innovation and Employment, (2015): 20. Healthcare Section, TASMU - Smart Qatar 31. “Dubai 100 accelerator helps health tech onto www.mbie.govt.nz/info-services/business/ website: http://Tasmu.gov.qa/en the scale”, The National (18 Jun 2017): better-for-business/documents-image- www.thenational.ae/business/dubai-100- 21. Strategic Objective and KPI for the Ministry of library/result-action-plan.pdf accelerator-helps-health-tech-onto-the-scale- Health, Saudi Arabia National Transformation 1.28507 ; “Dubai 100: the emirate launches 12. “Gov2020: Explore the Future of Government Plan 2020 Document new generation of health start-ups”, Vision.ae 2020” website, Deloitte University Press: (Aug 2016): https://vision.ae/innovation- http://government-2020.dupress.com/ 22. QNeDP - Qatar National E-Health and Data Program (30 Sep 2015): learning/Dubai-launches-new-generation-of- 13A. Official government websites and press http://www.nhsq.info/app/media/3999 health-start-ups ; “Dubai 100: the new faces of releases. See: Saudi Arabia Vision 2030 – digital health”, Vision.ae (Oct 2016): www.vision2030.gov.sa/en ; UAE Vision 2021 – 23. “Emirates ID can be used as health insurance https://vision.ae/business/dubai-100-the-new- www.vision2021.ae/en ; Qatar Vision 2030 – card”, Emirates 24/7 (8 Mar 2017): faces-of-digital-health http://www.mdps.gov.qa/en/qnv1/Pages/defaul www.emirates247.com/news/emirates/emirate t.aspx ; Kuwait vision and plans – s-id-can-be-used-as-health-insurance-card- www.newkuwait.gov.kw/en/ 2017-03-08-1.649331
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32. “First Live London/Riyadh Hackathon Sees 45. “Cyber security becomes core part of UAE 58. “Tourism Vision 2020”, Dubai Department of Enterprising Youth Start Up Tech Innovations curriculum”, Edarabia (April 2013): Tourism (accessed on 23 Sep 2017): to Aid World Health”, PR Newswire (30 Sep www.edarabia.com/76234/cyber-security- www.visitdubai.com/en/department-of- 2016): www.prnewswire.com/news- becomes-core-part-of-uae-curriculum/ tourism/about-dtcm/tourism-vision-2020 releases/first-live-londonriyadh-hackathon- 46. “Toolkits for the Elderly | Ministry of Transport 59. “Sharjah Tourism Vision 2021”, Sharjah sees-enterprising-youth-start-up-tech-innovati and Communications”, Ministry of Transport Commerce and Tourism Development ons-to-aid-world-health-595368631.html and Communications Qatar: Authority (accessed on 23 Sep 2017): 33. National Transformation Plan Document, Saudi www.motc.gov.qa/en/ditoolkit/older-people http://beta.government.ae/en/about-the- Arabia uae/strategies-and-plans/local-governments- 47. “Microsoft, Etisalat and Education Ministry join strategies-and-plans/sharjah-tourism-vision-20 34. National Transformation Plan Document, Saudi forces to upgrade online lessons”, The 21 Arabia National (27 January 2014): www.thenational.ae/uae/education/microsoft- 60. “RAK targets 1 mn tourists by 2018”, RAK 35. “‘MOH and GE Sign MoU on Digitization”, etisalat-and-education-ministry-join-forces-to- Tourism Development Authority (accessed on Ministry of Health (12 Oct 2016): upgrade-online-lessons-1.316102 23 Sep 2017): www.moh.gov.sa/en/Ministry/MediaCenter/Ne https://travtalkmiddleeast.com/rak-targets-1- ws/Pages/News-2016-10-12-002.aspx 48. Doroob Section, EdX website: mn-tourists-by-2018/ www.edx.org/school/doroob 36. “‘MOHAP and Purehealth to develop UAE 61. “Strategy 2030”, Qatar Tourism Authority national health records”, Arabian Business (29 49. The National Center for e-Learning and website (accessed on 23 Sep 2017): Jan 2017): Distance Learning Section, Ministry of www.visitqatar.qa/corporate/planning/strategy www.arabianindustry.com/technology/news/20 Education website: -2030 17/jan/29/mohap-and-purehealth-to-develop- www.moe.gov.sa/en/TheMinistry/Education/Ins uae-national-health-records-5610566/ titutions/Pages/TheNationalCenterfore- 62. “Five goals of Saudi Arabia’s ambitious LearningandDistanceLearning.aspx transformation plans”, Financial Times (10 Jun 37. Industry Interviews, Ministry of Transport and 2016): www.ft.com/content/cbb86ed2-2e38- Communications (MoTC), Qatar (20 Sep 2017) 50. “UAE launches $272m 'smart learning' 11e6-a18d-a96ab29e3c95 ; Saudi Arabia initiative”, Arabian Business (10 April 2012): 38. Gartner estimate. See: “Medical IT spend in National Transformation Plan 2020 document www.arabianbusiness.com/uae-launches- MENA hits $3bn”, Emirates Business (2016- 272m-smart-learning-initiative-453466.html 63. Economy Section, New Kuwait website 2017): http://emirates-business.ae/medical-it- (accessed on 23 Sep 2017): spend-in-mena-hits-3bn/ 51. “Saudi schools to go digital by 2020”, Gulf www.newkuwait.gov.kw/en/pillars- News (30 March 2017): 39. “Envisioning an ICT led Approach to the cpt/economy-en/ http://gulfnews.com/news/gulf/saudi- National Transformation Program for the arabia/saudi-schools-to-go-digital-by-2020- 64. “Dubai Culture app wins ‘Best M-Government Kingdom of Saudi Arabia”, IDC (2016-2017): 1.2002790 Service’ Award in Tourism Sector”, Eye of Dubai www.idcntpreport.com (13 Feb 2015): 52. “UAE to spend $2.72bn on education, focus on 40. “UAE Cabinet approves Dh248b federal budget www.eyeofdubai.net/news/details/dubai- IT”, GESS Dubai website (14 August 2017): for 2017-2021”, Gulf News (30 Oct 2016): culture-app-wins-best-m-government-service- www.gessdubai.com/news-center/news/uae- http://gulfnews.com/news/uae/government/ua award-in-tourism-sector spend-272bn-education-focus-it e-cabinet-approves-dh248b-federal-budget- 65. “Visit Abu Dhabi mobile App wins at the World for-2017-2021-1.1921185 ; See also: UAE 53. Mohammed Bin Rashed Smart Learning Government Summit Awards”, Go Dubai (15 Innovation Strategy Program website: http://smartlearning.gov.ae/ Feb 2017): 41. “TPP signs first Middle East contract in Qatar”, 54. “Saudi schools to go digital by 2020”, Gulf www.godubai.com/citylife/press_release_page. TPP Press Release (25 July 2016): News (4 October 2017): asp?pr=118620 ; “'Visit Abu Dhabi' mobile app”, http://www.tpp-uk.com/latest-news- http://gulfnews.com/news/gulf/saudi- Visit Abu Dhabi website (accessed on 23 Sep stories/tpp-signs-first-middle-east-contract-in- arabia/saudi-schools-to-go-digital-by-2020- 2017): qatar 1.2002790 https://visitabudhabi.ae/en/mobile.apps.aspx
42. Gartner estimate. See: “Medical IT spend in 55. “2016 Digital Education Survey, After the bell 66. “The Impact of Technology on Dubai’s Smart MENA hits $3bn”, Emirates Business (2016- rings: expanding the classroom”, Deloitte City Initiatives”, Urbanise (28 Feb 2017): 2017): http://emirates-business.ae/medical-it- Publication https://urbanise.com/knowledge- spend-in-mena-hits-3bn/ ; “Health care heads www2.deloitte.com/content/dam/Deloitte/us/ center/articles/role-technology-impact-dubais- for the cloud”, The National (1 Jan 2015): Documents/technology-media- smart-city-initiatives/ https://www.thenational.ae/business/health- telecommunications/us-tmt-digital-education- 67. ““Sauditourism” App on smartphone wins Best care-heads-for-the-cloud-1.111918 survey.pdf M-Government Service Award at the Arab 43. Mohammed Bin Rashed Smart Learning 56. “The United Arab Emirates: Investing in world level”, Saudi Commission for Tourism Program website: http://smartlearning.gov.ae/ Education”, Education Business website: and National Heritage (23 Feb 2015): www.educationbusinessuk.net/features/united www.scta.gov.sa/en/mediaCenter/News/Gener 44. Institute of Public Administration in Saudi -arab-emirates-investing-education alNews/Pages/z-g-1-23-2-15.aspx Arabia website: www.ipa.edu.sa/English/Pages/index.aspx 57. Abu Dhabi Vision 2030 document 68. National Transformation Plan 2020 document, Saudi Arabia
90 Deloitte | National Transformation in the Middle East | A Digital Journey
69. Tourism Section, TASMU - Smart Qatar 82. “Expo Live”, Expo 2020 Dubai UAE website 92. Ministry of Transport KPIs, National website: http://Tasmu.gov.qa/en (accessed on 23 Sep 2017): Transformation Plan 2020 Document, Saudi www.expo2020dubai.ae/expo-live/expo-live ; Arabia 70. Transportation Section, TASMU - Smart Qatar “Expo 2020 Dubai delivers first public roll-out website: http://Tasmu.gov.qa/en 93. “Qatar to reduce road deaths to 130 by 2022”, of Expo Live”, Expo 2020 Dubai UAE website Qatar Tribune (18 Oct 2016): 71. “Dubai launches scheme to turn smartphone (15 Jan 2017): www.qatartribuneepaper.qa/data/20161018/p into passport”, Arabian Business (7 Jun 2017): www.expo2020dubai.ae/en/Media- df/Main.pdf www.arabianbusiness.com/dubai-launches- Centre/Press-Releases/EXPO-2020-DUBAI- scheme-turn-smartphone-into-passport- DELIVERS-FIRST-PUBLIC-ROLL-OUT-OF-EXPO-L 94. “Dubai police targets zero road deaths by 677121.html IVE 2020”, Arabian Business (20 Jun 2010): www.arabianbusiness.com/dubai-police- 72. “How it Works: Dubai Airport Streamlines 83. “Dubai launches scheme to turn smartphone targets-zero-road-deaths-by-2020- Check-Ins”, Expo Trade (27 Jun 2017): into passport”, Arabian Business (7 Jun 2017): 291974.html www.smartcitiesdubai.com/news- www.arabianbusiness.com/dubai-launches- detail:93b066a0-58ff-49e7-13ec- scheme-turn-smartphone-into-passport- 95. “Dubai’s Autonomous Transportation Strategy”, 5953961b6ab5.html 677121.html Dubai Future Foundation website (20 Jun 2010): www.dubaifuture.gov.ae/our- 73. “The Impact of Technology on Dubai’s Smart 84. “Loyyal Announces Blockchain Based Tourism initiatives/dubais-autonomous-transportation- City Initiatives”, Urbanise (28 Feb 2017): Program with Dubai Future Foundation”, ACN strategy/#1458229692991-5b103194-e97a8fc https://urbanise.com/knowledge- Newswire (30 May 2016): 7-fbc6 center/articles/role-technology-impact-dubais- www.acnnewswire.com/press- smart-city-initiatives/ release/english/30280/loyyal-announces- 96. “GCC Transportation Construction Market”, blockchain-based-tourism-program-with-dubai Gulf Traffic (Jul 2017): 74. “How Saudi Hajj pilgrim ‘e-bracelets’ work”, BBC -future-foundation www.gulftraffic.com/content/dam/Informa/gulf (9 Sep 2016): www.bbc.com/news/av/world- traffic/en/2017/pdf/GCC percent20Transport middle-east-37315873/how-saudi-hajj-pilgrim- 85. “Emirates launches ‘Together’ initiative to percent20Construction percent20- e-bracelets-work enhance passenger experience through percent20July percent202017.pdf collaboration”, Future Travel Experience (17 75. “Loyyal Announces Blockchain Based Tourism May 2017): 97. “Dubai’s Autonomous Transportation Strategy”, Program with Dubai Future Foundation”, ACN www.futuretravelexperience.com/2017/05/emi Dubai Future Foundation website (20 Jun Newswire (30 May 2016): rates-launches-together-initiative-to-enhance- 2010): www.dubaifuture.gov.ae/our- www.acnnewswire.com/press- the-passenger-experience/ initiatives/dubais-autonomous-transportation- release/english/30280/loyyal-announces- strategy/#1458229692991-5b103194-e97a8fc blockchain-based-tourism-program-with-dubai 86. Transportation section, Deloitte Future of 7-fbc6 -future-foundation Government “Gov2020” website, Deloitte University Press (Sep 2016): 98. “GCC Transportation Construction Market”, 76. “EXPO 2020 Dubai teams up with Accenture to http://government- Gulf Traffic (Jul 2017): help ensure seamless digital experience”, Expo 2020.dupress.com/category/transportation/ www.gulftraffic.com/content/dam/Informa/gulf 2020 Dubai UAE website (25 Jul 2017): traffic/en/2017/pdf/GCC percent20Transport www.expo2020dubai.ae/en/Media- 87. “The future of mobility in the Middle East”, percent20Construction percent20- Centre/Press-Releases/Expo-2020-Dubai- Siemens (3 Dec 2015): percent20July percent202017.pdf teams-up-with-Accenture-to-help-ensure-sea www.siemens.com/customer- mless-digital-experience magazine/en/home/mobility/mobility-middle- 99. Ministry of Transport KPIs, National east/the-future-of-moblity-in-the-middle-east.h Transformation Plan 2020 Document, Saudi 77. “The Impact of Technology on Dubai’s Smart tml Arabia City Initiatives”, Urbanise (28 Feb 2017): https://urbanise.com/knowledge- 88. “Future”, UAE Future website, Official Portal of 100. “GCC Transportation Construction Market”, center/articles/role-technology-impact-dubais- the UAE Government (accessed on 23 Sep Gulf Traffic (Jul 2017): smart-city-initiatives/ 2017): https://government.ae/en/about-the- www.gulftraffic.com/content/dam/Informa/gulf uae/uae-future traffic/en/2017/pdf/GCC percent20Transport 78. Sports Section, TASMU Smart Qatar website percent20Construction percent20- (accessed on 23 Sep 2017): 89. “Dubai set to be smartest city: Dubai Plan percent20July percent202017.pdf http://Tasmu.gov.qa/en 2021”, International Quality and Productivity Center (IQPC) Middle East and Smart Mobility 101. “GCC Transportation Construction Market”, 79. “Saudi Arabia launches digital platforms to UAE (Mar 2017): www.itssa.org/wp- Gulf Traffic (Jul 2017): view Hajj”, VanGuard (30 Aug 2017): content/uploads/2017/05/DUBAI-Smart-City- www.gulftraffic.com/content/dam/Informa/gulf www.vanguardngr.com/2017/08/saudi-arabia- .pdf traffic/en/2017/pdf/GCC percent20Transport launches-digital-platforms-view-hajj/ percent20Construction percent20- 90. Transportation Section, TASMU - Smart Qatar percent20July percent202017.pdf 80. “Saudi Arabia launches digital platforms to website: http://Tasmu.gov.qa/en view Hajj”, VanGuard (30 Aug 2017): 102. Transportation Section, TASMU - Smart Qatar www.vanguardngr.com/2017/08/saudi-arabia- 91. “Smart city initiative launched”, Arab News (20 website: http://Tasmu.gov.qa/en launches-digital-platforms-view-hajj/ April 2017): www.arabnews.com/node/1087402/saudi- 103. Transportation Section, TASMU - Smart Qatar 81. “Loyyal Announces Blockchain Based Tourism arabia ; “Saudi Arabia pushes forward with website: http://Tasmu.gov.qa/en Program with Dubai Future Foundation”, ACN smart city initiative”, Urban World Magazine Newswire (30 May 2016): (22 Apr 2017): www.urbanaworld.com/saudi- 104. Transportation Section, TASMU - Smart Qatar www.acnnewswire.com/press- arabia-pushes-forward-with-smart-city- website: http://Tasmu.gov.qa/en release/english/30280/loyyal-announces- initiative/ blockchain-based-tourism-program-with-dubai -future-foundation
91 Deloitte | National Transformation in the Middle East | A Digital Journey
105. “Global Smart Cities and Dubai’s path for 118. “Innovative Mobility Concept Launched in 132. Global Rankings Section, Open Barometer digital transformation”, Smart Dubai website Dubai for Smart Vehicles”, Smart Cities Dubai website: (Jul 2017): website (9 Jul 2017): http://opendatabarometer.org/2ndEdition/ana http://www.smartdubai.ae/story0627.php www.smartcitiesdubai.com/news- lysis/rankings.html detail:46c6dc47-fffb-61e9-cbe1- 106. “Dubai set to be smartest city: Dubai Plan 133. Dubai Data Section, Smart Dubai website: 59646b7aa9a6.html 2021”, International Quality and Productivity www.smartdubai.ae/dubai_data.php Center (IQPC) Middle East and Smart Mobility 119. “A Global Challenge”, Dubai Autonomous 134. Federal Network (FedNet) Information and UAE (Mar 2017): www.itssa.org/wp- Transportation Strategy website (accessed on Services Section, The Official Portal of the UAE content/uploads/2017/05/DUBAI-Smart-City- 27 Sep 2017): www.dubaifuture.gov.ae/our- Government website: .pdf initiatives/dubais-autonomous-transportation- https://government.ae/en/information-and- strategy/#1458229665815-d71b8236-2fec8fc 107. “RTA and Careem working on driverless electric services/g2g-services/fednet 7-fbc6 modular pods”, Gulf News (18 Oct 2016): 135. “Dubai named UN city data hub for region”, http://gulfnews.com/news/uae/transport/rta- 120. “The future of mobility in the Middle East”, Gulf News (4 October 2017): and-careem-working-on-driverless-electric- Siemens (3 December 2015): http://gulfnews.com/news/uae/government/du modular-pods-1.1914797 www.siemens.com/customer-magazine/en/ bai-named-un-city-data-hub-for-region- home/mobility/mobility-middle-east/the- 108. “Smart mobility solutions”, UAE Government 1.2061992 future-of-moblity-in-the-middle-east.html website (1 Aug 2017): 136. “Sheikh Hamdan launches Smart Dubai 2021 https://government.ae/en/information-and- 121. “Uber attracts $3.5bn from Saudi Public and ‘Dubai Pulse’”, Emirates 24/7 (17 April services/transportation/smart-mobility- Investment Fund”, BBC (2 Jun 2016): 2017): solutions www.bbc.com/news/business-36430850 www.emirates247.com/news/government/shei 109. “Dubai starts testing crewless two-person 122. “Smart move: Automated transport in the kh-hamdan-launches-smart-dubai-2021-and- ‘flying taxis’”, The Verge (26 Sep 2017): Gulf”, Arabian Business (15 Oct 2016): dubai-pulse-2017-04-17-1.651418 www.theverge.com/2017/9/26/16365614/dub www.arabianbusiness.com/smart-move- 137. E-Government Yesser Program website: ai-testing-uncrewed-two-person-flying-taxis- automated-transport-in-gulf-648982.html www.yesser.gov.sa/en/Pages/default.aspx volocopter 123. “Driving The Future: Is Sustainable Transport 138. “Saudi Arabia: Gross domestic product from 110. “Smart mobility solutions”, UAE Government Taking Off In The GCC?”, Gulf Business (14 Feb 2010 to 2020”, Statista website: website (1 Aug 2017): 2015): http://gulfbusiness.com/driving-the- www.statista.com/statistics/268059/gross- https://government.ae/en/information-and- future-is-sustainable-transport-taking-off-in- domestic-product-of-saudi-arabia/ services/transportation/smart-mobility- the-gcc/ solutions 139. “Gulf countries could add billions to GDP with 124. “Smart move: Automated transport in the digital action plan”, Arabian Business (22 111. Transportation Section, TASMU - Smart Qatar Gulf”, Arabian Business (15 Oct 2016): February 2016): website: http://Tasmu.gov.qa/en www.arabianbusiness.com/smart-move- www.arabianbusiness.com/gulf-countries- automated-transport-in-gulf-648982.html 112. Transportation Section, TASMU - Smart Qatar could-add-billions-gdp-with-digital-action-plan- website: http://Tasmu.gov.qa/en 125. “Here are the top forecasts for ME vehicle 622496.html market in 2017”, AME Info (9 May 2017): 113. “Dubai’s RTA begins taxi booking service via 140. UN E-government Survey 2016 Document: http://ameinfo.com/transportation/top- Careem app”, Gulf Business (26 Feb 2017): https://publicadministration.un.org/egovkb/en- forecasts-vehicle-market-2017/ http://gulfbusiness.com/dubais-rta-begins-taxi- us/reports/un-e-government-survey-2016 booking-service-via-careem-app/ 126. “Delivering on Digital”, William D. Eggers, 141. “Dubai Now is the app of the year”, Khaleej Deloitte University Press (June 2017): 114. “Uber attracts $3.5bn from Saudi Public Times (5 June 2016) www.deliveringondigital.com/casestudies/ Investment Fund”, BBC (2 Jun 2016): www.khaleejtimes.com/nation/general/dubai- www.bbc.com/news/business-36430850 127. E-governance Section, E-estonia: https://e- now-is-the-app-of-the-year estonia.com/solutions/e-governance/ 115. “Dubai’s RTA begins taxi booking service via 142. “Mohammad opens Enterprise Command and Careem app”, Gulf Business (26 Feb 2017): 128. “AED 4.3billion Savings for Dubai Government Control Centre”, Gulf News (4 October 2017): http://gulfbusiness.com/dubais-rta-begins-taxi- from Smart Services over 12 years”, Smart http://gulfnews.com/news/uae/transport/moh booking-service-via-careem-app/ Dubai (June 2016): ammad-opens-enterprise-command-and- www.smartdubai.ae/story0629.php control-centre-1.2031307 116. “Finding a taxi is not a headache anymore!”, I Love Qatar Magazine (19 Jul 2016): 129. “Dubai Now is the app of the year”, Khaleej 143. “Global Smart Cities and Dubai’s Path for www.iloveqatar.net/news/content/finding-taxi- Times (5 June 2016) Digital Transformation”, Smart Dubai (July not-headache-anymore; “Transport in Qatar”, www.khaleejtimes.com/nation/general/dubai- 2017)” www.smartdubai.ae/story0627.php Wikipedia (accessed on 27 Sep 2013): now-is-the-app-of-the-year 144. “Etisalat and du open doors on smart homes https://en.wikipedia.org/wiki/Transport_in_ 130. “Smart robots to offer 100 UAE government in the UAE”, The National (18 October 2014): Qatar services”, Gulf News (9 September 2017): www.thenational.ae/business/etisalat-and-du- 117. “Redefining the future of sustainable travel, http://gulfnews.com/news/uae/government/s open-doors-on-smart-homes-in-the-uae- autonomous travel”, Gulf News (18 Jan 2017): mart-robots-to-offer-100-uae-government- 1.323003 http://gulfnews.com/opinion/thinkers/redefinin services-1.2087427 145. “Etisalat to invest more than Dh3b in 2017”, g-the-future-of-sustainable-autonomous- 131. “New Generation E-government Portal Gulf News (4 October 2017): travel-1.1964137 Hukoom 3 Lauched”, Internet Qatar website: http://gulfnews.com/business/sectors/telecom www.internetqatar.com/new-generation-e- s/etisalat-to-invest-more-than-dh3b-in-2017- government-portal-hukoomi-3-launched/ ceo-says-1.1987939
92 Deloitte | National Transformation in the Middle East | A Digital Journey
146. “Dubai's Silicon Park set for Q4 2018 www.smartdubai.ae/story_one.php ; 159. “Dubai government saved Dh4.3b through completion”, Construction Week Online (27 “Singapore Smart Nation Smart City”, smart services”, Gulf News (28 Jun 2016): February 2017): Engadget, (2016): http://gulfnews.com/news/uae/government/du www.constructionweekonline.com/article- www.engadget.com/2016/11/03/singapore- bai-government-saved-dh4-3b-through-smart- 43226-dubais-silicon-park-set-for-q4-2018- smart-nation-smart-city/ ; services-1.1854184 completion/ “Singapore is taking the Smart City to a whole 160. “Smart Cities - How 5G Can Help Municipalities new level”, Wall Street Journal, (2016): 147. “Saudi Arabia Invests US$70 Billion in Become Vibrant Smart Cities”, Accenture www.wsj.com/articles/singapore-is-taking-the- Economic Cities Project”, Cisco: (2017): www.ctia.org/docs/default- smart-city-to-a-whole-new-level-1461550026 www.cisco.com/c/dam/en_us/about/ac79/docs source/default-document-library/how-5g-can- /success/Saudi_Arabian_General_Investment_A 155. Official government website and press help-municipalities-become-vibrant-smart-citie uthority_SAGIA_Engagement_Snapshot.pdf releases. See: “Mohammed reviews m- s-accenture.pdf Government”, Emirates 24|7, (2015): 148. IESE Cities in Motion Index 2016 Document: 161. Monitor Deloitte research and analysis ; www.emirates247.com/news/government/moh www.iese.edu/research/pdfs/ST-0396-E.pdf Huawei concept to service lab: “Building an ammed-reviews-m-government-2015-05-24- open and diverse ecosystem for shared 149. “School buses to get smart system devices”, 1.591634 ; “TRA launches the new cycle of success in the Middle East”, Huawei (Oct 3 Emirates 24/7 (23 June 2017): Smart Government Enabler”, (2017): 2017): www.linkedin.com/pulse/building-open- www.emirates247.com/news/emirates/school- www.tra.gov.ae/en/media-hub/press- diverse-ecosystem-shared-success-middle- buses-to-get-smart-system-devices-2017-06- releases/2017/3/28/tra-launches-the-new- charles-yang/?trackingId=csiZysQOGhsmwCM 23-1.654978 cycle-of-the-smart-government-enabler.aspx ; GseJfkQ%3D%3D United Nations E-Government Survey, 150. “Smart home systems on the rise in the UAE”, Department of Economic and Social Affairs, 162. “How Can Companies Tap Into Middle East’s Construction Week Online (27 October 2016): (2016); “UAE to introduce start rating for Billion Dollar Digital Market?”, Forbes, 2017, www.constructionweekonline.com/article- government departments”, Gulf News, (2017): See more: 41427-smart-home-systems-on-the-rise-in- http://gulfnews.com/news/uae/general/uae-to- https://www.forbesmiddleeast.com/en/how- the-uae/ introduce-star-ratings-for-government- can-companies-tap-into-middle-easts-billion- departments-1.1289766 ; “Delivering on 151. “Recent smart city trends: empowered citizens dollar-digital-market/ digital”, William D. Eggers, duPress on the rise” report, Deloitte (2015) ; 163. “Dubai set to be the smartest city: Dubai Plan “Measuring the Information Society Report 156. Official government website and press 2021”, International Quality & Productivity 2016”, ITU (2016) ; “New $350m Dubai ‘smart releases. See: The Global Competitiveness Center, 2016 city’ set for Q4 2018 completion”, Arabian Report 2016-2017, World Economic Forum; Business (28 Feb 2017): “RTA, Smart Dubai ink MoU for using NOL card 164. “Mohammed bin Rashid approves Dubai www.arabianbusiness.com/new-350m-dubai- smart payment model”, Zawya, (2016): Autonomous Transportation Strategy”, Dubai smart-city-set-for-q4-2018-completion- www.zawya.com/mena/en/story/ZAWYA20160 Future, 2016, See more: 665161.html 712065214 ; http://www.dubaifuture.gov.ae/mohammed- “RTA’s Innovation lab mulls 240 ideas to bin-rashid-approves-dubai-autonomous- 152. “Saudi society is rigid, its youth restless. The enhance employees’ happiness”, Zawya, transportation-strategy/ prince’s reforms need to succeed”, The (2017): www.mediaoffice.ae/en/media- Guardian, 2017, See more: 165. Monitor Deloitte research and analysis; center/news/23/7/2017/rta-innovation- www.theguardian.com/world/2017/sep/02/sau Huawei research and analysis; “Huawei’s cloud lab.aspx/ ; “RTA Call Centre receive 1 million di-prince-reforms-society-rigid-youth-restless vison unfolds as it hosts annual showcase”, ITP calls”, Khaleej Times, (2017): (Sep 6 2017): www.itp.net/614562-huaweis- 153. Official government websites and press www.khaleejtimes.com/nation/dubai/rta-call- cloud-vison-unfolds-as-it-hosts-annual- releases. See: Ministry of Education website: centre-receives-1-million-calls ; showcase www.moe.gov.sa/en/TheMinistry/Education/Ins “Mobility”, Smart Nation Singapore, titutions/Pages/TheNationalCenterfore- https://www.smartnation.sg/apps/Mobility/pag 166. Official government websites and press LearningandDistanceLearning.aspx ; e/1#1 releases. See: Saudi Arabia Vision 2030 – “Gov2020, Explore the Future of Government www.vision2030.gov.sa/en ; UAE Vision 2021 – 157. Official government website and press 2020”, Deloitte University Press: www.vision2021.ae/en ; Qatar Vision 2030 – releases. See: TASMU website: http://government-2020.dupress.com/ http://www.mdps.gov.qa/en/qnv1/Pages/defaul http://tasmu.gov.qa/en; TASMU website: t.aspx ; Kuwait vision and plans – 154. Official government websites and press http://tasmu.gov.qa/en; E-estonia: www.newkuwait.gov.kw/en/ releases. See: Smart Dubai Roadmap: https://e-estonia.com/ http://roadmap.smartdubai.ae/highlights.php ; 158. Official government website and press “Dubai Silicon Oasis Authority and Smart Dubai releases. See: International Tourism, Number Office Sign Strategic Partnership”, DSOA, of Arrivals World Bank: (2017): www.dsoa.ae/en/news/dubai-silicon- https://data.worldbank.org/indicator/ST.INT.AR oasis-authority-and-smart-dubai-office-sign- VL ; “Saudi Arabia launches digital platforms strategic-partnership/ , view hajj”, (2017): “IESE Cities in Motion Index”, IESE, (2016): www.vanguardngr.com/2017/08/saudi-arabia- Smart Dubai: www.smartdubai.ae/about.php . launches-digital-platforms-view-hajj/ ; Smart Dubai launches its development “Saudi Arabia launches new tourism initiatives roadmap for artificial intelligence, Smart Dubai, within vision,” Gulfnews, (2017): (2017): www.smartdubai.ae/story0328.php , http://gulfnews.com/business/sectors/tourism/ Introducing a citywide tool for quantifying saudi-arabia-launches-new-tourism-initiatives- happiness, Smart Dubai, (2014): within-vision-2030-1.2060934
93 Deloitte | National Transformation in the Middle East | A Digital Journey
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Authors Researched and written by: Contributors Emmanuel Durou Jean Louis Prevost Aydin Akca TMT ME Industry Leader and Senior Consultant, TMT, Partner, Monitor Deloitte Partner at Monitor Deloitte Monitor Deloitte Deloitte & Touche (M.E.) Deloitte & Touche (M.E.) Deloitte & Touche (M.E.) [email protected] [email protected] [email protected]
Hasan Iftikhar Yasmeen Salah Mounir Ariss Senior Manager, TMT Senior Consultant, Monitor Deloitte Partner, Monitor Deloitte Deloitte & Touche (M.E.) Deloitte & Touche (M.E.) Deloitte & Touche (M.E.) [email protected] [email protected] [email protected]
Adil Parvez Laura Shupp Muhannad Tayem Manager, TMT, Monitor Deloitte Consultant, Monitor Deloitte Partner Deloitte & Touche (M.E.) Deloitte & Touche (M.E.) Deloitte & Touche (M.E.) [email protected] [email protected] [email protected]
Guilherme Oliveira Qusay Alonaizan Jamil Hamati Manager, TMT Business Analyst Senior Manager Deloitte & Touche (M.E.) Deloitte & Touche (M.E.) Deloitte & Touche (M.E.) [email protected] [email protected] [email protected]
Huawei contacts
Thought Leaders Contributors Reviewers Li Huan Muhammad Atif Jamil Raghavendra Thalabhaktula Senior Vice President Director, Digital Solutions Architect Director, Digital Solutions Strategy & Marketing Strategy & Marketing Strategy & Marketing Huawei Technologies - Middle East Huawei Technologies - Middle East Huawei Technologies - Middle East [email protected] [email protected] [email protected]
Safder Nazir Yangsheng Zhou Yasser A Elfouly Vice President, Digital Industries Business Architect Director, Digital Solutions Strategy & Marketing Strategy & Marketing Strategy & Marketing Huawei Technologies - Middle East Huawei Technologies - Middle East Huawei Technologies - Middle East [email protected] [email protected] [email protected]
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Communications Deloitte & Touche (M.E.) Block D, Gefinor Center, Clemenceau Street, Beirut, Lebanon [email protected]
Huawei marketing contacts
Marketing Huawei Technologies - Middle East F4, Thuraya Tower 1, Dubai Media City, Dubai, UAE [email protected]
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