Digital transformation is one of the most important business concepts in recent years. But you’d be surprised at how many companies in the Middle East, especially SMEs, dismiss its importance. To many, traditional workflows are enough.

The reason? Costs. Many company decision-makers argue that using free software for data collection and processing, for example, would have less impact on their bottom line as they are, of course, free. 

But what many do not know is that refusing to invest in technology could result in inefficiencies in the workflow. These little inefficiencies could hurt them. When compounded, they could result in massive amounts of actual and potential losses. 

The importance of digital transformation in the Middle East 

Digital transformation began to take shape in the Middle East when companies realized that what used to work before was no longer working. The business landscape has drastically changed. Customer expectations have been reshaped. New demands have emerged. 

In the region’s emerging industries such as real estate, pharma, finance, tech, and automobiles, the ability to understand customers at a deeper level and offer high-level personalization throughout the buying journey is essential to a company’s survival. Competition in these industries is tough. And companies that fail to adapt to emerging trends are likely to get left behind.

In the UAE, where 99 percent of consumers have access to the internet, customers can easily identify which company can deliver a better service. Companies that still rely on outdated work practices are easily dismissed and forgotten. 

This is why it’s important to undergo digital transformation. Having the right set of tools lets companies provide a smooth customer experience, which helps in establishing a better brand perception for your company. Consequently, this improves customer loyalty. Customers that are loyal not only make repeat purchases but will also act as active advocates for your brand.

The advantage of local solutions vs international solutions

Although international players have penetrated the digital transformation market in the Middle East, local digital solutions companies can still capitalize on certain strengths to level the playing field. They can take advantage of their greater knowledge of the local market, their proximity, and their ability to offer more competitive prices compared to their international counterparts. 

This is also the reason why local solutions companies are often preferred over international ones. Not only do they understand the needs and preferences of local companies more, but they also often go the extra mile to help other companies. Some companies, like Saphyte, provide free implementation, consultation, and support. 

When price-related barriers are brought down, SMEs in the Middle East easily warm up to the idea of digital transformation. Digital technologies are quickly adopted and their benefits are rapidly gained.

The ethos and culture of prioritizing others’ growth over profitability is quite common among local solutions companies in the Middle East. To many local digital solutions companies, success is measured by how much their clients grow as a result of their technological intervention. The success of their clients becomes their badge of honor and an achievement of their own.

How smart automation will increase productivity

One of the most vital aspects of digital transformation is smart automation. With automation, businesses can fast-track their processes while reducing costs and human error. Several functions include customer data collection, lead scoring and tracking, and email drip marketing. These tasks normally take traditional organizations hours to perform but only take seconds to accomplish for digitally transformed companies. 

Automation also means that these tasks can be performed without (or at least with minimal) human intervention. It’s like having an additional workforce, except the tech doesn’t easily tire. Manual, repetitive tasks can be draining and exhausting to teams. When these tasks are eliminated, teams can focus on more important tasks such as problem-solving, increasing their productivity. 

Techs that combine big data and automation make it possible for companies to store, process, and analyze massive amounts of data from customers. When insights are generated by the tech in a few seconds, businesses are able to make quick, data-driven decisions. Decisions based on data are more proactive and less risky, thus allowing organizations to have more control over where they want to take their company.

Although the long period of uncertainty is gone now, companies must remain vigilant of what’s ahead. Data is key to long-term survival. Digital transformation will help set the stage for long-term success.