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Middle East Point of View Published by Deloitte & Touche (M.E.) and distributed to thought leaders across the region | Summer 2019 Revolution Evolution Revolution Evolution Mobile phones in your Automating audit Millennial 4.0 Family businesses and pocket new tech R/Evolution
Deloitte | A Middle East Point of View - Summer 2019 | Summer 2019 Middle East Point of View Published by Deloitte & Touche (M.E.) www.deloitte.com/middleeast 2
Deloitte | A Middle East Point of View - Summer 2019 | Editorial
A word from the
editorial team
For all you know, the words you are thinking about education as a result of Who says technology says Big Data. On
reading have been generated by a robot. the rapid move towards the fourth this subject, Bhavesh Morar et al., write
Or not. Could you really tell the industrial revolution has prompted key that: “Gulf countries benefit from unique
difference? regional governments to embark on strengths to be able to unlock
education reform that holistically opportunities offered by Big Data such as
With the opening of Ai-Da’s first solo art addresses their challenges in improving the availability of an efficient legislative
exhibition in June in Oxford, England, new the quality of education to meet the system, strong leadership commitment,
boundaries have just been breached in increasing labor demands of the digital and a state-of-the-art technology and
the world of Ai. You see, despite Ai-Da’s world and beyond” they say. infrastructure foundation” in their article
cascading brown hair and tinted lips, she Big Data in the GCC: from strategy to
is in fact, a robot. The first to be able to It is not only the education sector in the global leadership.
draw and paint from sight using her region that is having to embrace
camera/eyes. The exhibition is aptly titled technology. Faiq Khalid, in his article …In In all this turmoil, it is perhaps easy to
Unsecured Futures. with the new says: “People want to carry feel dazed and confused, easy to miss
out most of their mundane daily chores our sense of purpose. Not an issue that
It has long been perceived that artists on their mobile phone […]” As such, millennials seem to be contending with.
and social scientists would be immune to “embracing technology is no longer a Tahani Sinjab, in her article Millennial 4.0:
the Artificial Intelligence takeover. Human choice for a successful business, it is a Gearing up for retention, describes
creativity was thought to surpass any requirement […]” and that this is millennials as “exponential professionals”
algorithm possible. The human brain particularly true for family offices in the who are disrupting much of what the
could reach creative horizons that no Middle East. Baby Boomers have established.
robot, or robot creator, could possibly
hope to match. But now it may seem the But could that same mobile phone be The Too overwhelming? Then perhaps a day
opposite is true. As every struggling artist Black Mirror in your pocket? That is what at the CFO Transition LabTM may be in
desperate to get showcased watches with Nick Athanasi and Boray Altunisler ask in order. Robert O’Hanlon and Bronwyn
envy as Ai-Da’s exhibition is mounted— their article about the unique Millar recount the one-day learning
not to mention Sophia, the first robot to opportunities and challenges associated experience that focuses on the three
be granted Saudi citizenship—it may with mobile devices in investigations and most important resources CFOs should
even seem advantageous to be a robot in legal matters. “The information that the consider managing during their
a still very human world. average user sees and interacts with on transitions, namely time, talent and
their mobile phone,” they write, “is only a relationships.
Yet, despite what has often been portion of the vast data their device truly
depicted in sci-fi movies, we will not be holds. In truth, the data on smartphones So, as you can see, it starts with
descended upon by robots. The robots of is rich and granular enough to build education, and ends in learning.
the future will be us. Or rather our profiles of intimate detail about their Knowledge. While robots may be able to
descendants and their descendants. The users.” store more of it, we still need a human to
changes will be so incremental that we make sense of it. Case in point, Ai-Da may
will hardly notice them. A heart pacer You have been warned. But that is only be the artist but the exhibition still had to
here, an artificial valve there, titanium one side of the story. When not in system be curated by a human.
legs, we will morph into cyborgs ever so breakdown mode, technology is
gently. There will be no Robot Revolution synonymous with speed and efficiency We truly hope you enjoy reading this
but rather, a Robot Evolution. and this is particularly true in the audit issue of the Middle East Point of View,
world. In Automating audit: The evolving entirely written and edited by humans,
It’s all a matter of acclimation. And as role of auditors, Angelito Catacutan and we promise.
everything in life, it starts with education. Fadi Ghawi state that: “Auditors need to
In the first article in this issue – From invest in understanding the value of new ME POV editorial team
fragility to antifragility – Ziad Zakaria and technologies and the skillsets now
Elham Barghouty dissect the education needed to deliver a new generation of
sector in the region. “The shift in our audit.”
03
Deloitte | A Middle East Point of View - Summer 2019 | Contents
Contents
06
Big Data in the GCC
From strategy to global
leadership
Bhavesh Morar, Maher Kilani,
Jean Louis Prevost and
Kristian Meyer
32
Millennial 4.0: Gearing up
for retention
Tahani Sinjab
04
Deloitte | A Middle East Point of View - Summer 2019 | Contents
14 18 24 28
…In with the new. From fragility to antifragility The Black Mirror in your The CFO’s journey
How are Middle Eastern family Change management and pocket? My experience at the CFO
businesses embracing new communication in the Middle Unique opportunities and Transition LabTM
technologies? East education sector challenges associated with Rob O’Hanlon and
Faiq Khalid Ziad Zakaria and Elham mobile devices in investigations Bronwyn Millar
Barghouty and legal matters
Nick Athanasi and Boray
Altunisler
40
Automating audit: The
evolving role of auditors
Angelito Catacutan and
Fadi Ghawi
05
Deloitte | A Middle East Point of View - Summer 2019 | Big Data 06
Deloitte | A Middle East Point of View - Summer 2019 | Big Data
Big Data
in the GCC
From strategy to global
leadership
07
Deloitte | A Middle East Point of View - Summer 2019 | Big Data
Gulf countries benefit
B
ig Data has become a hot topic Where does the GCC stand?
in the last decade with many GCC governments have recognized the
from unique strengths countries looking to acquire a power of Big Data to drive economic
to be able to unlock competitive edge in this new industry. growth, enhance decision-making and
This disruptive technology offers create competitive advantages in both,
opportunities offered by numerous opportunities for governments the public and private sectors. They have
Big Data such as the across the world: it can help enhance defined detailed plans to launch their Big
availability of an efficient decision-making, improve service delivery
and also support the growth of a
Data transformation journeys. As such,
GCC countries have reached different
legislative system, strong multi-billion dollar industry. A stages in their roadmap and have further
leadership commitment, MarketsandMarkets study predicts that milestones to reach when compared to
the market will be worth US$67 billion by global standards.
and a state-of-the-art 2021, growing at a compounded annual
technology and growth rate (CAGR) of 18.45 percent.1 An investigation of the current state of
Countries such as the UK, the United GCC governments’ efforts towards
infrastructure States and Australia have already unlocking the potential of Big Data
foundation. displayed tangible progress in the unveils four areas of progress across
implementation of their own Big Data the region:
initiatives, allowing them to achieve
concrete benefits.
From a regional standpoint, GCC • Strategy
governments have set ambitious plans Substantial efforts have been
to position themselves at the forefront undertaken to define tactical directions
of this digital revolution. Most GCC and build comprehensive Big Data
countries have recognized the strategies and programs. Each of these
importance of this disrupting technology countries approached it differently:
and have designed forward-looking Dubai’s Smart City Strategy, Qatar Smart
strategies (e.g., UAE Smart Data Strategy, Program (TASMU), Bahrain Open Data
Tasmu Qatar, KSA Strategy, Smart Dubai) and KSA Open and Big Data strategies,
to unlock the possibilities offered by Big are some examples. The anticipation of
Data. To date, some of these countries Big Data becoming a powerful lever in
remain in the strategizing phase and are achieving national visions has driven
working on developing concrete the GCC countries to place it as a
applications. priority on their agendas.
Gulf countries benefit from unique
strengths to be able to unlock
opportunities offered by Big Data such • Technology/Data Standards
as the availability of an efficient legislative In order to derive insights from Big
system, strong leadership commitment, Data, the necessary technology
and a state-of-the-art technology and architecture and analytic capabilities are
infrastructure foundation. Therefore, it being implemented to facilitate usage.
is critical for GCC countries to quickly However, across the region, few
progress from the planning phase in governments have launched programs
order to start implementing the key to develop data registries, standards
foundations required to enable Big Data and classifications to enhance data
applications at a government level. availability and quality. A large portion
of the region's data quality has
8
08
Deloitte | A Middle East Point of View - Summer 2019 | Big Data
inconsistencies and limited metadata these data protection laws is the Qatari efforts are also seen in the UAE with the
and even remains in a non-digital law N13 of 2016. The law aims at Dubai Open Data Law, and in Saudi
format, hindering the ability to extract protecting consumers in an increasingly Arabia where new data protection laws
valuable insights. threatening online environment and are expected to be implemented in the
ensure that they have confidence in near future.
their personal data protection. Similar
• Human capital Big Data initiatives in GCC countries
GCC governments have identified the
need to prepare the current and future Bahrain Qatar
generation to handle Big Data by • Bahrain is implementing its • Qatar launched the TASMU
building data specialist capabilities, Open Data strategy for the program which aims to
training government employees and kingdom. The strategy aims at position the country as a
encouraging and enabling the leader in the area of smart
revising existing educational curricula.
use of public data to push the city technology and ICT
In the government sector, one of these development of society and
initiatives resulted in equipping civil economy as a whole • A Platform of Platform is
servants with the ability to use data to being built that will be
connected to specific
provide better quality and more efficient
sectorial platforms and will
services. For example, Smart Dubai has collect data of each relevant
recently partnered with the private entity
sector to build Data Lab to push data
science skills in Dubai, improve
collaboration within the data science
community and uncover opportunities
to boost the data ecosystem. However, Kingdom of Saudi Arabia
• Saudi Arabia has just initiated a United Arab Emirates
a limited pool of data science talent in
new ambitious Big Data • The Smart Data strategy built
the region is making government strategy on key national policies to
transformation challenging. support the development of
• The kingdom has recently Smart and Open Data
launched a large scale
cyber-security initiative, • Smart Dubai has initiated a
including a national cyber partnership with IBM to open a
• Security/Privacy security authority and a Data Lab to push data science
Leveraging Big Data when providing national cyber security center skills in society
individual services creates a balancing
act between data collection versus
utilization and data privacy versus
security. Cyber security has rapidly Cyber security has rapidly become
become a priority for GCC nations in
the light of recent cyber-attacks faced a priority for GCC nations in the light
by governments in the world. GCC
governments are investing heavily in of recent cyber-attacks faced by
safeguarding national security and
educating the broader population on governments in the world. GCC
the importance of cyber-security.
Governments across the GCC are governments are investing heavily in
working on new regulations to protect,
not only the personal citizens’ interest, safeguarding national security and
but also the overall robustness and
security of the system. An example of educating the broader population on
the importance of cyber-security.
09
Deloitte | A Middle East Point of View - Summer 2019 | Big Data
The GCC governments have embarked on • Investment remains focused on
their Big Data journeys with an important technology rather than on use cases;
understanding: Big Data is not only about • Costly human capital due to scarcity of
technology, but a strategic key feature of regional talent (and somewhat global)
the future. However, five critical and long lead times to build local
challenges remain before the benefits of capabilities;
Big Data can be reaped for the GCC • Data remains fragmented; limited cross-
countries: government utilization of data.
• Limited partnership with
industry/entrepreneurs to capitalize on These implications end up preventing
data; stakeholders from unlocking the full
• Cloud is not in play due to data potential of such an investment and in
residency issues, making Big Data more other instances prevents others from
expensive than it should be; venturing into this project.
Big Data challenges faced by GCC countries Big Data journey framework
Limited governance to Data standards/principles
foster the development not defined for most
Establish
of Big Data governments
a Big Data
governance
framework
Absence of culture to Lack of capabilities/skills
promote the sharing data to utilize Big Data
Train and
upskill
resources
Implement
Lack of awareness about necessary
the importance and tools and
availability of Big Data systems
Overhaul internal
Develop and data quality
implement
use cases
Forming the right governance is the
most critical yet overlooked step.
10Deloitte | A Middle East Point of View - Summer 2019 | Big Data
How can GCC countries leapfrog into Equip your organization with the To accelerate the
the future? right skillsets
To accelerate the progress of their Big “Data scientists are the new unicorns.” progress of their Big Data
Data programs, GCC countries need to This expression is no longer a novelty programs, GCC countries
quickly start building the necessary and has become increasingly relevant
foundations to ensure that government due to the sheer competition to attract
need to quickly start
entities have the ability to store, share these talents. The good news is that the building the necessary
and analyze large amounts of data from
both, a technology and capability
“Data science PhDs” are not mandatory
as a first step to equip your team with
foundations to ensure
standpoint. the necessary skillsets; as an example, that government entities
Australia has developed a holistic have the ability to store,
Forming the right governance is the most framework to improve overall data skills
critical yet overlooked step. Governments of Australian Public Service (APS) share and analyze large
need to first establish a governance body employees.3 The program is composed amounts of data from
empowered to implement initiatives of in-house trainings, partnership with
across the different entities, measure local universities to train civil servants
both a technology and
progress and provide subject matter in specialized data analytics, as well as capability standpoint.
expertise when required. placement programs with Data61, the
government’s data innovation arm. It is
In addition to controlling and preventing also critical that these talents are able to
misuse, governance should be activated operate without having to encounter the
with the target of fostering additional and usual bureaucratic practices that often
improved use of data. prevail in the public sector, and that
can impact their creativity. Also, entities
An operational layer composed of Data should nurture a culture of collaboration
Champions from selected entities with external stakeholders (i.e. private
reporting directly to this body should be sector, academia and other
implemented. These champions act as governmental entities) as it allows these
change agents across their organizations organizations to have access to external
and are responsible for project capabilities and infrastructure not always
implementation. available internally. A sample of such
practices is: the Big Data Hubs created
Furthermore, establishing Big Data across the United States operating in
functions as a cross-governmental collaboration with the private and
program proved to be a key success academia sectors, with each hub focusing
factor for implementation and alignment. on different themes (e.g. mobility,
As an example, the United Kingdom environment and healthcare) depending
created the Data Advisory Board in 2017, on the regional needs and areas of
which has the responsibility to drive interest.4
better use of data across government
and enable cross-government
collaboration. The Board is also
empowered to resolve any issues faced
in achieving these objectives.2
11Deloitte | A Middle East Point of View - Summer 2019 | Big Data
It is also critical that these talents are Scalability and security as key
guiding principles
able to operate without having to Operating in a Big Data environment
requires organizations to rethink some
encounter the usual bureaucratic aspects of their IT infrastructure.
Technology architecture is usually built
practices that often prevail in the upon legacy systems based on the
prevalence of centralized infrastructures.
public sector, and that can impact Entities need to rewire their architecture
and favor scalability to cope with large
their creativity. amounts of datasets with the ability to
transform and load data in real-time if
needed. In these new decentralized
Better data quality for enhanced environments, security becomes even
results more important. The ability to provide
Improving the quality of the data is anomaly/threat detection, immunization,
fundamental to maximize potential and attack mitigation capabilities is the
outcomes. Large amounts of datasets in new norm. Keeping these key principles
the GCC remain non-digitized with in mind will lower implementation risks
various level of quality, which has a and improve the ability to process large
negative impact on usability. As a first datasets.
step, it is fundamental that corporate or
government entities create data registries Implementation of use cases to
to understand what is available. As this showcase benefits
exercise of reconciliation is undertaken, As a first step, entities should consider
datasets need to be cleansed in using datasets already available internally
accordance to national-level standards. to start showcasing tangible benefits. In
Defining data standards in a collaborative order to do so, they should focus on
way is paramount for ensuring adoption prioritizing ‘low-hanging fruits’ before
across all organizations. All datasets jumping into overly complex use cases
should adhere to national standards and requiring datasets that might not be
comply with confidentiality and legal directly available. A prioritization exercise
requirements regardless of volume and can help in this selection process through
complexity. This exercise can be daunting defining which use cases can help to
given the amount of datasets available tackle key challenges while achieving
within a government body. To simplify tangible benefits. Below are some criteria
this process, entities should prioritize that could help governments facilitate
which datasets to cleanse based on use their selection process:
cases that they want to implement. A • To what extent could the selected use
good example is the work undertaken case be considered as a pragmatic
by the Australian Government, which solution to one of the country’s
established a framework to identify challenges?
datasets whose availability and use will • Are the required datasets for this use
generate significant community-wide case already available within the
benefits.5 organization?
12Deloitte | A Middle East Point of View - Summer 2019 | Big Data
• Impactful datasets might be residing
with the private sector. Explore In these new decentralized
possibility of leveraging existing
partnership. environments, security becomes
This selection process is crucial, as even more important. The ability to
implementing these practical cases will
be seen as a proof of value, increasing provide anomaly/threat detection,
the public interest and enhancing
stakeholders’ involvement. immunization, and attack mitigation
Conclusion capabilities is the new norm.
GCC countries have recognized the
opportunities offered by Big Data and
by Bhavesh Morar, Partner, Consulting,
their potential impact on citizens and
Maher Kilani, Senior Manager,
businesses. As such, they have set
Consulting, Jean Louis Prevost,
aspirational goals, strategies and
Manager, Monitor Deloitte and Kristian
roadmaps. While some governments
Meyer, Consultant, Deloitte Middle East
have already started implementation,
others are in the planning phase and
have yet to convert their plans into Endnotes
concrete actions. An iterative execution 1. “MarketsandMarkets Big Data Study”,
approach to transform use cases into MarketsandMarkets, Big Data Market by
Component (Software and Services), Type
reality is key to becoming data
(Structured, Semi-Structured and Unstructured),
innovators. Deployment Model, Vertical, and Region (North
America, Europe, Asia-Pacific, Latin America &
Many of the macro challenges faced by Middle East and Africa) — Global Forecast to
2021
the GCC region have been tackled in
2. “The Government Digital Service (GDS) Advisory
other countries with proven Big Data Board”, Government Digital Service, Cabinet
use cases. These use cases were Office, United Kingdom,
implemented in different sectors such www.gov.uk/government/groups/gds-advisory-
board 2019
as education, healthcare, transportation. 3. “Australian Public Service Better Practice Guide
In light of this, Gulf countries should to Big Data”, Commonwealth of Australia, 2014
focus on these sectors as a start, build 4. “Big Data Regional Innovation Hubs(BD Hubs)
Accelerating the Big Data Innovation Ecosystem”,
expertise and achieve tangible results.
National Science Foundation, 2018
To speed up the transformation, 5. “Data Skills and Capability in the Australian Public
governments should collaborate with Service, Commonwealth of Australia,
research centers to fuel innovation and Department of the Prime Minister and Cabinet,
2016
unlock potential values of data.
As a result of these efforts and provided
the key foundations required are put in
place, GCC countries have the
opportunity to transform their
economies and play a leading role in
the Big Data global race.
13Deloitte | A Middle East Point of View - Summer 2019 | Family businesses
…In with
the new.
How are Middle Eastern family
businesses embracing new
technologies?
Embracing technology is no longer a choice for a
successful business, it is a requirement. This is
particularly true for family offices in the Middle East.
14Deloitte | A Middle East Point of View - Summer 2019 | Family businesses
15Deloitte | A Middle East Point of View - Summer 2019 | Family businesses
The questions that
I
n the Middle East region, an average specialization: Majid Al Futtaim, Abdulla
consumer may be considered Latif Jamil, Mohammed Alabbar,
Middle East family relatively tech savvy. According to Khansaheb and Al Tayer, being some of
businesses face are various digital agencies, the UAE has one the recent prominent examples.
of the highest smartphone penetration
those that any other rates across the globe at over 90 Majid Al Futtaim (MAF) Group, a large
private business faces, percent.1 Saudi Arabia stands at 79 Middle Eastern conglomerate, is investing
namely, how to integrate percent. One poll showed that an
average UAE resident spends about 6.5
heavily in e-commerce and other
technology solutions in the retail sector.
technology into their hours per day interacting with various It recently made an investment in
business offerings to phone apps, or almost a third of their Wadi.com as a step to strengthen its
waking hours.2 online grocery offering, owns a mobile-
improve customer wallet app called BEAM, and has also
experience, drive Consumer preferences cannot be any introduced self-checkouts using
more apparent. People want to carry out handheld barcode readers at various
efficiencies and remain most of their mundane daily chores on Carrefour stores to enhance user
competitive in this agile their mobile phone: ordering food, experience. The group’s investment
business environment. groceries, pet food, a cab, or car philosophy is nicely summed up by CEO,
refueling, selecting a doctor based on Alain Bejjani: “Technology is the currency
ratings, booking doctor appointments of the future.”
and even simple tasks like laundry pick
up. Government bodies are looking to act The US$1 billion e-commerce platform
on this trend, one example being the ‘Noon.ae’ was launched in 2017 and
Roads and Transport Authority (RTA) in jointly funded by Mohammed Alabbar
Dubai, offering a full range of service and the SWF of Saudi Arabia, Public
offerings via its app from reporting traffic Investment Fund. Mohammed Alabbar,
accidents, to paying for parking or Chairman of Emaar, and sponsor of
payment of fines. Noon.ae was recently quoted as saying:
“Omnichannel retail is the way forward…
The questions that Middle East family shopping malls are here to stay, but they
businesses face are those that any other require e-commerce DNA to be
private business faces, namely, how to embedded in their bricks and mortar.”
integrate technology into their business
offerings to improve customer Abdulla Latif Jamil (ALJ) Group, is a
experience, drive efficiencies and remain diversified conglomerate, commonly
competitive in this agile business known for its automotive operations
environment. Every industry has been within Saudi Arabia. Realizing the
affected by technological advances, potential in the electric vehicle industry
leaving ample room for product and and general progression taking place
process improvements. within the industry, ALJ was an early
investor in a Michigan-based electric pick
Family offices embracing the up and SUV manufacturer, Rivian. Based
technological wave on the latest US$700 million equity
Some of the Middle East family funding round financed by Amazon, the
businesses have been quick to invest in implied value of Rivian is now in excess of
new technologies within their areas of US$1.5 billion.
16Deloitte | A Middle East Point of View - Summer 2019 | Family businesses
Khansaheb Group, a UAE-based family Encouragement from local capital funds by TAQNIA and Saudi
business with operations primarily in governments Telecom, Badir tech start-up incubators
infrastructure construction and Governments across the Middle East and other such programs are further
development works, is also focused on have also demonstrated their intention to evidence of the increased focus on
bringing innovation and technological embrace new technologies, support technology within the region. Many of
advantages to its operations. The group innovation, boost cooperation with global these initiatives are aimed at stimulating
recently acquired the technology and technology brands, and forge new tech-focused activity among the private
intellectual property rights for Spiralite, a partnerships. The UAE has set up formal sector and local family offices.
circular flat oval non-metallic insulated air programs to embrace new technologies
duct, which is an advanced and energy- such as Artificial Intelligence, Blockchain, We are increasingly witnessing large
efficient alternative to conventional Internet of Things, 3D Printing and family offices and private businesses in
ductwork. Such innovative investments Augmented Reality, among others. the region realizing the potential that
will help the group drive growth and Similarly, Saudi Arabia has announced the technology brings to their businesses:
profitability in the long-term. development of a US$500 billion smart efficiency, greater visibility and control
city, NEOM, that will extend 460km across over growth drivers, new sales channels
Al Tayer Group, another diversified family- the coast of the Red Sea. The sovereign and routes to market, and continued
owned conglomerate in the UAE, has also wealth funds of the UAE and Saudi Arabia innovation in product development.
taken active steps to embrace have also collectively committed in excess
technology. As one of the largest luxury of US$70 billion to Softbank Vision fund, The digital stage has been set by
retailers in the Middle East, the company which is focused solely on upcoming Government and digital transformation is
has announced its plans to develop and technology investments. Such investment happening at a much faster pace than
strengthen e-commerce and initiatives send a clear signal to local ever before. Consumer preferences point
omnichannel capabilities. In the entrepreneurs and family offices about to the increasing need for technological
automotive sector, the group also added these governments’ focus and aspirations solutions. The fourth industrial revolution
to its traditional dealership business, with on the technological front. Programs is driving smart technologies to bridge
its investment in Careem—which has supported by governments, such as the physical and digital worlds. Many of
subsequently been acquired by UBER— Museum of the Future, Dubai Future the larger family offices have embarked
valuing Careem at approximately US$3.1 Accelerators program, FinTech Hive in the on this transformational journey and
billion. UAE and technology-focused venture have benefited from their early move,
further encouraging ongoing investment.
The remainder should consider how they
We are increasingly witnessing large can leverage technology and available
government support to drive future
family offices and private businesses in growth.
the region realizing the potential that by Faiq Khalid, Assistant Director,
Financial Advisory, Deloitte Middle East
technology brings to their businesses:
efficiency, greater visibility and control Endnotes
1. Reported by Advancesoft based on research of
over growth drivers, new sales eMarketer, a digital market research company.
2. A survey on UAE smartphone usage trends by
channels and routes to market, and
YouGov.
continued innovation in product
development.
17Deloitte | A Middle East Point of View - Summer 2019 | Education 18
Deloitte | A Middle East Point of View - Summer 2019 | Education
From fragility
to antifragility
Change management and
communication in the Middle
East education sector
19Deloitte | A Middle East Point of View - Summer 2019 | Education
The shift in our thinking
M
anaging organization change is It’s time to shift our thinking from the old
hard, but today, top performing model of teaching to a new model of
about education as a organizations are constantly learning.”3
result of the rapid move changing and adapting. We call these
organizations “adaptable.” They are The shift in our thinking about education
towards the fourth organizations that not only survive, but as a result of the rapid move towards the
industrial revolution has thrive in the midst of radical change. They fourth industrial revolution has prompted
prompted key regional gain from disorder in their industry, and
they get stronger rather than weaker in
key regional governments to embark on
education reform that holistically
governments to embark stressful times. Prof. Nasim Taleb calls addresses their challenges in improving
on education reform that these organizations “antifragile”.1 the quality of education to meet the
increasing labor demands of the digital
holistically addresses The education sector in the Middle East world and beyond.
their challenges in is being tested for adaptability and
antifragility. Education leaders are trying The Kingdom of Saudi Arabia, for
improving the quality of to implement education reforms that example, is currently embarking on an
education to meet the focus on improving the quality of ambitious education reform program
increasing labor education and eliminating the gap comprised of a portfolio of initiatives that
between the skills required by the job covers all stages of education from K-12
demands of the digital market and those taught in schools. to higher education to life-long learning.
world and beyond. According to the World Bank: “The Middle Those initiatives have an immense impact
East and North Africa Region (MENA) has on education policies, practices, systems
taken great strides in education. It has and most importantly, on people and
quadrupled the average level of schooling their ways of working.
since 1960, halved illiteracy since 1980
and achieved almost complete gender One key initiative is the implementation
parity for primary education.”2 Yet it still of Competency Based Education (CBE) in
faces fundamental challenges related to pilot schools. Through CBE, the teacher’s
education quality and skills mismatch. role will change from transferor of
One underlying reason for this knowledge (content delivery) to facilitator
discrepancy is due to the education of student learning and ignitor of
sector’s failure to adapt and change. students’ curiosity to become lifelong
learners. The students’ behavior will also
In their book, A New Culture of Learning, need to change. Students will need to
Doug Thomas and John Seely Brown say learn “how to learn” on their own with
that: “For most of the twentieth century teachers acting as facilitators of their
our educational system has been built learning and their peers as their support
on the assumption that teaching is communities.
necessary for learning to occur.
Accordingly, education has been seen To successfully implement an education
as a process of transferring information reform at an organizational and national
from a higher authority (the teacher) level, leaders need to adopt a change
down to the student. This model, mindset. A number of key strategic
however, just can’t keep up with the rapid questions include:
rate of change in the twenty-first century.
20Deloitte | A Middle East Point of View - Summer 2019 | Education
1. Why is applying change management
and communication strategy a key Change management is a young
success factor and enabler to
implementing education reform? management discipline. As such, it is
2. Given that the majority of leaders in
organizations believe in the importance not always made clear that unless
of managing change, why is change
management and communications still people change their behavior and
not getting the needed sponsorship?
3. How can educational organizations embrace the new ways of working, the
increase the odds of successfully
implementing an education reform education reforms benefits cannot,
that sticks?
and will not, be realized.
A key success factor – change
management and communication The challenges facing change • The perception that change
Given the ripple effect that education management and communication in the management and communication is a
reform will have on education practices, education sector are: linear set of activities carried out in a
systems and people, change • Change management is a young sequential manner, with no
management and communication are management discipline. As such, it is not interdependent changes that are
key to enable the adoption of this massive always made clear that unless people carried out independently from project
national-level change. If ignored, or if change their behavior and embrace the management activities.
not executed properly, the risks of new ways of working, the education
organizations not meeting their intended reforms benefits cannot, and will not, be • The education sector is highly
objectives and realizing benefits increase realized. structured, decision-making is
exponentially. centralized and very slow. As a result,
• Initiative sponsors are usually experts in it may not always have the agility,
The question remains: how successful is their industry and/or policy making adaptability and capability to implement
the education sector in enacting and though may not necessarily have the strategic change.
managing change? What is hindering it skill to lead large-scale change efforts.
from sustaining the required behavioral Articulating a compelling vision and • Government employees are usually
changes and new ways of working? communicating the case for change to harder to motivate than private sector
their stakeholders are important to employees according to Harvard
Challenges facing change initiatives’ long-term success and Business Review, due to weak
management and communications benefits realization. performance management and
From our experience in working with incentive systems
public and education sector clients in • Sponsors may not always align all
the region, the importance of change impacted leaders to the organization’s • Previous negative experiences in change
management and communication as an vision, thus jeopardizing winning their efforts, coupled with multiple initiatives
enabler to any transformation program is support and commitment when implemented simultaneously, have
well understood, but can sometimes be implementing the initiatives. sometimes resulted in employees
hard to implement. feeling change fatigue and resisting
21Deloitte | A Middle East Point of View - Summer 2019 | Education
The education sector the adoption of the proposed changes. • Communicating the case for change to
This gets more complicated if the create urgency and win stakeholder
is highly structured, employee experience during the change support.
decision-making is journey, and how the change affects
their daily work, are not taken into • Training leaders to tell inspiring stories,
centralized and very consideration. to role model the right behaviors, to
slow. As a result, it may hold difficult conversations, and to
not always have the Given the above challenges, how can the
education sector increase its chances of
provide reassurance during the
transition.
agility, adaptability and successfully implementing reforms in
capability to implement order to achieve the intended objectives • Addressing the different needs of the
and get the most out of its investment? impacted stakeholders through targeted
strategic change. change management and
Raising the odds of success communication interventions to win
To holistically reform education so that it their support and commitment.
may keep adapting to the exponential
changes, change management and • Embedding the change management
communication activities need to be and communication activities in the
embedded in the DNA of the project management plan and allowing
organization. This is done by: for mid-course corrections to manage
• Selecting initiatives/sponsors who have people risks.
high tolerance for ambiguity and change
and have deep experience in leading • Understanding change from the point
large-scale transformations. of view of the employees by assessing
their readiness for change as well as the
• Establishing nimble governance that impact of the change on their day-to-day
provides oversight, sets the direction, work and designing targeted
monitors results and manages people- interventions to facilitate adoption of
related risks. the change and new ways of working.
• Aligning leaders on the vision of the • Looking at other enablers of change
reform so they set the right tone for such as performance and incentive
their organization. systems as well as removing change
To holistically reform education so that
it may keep adapting to the exponential
changes, change management and
communication activities need to be
embedded in the DNA of the
organization.
22Deloitte | A Middle East Point of View - Summer 2019 | Education
blockers such as slow decision-making Figure 1: In order to thrive in an uncertain world, organizations should consider shifting stable
processes and empowering front-line and predictable characteristics to adaptable ones.
teams to make quicker and better
Stable organization Adaptable organization
decisions to serve their stakeholders.
Profit-driven Purpose-driven
Conclusion
In order to keep up with the exponential Internal-focused Customer-focused ecosystem
change of the digital world and to ensure
that students have the right skills for the Hierarchal structure Flexible network of teams
21st century, the education sector in the
Siloed bureaucratic interactions Collaboration and agile governance
region has to reform education, and
fast. Change management and
One-size-fits-all talent management Individualized talent engagement
communication are key to enable this
mass change at an organizational and Resistance to change Change and learning are continuous
national level. While there is no one-size-
fits all approach to designing and
implementing change management and
communication interventions, there are Endnotes
1. Taleb, N., (2012) Antifragile: Things That Gain
factors that increase the odds of success.
from Disorder, New York: Random House
Four key success factors are: 2. www.worldbank.org/en/region/mena/brief/
1. The leadership team is aligned and education-in-mena
enabled to articulate the vision and 3. Thomas, D. and Brown, J.S. (2011) A New Culture
case for change. of Learning: Cultivating the Imagination for a World
of Constant Change
2. Stakeholders are engaged and
understand the cost of not changing.
Sources
3. Governance and accountability of
– www.worldbank.org/en/region/mena/brief/
change are clear to all. education-in-mena
4. Systems that enable and sustain – The Adaptable Organization -Harnessing a
change, such as performance networked enterprise of human resilience,
management and incentive systems. Deloitte
– “Why Government Workers Are Harder to
Motivate”, Robert Lavigna, Harvard Business
Change will come at a faster rate than Review, November 28, 2014
ever and will not end in implementing a – Thomas, D. and Brown, J.S. (2011) A New Culture
reform. Therefore, moving towards an of Learning: Cultivating the Imagination for a
“adaptable organization” will eventually World of Constant Change
– Taleb, N., (2012) Antifragile: Things That Gain from
change the DNA of the education sector
Disorder, New York: Random House
to embrace continuous improvements – Gibbons, P., (2015) The Science of Successful
and be “antifragile”. Organizational Change
by Ziad Zakaria, Director, Operations,
Consulting and Elham Barghouty,
Manager, Consulting, Deloitte Middle East
23Deloitte | A Middle East Point of View - Summer 2019 | Mobile devices
The Black
Mirror in
your pocket?
Unique opportunities and
challenges associated with
mobile devices in investigations
and legal matters
The information that the average user sees and
interacts with on their mobile phone is only a portion
of the vast data their device truly holds. In truth, the
data on smartphones is rich and granular enough to
build profiles of intimate detail about their users by
analyzing their behavior, browsing patterns,
whereabouts and much more.
24Deloitte | A Middle East Point of View - Summer 2019 | Mobile devices
25Deloitte | A Middle East Point of View - Summer 2019 | Mobile devices
T In the event whereby
he invention of smartphones has unlock a less abridged story, with a more
led to a paradigm shift in our comprehensive timeline of their
everyday lives, both, from custodians’ activities, through combining a custodian is
personal and business perspectives. disparate sources of data such as call uncooperative, there
This is evidenced by the ever increasing logs, messaging applications, GPS
mobile phone usage rate, with some of coordinates, and many other forms of
are precautions that
the Middle Eastern countries such as data either generated by the users, or the forensic technology
the UAE and Oman leading the world
in mobile penetration rates.1 The ability
collected automatically by mobile devices.
specialists need to
to have uncapped information at our Although there is an abundance of cases follow in order to avoid
fingertips is the epitome of practicality. that include outrageous email inadvertently wiping the
However, the increased reliance on communications, people are generally
mobile devices has also dramatically more hesitant to discuss fraudulent data off a particular
increased the degree to which the data activities over business emails while they device by trying to unlock
on these devices mirror users’ daily may be more comfortable having the
activity. same conversation through mobile
it with several incorrect
messages, due to the more personal attempts.
When it comes to the realm of nature of the mobile device. A
investigations and legal matters, mobile conventional approach that involves
Meeting Discovery Obligations” with the
devices, with their increased magnitude analysis of email data can help identify
aim of helping companies develop BYOD
of personal data, can be absolute gold fraudulent behavior. Adding mobile
policies and reducing discovery disputes.2
mines. The data found on a mobile device data into the same investigation
device can provide investigators with could provide crucial information such as
Access and protecting the gold mine –
more pieces of the puzzle, or could a text message sent or a call placed after
The next challenge is whether the data
provide the smoking gun among these an email, and offer additional
on mobile devices is technically
pieces. As with most technological perspectives through the locations the
accessible, especially considering that the
advancements, the opportunities individual has visited, photos taken or
majority of mobile devices are password
created with these additional sources wireless networks connected.
protected/encrypted. In an ideal data
of information are not without new
collection scenario, the custodian of each
challenges. This step forward in legal Understanding the challenges and
mobile device would provide their
discovery is associated with numerous considerations
passcode or PIN during collection. This
layers of challenges and considerations Legal considerations – The first
may not always be the case as became
that must be addressed in order to make challenge in utilizing data from mobile
apparent in the recent court case
effective use of the data that mobile devices is whether the companies have
between Apple and the FBI. The FBI had
devices can reveal. the authority to access their employees’
requested Apple’s help in unlocking an
mobile devices. Companies are
iPhone that belonged to a gunman in the
Pieces of a puzzle increasingly allowing or requiring Bring
San Bernardino terrorist shooting. Apple
The majority of investigations today Your Own Device (BYOD) policies due to
objected to providing assistance, arguing
involve some form of electronically the financial and logistical benefits.
that providing assistance in unlocking an
stored information (ESI). Traditionally, However, organizations should consider
iPhone in one instance would give the FBI
investigations that involve analysis of ESI the requirements and obligations, both
precedence to unlock every iPhone they
relied primarily on emails and electronic from a legal and technical perspective,
encounter, which Apple believed to be an
documents. While these conventional when such policies are put in place. Due
attack on civil liberties.3 While this case
data sources continue to act as rich to the various security, privacy, and legal
may be extreme in comparison to
sources of information in fact-finding concerns associated with BYOD, the
corporate investigations or civil matters, it
exercises, they generally do not provide Sedona Conference published the paper
highlights some of the technical and legal
all the pieces of a puzzle. The integration “Commentary on BYOD: Principles and
challenges associated with collecting data
of the data held on mobile devices can Guidance for Developing Policies and
from mobile devices.
26Deloitte | A Middle East Point of View - Summer 2019 | Mobile devices
In the event whereby a custodian is
uncooperative, there are precautions that Mobile devices house various third-
the forensic technology specialists need
to follow in order to avoid inadvertently party applications and different file
wiping the data off a particular device by
trying to unlock it with several incorrect formats. Processing data from these
attempts. In fact, law enforcement
agencies are being trained not to even constantly evolving applications in
look at the devices with facial recognition
features (e.g. Apple’s Face ID), given that order to make it available for review
inadvertently failing the facial recognition
check multiple times could make the purposes is a challenge in itself.
phone request a passcode, or at worst,
wipe the data off the device entirely.
evolving applications in order to make perspectives in investigations, there are
it available for review purposes is a various technical challenges and legal
While on the subject of data loss, due to
challenge in itself. One version change considerations that organizations should
mobile devices having a high risk of data
in an application could make the entire be aware of. In order to address these
spoliation, it is imperative that the secure
application inaccessible for processing. challenges, organizations should be
seizure, transportation and examination
The electronic discovery industry is seeking accurate and timely legal advice,
of mobile devices are performed by
constantly trying to keep up with this and hiring qualified specialists equipped
specialists following digital forensic best
unparalleled speed and variety of with the right skillset and toolkit to be
practices. There are various factors that
changes. able to harvest these rich sources of
may impact the integrity of the data
information effectively.
collected from mobile devices. For
Finally, there are various challenges with
instance, most mobile devices have
regards to how the data from mobile by Nick Athanasi, Partner and Boray
limited storage capacity, which would
devices is reviewed and potentially Altunisler, Assistant Director, Financial
sometimes imply an auto-deletion setting
presented in court. One of the challenges Advisory, Deloitte Middle East
being enabled, thereby creating a
is providing disparate sources of
possibility of data loss. In addition, mobile
information such as call logs, contacts,
phones are inherently prone to external
text messages and chats in a unified and Endnotes
interference. Through wireless signals, it 1. UAE Leads World in Mobile Penetration Rate.
user-friendly method for review. Another
is possible to remotely wipe the data off CommsMEA, 3 Sept. 2018.
challenge is the use of emojis as they are
the device or alter the data on the device, 2. The Sedona Conference, Commentary on BYOD:
most prevalent in mobile Principles and Guidance for Developing Policies
which could render the entire evidence
communications. As emojis may contain and Meeting Discovery Obligations, 19 Sedona
item inadmissible in court. When there
meaningful content and provide valuable Conf. J. 495 (2018).
are risks of external interference, digital 3. USA v. In the Matter of the Search of an Apple
context, they should not be omitted while
forensics specialists would preserve and iPhone Seized During the Execution of a Search
searching, reviewing or presenting digital
transport devices with specialist Warrant on a Black Lexus IS300, California
evidence. In fact, they are increasingly License Plate 35KGDD203 (February 19, 2016)
equipment called Faraday bags in order
appearing in court cases.4 4. Goldman, Eric, Surveying the Law of Emojis (May
to prevent outside signals reaching the
1, 2017). Santa Clara Univ. Legal Studies
mobile devices. Research Paper, 8-17. Available at SSRN:
In summary
https://ssrn.com/abstract=2961060 or
With mobile devices acting as mirrors of
Cat and mouse – Another challenge http://dx.doi.org/10.2139/ssrn.2961060
our daily lives, it is clear that they can
associated with data on mobile devices is
provide invaluable information in
the processing and analysis of the data.
investigations or legal matters, hitherto
Mobile devices house various third-party
unavailable. However, while these devices
applications and different file formats.
have the potential to unlock new
Processing data from these constantly
27Deloitte | A Middle East Point of View - Summer 2019 | CFO Transition LabTM
The CFO’s journey
My experience at the
CFO Transition LabTM
28Deloitte | A Middle East Point of View - Summer 2019 | CFO Transition LabTM
29Deloitte | A Middle East Point of View - Summer 2019 | CFO Transition LabTM
T
aking on the Chief Financial Officer The day A critical part of the day is understanding
(CFO) role, whether promoted The day is all about the CFO. which aspects of the business the CFO
from within or hired from outside, The only people in the room are the Lab currently spends their time on.
always comes with unknown territory and Facilitator, the Lab Manager, Lab Scribe,
challenges. We have a limited period to the Lead Client Service Partner and the The four faces
make our mark within the new role and CFO. Everyone has only one interest: to Today’s CFOs are expected to play four
to set forth a plan that stakeholders help the CFO be the best they can be and diverse and challenging roles. The two
will buy into and meet the business’ to walk away having mapped out their traditional roles are steward—preserving
objectives. The challenge is how to do personalized 180-day action plan. the assets of the organization by
all of that and still deal with the day-to- minimizing risk and getting the books
day business of the job at hand. In preparation for the CFO Transition right—and operator, running a tight
LabTM stakeholders are engaged to finance operation that is efficient and
Ideally as the CFO, you want to have your understand their hopes, fears and what effective. It is increasingly important for
180-day plan mapped out, know exactly they wish the CFO’s legacy to be. This CFOs to be strategists—helping to shape
what your focus areas are going to be interaction is important for the team to overall strategy and direction—and
and what actions you need to take to be able to guide the CFO during the day, catalysts, instilling a financial approach
meet your objectives. With no CFO role not only to the areas that the CFO wants and mindset throughout the organization
being the same as another, due to to concentrate on, but also to the areas to help other parts of the business
varying operating landscape, economic that are important to the stakeholders. perform better.
environment, legislative requirements It can provide context on possible
and talent considerations, to name just development areas that the CFOs These varied roles make a CFO’s job
a few, there is no off-the-shelf answer themselves may not be aware of. more complex than ever.
book. Each CFO’s plan will have to be
unique. The CFO Transition LabTM
supports the CFO in identifying and Catalyst Strategist
mapping out the broad strokes of that The objective of the catalyst is The objective of the strategist
to stimulate behaviors across is to provide leadership with
plan within a day. the organization to achieve respect to aligning financial
strategic and financial and business strategies such
objectives as M&A, the investments and
Leading edge
The CFO Transition LabTM capitalization of the company
St
st
r
ly
at
The CFO Transition LabTM is an
ta
eg
Ca
is
interactive, one-day experience
t
Threshold
e
performance
based on extensive research on
c
Ex
an
ec
m
u
or
CFO Transitions. The agenda of
ti
rf
on
Pe
the CFO Transition LabTM focuses Finance
on the three most important function
resources CFOs should consider
Effi
managing during their
l
ro
ci
nt
en
Co
transitions:
cy
• Time – Personal and
St
r
to
organizational time
ew
ra
ar
pe
management Steward Operator
d
O
The objective of the steward The objective of the operator
• Talent – Talent in the finance
is to protect and preserve the is to balance capabilities,
organization assets of the organization talent, costs and service levels
• Relationships – Critical to fulfil the finance organiza-
stakeholder relations tion’s responsibilities
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