GCC companies are prioritizing innovation now more than ever as 85% of senior executives in the region have ranked it as a top priority, depicting the region's ambition to lead in the global knowledge economy.
A new report from a global consulting firm highlighted this positive trend while noting opportunities for GCC firms to enhance their innovation readiness.
Innovation remains a top priority for 83% of global companies, but readiness has dropped from 20% two years ago to just 3% this year. This pattern is even more pronounced in the GCC, where firms prioritize innovation more than the global average but struggle more with readiness.
The latest study also highlighted a significant gap between innovation ambition and practical readiness, particularly in the GCC, and to close this gap, it has suggested that the link between innovation and business strategy must be strengthened.
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Developing Skilled Talents
GCC business leaders identified talent pool constraints and the rising cost of capital as top challenges for their innovation teams.
Despite Dubai, Abu Dhabi, and Riyadh being popular among global talent, the region is still developing its talent pool. However, the swift growth of innovation ecosystems in these cities is expected to boost talent attraction in the near future.
Generative AI Adoption on the Rise
Reflecting the region's continued investment and integration of cutting-edge technologies for digital transformation, the study found that 84% of GCC firms are starting to use generative AI (GenAI) to drive innovation.
With this in mind, we could see more widespread and sophisticated use of GenAI in innovation processes. According to the UAE’s AI Minister, Dubai is looking to implement its AI vision within the next 185 years.
In a recently concluded Telecom Review webinar, industry leaders from Nokia, Umniah, B-Yond, Salam, and Azerconnect Group, provided insight into what's beyond the hype of generative AI and its current real business applications.
Among the breakthroughs mentioned in the discussion were Nokia’s Cybersecurity Dome for threat detection and digital twins for network management; enhanced customer service through AI-driven chatbots and service personalization; GenAI in network traffic forecasting, smart power control for power savings, and abnormal network behavior detection; and AI-backed telesales and its significant contribution to sales volume.
Technology and Vision Combined
By being proactive, anticipating future trends, and aligning innovation efforts with strategic goals, GCC companies can position themselves at the forefront of their industries.
To improve innovation readiness and link innovation with business strategy, it is recommended to focus on six key elements: executive ownership, clear sense of purpose, competitive advantage, specified domains, target portfolio structure, and quantified objectives.
As GCC economies diversify, aligning innovation with business strategy and leveraging technologies like GenAI could result in GCC companies reaching new heights, competing globally and driving regional growth.
Overall, this approach will help close the innovation readiness gap and position the GCC as a global innovation hub.
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