PwC's Wassim Hassouneh provides insights on unlocking digital potential and overcoming transformation challenges

He discussed how the role of data, effective IT operating models, and clear strategies can help overcome hurdles like legacy systems.

Digital transformation has emerged as a critical driver of growth and competitiveness, involving the integration of digital technologies into all areas of a business. This fundamental change alters how organisations operate and deliver value to their customers. It's not just about adopting new technologies; it's about reshaping business models, enhancing customer experiences, and fostering a culture of innovation. As industries across the globe adapt to this new digital era, the Middle East is witnessing a significant shift, with companies increasingly leveraging digital solutions to overcome challenges and seize new opportunities.

Wassim Hassouneh, a leading figure in digital transformation, currently serves as a Digital & Technology Consulting Partner at PwC Middle East. With a rich background in digital transformation strategy and execution, Wassim has led consulting services across various sectors, including government and public services, tourism & hospitality, and real estate.

In our insightful conversation with Wassim, as a judge in the Middle East Technology Excellence Awards 2024, we delve into the unique challenges industries face in their digital transformation journeys and explore the key strategies that can help overcome these hurdles.

In your observation, what unique challenges do industries face in digital transformation, and how can they address them?

Industries often face several challenges in digital transformation, including legacy system integration, data security concerns, and the need for cultural change within organisations. To address these, organisations should focus on developing a clear digital strategy that includes modernising legacy systems, implementing robust cybersecurity measures, and fostering a culture that embraces change and innovation. Leadership commitment and employee engagement are crucial to overcoming these hurdles.

Additionally, it is essential to prioritise digital transformation plans in alignment with the organisation’s unique business problems and strategic objectives. Each industry, and even each organisation within an industry, has its own set of challenges and priorities that must be considered when developing a digital strategy. For example, an organisation with a strategic objective of cost efficiency might focus on automating processes to reduce operational expenses and improve productivity. In contrast, a company aiming to increase revenue or market share may prioritise enhancing customer experience through personalised digital interactions and expanding into new markets using advanced data analytics. By aligning digital transformation initiatives with specific business goals and considering the unique context of the industry and organisation, companies can ensure that their efforts deliver measurable value and drive sustainable growth.

How have advancements in data analytics shaped the digital customer experience in recent years? Can you provide examples of how effective data analytics have led to improved customer satisfaction and business outcomes?

Advancements in data analytics have significantly enhanced the digital customer experience by enabling personalised interactions, predictive insights, and real-time feedback. These capabilities allow businesses to understand customer preferences, anticipate their needs, and respond promptly to their concerns, thereby fostering a more engaging and satisfying customer experience.

For instance, in the government sector, data analytics are used to improve public services and citizen engagement. For example, many governments have implemented data-driven platforms for general citizen services, such as digital portals for accessing municipal services. By analysing usage patterns and feedback, these platforms can be optimised to provide more user-friendly interfaces and faster response times. This leads to higher citizen satisfaction and more efficient service delivery. For example, a city might use analytics to streamline the process of applying for permits or reporting issues, resulting in quicker resolutions and improved citizen experience.

In the real estate sector, data analytics helps companies understand different market segments and tailor their offerings accordingly. By examining demographic data, consumer preferences, and buying patterns, companies can develop and update their products to meet the specific needs of various segments. This targeted approach not only improves customer satisfaction but also maximises market reach and profitability. Furthermore, the digitisation of property sales journey is opening the real estate market to global investors, making it easier for them to access, evaluate, and invest in properties worldwide.

What are the key elements of an effective IT operating model that supports digital transformation? How do you align information strategy with overall business goals in a rapidly changing technological landscape?

An effective IT operating model should include agility, scalability, and collaboration. It should support rapid development and deployment cycles, scalable infrastructure to handle varying workloads, and cross-functional collaboration to integrate IT initiatives with business objectives. Aligning information strategy with business goals requires continuous evaluation of technological trends, understanding business needs, and fostering a culture of innovation. Regularly updating the IT roadmap to reflect changing business priorities ensures alignment.

Having worked across various industries, what in your opinion are common digital transformation strategies that can be applied across different industries?

Common digital transformation strategies include adopting cloud technologies, leveraging data analytics, and implementing customer-centric approaches. Across industries, businesses are focusing on automating processes to improve efficiency, using big data to drive decision-making, and enhancing customer interactions through digital channels. These strategies help in achieving operational excellence and delivering superior customer experiences.

Another key strategy is the automation of organisational support functions and shared services, including HR, Finance, Procurement, Marketing, and Administration. By automating these functions, organisations can reduce operational costs, minimise errors, and free up valuable resources to focus on core business activities. For example, automating HR processes such as recruitment, onboarding, and payroll can lead to faster hiring times and improved employee satisfaction. Similarly, automating finance functions like invoicing and expense management can enhance accuracy and efficiency.

These common strategies, when effectively implemented, enable organisations across various industries to streamline operations, enhance decision-making, and provide better services to their customers and stakeholders.

How can companies balance the need for innovation with the practical realities and constraints of existing IT infrastructure?

Balancing innovation with existing IT infrastructure requires a phased approach. Companies should prioritise incremental improvements and adopt hybrid models that integrate new technologies with legacy systems. Investing in scalable and modular solutions allows for flexibility and gradual modernisation. Additionally, involving stakeholders from both IT and business units in the planning process ensures that innovations align with practical constraints and business goals.

As a judge at the Middle East Technology Excellence Awards 2024, what key factors do you consider when evaluating technological innovation?

When evaluating technological innovation, I consider factors such as the originality of the solution, its impact on the industry, scalability, and alignment with future trends. Additionally, the implementation process, including how effectively the solution was deployed and the level of stakeholder engagement, plays a crucial role. Innovations that demonstrate a clear value proposition and contribute to long-term sustainability stand out in the evaluation process.