EXPERT OPINION from others . These are complex , cross-functional combinations of processes , skills , knowledge , tools , and organisational designs put in place to consistently deliver a strategic outcome . To build and deploy these capabilities , companies often have to rethink their operating models , process design , use of technology , and human resources practices . A great capability in delivering customer satisfaction , for example , requires employees with a high level of autonomy who can make decisions on behalf of their customers without waiting for approval .
Next , many GCC companies , especially those whose governments retain large ownership stakes , need better governance systems . The GCC includes about 650 stateowned enterprises , and the state is a shareholder in 78 of the top 100 listed companies on GCC stock exchanges . As an owner , a GCC government often has considerable influence on board member selection and should secure the right mem- bership . Board members should be aware not just of finance and government concerns , but also of relevant business , technology , and human capital issues . Governments can also benefit from establishing a centralized agency through which they can exercise their ownership rights in enterprises more effectively and transparently .
Digital Leapfrogging
Digitization has become the single most important enabler of innovation , competitiveness , and economic growth in emerging economies . GCC countries are poised to succeed here because they are relatively unbound by legacy systems . They can spring over traditional stages of economic development by adopting leading-edge technologies such as cloud computing systems , data analytics , integrated digital operations , and advanced user interface design .
Leapfrogging digital technology can speed economic transformation . In healthcare , many GCC countries are considering national electronic health records , implementation of which ordinarily takes years . But because they lack a legacy system , they can design a state-of-the-art system from scratch . The system could store , share , and analyze health data in the cloud . The benefits would include treatments tailored to individual patients and better early disease detection . GCC leaders can also adopt blockchain , a recently developed technology that uses a public ledger system to securely record and transfer health data with a much lower administrative burden .
Estonia represents a model for GCC countries . Beginning in 1992 , after the collapse of the Soviet Union , Estonia began changing from a struggling economy with antiquated technology to a global digital leader . The country capitalized on its educated workforce to build a strong skill base in computer and IT management . Rather than adopting systems that would soon become obsolete , Estonia went straight for the latest technology . It embraced the internet as a vehicle for the government ’ s operations ( putting in place , for example , one of the world ’ s first paperless land registries ).
Estonia currently has one of the most advanced e-government systems in the world . This includes a single digital ID that enables citizens to access all of its secure services . Estonia produces more startups per person than any other country in Europe and offers an e-residency program to entrepreneurs worldwide so they can establish businesses in the country without physically moving there .
An Estonia-style approach in the GCC would involve building digital ecosystems in which innovation can thrive . This would require investing in smart infrastructure , platforms , and services ; making key data sets open and publicly available ; upgrading the legal and regulatory framework ; and nurturing digital talent . Dubai has already begun moving in this direction . Its 3D printing strategy , launched in April 2016 , aims at positioning the emirate as a leading hub of the technology in three key sectors : construction , medical products , and con- sumer products . By 2030 , it expects 25 percent of its buildings to be 3D printed .
The Future-Proof Workforce
A capable and flexible workforce , with people who learn continuously and can adapt to any technological future , is a vital resource for any economic transformation plan .
World-class companies need skilled employees who innovate and take risks . Because they cannot afford to ignore sources of skilled talent , GCC governments should heighten their efforts to integrate women and young people into the labor market . supported by EUROBAK
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