< Previous20 CEO MIDDLE EAST MARCH 2023 COVER STORYMARCH 2023 CEO MIDDLE EAST 21 ndustry 4.0 is bringing new technologies, innovations and opportunities to industries around the world. So what can enter- prises in the Middle East and Africa do to accelerate digitalisation? How can tools like digital twins set the stage for the next step in industrial evolution? Kamal Ballout, Head of Nokia Enterprise, China, India, Middle East and Africa, shares his thoughts on how companies can benefit from digitalisation today and tomorrow. You recently returned to the Middle East after spending 30 years studying and working in North America. Can you describe that transition? It felt like coming back home. While my experience in North America was profound in shaping my personality — living in the land of innovation and technological disruption — I have deeply enjoyed reconnecting with the culture and traditions of the Middle East. It was a challenging transition, but ultimately rewarding to re-integrate into the history, culture and values I was raised in. Professionally, there are clear differences between North America and the Middle East: which industries drive the economy, how business is conducted, the top priorities for enterprises. Also, my portfolio covers 75 countries and they’re all so diverse. I like to think I’m bringing my own perspective and experience to the business culture here — a direct and transparent way of doing business, combined with a passion for change and positive disruption — while still understanding and respecting cultural differences. I’m excited to see this region grow and embrace digitalisation as we partner with our customers to make Industry 4.0 a reality together. KAMAL BALLOUT, HEAD OF NOKIA ENTERPRISE, CHINA, INDIA, MIDDLE EAST AND AFRICA, TALKING ON HOW DIGITAL TWINS AND OTHER TECHNOLOGIES ARE LAYING THE FOUNDATION FOR THE INDUSTRIAL METAVERSE I HAVE YOU MET YOUR TWIN? KAMAL BALLOUT | COVER STORY22 CEO MIDDLE EAST MARCH 2023 Global trade. Nokia is helping build an intelligent supply chain of the future COVER STORY | KAMAL BALLOUT Are the key industries in this region ready to digitally transform? Do they have strategies in place? Historically, the region has lagged North America in digital transformation, but it’s seeing an unprecedented wave of technological evolution. Industries and enterprises aren’t just planning to evolve, they’re actually implementing cutting-edge technologies. Heavy industries such as oil and gas, mining and maritime ports are the fastest when it comes to adopting these technologies. The mining industry has been under tremendous pressure to boost productivity while keeping workers safe. Thanks to 5G, I have seen mining operation availability increase by an average of two hours per day, which has a huge impact on productivity and revenues. Plus, miners can use autonomous fleets to reduce accidents, lower emissions and improve asset lifetime. In oil and gas, the industry is actively pursuing the “killer use case” of remote well head connectivity. 5G is making that a reality by bringing pervasive, reliable coverage to remote and offshore rigs, enabling new levels of automation that can improve productivity by 10 percent, reduce emissions by 20 percent and, according to PwC, boost global GDP by $1.3 trillion by 2030. And for port operators, 5G is bringing an average improvement of 25,000 more terminal berth moves per year, with a boost in TEU throughput by 10 percent. And it’s not just 5G. Technologies like digital twins are proving to be equally revolutionary. What is a digital twin? Industries are embracing digitalisation with urgency because of the immediate benefits it can bring. But they also need to ensure they’re minimising disruption on existing operations as they do so. That’s where the digital twin comes into play. It’s a virtual replica of a specific machine, product or process, such as a crane in a port or drilling equipment in a mine, or an enterprise’s entire operating environment. By testing changes to configurations and procedures on the digital twin, enterprises can see what will work, without costly prototyping or real-world experimentation that can impact the operation. Digital twins are a growing market, especially in the Middle East and Africa. MarketsandMarkets expects the digital twin market to grow from $1.3bn in 2020 to $3.4bn in 2025 — a 20 percent growth rate. From a CEO’s perspective, how will digital twins change their business? Lower costs, improved productivity, safer workplaces, and deeper operational intelligence — almost every aspect of a CEO’s business can be improved by digital twins. One of our customers in the energy industry has seen a productivity boost of about 30 percent and expects to see a reduction in carbon emissions of up to 40 percent. In an industry that is striving to reach net-zero, that’s huge. The productivity boost is also likely to increase GDP by nearly 3 percent, which is a significant return on investment. 21% The growth in Nokia Enterprise net sales in full year 2022MARCH 2023 CEO MIDDLE EAST 23 Utilities. Nokia solutions make grid smarter, more reliable and more responsive to new demands Digital twins can also help create a more empowered workforce. As digital twins become supported by even more data and smarter analytics, enterprises can make better decisions that lead to faster response times and improved workplace safety, especially in more dangerous industries like mining and manufacturing where accidents are not uncommon. Looking at the big picture, technologies like digital twins are serving as the first building blocks toward the industrial metaverse: That is, where enterprises will be able to fuse their physical and digital assets to greatly augment the capabilities of their employees, creating immersive views of their operations in real-time. We’ve talked about the benefits of transformation. But what are the costs of late adoption? As the Covid-19 pandemic has shown, delaying digital transformation is a huge risk. Going forward, the more manual operation your business requires, the more limited your productivity will be. According to McKinsey, enterprises that don’t digitally transform could reduce their margins by as much as 50 KAMAL BALLOUT | COVER STORY “TECHNOLOGIES LIKE DIGITAL TWINS ARE SERVING AS THE FIRST BUILDING BLOCKS TOWARD THE INDUSTRIAL METAVERSE”24 CEO MIDDLE EAST MARCH 2023 COVER STORY | KAMAL BALLOUT percent. Even when companies do transform, they have to do it the right way and at the right speed. A Harvard Business Review study found that 87.5 percent of digital transformation projects fail because of unrealistic expectations, poor execution or the wrong pace of change. In other words, transforming without a roadmap can be a risk as well. Companies that don’t transform will not only miss out on an economic opportunity, they will also lag behind the competition, lacking the agility needed to respond to market demands and fluctuations. Being viewed as behind the market could also damage their brand, making them vulnerable to workforce shortages and lessening their ability to attract the new digital-native workforce. and government agencies running mission-critical networks. We work with more than 2,600 customers around the world, in industries that include public safety, defence, utilities, energy, mining, railways, airports, manufacturing and more. Every project is unique, so diversity of experience really makes a difference in the outcome of a transformation project. We work with our customers to find a solution for their specific business challenges and goals. All our solutions are pre-tested against OEM (original equipment manufacturer) equipment and pre-integrated for our customers’ industrial ecosystems, ensuring a “right first time” deployment with end-to- end interoperability and minimal disruptions to their business. Perhaps Partners in progress. Mission-critical infrastructure operators such as in the energy industry can safely deliver their essential services with Nokia’s modernised networks Even existing employees may be elect to pursue other opportunities where they can grow their skills and opportunity through new technologies. How much does experience matter when addressing digital transformation? Experience really matters. Nokia has long been a trusted technology partner not only for communication service providers but also enterprises $3.4BN The expected value of the digital twin market in 2025, according to market research company MarketsandMarketsMARCH 2023 CEO MIDDLE EAST 25 KAMAL BALLOUT | COVER STORY most importantly, we’re experienced in building successful transformation roadmaps. Usually, we’ll advise our partners with global insights based on industry best practices to not only maximise their digitalisation investment, but also protect their investment for the future. The Middle East and Africa is a long-time key region for our business. We’ve worked with multiple partners to transform their organisations today, while also enabling the use cases and innovations of tomorrow. We’re currently working with Dubai’s only public safety operator — which serves multiple mission-critical customers like the Dubai Police, Dubai Electricity and Water Authority (DEWA) and Roads and Transport Authority (RTA) — to provide best-in-class, end-to-end public safety wireless networks. We’re the partner of choice to Bahrain’s electricity and water utility, providing a mission-critical network that automates distribution substations — the first of its kind in the region. We’re also working with several mining operators in Africa to offer ubiquitous 4G/5G coverage of remote sites. And we’ve been chosen by port operators throughout the region to help automate terminal operations using 5G, including one of the busiest ports connecting the Mediterranean and Red seas. What’s coming next in digitalisation? The digitalisation journey requires a secure and reliable network. While 5G is bringing new levels of productivity and efficiency to enterprises across all industries, will it have the flexibility to keep up with the requirements of the new services that will emerge with the industrial metaverse? That’s why we at Nokia are already looking ahead to future 6G technologies, which will be key to unlocking the full potential of about digital transformation and the benefits it brings to enterprises – and economies. Companies in every industry seek to improve efficiency, flexibility and productivity in a sustainable way, and digital transformation has a key role to play. We believe Nokia has much to offer to power the successful digital transformation of industries, and we have very recently refreshed our company and technology strategy to reflect who we are today: A B2B technology innovation leader. We look forward to working with more enterprises throughout this region to design the roadmaps they need to make the most of the digitalisation opportunity. Business opportunity. Nokia works with more than 2,600 customers around the world, in industries that include public safety, defence, mining, railways, airports, manufacturing and transport the metaverse by making it fully customisable to the operational nature and needs of each specific industry. What’s the first step in making digital transformation a reality? It’s important to realise that digitalisation offers benefits for every industry and that the technology to realise those benefits is already here, from digital twins to 5G. But digital transformation has to be built on a fundamental first step of developing a strategic roadmap that focuses not just on technology but also on people and processes, along with other factors such as cybersecurity and sustainability. At Nokia, we’re passionate 26 CEO MIDDLE EAST MARCH 2023 he 26th Annual Global CEO Survey, released last month by PwC, paints a stark picture of a world in a state of transition. Most strikingly, 40 percent of company CEOs believe that their companies will be economically unviable in a decade without significant change. Evolving customer preferences, new regulation, skills shortages, technological disrup- tion, supply chain issues and changes to new energy sources were all identi- fied as the forces most likely to impact profitability. The gloominess of CEOs is perhaps unsurprising. Although we in the UAE have so far shown remarkable resil- ience, many countries around the world have witnessed a profound period of instability, first with the pandemic and more recently with inflation and slug- gish economic growth. A more optimistic CEO, taking a longer-term view, might argue that history shows that in all likelihood the economic difficulties will pass, growth will return, supply chain issues will nor- malise, and new energy sources, tech- nology and regulation will produce new opportunities in a safer and greener world for those who show ingenuity. The issue of skills shortages is to my mind a far more serious one and requires our immediate action and attention, as these shortages will not normalise without policy changes. A significant change to our education system is required. How you identify the skills we should be equipping our young people with was rightly described at the World Economic Forum by UAE Minister of Education Ahmad Belhoul Al Falasi as “the billion-dollar question.” The truth is that we cannot know what the labour market will look like in tomorrow’s economy. The pace of change is too fast. The risk we face is that a student starting a degree today may find their degree is out of date by the time they graduate. How do we at universities prepare the next generation of employees for their futures when so many of their prospective employers are so unsure of their own futures? A new model of education is required. As the UAE’s Education Minister highlighted at Davos, the answer lies in the promotion of interdisciplinary education and focusing on enhancing Higher education needs reform, writes Professor Paul J Hopkinson, Dean of the College of Interdisciplinary Studies at Zayed University TRANSFERABLE SKILLS OVER SINGLE DISCIPLINE Educator. Hopkinson has worked in academia for over 20 years and held a variety of leadership roles in UK and UAE education institutions EDUCATION 271 MILLION The population of children, adolescents and youth (0-24 years) who will live in the MENA region by mid-century, according to a UNICEF data T MARCH 2023 CEO MIDDLE EAST 27 EDUCATION Future skills. Working in disciplinary silos is seldom an option in today’s disruptive environment a students’ soft skills. In doing this we can develop a student’s “learnabil- ity,” by which we mean their capacity to learn. Whilst also encouraging an ability to solve complex problems and developing a willingness to grow and adapt to new situations. This may sound a little vague to those of you, who like me, attended university, and studied a single disci- pline or a specific vocational degree, but interdisciplinarity is not new. Many of the most successful businesses and emerging industries in the world are interdisciplinary: the fintech sector, which thrives here in the UAE, is a prime and obvious example. Moreover, businesses frequently depend for their success on the ability of employees to collaborate across disciplines to manage projects and deliver innova- tive products and services. Working in disciplinary silos is seldom an option in today’s disruptive environment. Forward thinking employers recog- nise that these changes are essential. They understand that their companies, industries, and the world around them is changing and that those who do not evolve will not survive. For an employer the technology skills a student learns in university or at school may be useful tomorrow, but we can be almost certain that those skills will not be in demand in a decade. No one can predict which industry that automation or artificial intelligence will disrupt next. Clearly the ability to adapt is crucial. Coupled with this is the fact that the careers of today look different to the careers of yesterday. In the not- so-distant past it was not unusual to spend your entire working life with one company. Now the average job lasts just 2.5 years. And these are not just moves within industries: a survey of the MENA region by Bayt.com found that 56 percent of professionals were hoping to move job this year, with three in every four of those planning on a “complete change” in the industry they work in. have the wherewithal to adjust to the world as it changes will be the ones who are most successful. Our job is to embed this mindset in our students: to encourage them to view their careers and approach to learning as dynamic, not static. The degree programmes of today therefore need to be considered an in- vestment in our people and the skills of the future. These are problem-solving skills, which are grounded in analyti- cal and critical thinking, creativity and originality; the ability to manage our- selves whilst also developing resilience and flexibility; the people skills of col- laboration, communication, influence and leadership; and an openness and embrace of technology. Anyone equipped with those skills will find themselves in demand, ready for the future and immune to disruption. *Professor Paul J Hopkinson is the Dean of the College of Interdisciplinary Studies at Zayed University. Hopkinson has worked in academia for over 20 years and held a variety of leadership roles in UK and UAE education institutions. Prior to embarking on his academic career, he held technical and commercial roles in the aero- space and telecommunications industries. 56% The percentage of professionals in the MENA region who are hoping to move jobs this year, according to a survey by Bayt.com “WE CANNOT KNOW WHAT THE LABOUR MARKET WILL LOOK LIKE IN TOMORROW’S ECONOMY” We must prepare graduates for this new reality. The need to reskill dur- ing a career is not simply an option for today’s young people, it is a neces- sity. Those who succeed in continually renewing themselves, are committed to ongoing personal development and 28 CEO MIDDLE EAST MARCH 2023 he world of education was never faced with a bigger chal- lenge than it is facing today. At the school level, the old concepts of imparting knowledge have already been thrown out of the window, as reflected in innovative curricula and formats devel- oped by technology-driven institutions. The scenario at the tertiary education level is far more complex and there is widespread criticism that many of the graduates churned out by universities do not have the skill sets needed in the cur- rent market. Tertiary education is therefore at a crossroads because of the Fourth Industrial Revolution that is turning the job market upside down. Many of the jobs that were open to fresh graduates are disappearing, or about to disappear from the radar. Jobseekers need something more than mere degrees and diplomas to sur- vive, because artificial intelligence (AI), robotics, nanotechnology, 3D printing, biotechnology and genetics have altered the landscape completely. The pace of change is not just dramatic but also frightful. In 2018, a LinkedIn survey revealed that most companies’ focus areas had switched to cloud computing, statistical analysis, and data mining skills. Two years later, the scenario had changed, with blockchain and analytical reasoning emerging as the top desired skill sets. Disturbing scenario A 2020 World Economic Forum (WEF) study painted a disturbing picture of a world changed by the pace of technology adoption, one that is set to transform jobs – and their associated skill sets – by 2025. Almost half of the businesses surveyed by the WEF were already plan- ning to reduce their workforce because of technology integration. The study predicted that many existing job categories would be oblit- erated, but it also provided a glimmer of hope that new jobs would be created along the way, possibly outpacing those Tertiary education is at a crossroads because the Fourth Industrial Revolution is turning the job market upside down HIGHER EDUCATION AT A CROSSROADS: UNIVERSITIES MUST ALIGN PROGRAMMES TO A CHANGING JOB MARKET Future leaders. Universities need to embed emerging skills in their curricula, while imparting the multidisciplinary skills that will hold the key to any successful career EDUCATION T BY PROFESSOR HASSAN HAMDAN AL ALKIM, PRESIDENT OF THE AMERICAN UNIVERSITY OF RAS AL KHAIMAH MARCH 2023 CEO MIDDLE EAST 29 EDUCATION Educator. Professor Al Alkim says a faculty member is no longer just a teacher but a facilitator lost, with increased opportunities for remote working. The key takeaway from the study is that the new roles would require much greater integration with machines, lead- ing to an increased demand for cross-dis- ciplinary skills, such as critical thinking, problem-solving and self-management. While high unemployment is a common problem worldwide, the Arab countries have the highest and the fastest growing unemployment rate of young people worldwide - 24.8 percent in 2022, according to a 2022 study by ILO. The report says a ray of hope would come from the expansion of green and blue (ocean resources and their sustainable use) economies. Changing role of universities In this scenario, the role of tertiary edu- cation is becoming increasingly impor- tant. It is a daunting task for universities to keep up with these disruptive develop- ments. They seriously need to consider change because the student community would expect not only value for money but an education that would give them jobs to survive, if not to prosper. The common refrain among employ- ers is that many of the graduates they hire are ill-equipped to join the work- force. As a reaction, employers are in- creasingly adopting a “skills-first hiring” approach. What we learn from this is that a university degree is still essential, but only if it is tempered with soft skills. We all know that knowledge involves two strongly inter-linked components: Classroom learning, as we know it, has to be altered to foster collabo- ration with peers on real-life group projects – virtually as well as in person – to enable students to meet people from campuses all over the world. We should encourage an entrepreneurial mindset so that students can work in self-directed ways that are critical in the modern workplace. The next major focus area should be stronger collaboration and more regular interaction with industry, with the goal of tapping into their up-to-the-minute knowledge to help inform the design of academic courses and to share experi- ences and insights directly with students. In other words, universities need to embed emerging skills in their curricula, while imparting the multidisciplinary skills that will hold the key to any suc- cessful career. This will boost graduate employability, and help universities to fulfil their goals of academic excellence, and position themselves as institutions committed to supporting the lifelong learning that will equip and empower the workforce of the future. Links with industry This could be achieved through proac- tive measures from higher education institutions. One way to reach this goal would be to have an industry advisory committee in each tertiary education institution to suggest changes to the cur- riculum and align it more closely to the needs of the market. The instructors or professors need to get more proactive in embedding skills within the students. We must realise that the role of faculty has undergone a change: A faculty member is no longer just a teacher; he is a facilitator. This means that faculty members need to go the extra mile to stay up-to-date with emerging skills. The challenge is huge but it is not insurmountable. Concerted efforts by academics, industry leaders and the government would go a long way in creat- ing a new roadmap for a changed higher education landscape. 24.8% The unemployment rate of young people in Arab countries in 2022, according to a study by the International Labour Organisation (ILO) “UNIVERSITIES NEED TO EMBED EMERGING SKILLS IN THEIR CURRICULA” content and skills. The Conference Board of Canada explains this very effectively. Content includes facts, ideas, principles, evidence and descriptions of processes or procedures. Most instructors, at least in universities, are well-trained in content and have a deep understanding of the subject areas they teach. But expertise in skills development though is another matter. The issue here is not so much that instructors do not help students develop skills – they do – but whether these intellectual skills match the needs of knowledge-based workers, and whether enough emphasis is given to skills development within the curriculum, according to the Conference Board of Canada. New skill sets The key to results-oriented tertiary edu- cation is blending academic learning with new skill sets that would have in their ambit complex problem-solving skills, along with advanced communication, team working, business understanding, leadership and other behavioural skills.Next >