Why tech-forward firms have the advantage
dubai — Technology is evolving at an exponential pace, and thanks to the rise of artificial intelligence, the Internet of Things (IoT), Big Data and robotics, among others, unprecedented opportunities to redefine customer experiences, productivity, efficiency, profitability and growth are being realised.
Many companies, particularly in the retail and hospitality industries, are embracing digital transformation in an effort to minimise cost and maximise profitability.
Both sectors contribute substantially to the economy. The Dubai Chamber of Commerce and Industry, in a recent study, discovered that retail sales are projected to hit $160.7 billion by 2021. Mena Research Partners, meanwhile, says the GCC’s food and beverage industry is pegged to reach $196 billion by the same year.
“A seamless business transformation supported by innovative digital business solutions is essential for a company to expand and secure exponential growth in new markets,” Nilesh Ved, chairman of Apparel Group, said.
“This direction is aimed at creating more business value that will be driven by the centralisation and standardisation of several enterprise processes including sales incentive management, planning and financial systems and working capital improvement.”
In the MEA, the cloud is becoming increasing popular. Research from the International Data Corporation show that public cloud spending in the region is expected to cross $1.1 billion (Dh4 billion) this year compared to 2017. For instance, Movenpick Hotels and Resorts, as a result of using the cloud, have been able to provide critical business intelligence insights to marketing and revenue management teams that drive decision making from the center and at the property level.
Analysis of guest needs and stay trends generate information that can help to enhance guest experience, encourage repeat visits and improve direct bookings — a onestop window into customer habits and preferences.
“We are at a remarkable inflection point in the history of industry and technology,” said Samina Rizwan, big data and analytics leader for Ecemea at Oracle, told Khaleej Times.
“All industries are impacted by the transformation in technology with AI, IoT, blockchain, big data and machine learning-driven analytics. All these technologies are being adopted now by enterprises and this is the space where further enhancements will happen.”
Although software is a main focus in the region, there have been rapid advancements in hardware to help the retail and hospitality industries engage customers.
Industry experts are stating that technology innovations — such as state-of-the-art live events, virtual shopping screens and 3D sound environments — are catalysing the GCC’s retail growth to hit a record high of $313 billion by 2021.
OLED, for example, have the potential to replace store windows and be used to create content that can attract and engage potential customers.
“Brands can deliver messages and promote products while showing the actual products behind the display at the same time,” Kevin Cha, president of LG Electronics Middle East and Africa, told Khaleej Times.
It is important the companies make headway in these emerging technologies. For the hospitality industry, as an example, in-room IoT solutions based on its smart TVs can improve the experience of hotel guests.
In the near future, with these innovations, we can be most likely make a prediction where potential customers can have targeted messages directed towards them as they walk into or past a store to enhance customer experience and even up-sell or promote a related product based on previous purchases — if and only if consent is provided by the customer.
Brands can deliver messages and promote products while showing the actual products behind the display at the same time
Kevin Cha, president of LG Electronics Middle East and Africa