Embracing the digital revolution for growth and competitiveness

Ediz Eren, regional VP Middle East for Rockwell Automation, discusses how the region is witnessing a remarkable shift towards digital transformation, driven by ambitious visions for economic diversification and modernisation

In recent years, the Middle East has been experiencing a significant shift towards digital transformation across various industries. Traditionally known for its oil and gas sector dominance, the region is now diversifying its economy and embracing technology-driven innovations to foster growth and competitiveness

A key driver of digital transformation in the Middle East is the region's vision for economic diversification and modernisation. Governments across the region have launched ambitious initiatives to foster innovation, entrepreneurship, and technological advancement. These initiatives include investment in digital infrastructure, development of smart cities, and promotion of emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT).

Like other global economies, the COVID-19 pandemic has accelerated the adoption of digital technologies in the region, as organisations have had to adapt rapidly to remote work, digital communication, and online services. This has led to a greater appreciation for the benefits of digitalisation, including increased efficiency, flexibility, and resilience. Organisations invest in cloud computing, big data analytics, cybersecurity, and digital platforms to enhance customer experiences, streamline operations, and drive innovation.

Saudi Arabia, for example, is aggressively advancing its manufacturing sector through digitalisation, aiming to expand from 10,000 to 36,000 facilities by 2030 as part of its Vision 2030. Rockwell Automation, a key supporter, recently launched its Digital Center of Excellence in Dammam, strengthening its commitment to the Kingdom. The Center focuses on process industries such as oil and gas, mining, and water, accelerating Saudi Arabia's digital transformation and optimising maintenance operations.

It is not all about technology

While Rockwell has a suite of solutions that cover the entire lifecycle of a manufacturing facility, a successful digital transformation requires more than that. A vital component often overlooked is the people involved in the facility, who frequently feel threatened by adopting automation and data-driven processes.

As digitalisation, automation, and robotics increase in manufacturing companies, workers express growing concerns about potential job displacement, loss of autonomy, and the need for upskilling. One primary apprehension among workers is the fear of job loss due to automation replacing traditional manual tasks. This concern is compounded by the perception that machines are increasingly capable of performing tasks previously carried out by humans. This shift can lead to feelings of disengagement and decreased job satisfaction among workers.

The increasing reliance on digitalisation also raises concerns about the need for continuous upskilling and reskilling. Many workers feel unequipped to navigate the rapidly evolving technological landscape, leading to anxiety about job security and future employability. Addressing these concerns requires proactive measures from manufacturing companies, including investment in training programmes, transparent communication about the role of technology in the workplace, and efforts to involve workers in the digitalisation process to mitigate fears and foster a culture of collaboration and adaptation.

The importance of effective change management

Change management is pivotal in successfully implementing digital transformation initiatives within manufacturing companies. Change management helps create awareness and understanding among employees about the need for digital transformation and its benefits to the organisation. Clear communication about the transformation's goals, objectives, and expected outcomes helps to alleviate uncertainty and build buy-in from employees at all levels.

It serves as a guiding framework for navigating the complexities of digital transformation, ensuring that organisational goals are achieved and employees are equipped to thrive in a rapidly evolving manufacturing landscape.

Some organisations look to pilot projects to provide a controlled environment to test new technologies, processes, and strategies before implementing them on a larger scale. These small-scale initiatives allow organisations to assess feasibility, identify potential challenges, and refine their approach, ultimately minimising risks and maximising the success of broader transformation efforts. However, as, by definition, they are small, they have a limited role in wider workforce acceptance.

Their prime benefit is their ability to demonstrate tangible value and ROI to stakeholders within the organisation. By focusing on specific use cases or areas of improvement, pilot projects can showcase the potential impact of digital solutions on productivity, efficiency, quality, or cost savings. This empirical evidence is essential for garnering support and securing buy-in from decision-makers and frontline employees.

The region is witnessing a remarkable shift towards digital transformation, driven by ambitious visions for economic diversification and modernisation. Governments are spearheading initiatives to foster innovation and technological advancement. Overall, digital transformation presents challenges and opportunities for the Middle East, highlighting the importance of proactive strategies and strong partners to address workforce concerns and maximise the benefits of technological innovation.