The report, “Accenture Innovation Maturity Index 2020 – Middle East,” is based on a survey of 200 C-suite executives in Saudi Arabia and the United Arab Emirates (U.A.E) and on an Accenture outside-in analysis of more than 275 companies across the Middle East that measures the potential value that companies are failing to realize from opportunities that technology innovations present as well as their exposure to disruption.

1. MIDDLE EAST
INNOVATION
MATURITY INDEX
OCTOBER2019
INNOVATION
LEADING
Reimagining the future
Xavi Anglada
@xavianglada
Managing Director
Accenture Digital Lead MENA

2. Why are we
here?

3. Sources: Accenture Research Disruptability Index
1
Total sample = 277 based on publicly listed company data
Industry Exposure to Disruption
CurrentLevelofDisruption
Communication, Media & Technology Products Resources
Median 0.50
Average
Enterprise
value of
companies
in sample
Software & Platforms
Comms & Media
Energy
Chemicals
Automative
Median 0.59
Utilities
Health
Insurance
Banking
Industrial Equipment
& Machinery Infrastructure &
Transportation Services
Natural Resources
Life Sciences Retail High Tech
Travel
CG&S
Capital Markets
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.40 0.50 0.60
Susceptibility to Future Disruption
Financial Services Health
0.70
Disruption is an
inescapable and
growing challenge
for all industries
in the Middle East
exposing
$578 billion
Copyright © 2019 Accenture. All rights reserved.
3
in enterprise value
to risk in 2019

4. are unsure or dissatisfied that
their company’s innovation efforts
will position them well to
overcome future disruption
increase in mentions of disruption
by c-suite over the last 3 years has
increased 6 fold
expect their industry to be
disrupted by new innovations in
the next three years
Copyright © 2019 Accenture. All rights reserved.
Executives are
aware of the
threat and not
prepared
and the
concern is
growing
Source: Survey data based on interviews with 200 C-suite
Middle East executives from across 11 industries
4

5. of companies continue to compete
in their legacy businesses, using
mostly traditional approaches or
just started transforming their
legacy business into new business
Whencompanies arein the
middleofit, they typically
make cautiousmoves.
But, playing it safe amid fierce
disruptors is very risky. 73%
27%
Incremental Disruptive
85% 79%
12% 19%
Less than 25% 25% - 50%
3% 2%
More than 50%
Investments directed towards incremental*
vs. disruptive** innovation
Respondants indicating 50% or more
of investment spend oninnovation
Financial investments in innovation over
the past 5 years? And next 5 years?
Past 5 years
Next 5 years
2/3rd’s
Source: Survey data based on interviews with 200 C-suite Middle East executives from across 11 industries
* Enhancing features of an existing product or service
**Focus on advances that create entirely new markets, with the potential to disrupt entire industriesCopyright © 2019 Accenture. All rights reserved.
5

6. Nearly all
disruptions
are causedby
innovations
making
innovation
the source
of disruption
Copyright © 2019 Accenture. All rights reserved.
Entertainment – Streaming video
6
Retail – Online shopping
Transport – Ride hailing
Retail – Sportwear
Financial Services – Digital-only bank
Mobile – Smartphone disrupted

7. Companiesthatthrivein theageof disruption
build deliberate innovation structures
High-growth companies innovate by setting up
structures for innovation success
Copyright © 2019 Accenture. All rights reserved.
STRATEGY
Successful innovators share a similar approach to innovation strategy. They
aim for disruptive advances, rather than incremental improvements. They build
concentrated innovation functions, rather than dispersed teams. They balance
innovation between old and new and make sure innovation is quantifiable.
CULTURE
Companies that succeed in innovation have a culture of innovation in which
creativity is encouraged and rewarded. Ideation is applauded by managers. They
foster a culture that drives creativity and new thinking within their organisations.
INNOVATION ARCHITECTURE
A well-designed innovation architecture specifies clear processes for moving
innovation from ideation through R&D to mass-market commercialization,
employing a combination of internal and external innovation capabilities.
High growth CO’s
agreed structures
will describe their
organisation to a
“significant extent”
Sources: Accenture Research Analysis
7
82%

8. High Growth
CO’s agreed
practices will
describe their
organisation to a
“significant extent”
DATA DRIVEN
Generating, sharing and deploying data to deliver new product
and service innovations safely, securely and efficiently.
HYPER RELEVANT
Knowing how to be and stay relevant by sensing
and addressing customers’ changing needs.
TALENT RICH
Creating new, modern forms of workforces (flexible, augmented and
adaptive) to gain a competitive advantage in fast-changing markets.
TECHNOLOGY PROPELLED
Mastering leading-edge technologies that enable business innovation.
NETWORK POWERED
Harnessing the power of a carefully managed ecosystem of
partners, to bring the best innovations to your customers.
INCLUSIVE
Adopting an inclusive approach to innovation and
governance that incorporates a broader stakeholders.
ASSET SMART
Adopting intelligent asset and operations management to run businesses as
efficiently as possible, and to free up the capacity for other innovative efforts.
…and adopt
7 innovation
practices that lead
to organizational
change
Copyright © 2019 Accenture. All rights reserved. Sources: Accenture Research Analysis
High-growth companies
apply innovation practices
to change their way of
doing business more,
to become:
8
1
2
3
4
5
6
7
90%

9. Accenture’s INNOVATION
MATURITY INDEX
diagnostic asset
is designed on the back
of these insights
to measure the readiness
of companies innovation
ability to support their
journey to the NEW
Managing disruptionsuccessfully
is why innovation matters
Sources: Accenture Research Analysis
INNOVATION MATURITY INDEX
INNOVATION
PRACTICES
Hyper Relevant
Technology
Propelled
Data Driven
Talent Rich
Network
Powered
Asset Smart Inclusive
INNOVATE
BY DESIGN
Innovation
Stategy
Innovation
Architecture
Innovation
Culture
Copyright © 2019 Accenture. All rights reserved.
9
PILLAR 1 PILLAR 2

10. INNOVATION MATURITY
RESULTS: 2019 RESEARCH
KEEPING UP WITH THE
CHAMPIONS
What did we find?

11. Sources: Accenture Research Analysis
58
54
56
60
56
58
Overall
Region
2018
2019
2018
2019
Innovation
Champions
7 percent
of the
sample
Innovation Maturity Index Scores
(out of 100) Overall Region
Innovate By Design
Major 2018-19 changes
Innovation Practices
2018
Strategy
-11 points
Culture
+8 points
Architecture
+5 points
Data Driven
+15 points
Asset Smart
-6 points
Inclusive
-8 points
2019
Headlines:
2019 saw a
marginal
improvement in
index scores
A sharp divide exists
between those on
the winning side of
innovation and those
being disrupted by it
turning data into
value is a key
future focus
Copyright © 2019 Accenture. All rights reserved.
11
73
76

12. TRANSFORM
THE CORE
SCALE
THE NEW
GROW
THE CORE
THE CHAMPION APPROACH
Champions use
innovation
strategicallyto
unlock valuein
newbusiness
whilerevitalizing
theircore business.
A strategy we call
the wisepivot
of champions (vs 41% of others)
use innovation strategically to
unlock value in the legacy and
new businesses.
Champions are more
(confident of their levels
of investments) dedicated
to pivoting their business.
Bubble size: Level of investment confidence
by change activity: Champions over rest of the marketCopyright © 2019 Accenture. All rights reserved. Sources: Accenture Research Analysis
WISE
PIVOT
12
1.8x
1.6x
3x

13. Rest of
the Market
Innovation
Champions
Innovate By Design Index Scores
(out of 100 points)
2018
Innovation
Strategy
Innovation
Culture
Innovation
Architecture
2019
2019 Scores
+5
Rest of the
Market 57
Innovation
Champions 62
+18
Rest of the
Market 65
Innovation
Champions 83
+31
Innovation
Champions
Rest of the
Market 54
Copyright © 2019 Accenture. All rights reserved. Sources: Accenture Research Analysis
85
During design
Champions see
the value in
building a strong
Innovation Culture
and Architecture
forsuccessful
execution
13
THE CHAMPION APPROACH
74
77
58
59
Champions
score change
from 2018
Strategy flow
through
Commercializing
ideas well
Ecosystem plays

14. Innovation Practices Index
Scores (out of 100 points)
2018
Data Driven
Hyper Relevant
Network
Powered
2019
2019 Scores
+14
Innovation
Champions
Rest of the
Market
89
75
+22
Innovation
Champions
Rest of the
Market
83
61
+24
Innovation
Champions
Rest of the
Market
79
55
Technology
Propelled
Asset Smart
Talent Rich
+27
Innovation
Champions
Rest of the
Market
75
48
+20
Innovation
Champions
Rest of the
Market
69
49
+17
Innovation
Champions
Rest of the
Market
66
49
Inclusive
+18
Innovation
Champions
Rest of the
Market
65
47
Champions
differentiate
themselvesin all
of the innovation
practices
and they see Data
as the alpha trend
to establish a
virtuous cycle
Copyright © 2019 Accenture. All rights reserved. Sources: Accenture Research Analysis
14
THE CHAMPION APPROACH
Rest of
the Market
73
75Innovation
Champions
54
55
Champions
score change
from 2018
• Data scores up for the region driven by future
intent of companies to leverage data
• Champions consistent in current and future

15. Data:
the new Oil+

16. Business
Growth
Operational
Excellence
Optimized
Customer
Experience
Innovative
Products &
Services
3. BUSINESS
VALUE
Powering the Pivot with Data
Copyright © 2019 Accenture. All rights reserved.
When used as a
strategic asset
data can power
thepivot
Data-led activities applied at the
foundation can help increase
data quality, trust and create
efficiencies to transform the
core business and improve
current value of operations.
1.
2. At the same time building a
solid data foundation is critical
to set up an analytics and AI
capability to power the new.
16

17. of the data in the world today has been created
in the past 10 years.
Up to 73% of all data within an enterprise goes
unused for analytics*.
Only 24% of Middle East companies reported being able
to realize tangible and measurable value from data.
The Data
Value Gap
Theexponential
growth in data
amplifies the
opportunity for
enterprises to be
more insight-led in
delivering business
value. But most
are challengedto
convert theaccess
todata into value
DataValue
Data Volume
Data
Value Gap
10x the amount of data in 2017 will be
created by 2025.
< 1/3 of Middle East companies are able to currently
use data to discover insights, make recommendations
and influence customers to a ‘significant extent’.
Potential Derived
Value From Data
Current Derived
Value From Data
Copyright © 2019 Accenture. All rights reserved.
17
Source: Forrester*

18. Cultural and operational challenges prevent companies
from closing the data value gap to generate meaningful
insights and derive value from data
Copyright © 2019 Accenture. All rights reserved.
CHALLENGES:
1
Poor data quality
Data is not prepared and structured in an
integrated way across the enterprise…
leading to untrusted data.
1 in 2 companies say their data quality is
incomplete, inaccurate, and unsecure.
Only 28% know where their data resides,
flows and is leveraged inline with the pace
of business evolution.
2
Silo-ed and slow data
Not being able to control and manage
data at scale…leading to the inability to
operationalize data and use it strategically
and securely.
45% are able to consistently establish
reliable, scalable and agile data pipelines
within their business.
3/5 say the flow of data throughout their business
is NOT seamless.
3
Lacking a data strategy and culture
Unable to integrate data driven decisions and
monetize data adequately due to skills, culture
and analytical tool gaps…leading to an absent
integrated analytics strategy capable of
driving sustainable returns.
Only 23% manage to integrate humans and
machines at scale to drive productivity.
Almost 80% lack a clear vision with defined
objectives for their analytics journey with no
underlying operating model.
18

19. RELEASING VALUE
TRAPPED INDATA
THE INNOVATION
CHAMPION
APPROACH

20. Innovation Champions unlock value trapped in data by
focusing on 4 key outcomes
1 BUILD A SOLID DATA
FOUNDATION
They integrate data across the enterprise in a structured
way to provide faster access to trust-worthy data that can
be used to drive insights and real-time decision making.
2
OPERATIONALIZE
DATA MANAGEMENT
AND GOVERNANCE
They focus on controlling and managing data at scale
so that it can be leveraged as an enterprise-wide
strategic asset A.
3
CONVERT DATA
INTO ACTIONABLE
INSIGHTS
They leverage analytical insight generation to serve as the
gateway to insight-powered enterprises; integrating data-
driven decisions across the business functions.
4 REALIZE VALUE
FROM DATA
They ensure implementation of analytics strategy
is generating business benefits and driving
sustainable returns for the enterprise.
Copyright © 2019 Accenture. All rights reserved.
20

21. Build a solid data foundation
Capability Investment
Data platform
Have thorough knowledge of their
data (i.e. where it resides, where it
flows, who uses it, how it is leveraged
and in line with the pace at which
business evolves).
Master Data Management
Ensure quality of master/reference
data through the appropriate
collaboration between people,
processes, and technology.
Data Architecture
Consistently establish reliable,
secure, scalable and agile data
pipelines within their business.
They
achieve this
by starting
at the foundation
and investing in:
2.
3.
1. Building a data platform
Establishing master data
management capabilities
Setting up the right data
architecture
64%
26%
86%
46%
57%
44%
Respondents agree the
capability describes their
organization
RestChampions
Copyright © 2019 Accenture. All rights reserved.
21
Copyright © 2019 Accenture. All rights reserved.

22. Operationalize data management and
governance Capability Investment
Data Veracity
Their data quality is complete,
accurate, secure and valid.
Data Governance
Have guidelines and standards in
place that ensure data compliance
and effective interoperability
of systems.
Metadata Management
Use common data definitions across
their organization to ensure that the
flow of data throughout the business
is seamless.
They
operationalize
their data with
a focus on
establishing:
5.
4. Sound data veracity
Good data governance
6. Seamless metadata
management
93%
50%
71%
32%
57%
37%
Respondents agree the
capability describes their
organization
RestChampions
Copyright © 2019 Accenture. All rights reserved.

23. Big title Convert data into actionable insights
Capability Investment
Analytics Strategy
Have a clear vision with defined
objectives for their analytics journey
and an underlying operating model
for analytics teams.
Human Augmented AI
Seamlessly integrate humans
and machines at scale to
drive productivity.
Advanced Analytics
Use visualization techniques,
algorithms and statistical techniques
to learn from the data patterns and
predict future trends.
They convert
data into insights
and business
value by:
8.
9.
7. Focusing on an
analytics strategy
Exploring the potential of
human + machine integration
Leveraging advanced analytics
to inform decisions
71%
21%
43%
22%
57%
25%
Respondents agree the
capability describes their
organization
Champions Rest
Copyright © 2019 Accenture. All rights reserved.
23

24. Big title Realize value from data
Capability Investment
Data Driven Performance
Management
Able to make informed decisions at
all levels in the organization, based
on data rather than instinct.
Train employees and empower them
with access to the right datasets and
tools so that they can use data in their
day-to-day job and for innovating
beyond it.
Data Driven Business Model
Sell organization data in compliance
with regulations or use this data as
a lever for profitable growth.
Promote the adoption of data within and
beyond the organization’s boundaries.
Data Value Tracker
Are able to reliably measure
whether data initiatives and projects
are adding the expected value to
the organization.Copyright © 2019 Accenture. All rights reserved.
Finally they
realize value
from data by:
Embedding data-driven
performance management
Employing a data-driven
business model
Implementing a value tracker
to measure value derived
from data
65%
42%
72%
25%
57%
24%
Respondents agree the
capability describes their
organization
Champions Rest
Copyright © 2019 Accenture. All rights reserved.
10.
11.
12.
24

25. BEGIN YOUR JOURNEY TO BECOMING
A DATA DRIVEN LEADER NOW
While an overall data infrastructure is built, organizations need to deliver concrete business
results in parallel to be successful. They can achieve this by pursuing an iterative approach:
• Identify use cases to drive
focus for creating business
impact from the start
• Follow a “cross the bridge as
we build it” culture
• Leverage multidisciplinary POD teams
to deliver results while building capacity
• Employ design thinking to innovate
while driving business results
Business
value/
results