Digital transformation in Saudi Arabia

Digital Transformation Leadership

Real Lessons from 30 Years of Pioneering Tech in Saudi Arabia

Abdulrahman AlShathry

Abdulrahman AlShathry

CEO, AlShathry Group

Digital Transformation & Leadership

Digital Transformation Leadership

Real Lessons from 30 Years of Pioneering Tech in Saudi Arabia. Discover why people, not technology, drive digital transformation and the mindset shift that makes transformation actually work.

12 min read
November 2024
Saudi Arabia

TL;DR: Key Insights

People Over Technology

Digital transformation isn't about adopting the latest technology — it's about building teams that can leverage it effectively.

Leadership Philosophy

True progress happens where technology, human potential, and sustainable leadership meet in harmony.

Saudi Arabia Insights

Real lessons from pioneering automation in Saudi Arabia and the mindset shift that makes transformation work.

70% Failure Rate

Why most digital initiatives fail and the one mindset shift that makes transformation actually work.

The first time someone told me that automation would revolutionize Saudi Arabia's infrastructure, I was standing in a half-built facility with equipment that kept breaking down. This was decades ago, and "digital transformation" wasn't even a phrase people used yet. But I knew one thing for certain: the technology sitting in those boxes wouldn't change anything on its own.

That realization shaped everything that came after, and it's the part most digital transformation strategies completely miss today.

The Real Story Behind Saudi Arabia's Automation Journey

When I started Saudi Controls in the early days, automation was still a foreign concept in our region. Walking into industrial facilities, I'd see manual processes that took hours, sometimes days, to complete. The international vendors we spoke with were skeptical about whether Saudi Arabia was ready for advanced control systems.

We had limited resources but a clear vision: to modernize our nation's infrastructure through technology. That determination, not just technology, became the foundation of every success that followed.

The first projects were brutal. Equipment would arrive without proper documentation. Technical support was an expensive phone call away, often in different time zones. But what I learned during those challenging months was invaluable: technology is only as good as the people implementing it.

We invested heavily in training. We built relationships with global manufacturers. Most importantly, we created a culture where curiosity and problem-solving were valued more than just following manuals. That cultural foundation is what allowed us to scale from one struggling facility to becoming a trusted partner in Saudi Arabia's infrastructure development.

What Digital Transformation Actually Means (In Simple Words)

Let me cut through the buzzwords. Digital transformation is the process of using digital technologies to fundamentally change how organizations operate and deliver value. It's not just about buying new software or upgrading systems, it's about reimagining your entire approach.

Think of it like this: digitization is turning paper into PDFs. Digitalization is using those PDFs in workflows. Digital transformation is questioning whether you even need those documents in the first place and building entirely new ways of working.

  • Infrastructure modernization: Moving from legacy systems to cloud-based, scalable platforms
  • Data integration: Connecting siloed information into unified, actionable insights
  • Process automation: Eliminating repetitive manual tasks
  • Cultural change: Shifting mindsets from "this is how we've always done it" to "how can we do this better?"

The 4 Types of Digital Transformation You Should Know

  1. 1
    Process Transformation: Reimagining core processes with digital tools.
  2. 2
    Business Model Transformation: Changing how you create and capture value.
  3. 3
    Domain Transformation: Entering new markets enabled by digital capabilities.
  4. 4
    Cultural/Organizational Transformation: Reshaping mindsets and decision-making — the hardest but most important part.

My Honest Take: Technology Doesn't Transform Industries, People Do

The industry loves to obsess over the latest AI model, the newest IoT platform, or the most cutting-edge automation tool. Trade shows are filled with vendors promising that their product will "transform your business."

But here's the truth they won't tell you: technology doesn't transform industries, people do. Tools evolve; leadership, collaboration, and curiosity are timeless. Too many organizations focus on innovation as an outcome — I see innovation as a mindset built every day within teams.

The Three Main Stages of Digital Transformation

Stage 1 — Digitization (Foundation)

Convert analog into digital. Documents become data.

Stage 2 — Digitalization (Integration)

Connect systems and automate workflows; efficiency improves.

Stage 3 — Digital Transformation (Revolution)

Rethink business models, culture, and value creation. New revenue streams and ways of working emerge.

The crucial insight? You can't skip stages. The companies that try to jump straight to Stage 3 without groundwork struggle.

Why 70% of Digital Transformation Efforts Fail

Study after study shows roughly 70% of digital transformation initiatives fail. From my experience, common causes are:

  • Technology-first thinking: Buying platforms before understanding the real problem.
  • Underestimating cultural resistance: People resist change for good reasons; without engagement it hardens into sabotage.
  • Lack of clear vision: "We need to digitally transform" isn't a strategy.
  • Leadership disengagement: Executives announce then delegate; transformation needs sustained attention.
  • Insufficient investment in people: Spending on software but skimping on training is a losing bet.

Projects that succeeded had leadership who treated transformation as a people challenge first.

What Comes Next After Digital Transformation?

Transformation isn't an endpoint — it's an ongoing capability. The organizations that thrive move from "transformation" to "continuous evolution." They create cultures where experimentation is safe and data informs decisions.

In Saudi Arabia, Vision 2030 programs and smart city projects are examples of continuous evolution rather than one-time projects.

The Most Difficult Part of Digital Transformation

The most difficult part is changing organizational culture and mindset. Technology challenges can be solved with money and expertise; cultural change requires consistent, patient engagement, empathy, and visible leadership over years.

Building Digital Infrastructure That Lasts

Good infrastructure decisions last decades. We designed control systems thinking about teams, growth, evolving needs, and technology change. The pillars are:

Interoperability

Systems communicate across vendors

Scalability

Architecture that grows

Security

Built into every layer

Sustainability

Energy efficiency and long-term environmental alignment

Frequently Asked Questions

Get answers to the most common questions about digital transformation and leadership in Saudi Arabia's tech landscape.

What are the 4 types of digital transformation?

Process, Business Model, Domain, and Cultural/Organizational transformations — with culture underpinning success.

What are the three main stages of digital transformation?

Digitization, Digitalization, and Digital Transformation — each building on the previous.

Why does 70% of digital transformation fail?

Common reasons include technology-first approaches, cultural resistance, unclear vision, leadership disengagement, and underinvestment in people and change management.

What's next after digital transformation?

Continuous evolution — maintaining a culture of experimentation and adaptation as new technologies emerge.

Final Thoughts: It's About Building Something That Lasts

Looking back at those early days in Saudi Arabia, I realize the technology was never the point — it was the people, the culture, and a commitment to long-term capability building.

Focus on your people first. Invest in capabilities that outlast any specific tool or platform. That's the transformation that actually lasts.


Author photo

Abdulrahman AlShathry

CEO, Saudi Controls Ltd. — 30+ years in automation & infrastructure

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