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Strategy&’s partners Walid Tohme and Haroon Sheikh, principal Ashish Labroo, and manager Anna Germanos write that too many large organizations in the GCC are missing a significant business opportunity. At a time of increasing costs pressure, rising competition and a volatile economic environment, these organizations – such as family conglomerates, multi-business unit corporations, investment portfolio companies or government entities with multiple departments – have yet to exploit the potential of group-wide collaborative sourcing.
According to Strategy&’s principal Paul Leinwand and retired CEO Cesare Mainardi, these problems are not caused simply by external forces. They are the outcome of the way most companies are managed. There is a significant and unnecessary gap between strategy and execution: a lack of connection between where the enterprise aims to go and what it can accomplish. We have met many leaders who understand this problem, but very few who know how to overcome it. In another global study, this time of more than 700 senior executives, only 8 percent said the top leaders of their enterprises excelled at both strategy and execution.
Strategy&’s report on behalf of Facebook "Connecting the world: Ten mechanisms for global inclusion" concludes that 500 million people could escape poverty by being connected online. Connecting the majority of the world would also benefit the global economy by over $6 trillion, according to the study, and provide a $400 billion growth opportunity for telecom operators. Currently, 4.1 billion people are disconnected from the modern economy.
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