Feasibility Study for Artificial Intelligence

Feasibility Study for

Artificial Intelligence

Capturing the AI market in KSA

Presented by: Faisal Bashir Mughal

Contact: +966 50 825 0090

Email: [email protected]

Expected AI Growth around the Globe

Revenues from the artificial intelligence (AI) software market

worldwide from 2018 to 2025 (in billion U.S. dollars)

Source: Statista

Scarcity of AI Data Scientists, AI

Engineers, AI Product Developers

AI and data management skills are in short supply. While the learning curve for data management is relatively

surmountable, obtaining the required skills to develop AI solutions is much harder. Organizations place a

premium on attracting high-calibre AI talent, raising compensation and making it difficult for organizations with

smaller hiring budgets, like government, to attract top candidates. Public agencies find themselves without core

AI skills, which hinders their ability to deploy and operate AI solutions.

Source: World Economic Forum

Future of AI in KSAKing Salman issued a decree to

establish an artificial intelligence (AI)

center will enhance the drive toward

innovation and digital transformation in

Saudi Arabia, according to Minister of

Communications the decree to

establish the National Center for

Artificial Intelligence and an

organization called the National Data

Management Office, which will be

linked to the Saudi Data and Artificial

Intelligence Authority.

Source: Arab News

According to Phoenix Research, Middle East

Artificial Intelligence (AI) market size is

anticipated to register growth during 2019-25.

Source: Phoenix Research

01

03

04

05

02

Demand for AI in KSA

Mohamed bin Zayed University of

Artificial Intelligence, the first

university in the world focused

solely on artificial intelligence, is

drawing thousands of applications

from graduate students across the

globe

According to reports more than

3,200 students have applied for

the school in the first week

admissions were open. Many of

the applicants came from the

UAE, Saudi Arabia. Algeria,

Egypt, India, and China.

World's First AI University Has More

Than 3200 Applicants Already

KSA has high demand of

AI in the following sectors

Resources required by many

organizations including

ARAMCO etc.

Many Investors are looking for AI

scientists and professionals to be

provided to different places

A spending of SR-250 Million by many organizations

including Telecom & Banking is estimated in next 03

years on AI on retainer ship basis

SR-8 Billion is estimated to be spent on Schools

& Academies providing coaching for AI for both

private & Govt. sector in coming 03 years.

Government intends to spend SR-800 Million on Training

programs for their resources in the said period

How to capture the huge AI

demand in KSA

Basic

Idea

The idea is to use the synergic effect by combining

established infrastructure of Absolute Solutions with

Technical Expertise of Dr. Saud . A new company shall

be formed which shall grab all the demands aforesaid.

Newly Formed

Company

Program-1

Program-5Program-2

Program-3

Program-4

About us (Absolute Solutions)1) Two decades of excellence in delivering IT services to

international market.

2) Software development infrastructure based on continuously

integrated open source technology platforms.

3) Development standards inherited from CMMI and IEEE.

4) Rapidly growing channel partners network in 14 countries.

5) Authorized reseller and distributor for multiple products.

Long Range of Satisfied Clients

About Dr. Saud Bin Mohammad Al Muhaidib

➢Sheikh dr. Saud bin Mohammed Al Muhaidib born in the city of Khobar in 1377 AH (1958 AD)

➢obtained a bachelor's degree in computer honors in 1400 AH corresponding to 1980 AD from

Florida

➢joined the Arab American Oil Company (Aramco) until 1405 AH corresponding to 1985 AD

➢obtained a master's degree from King Fahd University of Petroleum and Minerals in computer In

1991,

➢he obtained another bachelor of science in Sharia from Imam Muhammad bin Saud Islamic

University in 1997, where he achieved the first position three times in a row.

➢He obtained a diploma in Education from Al-Ahsa Teachers College in 1996.

➢Earned his doctorate in artificial intelligence (computer) from Leeds University

➢in Brataniaam 1423 corresponding to 2003, the

head of the integration team of technology in education in the Kingdom curricula in 1423 AH

corresponding to 2003, as head of written computer materials team, and his works are still taught in

the schools of the Kingdom

often head of committees and participated in many conferences and studies and made a lot of

research and courses at home and abroad in Arabic magazines and foreign and made a number of

television and radio programs was

appointed Director General of the girls ' colleges in the Eastern region in 1424 AH corresponding

to 2004

➢commissioned a member of the "Committee of distance education" of the Council of Walt On

the Gulf of 1424 AH corresponding to 2004 until the year 1428 corresponding to 2008

➢Was appointed as Assistant Undersecretary of King Faisal University in the Eastern Region in

1428 AH corresponding to 2008, he was

commissioned under the chairmanship of the Saudi Society for child care in 1437 AH

, corresponding to 2016 - Under Construction

Structure of New Entity

Absolute Solutions

ABSOL Shall have 25%

share in new entity

Investor

Investor shall also enjoy

35% share

Dr. Saud Bin Muhammad Al

Muhaidib

Dr. Saud shall have 30% share in the

entity.

Business Developer

Whoever brings the business

shall get 10% share

The newly formed entity as described hereunder shall attract a venture

capitalist that shall inject a capital of SAR-6 Million into the newly

formed company. This new entity then penetrate into the AI market and

follow the 05 (Five) program approach.

New Entity Introduction

New

Entity

Absolute Solutions

Manger Technical Department

Chief Financial Controller

Manager MarketingManager

Sales

Manager

Admin

Manager

HR

Head of Technical (Dr.

Saud)

Head of Operations

(Faisal Bashir Mughal)

OPERATIONAL HIERARCHY OF THE ORGANIZATION

Roles & Responsibilities of the Parties

ROLES AND RESPONSIBILITIES OF OPERATIONS MANAGER

➢To finally approve expenses above SR-50 upto Sr-100

➢To approve expenses above SR-100 jointly with head of technical dept.

➢Manage and direct operations team to achieve business targets.

➢Assist in developing or updating standard operating procedures for all business operational

activities.

➢Build strong relationship by addressing customer issues and complaints in a timely manner.

➢Assist in employee appraisals, promotions, compensation and termination based on the

performance review.

➢Provide operational support and guidance to staff.

➢Assist in developing operating and capital budgets.

➢Monitor and control expense according to allotted budget.

➢Assist in interviewing, recruiting and training candidates.

➢Manage work assignment and allocation for staff.

➢Conduct performance review and provide performance feedback to staff.

➢Maintain accurate and clear documentation for operational procedures and activities.

➢Work in compliance with company policies and procedures.

➢Ensure team follows standard operating procedures for all operational functions.

➢Conduct regular meetings with team to discuss about issues, concerns, updates etc.

➢Support operational risk and audit process for the purpose of preventive maintenance.

➢Recruit, select, train, assign, schedule, coach, counsel and discipline employees

➢Communicate job expectations; planning, monitoring, appraising and reviewing job

contributions

➢Plan and review compensation actions; enforcing policies and procedures

➢Contribute operations information and recommendations to strategic plans and reviews;

prepare and complete action plans; implement production, productivity, quality and

customer-service standards; resolve problems; complete audits; identify trends

➢Forecast requirements; prepare an annual budget; schedule expenditures; analyze

variances; initiating corrective actions

➢Develop operations systems by determining product handling and storage requirements;

develop, implement, enforce and evaluate policies and procedures; develop processes for

receiving product, equipment utilization, inventory management and shipping

➢Update job knowledge by participating in educational opportunities; reading professional

publications; maintaining personal networks; participating in professional organizations

➢Accomplish operations and organization mission by completing related results as needed

➢Meet or exceed operations labor budget expectations

➢Manage staff levels, wages, hours, contract labor to revenues

➢Responsible for all department managers and supervisors, with review/approval responsibility for

all operations employees

➢Run a safe, injury/accident free workplace

➢Responsible for all aspects of vehicle and heavy equipment rentals

➢Establish contracts and pricing and ensuring proper maintenance and serving as primary liaison with

utilities and local government agencies, such as fire, police, health and safety agencies

➢Manage relationships with key operations vendors

➢Track vendor pricing, rebates and service levels

➢Review and approve all operational invoices and ensure they are submitted for payment

➢Serve as primary point of contact when there are customer issues related to equipment quality,

customer service, or accidents and mishaps on-site. In particular, this includes any issues on-site at

client facilities, such as breaking a fence or tape residue on flooring

➢Communicate customer issues with operations team and devise ways of improving the customer

experience, including resolving problems and complaints

➢Work closely with GM and management team to set and/or implement policies, procedures and

systems and to follow through with implementation.

➢Communicate all operating policies and/or issues at department meetings

➢Work closely with the inventory manager and team to perform analysis of our inventory and ensure

we are utilizing our inventory effectively, purchasing the right equipment, maintaining solid inventory

data and reduce sub-rental expenses

➢Communicate with legal counsel and safety department to ensure all processes remain compliant

with OSHA and other governmental regulations

➢Analyze process workflow, employee and space requirements and equipment layout; implement

changes

➢Maintain safe and healthy work environment by establishing, following and enforcing standards and

procedures; complying with legal regulations


Roles and responsibilities of Head of Technical Dept.

➢To approve expenses above SR-100 jointly with manager operations

➢To operate company bank account jointly with manager operations

➢Managing AI staff by recruiting and training employees,

communicating job expectations, and monitoring performance.

➢Overseeing the annual AI budget and ensuring cost effectiveness.

➢Monitoring daily operations, including server hardware, software, and

operating systems.

➢Coordinating technology installations, upgrades, and maintenance.

➢Selecting and purchasing new and replacement hardware and

software, when necessary.

➢Testing, troubleshooting, and modifying information systems so that

they operate effectively.

➢Generating performance reports for operating systems.

➢Assuring all AI activities are performed within the parameters of

applicable laws, codes, and regulations.

➢Evaluating technology risks in order to develop a network disaster

recovery plan and backup procedures.

➢Remaining up to date with advances in technology and industry best

practices.

➢Handle technical projects’ or definable portion of larger technical

program’s performance.

➢Direct and monitor support resources for project assignments’

performance.

➢Direct project through design, execution and testing as per project

objectives.

➢Train and direct employee work activities.

➢Sign timecards, review performance, handle discipline problems and

offer input to hiring and firing.

➢Manage website through computer applications coordinating with

information technology department.

➢Train on posting and update information on website.

➢Develop and enforce web page design guidelines.

➢Manage Geographic Information System maps and information.

➢Lead agency Technology Committee as communications and input

channel on technology strategy.

➢Develop and lead projects to execute agency’s technology plan.

➢Hire and review within IT department.

➢Monitor IT staff to ensure they competently perform tasks assigned

and evaluate performance.

➢Work in small team and support performance of routine operational

tasks.

➢Set up computer use policies for agency, cover usage, information

security and privacy.

➢Preparing teams for different projects

➢Preparing course outlines

➢Research & development for AI

➢Keeping an eye upon emerging additions to AI

➢Generating technology platforms

➢Identifying and Adapting new emerging technologies

➢Equipping the teams with updated knowledge.

➢Attending technical meetings

➢Identifying new products

➢Getting ready teams for new products

➢To oversee all other matters relating to the technical side

Roles & Responsibilities of the PartiesRoles & Responsibilities of Chief Financial Controller

➢ To finally approve expenses upto SR-20

➢ Collecting, interpreting and reviewing financial

information

Predicting future financial trends

➢ Reporting to management and stakeholders, and

providing advice how the company and future

business decisions might be impacted

➢ Producing financial reports related to budgets,

account payables, account receivables, expenses

etc.

➢ Developing long-term business plans based on

these reports

➢ Reviewing, monitoring and managing budgets

➢ Developing strategies that work to minimize

financial risk

➢ Analyzing market trends and competitors

➢ Oversee the overall corporate budgeting

preparation, management and monitoring

processes.

➢ Perform financial analysis, reporting and

management activities.

➢ Ensure that the financial reports are prepared and

delivered on time.

➢ Review financial data for accuracy, correctness

and completeness.

➢ Hire and train new employees on financial

operations.

➢ Monitor and manage all expense within the

allotted budget.

➢ Establish key financial strategies to enhance

business profitability.

➢ Ensure financial team follows company policies

and regulations.

➢ Develop standard accounting procedures to

improve financial operations efficiency.

➢ Participate in performance evaluation of finance

staff and conduct counseling sessions to identify

skill development needs.

➢ Review annual budgets and recommend any

changes if needed.

➢ Assist in account payable and receivable activities.

➢ Perform account reconciliation activities.

➢ Generate financial reports related to budgets,

account payables, account receivables, expenses,

etc.

➢ Ensure accurate calculation and distribution of

salaries and other benefits to employees.

➢ Establish accurate forecasts regarding expenses

and revenues and manage regular reporting

requirements.

➢ Monitor competitor activity and stay updated

about latest industry trends.


Roles and responsibilities of sales Manager

➢Report to Operational Manager and Head of

technical team

➢Coordinate with business development and

marketing managers to drive growth and achieve all

targets and for Operator, ODM and OEM channels.

➢Analyze and identify opportunities to secure new

businesses from OEM customer base and optimize

profit and increase revenues.

➢Design and implement new strategies to drive

business growth in assigned sales market.

➢Administer entire sales process identify target

customers, push sales and complete sale process to

manage OEM Sales.

➢Manage pricing, deal pricing and other sales

proposal activities and provide support to support

marketing department.

➢Manage OEM engagements to design strategies to

acquire more business deals.

➢Provide an interface with senior management and

junior staff regarding value based product proposal

and marketing to ensure optimized OEM Sales.

➢Supervise and provide training to all sales

personnel to achieve company profit generation

targets.

➢Participate in innovative projects to enhance sales

proposal process.

➢Identify new markets to widen market base for

enhanced revenue and profit generation.

➢Involve in direct customer negations in association

with sales directors.

➢Analyze markets to obtain latest trends, customer

needs, competitors’ position and depth of customer

base to re-design marketing strategy.

➢Collaborate with engineering team to identify

customer requirements for translating them into

product specifications.

➢Collaborate with marketing department to design

new services and products for enhancing business

growth.

➢Ensure completion of all commercial contracts

with external agencies adhering to commercial

terms and market conditions.


ROLES AND RESPONSIBILITIES OF ADMIN MANAGER

➢Develop strategies in administrative manager functions

to effectively run an organization.

➢Supervise and manage administrative operations of a

department.

➢Develop and implement administrative functions to

monitor business operations.

➢Manage and direct the activities of the staff in an

administrative set-up.

➢Manage and supervise facilities functions in a

production setting facility.

➢Interact with other department heads in managing the

entire administrative operations.

➢Develop inventory control management systems for

the inventory department.

➢Assist and support front desk management in handling

visitors and clients.

➢Assist and support financial department in preparation

of budget and other reports and statements.

➢Develop logistics in organizing records, files and

statements in an effective manner.

➢Supervising day-to-day operations of the

administrative department and staff members.

➢Hiring, training, and evaluating employees, taking

corrective action when necessary.

➢Developing, reviewing, and improving administrative

systems, policies, and procedures.

➢Ensuring office is stocked with necessary supplies and

all equipment is working and properly maintained.

➢Working with accounting and management team to set

budgets, monitor spending, and processing payroll and

other expenses.

➢Planning, scheduling, and promoting office events,

including meetings, conferences, interviews,

orientations, and training sessions.

➢Collecting, organizing, and storing information using

computers and filing systems.

➢Overseeing special projects and tracking progress

towards company goals.

➢Building new and expanding existing skills by engaging

in educational opportunities.


ROLES AND RESPONSIBILITIES OF HR MANAGER

➢Perform orientation for all new employees and recommend

improvement processes for all human resource activities and manage

all payroll processes and manage communication with all managers

and supervisors according to employee policies and procedures.

➢Hire and perform interview with various human resource

employees and perform termination of all employees and provide

notices and other documents as per requirement.

➢Monitor all employee issues and provide resolution for same and

prepare strategies for all staff requirements and develop talent and

administer all new employee enrollments and prepare change reports

for all employees.

➢Supervise efficient working of staff and provide required human

resources support to all activities and perform market survey to

analyze and recommend improvements to all compensation programs

and design recruitment policies.

➢Perform site visits in coordination with field staff and provide

assistance to staff and human resource director to resolve issues.

➢Design and monitor all programs and ensure maintenance of all

health procedures and assist to identify appropriate programs for

staff to achieve all company objectives and maintain knowledge on all

competitor compensation programs.

➢Manage all development issues and provide support to all

enterprises and manage all communication between employees and

management and prepare all salary and wage programs and prepare

required special pay programs for all team members.

➢Assist to prepare all development plans for organization and ensure

efficiency of all HR programs and prepare new employee documents

and maintain accuracy of all documents.

➢Administer all HR activities and maintain professional relationships

with managers, supervisors and team members to ensure resolution

of all HR issues and evaluate all annual performance of staff.

➢Provide appropriate customer training for all employees and design

various human resource plans and procedures and assist to recruit all

temporary employees.

➢Implementing and revising a company’s compensation program

➢Creating and revising job descriptions

➢Conducting annual salary surveys

➢Developing, analyzing, and updating the company’s salary budget

➢Developing, analyzing and updating the company’s evaluation

program

➢Developing, revising, and recommending personnel policies and

procedures

➢Maintaining and revising the company’s handbook on policies and

procedures

➢Performing benefits administration

➢Maintaining affirmative action programs

➢Overseeing recruitment efforts for all personnel, including writing

and placing job ads

➢Conducting new employee orientations and employee relations

counseling

➢Overseeing exit interviews

➢Maintaining department records and reports

➢Participating in administrative staff meetings

➢Maintaining company directory and other organizational charts

➢Recommending new policies, approaches, and procedures


Roles and responsibilities of marketing manager➢Supervise daily operations of marketing team to

achieve revenue target within the assigned area.

➢Develop positive working relationship with existing

customers for repeat business.

➢Identify and contact potential customers to explore

new opportunities.

➢Analyze market trends and competitor activity to

recommend improvements to achieve sales goals.

➢Develop marketing strategies to improve brand

awareness and profitability.

➢Coordinate with marketing team to resolve

customer services and business issues.

➢Monitor and control operational expenses within

allotted budget.

➢Update marketing plan and strategies according to

the changing business demands.

➢Assist in promoting new products to existing and

new customers.

➢Cooperate with Area Sales Manager to plan and

organize sales promotional activities.

➢Developing a pricing strategy that maximizes

profits and market share but considers customer

satisfaction.

➢Identifying new customers.

➢Supporting sales and lead generation efforts.

➢Creating promotions with advertising managers.

➢Understanding and developing budgets, including

expenditures, research and development

appropriations, return-on-investment and profit-loss

projections.

➢Compiling lists describing our organization's

offerings.

➢Developing and managing advertising campaigns.

➢Organizing company conferences, trade shows,

and major events.

➢Building brand awareness and positioning.

➢Evaluating and maintaining a marketing strategy.

➢Directing, planning and coordinating marketing

efforts.

➢Communicating the marketing plan.

➢Developing each marketing campaign from start to

finish.

➢Researching demand for the organization's

products and services.

➢Evaluating competitors.

➢Handling social media, public relation efforts, and

content marketing.

Program-01 (Organization Specific)

▪Program-1 is to Prepare Resources specific to an organization's requirements e.g. For ARAMCO etc.▪Many organizations require AI resources who have specified knowledge and skills that suit their very specific needs▪In this program such an entity shall request the number of resources required▪The knowledge and skills with which each AI professional must be equipped▪The requesting organization shall provide a sum of money per resource per month.▪The estimated revenue and net profit analysis from program-1 is as given.

YEAR-01 Projections

Program 01

No. of Org. requiring AI

reourcesAvg. revenue

per Org. * (SR)Gross Total

Revenue (SR)

Direct & Indirect

Expenses (SR)

Net Profit from

Program 04 in year -01

(SR)

8 1,920,000 15,360,000 6,386,688 8,973,312

* Avg. No. of AI resources required by each Org. (03) & Avg. remuneration per resource per month (20,000), No. of months required to train required resources (04)

Program-02 (Investor Specific)

▪Program-02 is to Prepare Resources upon specific request of some investor▪Investor would pay our entity per resource per month.▪In this program such an Investor shall request the number of resources required▪The knowledge and skills with which each AI professional must be equipped▪The investor after complete training of the AI resourcesshall provide the resources wherever he wants.▪The estimated revenue and net profit analysis from program-02 is as given.

YEAR-01 Projections

Program 02

No. Investors requiring AI

resourcesAvg. revenue

per Org. * (SR)Gross Total

Revenue (SR)

Direct & Indirect

Expenses (SR)

Net Profit from


(SR)

7 6,720,000 47,040,000 34,988,352 12,051,648

* Avg. No. of AI resources requird by each Investor per year (04) & Avg. remuneration per resource per month (20,000)

Program-03 (Outsourcing Model)

▪Program-03 is where we provide AI resources to different organizations on monthly retainer ship basis▪Client shall pay our entity per resource per month.▪Our Marketing & Sales team would capture such clients who are in need of AI resources on retainer ship basis▪We shall have a pool of AI resources and can switch the resources among different clients.▪The estimated revenue and net profit analysis from program-03 is as given.

YEAR-01 Projections

Program 03

No. Org. requiring AI resources on retainership

Avg. revenue per Org. * (SR)

Gross Total Revenue (SR)

Direct & Indirect

Expenses (SR)

Net Profit from


(SR)

10 6,480,000 64,800,000 37,337,760 27,462,240

* Avg. No. of AI resources required by each Org. per year (03) & Avg. remuneration per resource per month (18,000)

Program-04 (Academies & Schools)

▪Program-04 is to establish a network of academies & schools across KSA▪Such institutes shall be established upon an outbound investor▪Our team shall prepare a feasibility for every single school in a particular area▪Upon finding profitable the process of establishing a school shall start▪A suitable building shall be obtain on rent.▪Proper instructors shall be hired (both male & female) ▪A cloud based reporting mechanism shall also be established▪The estimated revenue and net profit analysis from program-04 is as given.

YEAR-01 Projections

Program 04

No. of outbound investors

requiring to establish schools

Avg. revenue per School *

(SR)Gross Total

Revenue (SR)

Direct & Indirect

Expenses (SR)

Net Profit from


(SR)

4 3,600,000 14,400,000 5,417,280 8,982,720

* Avg. No. of AI Students per school per year (100) & Avg.fee per student per month (3,000)

Program-05 (AI Product Development)

▪Program-05 is to capture the share in market of AI Product Development in a niche market▪All the development shall be done by offshore development house▪ The development shall be done under the supervision of Dr. Saud Bin Mohammad Al Muhaidib▪Aggressive marketing strategy shall be established to capture the share.▪The estimated revenue and net profit analysis from program-05 is as given.

YEAR-01 Projections

Program 05

No. of Clients in need of AI

product Development

Avg. revenue per Client. (SR)


Direct & Indirect

Expenses (SR)

Net Profit from Program 05 in year -01

(SR)

15 1,300,000 19,500,000 5,376,150 14,123,850

Program-06 (Govt. Focused)

▪Program-06 is to deal with the requirements of the government departments▪Many govt. departments shall ne in need of training to their AI staff▪Our team shall capture such needs of Govt. departments▪The training may be conducted in their places ▪The training may also took place in the established schools or at our premises.▪The estimated revenue and net profit analysis from program-06 is as given.

YEAR-01 Projections

Program 06

No. of Govt. Departments in

need of AI assistance

Avg. revenue per dept. (SR)


Direct & Indirect

Expenses (SR)

Net Profit from


(SR)

5 10,000,000 50,000,000 21,785,000 28,215,000

How Operations

& Administration

of each Program

shall be Managed

Cloud Based ReportingThe reporting mechanism shall all be upon cloud

based software. Enabling every concerned to

remotely access the repots from anywhere in the

world.

AdministrationAll the administration of all the 05 programs

shall be managed from the head office of the

newly formed entity

Academics & Student CounselingAll shall be managed from head office

ProcurementAll the procurement shall be finally approved by the

management using iSynergy software

Thank You

Documents

Feasibility Study for Artificial Intelligence