Latin America embraces digital transformation by adapting to the new technological era we are living in. Find out what trends are expected soon.
At this stage of technological evolution, global and regional situations, as well as consumer demands, Latin American companies have understood that digital transformation goes far beyond process automation. Also, far from being an option, adopting an entire culture that revolves around technological tools is essential to compete in today’s markets.
In fact, Latin America confronts the same global challenges within a dynamic technological environment, political situations, variable markets and changing customer behaviors. Although it is true that it already has several points in its favor, such as the exponential growth of ecommerce and the increase in the development of startups, for example, there is still a long way to go over.
Latin America confronting digital transformation.
Latin American countries are clear that digital transformation is a key element for their growth. Currently, Mexico, Brazil and Colombia are leaders in the digital economy and are focusing their investments on the development of startups.
The maturity of digital transformation in Latin America is evident in sectors such as e-commerce, education, and finance, as well as retail. For the most part, the implementation of technology and the relevant changes in organizational culture have been oriented towards improving management. However, other aspects of digital transformation are applied differently depending on the requirements of the companies and the sector in which they operate.
In the area, some businesses have managed to stand out in the new digital age, such as the Fintech Nubank, Mercado Libre in ecommerce and Rappi in food and goods delivery, among others. In short, these companies serve as a guide for emerging entrepreneurs and, of course, boost the economy with their innovative proposals in favor of consumers.
The future of digital transformation in Latin America.
According to the road traveled so far and based on the Latin American reality, certain aspects must be strengthened to promote the digital transformation of businesses and that go hand in hand with the trends that will be seen in the coming times, among them:
- Development of human talent
It is imperative that organizations have the necessary dynamic capacity that allows them to adapt to changes with agility. Similarly, their work teams must acquire skills to manage digital technology to create or adapt products and services and integrate into the digital business ecosystem.
In general, one of the trends of digital transformation is to increase competitiveness and labor productivity through talent trained in technological areas with an emphasis on programming. Likewise, it will be important to include more women, not only for gender equality policies, but also to take advantage of their ability to transform processes.
- Consolidation of Fintech ecosystems.
Insurance and financial services will digitize 100% of their relationship with customers. In turn, the workforce will be better prepared to retain users through quality online customer service, thus making a difference.
This is one of the sectors that can fully advantage from digitalization to minimize costs and maximize financial inclusion. Today, financial platforms and e-wallets are expanding, giving opportunities to small and medium-sized companies that previously had no access to the banking system.
- Bridging the digital divide and improving telecommunications infrastructure.
Although Internet penetration in Latin America is quite high, it is not a question of quantity but rather of quality. There is a large percentage of users whose only way of accessing the network is through their phone’s data plan. It is no lie that there is a gap between those who own electronic devices and those who do not have that opportunity. Additionally, the high levels of informality impede the implementation of teleworking.
On the other hand, the massification of 5G networks will continue, facilitating connectivity and data transmission conditions. This will help promote a favorable environment for investment, collaboration, and innovation.
- Support for collaborations between corporations, government institutions and startups.
Public institutions will be more open to investing in technology platforms that support the trend of digitizing processes. Some tools and strategies that proved necessary during the pandemic will remain and evolve, including the use of electronic signatures. Governments will continue to link their systems and databases to facilitate procedures for citizens.
In addition, public policies are expected to be created to promote connectivity and reduce costs in terms of system distribution and equipment installation, with special attention to SMEs. Likewise, regulations on Big Data, Artificial Intelligence and Blockchain are expected, to improve productivity.
- Incorporation of innovative technologies for the transformation of SMEs and industries.
Technology supports the digitization of companies and drives the need for digital transformation. To face this process there are multiple tools that can be used according to the objectives of each organization.
Around this, the following trends will be seen:
- Cloud computing will grant businesses new updates and functionalities that will optimize data storage and access to the software they require for their operation.
- Artificial Intelligence and Machine Learning will make available the necessary knowledge for organizations to make more effective decisions regarding marketing, sales, product development and others.
- The Internet of Things and Blockchain will be essential technologies for the automotive industry.
- Latin American companies in the mass consumption sector will continue to lead the digital transformation towards customer experience.
- Automation will gain relevance in manufacturing companies.
- Augmented reality and virtual reality will be increasingly used in the tourism sector.
Finally, digital transformation will continue to evolve and accelerate, offering multiple benefits to organizations that adopt it as part of their culture. Undoubtedly, Latin America can become an interesting benchmark for digital transformation in the world, don’t you think?