A report leaves the country very badly at a regional level. Experts suggest that companies start now to meet customer demands
05.04.2019 • 19:53hs • New economy
New economy
What is digital transformation ?: everything you always wanted to know and did not dare to ask
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The digital transformation is a concept that reveals a large number of local companies. And the truth is that most do not find the return or do not get to size the scope of the so-called "4.0" economy.
IDC, one of the world's leading technology consultancies, warns that in this matter Argentina is several steps below other nations of the "neighborhood." Pietro Delai, executive of the company, was in charge of disseminating an investigation in which more than 80 experts worked in different territories.
In the case of Argentina, the conclusions were lapidary. Even more from the point of view of a professional accustomed to find a technological industry of excellence, which used to be located on the regional podium and which has four unicorns (Mercado Libre, Globant, OLX and Despegar) out of the 10 that totalizes Latin America.
According to the projections, Brazil will lead investments in this field, followed by Colombia and Chile, leaving the country albiceleste displaced from the top three.
The IDC executive shared his 10 predictions. One of them, perhaps the most important, is that in just three years, half of Latin America's GDP will come from companies that have digitized their processes. The figure involved impacts: 380 billion dollars.
The research raises concerns about the short time that has elapsed until then (3 years) and the basis of which is part: a report by Dell Technologies and Intel put figures to the matter:
- Nine out of ten Argentine businessmen recognize that their organization will have difficulties to advance in this aspect
- Half of the local executives express their concern because they feel that their company will be overtaken by the competition
These forecasts are released at a negative time for the entire productive cycle. According to the Center for Argentine Political Economy (CEPA), every three days a new company was presented in a concurso preventivo. This, far from being a temporary problem, extended throughout the last three years.
In this context, the digital transformation should be a process that is a beacon on the horizon. But the truth is that the Argentine business community runs the risk of losing key businesses in the face of what is coming.
Digital plan
When creating a digital transformation program, the first transcendental point stressed by the experts is the commitment of the leaders.
"It is essential that all executives are convinced and encourage change, in this way, the message is sent that the transformation is urgent and inevitable," says Rubén Belluomo, commercial manager for the Southern Cone of Infor, a multinational enterprise software based in New York.
The second point is the comprehensive training of all the staff of the organization. "If a company wants to go through this process, everyone must speak the same language, it's the only way to approach success," says Federico Giesenow, managing partner of YopDev, dedicated to providing digital solutions to companies such as Coca Cola and Unilever. .
Another issue of great importance is flexibility. According to the executives consulted by iProUP, it is the main characteristic that allows companies to scale up and compete against larger companies.
"Agile methodologies should be implemented to function in a similar way to startups, develop an open-minded leadership style and be willing to work in uncertainty," sums up Ismael Briasco, founder of BigSmartLabs, a consulting firm that offers advice on digital transformation. .
Another unavoidable issue is to put the focus on the final customer: from the delivery of products at home to bidirectional feedback, or means of online payments, are tools that will serve to advance continuous improvement.
Giesenow adds that in the company's team, yes or yes, "you have to have 'digital leaders', that is, with people whose profile helps to push an action, they must have authority, credibility and clear support from above."
According to the experts, with the passage of time, more aggressive strategies linked to digital transformation will be evident. And they point out that the main technologies to be bet on are the following:
1 - Artificial intelligence: it will be vital in customer service to offer agile responses through chatbots, for example.
2 - Machine learning (automatic learning): analyze the data and predict needs, to save costs and anticipate the demand
3 - Internet of things: another crucial aspect to streamline the production process and the logistics of the products, among other factors
4 - Business Intelligence tools: required to track results in real time and execute actions that affect customers
5 - Digital payments: after its mass among the public, will imply an indispensable resources to boost sales
6 - Blockchain: streamlines the transfer of data safely. It will also be key to tracking transactions and food traceability in the retail sector
Beyond the technologies that can be used, experts always place in front of the "human factor" and the creation of a plan that allows using innovation to reformulate the business.
Digital culture
The digital transformation is here to stay. The experts consulted agree that it will no longer be an optional issue to be addressed, but that the market itself is forcing companies to update their business models.
"We see that the consumer goes with a Formula 1 and most of the companies are running with a Ford T. They arrive a day late", shoots Giesenow.
For the manager, the worst thing a company can do is "stay still." He warns that there is no need to "play catch-up", that is, to look at what others do and then imitate them. "The key is to refound the way of working," says iProUP.
Briasco notes that the first step is "recognizing that business models have changed drastically and an adaptation is required".
But technology is just an edge of the problem. Belluomo assures iProUP that companies need "a new perspective, a totally new way of considering business opportunities". That is to say, a cultural transformation.
On this point, the Dell-Intel report emphasizes that the "immature digital culture" is the main stumbling block and affects 30% of the 600 companies surveyed.
It is a new way of thinking in which all the members of an organization must be involved, from the CEO to the cadet.
"It must embrace change, accept risks and reward staff for creative problem solving, reflect the values ââof the company and emerge from the top," explains Belluomo.
"We have to start planning the business model, the billing flows and see how to offer a differential offer, then map points of contact with customers and their journey through the systems of the company since they request the service," says the executive .
"From there, you can identify what tools, knowledge and guidelines are required to make decisions to support the processes," he adds.
To generate this change, according to Giesenow, "it is key to reflect and have a vision of how to reformulate the business in order to take steps in that direction and analyze the response".
Of course, each item has its own problem:
- "Manufacturing companies must transform their products into more holistic services, to see what the customer is looking for"
- "Services have to improve personalization, from segmentation to hyper-personalization, to the service of the one-to-one type"
Briasco concludes that those that have not yet started with the digital transformation, should address this issue urgently. Otherwise, that fear of entrepreneurs that their companies are outclassed by competition - as the aforementioned research reveals - can soon become a reality.
