Digital transformation in Colombia

Digital transformation in Colombia

1. It is not for less, because this process is revolutionizing the organization of the companies to adapt to a new era crossed by a change in the needs of the people and the irruption of new technologies. But with so much information circulating about it, it is difficult to get a clear idea of what digital transformation is and what its impacts are on organizations. So in this post we have summarized the key issues of digital transformation in Colombia, so that you finally and once and for all know what it consists of

   • What is digital transformation?
     • In simple words, digital transformation is the process by which organizations change their culture and structure to execute their processes more efficiently, using technological tools.
       • The main axis of digital transformation goes beyond technology; Its value lies in the paradigm shift and the reorganization of teams within companies to adapt to current demands. Digital transformation is a matter of survival. Although the digital transformation in Colombia is mainly taken advantage of by service companies (71.4%) according to Dinero magazine, the reality is that this must be a process carried out by companies of all sectors and sizes.
   • What are its advantages?
     • The previous study indicates that in Colombia, 98% of entrepreneurs find it important to stimulate the use of digital technologies in their companies. Considering the number of advantages it brings to your company.
       • Some of them are: • improve responsiveness to changes in the environment and the demands of digital consumers; • increase productivity by automating outdated processes and training staff; • acquire new business opportunities by making use of new communication channels; • face competition from digital native companies; • Organized big data collection to make better informed decisions; • have direct and effective communication with your customers; • keep employees motivated; • boost the culture of innovation; • easily adapt new technologies such as Blockchain, and Machine Learning; • facilitate internal communication; • optimize the user experience; • reduce costs; • renew the corporate image.
   • How are other companies taking advantage of the digital transformation in Colombia?
     • The panorama of digital transformation in Colombia is encouraging. According to the 2017 digital transformation survey, carried out by ANDI to 430 entrepreneurs, in Colombia 58.4% of companies have already started the transformation process. Of these entrepreneurs, 59% claimed to have made or planned technological investments, of which, 49.2% anticipate investments between $ 50,000 and $ 100,000 and 30.2% between $ 100,000 and $ 500,000. According to this survey, Colombian entrepreneurs affirmed that by investing in technology they seek to automate processes (82.8%), reduce costs (57.8%) and generate new income (48.4%).
   • But how are Colombian companies using this investment in technology?
     • According to ANDI, Cloud Computing is the most used tool by both industrial companies (74.5%) and services companies (78%). In the industrial sector, Data Analytics (58.2%), e-commerce (58.2%), and digital marketing (45.5%) follow. On the other hand, in the services sector they use services more through mobile devices (68.3%), Data Analytics (65.9%) and digital marketing (53.7%). Likewise, in the Network Readiness Index of the World Economic Forum - the index that evaluates the ability of countries to capitalize on the digital revolution - Colombia is ranked 68, below Chile but better positioned than Mexico, Brazil, Ecuador or Peru. Even so, there is still great potential for improvement.
   • What are the challenges facing digital transformation in Colombia?
     • According to the ANDI survey, for Colombia to be successful in digital transformation, companies must overcome the following barriers: • Lack of digital culture. • Ignorance. • Budget. • Lack of mentality. • Lack of a clear business model. • Lack of leadership. • Lack of human capital. Likewise, the country must make sure to eliminate or, at least reduce the gaps in digital access, promote laws that promote this transformation, help companies to go through it and encourage the education of children and adolescents for creativity, innovation and leadership
   • How can your company face these challenges?
     • According to Portfolio, the Virus Partners Digital Maturity Index (IMDV) established 6 axes to face the challenges of digital transformation in Colombia: • Focus transformation on customer needs, not product. • Technology alone is not enough without a strategy. • Change comes from people, that is, you must educate your staff. • Offer differentiating experiences to your customers through the channels they use. • Interpret the data for decision making. • Know and understand the available technologies.

2. Andres Felipe Alvaran Silva Grupo: _92 Marzo 2020