Digital Transformation: The Great Challenge for Companies in Latin America
March 14, 2016 admin Grupo Assa

Digital Transformation: The Great Challenge for Companies in Latin America

“What? Digitize my business? How?”. This is the answer Mike gave to John, his Systems Manager when he posed the idea of designing a strategy that will help them solve their low levels of competitiveness and prevent feeling all the time threaten by their competition.

“But we got more servers, expanded the network capacity, we continue to ‘mobilize’ employees and we are deploying applications for the use of the data. What do you think we are still missing? “To integrate and align people, processes, and technology with the business objectives, something that is only possible with a Digital Transformation strategy,” John said.

And in fact, that is the case: Mike has been CEO of his company for several years and has witnessed the arrival of technological innovations that have helped companies become more productive. However today, these are no longer enough to stay ahead of the game. It is necessary to align all of them with the business goals, processes, and people; that is, a holistic approach that makes technology the driver of the business.

There is no doubt that the use of digital technology is profoundly changing society. Today we have a scenario where every day arises new technologies, devices and innovative ways to use them and apply in different areas of life. This is a fact that businesses cannot be indifferent to, especially in a globalized world where more and more companies run into difficulties because of an economic outlook bleak and a rapidly changing business setting imposed by the challenge of adapting to great speed or stay behind and perish.

Today, this context is forcing companies to rethink their processes and found in the use of technology an ideal way to achieve significant improvements in its operations and processes, creating new business models that can bring more customer satisfying experiences to keep them current and competitive in the market.


A new approach to transform business

Given this portrait, Digital Transformation is becoming a key issue on the corporate agenda, as organizations have discovered the potential of technology to transform business and put them on top of success. Only in Latin America, 26% of CIOs in large companies are starting their “digital path” in this 2016, coming from inconsistent experiences and products to their creation in a managed, repeatable and finally disruptively way, according to a study from IDC.

However, not only the ones accountable of the technology in the company are involved in this regard; this is also a major issue for the business leaders. IDC also stated that by 2017, one out of every three CEOs of the 3,000 largest companies in Latin America would put Digital Transformation as the basis of its corporate strategy. Digital Transformation is not only the adoption of new technologies but also new ways to make the business more efficient and competitive.

According to gA, the global consulting firm leading business transformation in Latin America, Digital Transformation is the adoption of digital technologies at all stages of the business’ value chain (from the supply chain to manufacturing and distribution) in order to increase revenue and productivity. gA assures that the adoption of digital technologies must be combined with a meticulous work process reorganization, a restructuring of the business and the training of human resources.

Roberto Wagmaister, CEO and founder of gA, affirms: “Digital Transformation is one of the critical challenges for business in Latin America in the coming years, because despite its high level of adoption, yet few companies that are taking advantage of the potential of this business model.”

According to the study of gA, “Latin America 4.0: The Digital Transformation in the Value Chain”, although the extremely high level of adoption of digital technologies (79 out of 100 companies on average) in various industrial sectors, its assimilation to the business process level is low. The industries with the greatest advances in digitization are services industries, especially Health, Finance, and Telecommunications; which reached a higher degree of sophistication. While the extractive industries, including Mining, Oil, and Gas, and Manufacturing are moving at a slower pace.

gA’s study data reveal that while most companies (75%) have some form of digital strategy, the average their readiness to implement it barely reaches 46%. In addition, almost 50% of surveyed executives admitted that digital initiatives are isolated in silos, rather than spread throughout the organization.


How to achieve a successful implementation of a Digital Transformation?

The companies surveyed by gA say that the digitization of production processes is essential for competitiveness, but which in turn is far from transforming investment into productivity gains. The success of a strategy in Digital Business Transformation depends on a comprehensive and powerful strategy that is carefully designed and execute. According to gA, it is about having a wide corporate vision around the competitive advantages that can be achieved with the digitization. It involves a comprehensive model based on four fundamental features:

Business Process Management: To implement robust mechanisms to manage the business processes of the company. It focuses on how to define, document, implement and improve business processes with a practical approach.

People and Change Management: An effective change management ensures that the people involved in the process of transformation or affected by its results, prepare to face the new challenges in the areas where they work.

Value Management: To apply qualitative techniques, including quantitative indicators to plan within a business case, the economic value that the company would get if he can improve certain strategically selected processes.

– Technology Management: To adopt technologies such as mobility, social networks, cloud infrastructure, data analysis and the Internet of things, it cannot be done without taking into account the way in which the company must define its business model, manage their operations and deliver their products and services to customers; therefore, they should be aligned.

When speaking of Digital Transformation, many organizations believe that is just about technology adoption. However, as seen, this by itself is not a mainstay for the Digital Transformation. It may sound strange but it is something real since the only significant difference is in the way in which each organization applied to achieve a competitive advantage. However, the Digital Transformation goes beyond that.

Wagmaister reflects, “The digitization of business is not the goal in itself, rather it is the means of achieving objectives and business results that provide benefits in the operating markets, making companies more productive, innovative, competitive in return “.

In this volatile economic environment, companies need to change the game before its competitors and increase its competitive edge in the digital era, which is possible thanks to Digital Transformation. Today, Mike already know that he requires a business partner who guides him in this process, as gA, which with its focus on Digital Business Transformation (dBT) helps businesses prepare to adopt proactive disruption.

Are you ready to change the game before your competitors? Don’t be left behind!


gA is a recognized leader in Digital Business Transformation, with facilities and operations in the US and Latin America, serving clients in 80 cities around the world. gA brings 23 years of experience to its clients across 5 vertical markets, and more than 450 transformation projects. Gartner named gA “Cool Vendor in Latin America” for its work in Digital Business Transformation. With a forward-thinking culture, a proven track record and our relentless commitment to delivering results, gA is the right partner for you. We are gA: discover us.

This article was created by gA (Grupo ASSA)

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