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Writer's pictureDigiware

The Latin American Company and its process for digital transformation

Updated: Jan 27, 2020

Executives from companies in the region face the challenges of the digital economy in terms of strategy formulation, business process reengineering, application development, organizational redesign and change management.

New technological developments such as digital transformation, hyper-connectivity and the globalization of the economy, are posing important opportunities and challenges for entrepreneurs, hence it is essential to understand the keys to business digitalization and the need to adapt to that transformation.


This can be achieved through collaborative innovation, connected productive means, integrated supply chains, distribution channels, and digital attention, among all this, we must also understand how to use ICTs in a way that facilitates the management of the company and decision making in real-time.


Latin America is the region of the world that most intensively uses social networks, despite the high adoption of digital technologies in all industries, as demonstrated by GA digital transformation experts in the study, to explore and study the impact of digital technologies in Latin American companies. The index that measures the adoption of digital technologies between sectors for Argentina, Brazil, Chile, Colombia, and Mexico is, in fact, quite high between sectors, and highlights Colombia as the most digitized country in the countries mentioned, followed by Chile.

The digital transformation for Latin American companies is much more profound since it affects their value chain. To establish improvements in productivity and the new adoption of digital technologies, it must be combined with the hard work of restructuring processes and operations, generating changes in their organizational structures and training of human resources, allowing them to attract and retain talent, to replace the old operating models that are no longer viable, even after acquiring first-level digital technologies.

In general terms, productivity growth is associated, in part, with the intensive use of digital technologies in production processes, which implies not only digital distribution but also the automation of the supply chain and processes of manufacturing to encourage the development of the "industrial Internet". Organizations are looking to quickly adopt new technologies such as cloud computing, Big Data, data analysis, and the Internet of Things (IoT); to accelerate the economic and social development of Latin America and the Caribbean. Digitalization is having a fundamental impact on how companies compete and create value, Latin American companies face the challenge of how to approach their digital transformation avoiding believing that it is only based on e-commerce. This evidence has been formalized by introducing the "intangible" concept, the difference between the purchase price of digital technology and the value created once it has been productively assimilated by a company.

Finally, to get involved in a successful digital transformation, companies must start by seeing the competitive dynamics in the industries in which they operate. On this basis, companies must develop an agenda to transform digital capabilities and define security strategies in digital transformation, covering all stages of the value chain that go well beyond digital distribution.


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