Rethinking Digital Transformation will be critical to Latin American GDP growth
and regional competitiveness
Miami, December 10, 2015: A new study released today shows that digital transformation remains the key challenge for Latin American corporations. Latin America will be growing over the next 3 years at a slower pace than it did in the past decade, and therefore it needs to address the industrial competitiveness and productivity challenge through the intense assimilation of digital technologies. The study reveals that although the overall level of adoption of digital technologies is high across the industries, its impact in the value chain remains low. Latin America has seen dramatic changes in the way consumers adopt and interact with digital technologies, but companies have not evolved at the same pace.
The report, titled “Latin America 4.0: the Digital Transformation in the Value Chain”, and produced by the Grupo ASSA gA Center for Digital Transformation, is based on comprehensive interviews and in-depth surveys with executives from 75 large corporations in Latin America conducted between June and August 2015, combined with the analysis of national industrial micro data for the main sectors of the economies in Argentina, Brazil, Chile, Colombia and Mexico.
Some of the highlights of the Report are:
Most firms (75%) have some form of Digital Strategy in place, although their average level of digital readiness to implement it is only 46%
Almost 50% of executives interviewed admitted that digital initiatives are siloed, rather than organized consistently across the organization;
Life Sciences and Financial Services are the leading markets in Digitization, whereas Manufacturing and Mining are still in the early stages
Chile and Colombia lead the region in the industries covered;
There is an diminishing role of the CIO driving digital transformation: more than half of the companies interviewed have another C-Level executive drive digital transformation;
“We have already experienced the Consumer-driven digital revolution”, says gA founder and CEO Roberto Wagmaister. “Now we are heading towards the much- needed transformation in the value chain, the single most important contributor to growth and productivity in Latin America.
The report, led by Raul Katz, a recognized leader in the field of Digitization1, together with gA, dives deeply into the reality of how Digitization is impacting the way leading corporations in the region compete and create sustainable value. The report addresses 5 key issues for Latin American corporations:
What is the actual level of digitization in the value chain today?
How are the different industrial sectors performing in terms of digitization (for example in Retail, Healthcare, or Mining?);
Which are the main enablers and obstacles faced by these companies in their quest to increase competitiveness through digital transformation?
What is the level of readiness of these companies to enter into a digital transformation initiative?
What are the implications for the leadership of these companies?
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Americas Society /Council of the Americas: AS/COA unite opinion leaders to exchange ideas and create solutions to the challenges of the Americas today. Americas Society (AS), was established by David Rockefeller in 1965 and is the premier forum dedicated to education, debate and dialogue in the Americas. Council of the Americas (COA), affiliate organization to AS, is the premier international business organization whose members share a common commitment to economic and social development, open markets, the rule of law, and democracy throughout the Western Hemisphere. Visit us at www.as-coa.org.