Executives in Latin America are always working to strengthen their companies and make use of the latest technology in order to gain a competitive advantage and expand.
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Digital transformation is the adoption of new digital technology into business, leading to great efficiency, innovation and value. All over the world, digital technology is helping companies to reach their goals and grow in new ways. This has become particularly apparent during and after the recent global pandemic, which forced many businesses to adapt or get left behind.
Because of its dynamic and often highly volatile business climate, Latin America has excelled in digital transformation. Businesses in all sectors must constantly rethink themselves to avoid becoming obsolete. Executives in Latin America are always working to strengthen their companies and make use of the latest technology in order to gain a competitive advantage and expand.
Younger demographics, plenty of resources, a booming start-up culture, a growing consumer base, and strong trade relations all contribute to Latin America's unique economic environment. With a GDP about half that of China and a population twice as large as the US, the region has limitless chances for businesses that can get digitised and adapt to the modern world.
How Businesses in Latin America are Joining the Digital Transformation
Currently, the main barriers to digital transformation in Latin America and across much of the world are resistance to change, a lack of prioritization from senior executives and the cost of technology. A lack of human talent capable of making the most of technology can also be a limiting factor. However, digital transformation doesn’t have to be difficult or expensive.
Lots of smaller businesses are able to benefit from digital marketing tools and techniques. Organic Growth Services is growing in popularity as businesses look to get online and expand their reach, targeting new markets and growing brand presence online. Other applications of digital transformation include mobile apps that make it easier for consumers to find their products and services. Some of the fastest growing companies in the region are now fully digital, offering services and goods through digital platforms and apps.
Nuvocargo is considered one of the top innovative companies in Latin America and has experienced major growth on the back of the region’s digital transformation. This service offers a completely digital logistics platform for shippers and carriers moving goods between the US and Mexico. It allows other companies to consolidate and simplify their logistics, offering everything through a simple-to-use platform.
Mercado Libre is Argentina’s answer to eBay, allowing users to sign up and sell products. It quickly spread through Latin America since it was founded in 2007 and now also acts as a payment app. Users can use the ePayments app anywhere that credit cards are accepted and the majority of its revenue now comes from processing payments. It also allows users to buy and sell cryptocurrencies directly through the app.
How to Accelerate Digital Transformation in Latin America
One of the most important factors in digital transformation is public policy. Countries and regions that have featured successful digital transformation usually have the right policies in place to encourage businesses to go digital and to help provide resources and training for those that need it. These policies might seem expensive but they have a net positive effect if they help the economy to grow and allow local businesses to employ more people.
In addition to setting the right policies and initiatives to encourage growth, it’s also important that there are regulations in place. Balancing progress with risk management is crucial, and regulations can help prevent consumers from risks such as cybercrime and data misuse.
The adoption of new technology is also aided by tax and financial incentives. These have been used to establish technology testing, as well as training programmes to create the workforce skills needed for emerging technologies.