Why invest in digitalization of private business and public sectors?

Why invest in digitalization of private business and public sectors?

Technology grows with the speed of light and digital disruption changes life in every aspect. The majority of us would say it is for the best. Some will deny its advantages and others will remain indifferent. One way or another, there is no stopping this and those who want to thrive on today’s battlefield should learn to evolve and adapt. 

We are living in times of a vast digital transformation and uncertainty of an upcoming global economic crisis. The only way to preserve ourselves is to be up to date with the new innovations and technology.

Let’s review some facts presented in the pwc European Private Business Survey 2019 [ https://www.pwc.com/gx/en/entrepreneurial-and-private-companies/emea-private-business-survey/europe-2019.pdf]

Profitability levels in companies from the EU countries plus Switzerland, Norway and Turkey are decreasing. Economists are concerned about an economic slowdown in 2019 which tends to continue in the following years.

 Screenshot 2019-07-26 at 10.22.01

65% of the surveyed business leaders recognize the long- term impact digitalization will have on their businesses. However, many private corporations are still at the initial stages of digital transformations. One of the main problems is that the majority of company leaders view digitalization as a technical correction of a specific issue, while there is a need for a holistic approach. Roughly one in five private companies in the EU + Switzerland, Norway and Turkey are allocating 5% of their investment in digitalization.

What is more concerning is that 58% of the surveyed private businesses plan to allocate less than 3% of their overall investments to digitalization over the next five years.

 Screenshot 2019-07-26 at 10.22.23

Among the main concerns are the staff workload (40%) and the know-how knowledge (36%). Companies will need new worker profiles because they will require digitally educated people. In fact, skill shortages cost private businesses in 2018 414 billion. Alone in Bulgaria, the number amounts to 6.2 billion and it is estimated to rise to 8.7 billion in 2019 which is 15.8% of the GDP.

 

After learningwhy, it is actually necessary to invest in digitalization, we will introduce the benefits you can expect when you start your digital transformation.The core technologies that matter most to businesses are called the Essential 8 (3D Printing, AI, AR, Blockchain, Drones, The Internet of things, Robotics, Virtual Reality). We will discuss some of them and add more. From the figure below you can learn to what extent European countries have adopted these technologies.

Screenshot 2019-07-26 at 10.23.12

 

  • Versatile Working

Increased connectivity options mean that you will be able to offer more flexibility to your employees. Remote working, for example. Companies in Scandinavia and the UK often allow their employees to work from home on Fridays.

 

  • Automation

The smarter the machines get, the less effort you will need. There are machines that no longer require human hand to operate them. As a result, the price for products and services drops. Giving your customers the opportunity to interact with your products and services on their own with the help of AI or special apps, will save you time and money. GPS and Mapping

 

  • GPS and Mapping

Businesses in the transportation sector will benefit immensely from the advanced GPS services that can now pinpoint your position accurately, inform you about traffic jams, real time road closures, alternative routes and event how much gas is poured on which station. Unbelievable, right?

 

  • Decentralized systems

In the realm of digital disruption, businesses that adopt blockchain will revolutionize security, identity and payment. World marketers believe that banks that have not started to learn and look into blockchain will be left behind as the global economy adopts digital currencies and paperless transactions.

 

  • Big Data

In the banking sector where it is dealt with a large amount of data, Big Data is connected to asset management, measuring financial risk and create marketing strategies. Big Data will allow institutions to provide a more individual and personalized experience which most probably will result in loyalty.

 

  • IoT

Businesses that leverage IoT with apps, swipe cards, card readers and sensors will strengthen the customer engagement. Innovative and personalized offerings will stand out from the crowd.

 

It is a challenge to embark on digital transformation in so insecure times, however, it is a crucial step in order to keep up with the global landscape and remain competitive. Investment in digitalization and digital education of staff should be a top priority of business owners, managers and the government as well, so that the Bulgarian Marketplace is going forward. Questioning the status quo and existing business models is what shapes a truly successful digital culture.

Еvery day we be become closer and closer to the conclusion that the world will be divided in two: People who understand and implement technology, and the rest who don’t. And you? Who do you want to be?

 

 

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