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We live in an increasingly digital world. The arrival of new technologies has transformed the market and provided unique benefits to consumers. There is a range of shapes and models for these transformations, ranging from machine learning to artificial intelligence and more responsive platforms. Despite being a current topic, it is common to wonder how the Brazilian market has kept up with these changes. And there are major advances in several segments, which deserve to be pointed out. In this article, we will understand more about digital transformation and its applications within the market. Happy reading!
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What is digital transformation?
You have certainly heard this expression at some point in your life. What seemed like the plot of a science fiction movie is already a reality for today's world. Digital transformation is a process that has been applied throughout society over the last few years and presents itself in different ways. When we talk about the impacts of technology, it is common to think about the transformations in people's daily lives. Smartphones, computers, televisions, gadgets and other devices that are part of our daily life are examples we see in several studies. But, far beyond everyday life, technology has impacted different industrial sectors. Digitalization has become an essential process for any company. Transforming processes into fully digital activities not only changes a company's internal workflow, but even impacts the relationship with the customer. Studies reveal that a large part of the customer journey is done digitally. It is worth noting that, according to a survey by BRQ, Brazil is the 2nd country that spends the most time on mobile phones. A fact that may seem simple, but reveals an increasingly digitalized behavior of consumers. But what does this data reveal? The importance of investing in the digitalization of your business. And that is what configures digital transformation. In short, we can conceptualize digital transformation as the application of technology within a company, promoting significant changes in various sectors. There are countless forms and models of digital transformation. Some more practical and simplified examples can be listed, such as: • Creation of digital solutions, such as applications and e-commerce platforms;
• Migration of servers to cloud computing instead of physical servers;
• Adoption of specialized tools in project management;
• Omnichannel (multichannel) shopping experience;
• Use of artificial intelligence and machine learning in chatbots and other management tools.
The Pillars of Digital Transformation
Now that you already understand the concept of what digital transformation is, you need to understand how it behaves. There are three pillars that support this entire idea, which are:
Customer experience
Innovation should not be done solely with profit and internal process management in mind. It must be designed and centered around customers. This is one of the main pillars of any digitalization process. Therefore, the customer experience becomes an essential point for a company's success. Today, people find themselves increasingly immersed in digital environments, and delivering solutions that speak to this new behavior is what delivers your business's differentiator. In addition, these tools help capture relevant data about your consumers. With this information, many decisions and investments can be made in your company.
Business model
New technologies also impact the way your business works. What was once very bureaucratic and time-consuming is now done in a much shorter space of time and with much more ease. The digitization of processes, the emergence of new tools and platforms that will assist your operation, will modify the way your company works. And this should be seen as a positive thing. It is the opportunity to make your business faster, smarter, and more strategic. More assertive and agile processes generate fewer costs and better results.
Operational
This is a pillar that goes hand in hand with the previous one. It complements the changes that technology brings to your business model. Process automation becomes an important ally in the digital era. With the use of new technologies, it is possible to ensure more agility and assertiveness for tasks that, previously, were done only manually. This gives employees more time to dedicate themselves to other, more strategic tasks. It ensures more fluidity and dynamism for your business and, consequently, better cost management.
Main tools for digital transformation
As we have discussed previously, digital transformation manifests in different ways. There is no standard model, as each company and market can adapt differently. But there are tools that facilitate innovation and put your business ahead. Below, we list some of them: • Development of applications and websites for a better customer experience. Thus delivering more ease to reach your product/service and the necessary information.
• Use of IoT, such as smart devices and sensors to collect data, optimize industrial activities and processes.
• Investment in cloud technologies for storing your company's information and processes. The use of physical servers, although very useful, can bring difficulties for some business models.
• Artificial intelligence to facilitate data analysis, information gathering, and decision making.
• Use of robots and automated machines for riskier operations, reducing the risk to your employees and allocating manual labor to more strategic areas.
Digital transformation in Brazil Now that we know what digital transformation is and its benefits, it is time to understand how this process is going in Brazil. According to a survey conducted by the Center for Applied Information Technology (FGVCia), of the São Paulo School of Business Administration (FGV EAESP), great strides have been made in Brazil in recent years. The pandemic accelerated the digital transformation process in many Brazilian companies. The study shows that, during the year 2021, investments exceeded what was expected for up to 4 years. The research also reveals that the use of digital devices in Brazil has grown considerably. There are more than 445 million units of devices such as computers, notebooks, smartphones, and cell phones used throughout the country. This number represents an average of 2 devices per inhabitant, with cell phones taking a predominant role in society.
The most developed sectors
A digital maturity study conducted by McKinsey also revealed important data to understand digital transformation in Brazil. Among the information are the best-positioned sectors in the general market. The Brazilian top 3 includes: • Financial Services
• Retail
• Telecommunications
According to the research, these sectors present a significantly higher score than the others. However, some other markets deserve highlight, such as consumer goods and transport, which show good maturity. Within companies, it is also possible to notice greater investments, mainly in areas linked to information technology (IT). Today, about 9% of net revenue is spent on IT services and products.
The main challenges of digital transformation
Even though it shows good evolution and good numbers, there are several challenges in applying digitalization processes to markets. The main one is the lack of IT professionals. Despite being a highly sought-after and even well-paid area, there is not enough qualified labor in the sector. According to the Brazilian Association of Information and Communication Technology Companies, this deficit could reach 260,000 by 2024. Another important point, which becomes a challenge for many companies, is legacy systems. Obsolete platforms or the need for high investments hinder many businesses when it comes to digitalizing. But still, this is a process that has become essential and targeted by many businesses. How has yours adapted to the new reality of markets? Here at Pix Force we work with solutions that not only help facilitate various operations, but also place industries further and further inside the digital transformation. Talk to us and learn more!
Fabio Caraça
Fábio Caraça is the Chief Growth Officer at Pix Force. He leads Pix Force's transformation into a scalable SaaS operation, combining strategic vision, culture, and high-impact execution.
