The Digital Pandemic Era: A Business Opportunity

/Published in El Colombiano Oct 2020

The COVID-19 pandemic has brought numerous changes to our lives, with digital technology access standing out as one of the most impactful.

During the pandemic, we discovered that videoconferencing works—and it makes us more efficient (up to 13% more productive, according to a study by Stanford University). Likewise, online sales, which had previously shown slow growth, have registered an increase of at least 30% this year. However, digital transformation goes far beyond videoconferencing and internet sales.

Many organizations include a digital transformation section in their strategic plans, yet they fall short in execution. A survey by Andi indicates that companies with a defined digital strategy increased from 25% in 2016 to 63% by the time of the study (2019). While this change is significant, it does not necessarily reflect the effective implementation of these strategies.

A genuine digital strategy surpasses paradigms and drives changes in the internal dynamics of organizations. Today, there is a broad range of practical and cost-effective applications in areas such as robotics, artificial intelligence, data analytics, biosecurity, telemedicine, and education. Some organizations are embracing these tools, generating significant value, and even redefining their mission. Regarding corporate value, it’s noteworthy that in the S&P 500 index, nearly 90% of companies listed in 1983 have been replaced by newcomers; the recent case of Exxon being replaced by Salesforce illustrates this shift. In our country, Daviplata (the Davivienda app) expanded from less than 3 million users before the pandemic to over 10 million users in just five months.

Digital adoption not only offers cost savings but also promotes change in traditional structures. Consulting firm McKinsey refers to these as “agile organizations” and advocates for management efforts to make organizational structures more flexible alongside technology adoption. Effective systems solutions require not only robust software and hardware but also excellent human resource management and organizational change management.

Beyond the pandemic, the technologies now embedded in our daily lives represent an opportunity for organizations to take bolder steps. Those that develop a well-planned digital strategy can make a quantum leap, captivating talent along the way, and generating substantial value.