SAP invited Ecuadorian business people to demonstrate their vision and commitment to Digital Transformation.
Ecuador is a country of contrasts. The fertile savannas that start right in front of the Pacific Ocean ascend to snowy peaks and then descend through mighty rivers that give rise to the Amazon Basin in a short journey.
Close to 18 million its population has essential geological and agro-industrial resources, which sustain a dynamic and flourishing economy. However, the crisis generated by the COVID-19 pandemic hit the inhabitants of its large urban centers and left a trail of both victims and businesses that did not withstand such an intense test.
The Central Bank of Ecuador saw a decrease of 12.40% of GDP in the second half of 2020, compared to a growth of 8.4% for the first half. A challenging impact for any economy regardless of size.
Technology is regarded as an enabler for the Ecuadorian economic reactivation
Opportunities after the crisis
The Annual Global Survey of CEOs from PricewaterhouseCoopers, a consulting firm, reveals 78% of the country’s CEOs consider that the economic situation will improve thanks to the coming technological transformations. This improvement will attract new dynamics for the local market and create a more positive view of the post-pandemic outlook.
Growth creates a turning point that can even boost non-traditional sectors of the economy and accelerate the development of this country. At least, this is the impression left by the virtual discussion, part of the SAP event, on economic reactivation in Ecuador.
The SAP event highlighted interesting variables and perspectives on using emerging technologies and innovative trends that companies and the government can take advantage of for good.
According to the ICE Economic Climate Index, the business climate in Ecuador is the second that gains the most positions in the third quarter of 2021, rising 26.2 points. This can be achieved by taking advantage of Artificial Intelligence, Big Data, Analytics and Automation by being transversal and generating new business models while making them more competitive.
Similarly, the cloud, the IoT and fiber optics become facilitators to improve data collection and decision-making in companies.
Drawing a map that integrates technology
However, Ecuadorian companies must approach telecommunications’ information technologies and integrate them into their business models to incorporate them.
Pablo Zambrano, President of the Federation of Industries of Ecuador and Executive President of the Chamber of Industries and Production, CIP, said:“Companies must have a digital strategy for issues such as comprehensive management, logistics management and human capital, including teleworking and develop an infrastructure compatible with future needs, such as the deployment of 5G networks and a correct and ethical use of data.”
Francisco Jarrín, President of the Guayaquil Industrial Association, said: “The Digital Transformation is here to stay. Companies achieve better productivity, saving costs to obtain positive changes and growth opportunities for the country. Currently, little use is made of Artificial Intelligence, robotics and Big Data as not enough technological investment is acquired.”
New challenges and opportunities for Ecuadorian entrepreneurs
The business leaders of this country seek their organizations to understand that establishing leveraged processes in Digital Transformation allows Ecuadorian companies to embark on a new path and generate new strategies to take their businesses to the top.
However, this new technological proposal also implies understanding the challenges and opportunities generated by this accelerated immersion into digital processes.
Marcela Perilla, President for the Northern Region in Latin America and the Caribbean, SAP, said:“For the reactivation of the country’s economy, it is necessary to work on different fronts. On the one hand, private organizations must look for strategic alliances with the public sector to encourage the digital ecosystem and adapt solutions to the needs of organizations.
“Companies must create training programs with digital tools that allow them to improve collaborators’ work performance and implement technologies that enable them to optimize the management of their supply chains and data management to achieve better performance.”
The government, from spectator to protagonist
In the Ecuadorian case, expectations focus on both economic and strategic stimuli that the government can offer to companies, academia and the rest of the value chain to strengthen it.
Viana Maino, Ecuadorian Minister of Telecommunications and the Information Society, in a meeting with the partners of the Ecuadorian American Chamber of Commerce, AMCHAM, said: “For us to advance in the country’s digital development, it is essential to have strategic allies, such as the private sector, to democratize access to technologies and promote investments, through three elements: Digital Infrastructure, Digital Government and Digital Transformation.”
A statement from the ministry highlights that this is a presidential directive based on strengthening ties with people in business to expand foreign trade as an ideal way out of the crisis generated by COVID-19.
“It is essential to work on connectivity and Digital Transformation that will translate into investment and job creation, accelerating the economic reactivation of the country,” said Maino. She explained the ways in which the vision of the role of technology in government strategy is evident.
One of the first points to highlight is strengthening the so-called Meeting Points (Puntos del Encuentro), previously known as Infocentros, where people can access computers and the Internet to conduct transactions, training, entrepreneurship and other activities. There are 886 points available throughout the country.
Within the Gobierno Del Encuentro policy to generate international trust in the country, the Government established contacts with Facebook to support personal data protection.
Maino also directs a commission to strengthen information protection in association with the European Union as part of the Cyber-Resilience for Development project.
The Government of Ecuador works with Microsoft to generate Smart Governance projects and finally with Amazon in training and advising on the National Digital Transformation Plan.
In the same way, the minister took the opportunity to show the Ecuadorian fiber-optic network as an essential point for data and transaction management, added to the connectivity through submarine and terrestrial cables of private entities that help the interaction of the companies of Ecuador with the rest of the world.
A key point is the tariff reduction for equipment imports supporting telecommunications networks deployments, fiber optics and satellite dishes.
