Companies apply technology in Latin America, but earn little … – Economic Value (Signature)

SAO PAULO – While investing heavily in purchasing new technologies, companies in Latin America are not taking advantage expected from the adoption of these tools, leading to a low gain in productivity framework in relation to the resources applied.

That’s the finding of a survey conducted by professor Raul Katz, of Columbia University, Custom Assa Group services in technology Information (TI). The survey was conducted through interviews with executives from 75 large companies with global and regional assessment, and data analysis on every US industry.

On a scale of zero to one hundred, while the technology adoption level had an average score of 79.2 in the region, the index that measures their use productively on a daily basis stood at 46.6 . According to Katz, the explanation for this discrepancy is a well-known behavior: the technologies are bought and put into use, but work routines remain the same as before.

An example is the company buying smartphones for its sales force in the street, but does not eliminate the need for paper delivery reports. Or the company that does not explain to employees the limits of the contracted package, generating costs for the misuse of the phone.

“The purchase of technology does not increase productivity automatically. It needs it to be incorporated productively in the process. Companies need to go through a digital transformation. But that’s the hardest part, “said the professor.

Despite the inauspicious big picture, some segments stood out positively in the survey such as health, consumer goods, telecommunications and transportation and logistics. In terms of countries, the companies of Chile and Colombia were more prepared to use the most efficient technology.

According to Katz, a major problem is how long this process takes to be completed. Depending on the size and the sector in which the company operates, this transformation of the business model can take two to five years to show results.

“It’s a risky proposition, but it has to be made. Otherwise, there will be with nothing to worry about in the future because the company will be out of the game, “he said.

For the teacher, invest in productivity is critical for companies from Latin America on account the end of the supercycle of commodities, which meant that the region’s economies, especially Brazil, suffered enough. In evaluating Katz, with the price of falling commodities, companies have to be more efficient to be more competitive.

According to research firm IDC, the technology market in Latin America generated US $ 130 billion in 2014, with Brazil accounting for 46% of that.