The digital transformation of the global economy

The health crisis we are facing has changed everything around us, causing a social and economic impact that will have consequences that are difficult to predict. Without a doubt, this is the time to face these changes and prepare for the work ahead.
This crisis not only confirms that the way we use technology will change forever, but also that the digital transformation of the economy will take place at an accelerated pace, generating a hyperconnected society.
- How does this acceleration manifest itself?
I analyze digital transformation from the 5 Ds, the five vectors of transformation: the decentralization of the population, the distribution of entertainment, the displacement of work, education and health, the relocation of the supply chain and the decarbonization of the economy.
The current crisis is causing each of them to develop in front of our eyes in real time.
-Decentralization of the population
Because of the crisis, governments had to take over and accelerate the implementation of digital services such as e-government and digital public services. The need for greater capacity in their portals means that several governments are working on approving the expansion of the radio spectrum, which, in turn, favors the acceleration of the implementation of 5G networks.
It is worth remembering that part of the concept of smart city is to keep citizens safe.
We can leverage some smart technologies to help with social distancing. We have urban surveillance cameras with CCTVs and facial recognition cameras; geolocation measures to track vehicles and phones; home deliveries using robots and drones, and the development of numerous services without pilots, or autonomous.
-Entertainment distribution
The form of entertainment has changed forever; we consume large amounts of video streaming, participate in multiplayer games, and attend virtual concerts. All of these platforms subject communications networks to a great deal of stress, as shown by the fact that both Netflix and YouTube have downgraded the definition of their streams because the networks were saturated in Europe.
We also see a fundamental change in entertainment with an increasing focus on augmented and virtual reality systems – through which we can travel, visit museums or participate in events from our home, with immersive VR/RA systems.
-Displacement of work, education and health
We had to set up offices in our homes and negotiate the speed of our wireless networks because all of us, as well as our children, need bandwidth to be able to attend virtual meetings and virtual classes. This displacement, forced by confinement, will forever change the way we relate from now on.
Health is a fundamental aspect in our lives. Although telemedicine is already known, at this time it is taking a leading role. Online consultations, self-health services and diagnostics are our gift.
-Relocation of the supply chain
We're beginning to see how digitally advanced factories (so-called Smart Factories) are adopting process automation to reduce the number of people working in the factory.
Similarly, companies are enjoying the benefits of relying on multiple alternatives from parts and service suppliers rather than relying on a single source of supply. This drove, for example, 3D printing to perform a late differentiation or customization of the product, or manufacture just about anything.
Another consequence of this crisis was the acceleration of different home delivery platforms, with the dissemination of autonomous vehicles or drones.
-Decarbonisation of the economy
Finally, it is clear the need to discover how these technologies help decarbonize the economy by developing environmental sustainability strategies seeking to reduce the carbon footprint. This trend has been called the New Green Deal.
Telecommunications networks and large data centers consume huge amounts of electricity to the point of having a larger carbon footprint than the air transport industry. Let's see how telecommunications operators and major Internet players increasingly seek the use of renewable energy, energy efficiency and the optimization of natural resources.
-The future is our present
This acceleration of digital transformation poses a key challenge for mission-critical infrastructures such as data centers and edge computing. Next year will focus on speed, scalability and complexity, both in the core (larger data centers) and on the edge (peripheral infrastructure). It will be essential to deploy new sites in record time, implement and use tools for remote and online management and monitoring of processes, as well as manage and dispatch technicians remotely.
All this will increase the complexity of infrastructure management.
In this context, according to the 5R model of the consulting firm McKinsey & Company, we will have to:
-Resolve: Short-term measures. Deal in real time with the challenges brought by this virus and find ways to protect employees, customers and production processes on which we depend.
-Strengthen: The cash flow of the business. Strengthen the measures that allow a company to survive all this.
We have to strengthen financial health and we need to build resilience during these forced stops.
-Recover: We have to create a detailed plan that allows us to quickly scale and recover the business as conditions, context and economic situation improve.
-Reinvent: Rethink how we will live this 'new normal'. Let's not go back to what we had. We will have to reinvent ourselves, visualizing what will be the changes that we are experiencing today and that will become permanent.
-Reform: The legal, regulatory context will change a lot in our industry. We will have to prepare and adapt to them in the medium and long term.
If the last decade has been characterized by the use of shared resources, the migration to the public or private cloud, and what some call the "uberization" of the economy, the next decade will witness a move in the opposite direction to the edge of the network.
To cope with the current economic situation, it will be imperative that the economy accelerate its transformation towards a digital and hyperconnected world. That's a reality.
Trust strong partners who understand these challenges and have the resources to help your business take the necessary steps to be competitive in the new economy.
-Fernando Garcia