Digitalization in the Philippines

By Janette Toral Administrative & Support, Business & Strategy, Graphic Design & Multimedia 0 Comments

Since the Covid-19 pandemic, digital transformation became an advocacy for various government agencies encouraging businesses to embrace it, use a strategy to overcome hard times, and be competitive in the future.

According to a 2017 research by the International Labour Organization (ILO), technological improvements have already provided the significant economic potential for Philippine businesses through 2025.

Despite these forecasts, only 27% of local firms are actively upgrading their technology and upskilling their employees.

Fears of mass unemployment emerged as a result of beliefs that computers will replace workers or that workers will lack the necessary skill sets to move to other jobs.

According to the same report, about 49 percent of jobs in the Philippines are at high risk of automation, and there are worries about gender parity, and the country’s existing techniques for analyzing skills gaps may no longer be effective in the future because they are time-consuming.

The IT-BPM business is seen as the most likely to benefit from this revolution. The ICT sector engaged in exports includes business process outsourcing, shared services, animation, health information management, software development, and game development.

What is digitalization?

Digitalization is the act of converting information into a digital format that can be processed, stored, and transmitted using digital devices and technologies. This process has transformed various aspects of contemporary society, including communication, entertainment, business, and education.

Digitalization offers numerous benefits, including increased efficiency, improved productivity, cost savings, access to useful information, precise data, and better communication. It can help generate new business prospects, spark innovation, and provide a better customer experience.

Which digital technologies to use?

To digitalize business operations, you can start by identifying the manual processes that can be automated, selecting appropriate software or tools for your business needs, and training employees on how to use them effectively. It’s also important to ensure data security and privacy measures are in place.

Don’t just implement digital technologies in haste. Otherwise, it can result in resource losses if not properly utilized. Take the following problem-solving steps to uncover the problems, discover solutions, and test to see if they are addressed.

Have a needs assessment first to determine the specific requirements of your intended users.
Set criteria and weights to evaluate solution options. This shall be used as the basis for comparison and ranking.
If potential solutions are identified, review the features and capabilities of the technology tool if aligned with the identified user needs and solve their problems.
Gather reviews and talk to current or previous users of the technology tool.
Set up a trial or pilot test to assess the tools in a real-world setting.
Create a comparison chart with competing or similar tools stating their strength and weaknesses.

Popular and emerging digital technologies

New and innovative technologies are constantly being developed and introduced into the market that has the potential to revolutionize the way we work, efficiency, increased revenue, cost savings, and improved customer experiences.

At the moment, these are in the areas of e-commerce, digital marketing, artificial intelligence, blockchain, virtual and augmented reality, the Internet of Things, cloud computing, data visualization, and many others.

Implementing e-commerce involves creating an online platform for buying and selling products or services, setting up a website or mobile app, integrating payment processing systems, order processing, and inventory management.
Social media platforms can be used for marketing and customer engagement. New tools usually come out in this space to help businesses in creating awareness, increase engagement, and generate sales conversion.
Cloud computing is a technology that allows users to access and manage data over the internet using remote servers. It offers benefits such as scalability, cost-effectiveness, and flexibility for data management. Data can be stored, processed, and analyzed in the cloud, providing users with easy access to their data from anywhere, at any time. It also allows for collaboration by providing a platform for multiple users to access and work on shared resources and applications from different locations. This can increase productivity, efficiency, and communication among team members. Examples of cloud-based collaboration tools include Google Drive, Dropbox, and Microsoft Office 365.
Artificial intelligence (AI) hardware and/or software that can perform tasks that typically require human intelligence. Some applications where AI is used include chatbots, virtual assistants, image recognition and analysis, predictive analytics, fraud detection, and others.
Blockchain is a distributed ledger technology that allows for secure and transparent transactions by enabling the secure and efficient transfer of digital assets, without the need for intermediaries.
Augmented reality is a technology that superimposes digital information, such as images or text, onto a real-world environment in real time that enhances the user’s perception of reality.
The Internet of Things (IoT) is the network of physical devices (including vehicles, home appliances, and other items) embedded with electronics, software, sensors, and connectivity that allows them to connect and exchange data which can be used to improve efficiency, productivity, and convenience in daily life. The IoT is being used in a wide range of industries. For example, in manufacturing, IoT sensors can be used to monitor equipment and optimize production processes.
Augmented reality is a technology that overlays computer-generated images onto the user’s view of the real world. Users can view AR content through a smartphone or AR headset, which uses cameras and sensors to recognize the user’s environment and display digital information that interacts with the real world. AR can be used for a variety of purposes, such as enhancing shopping experiences, providing real-time information about the environment, and assisting with maintenance and repair tasks.

Big Data

Big data analytics is the process of examining large and complex data sets to uncover hidden patterns, correlations, and other insights. It involves using advanced technologies and algorithms to analyze data from various sources, such as social media, sensors, and other digital devices, to gain valuable business insights and make better decisions.

Another important need is the use of digitization to come up with faster and better business decisions. Big data visualization tools have become sought after as well. Especially those who are able to use this to make complex information understandable, and communicate insights, and trends in business.

Graphs, charts, maps, infographics, and dashboards are usually used for this purpose depending on the data being presented and its purpose.

Graphs allow users to easily identify data and relationships between data points using graphical elements such as nodes and edges. Network graphs, tree maps, and scatter plots are usually used for this purpose.
Charts can be used to help users understand complex information and identify patterns. There are many types of charts, including bar charts, line charts, pie charts, and scatter plots.
Maps are used for the presentation of data in a geographical context using tools such as GIS software, web mapping, and data visualization platforms. Some styles used are choropleth maps, point maps, heat maps, etc.
Dashboards are also used in presenting data and information through a combination of charts, graphs, and tables. The intention is for quick and easy interpretation of complex data to identify trends, patterns, and insights to help in decision-making.

Data visualization techniques are helpful in simplifying complex information, making it more useful, and engaging a wider audience. Some applications include:

Using charts and graphs to present sales data, market trends, financial performance, and customer behavior to help business leaders make informed decisions.
Creating 3D models or animations to visualize molecular structures or scientific phenomena from experiments, simulations, and observations to enable science researchers to identify patterns and relationships.
Using infographics and interactive visualizations to enhance educational learning and understanding of topics, concepts, and relationships to help students remember information better.
Show data and information to help journalists tell communicate stories and issues to their readers.
Show patient healthcare data, medical images, and treatment outcomes to help medical professionals make diagnoses and treatment decisions.
On social media, using images, videos, and interactive graphics to create awareness, increase credibility, and engage with audiences.

Implementing digitization in businesses

Implementing new technology solutions in any business requires planning, investing in hardware and software, installation, integration, pilot-testing, rollout, training, and maintenance. The goal is to ensure successful implementation, integrated into system processes, and positively utilized by its intended users.

Businesses can create an enterprise digitalization roadmap – a strategic plan that outlines the steps and goals for an organization to fully integrate digital technologies and processes into its operations. This roadmap typically includes an assessment of current digital capabilities, identification of areas for improvement, the establishment of digitalization priorities and timelines, and allocation of necessary resources. The end goal is to achieve improved efficiency, cost savings, and better customer experiences through the use of technology.

Digital technology project teams need to:

Agree on the goals and objectives of the technology implementation.
Involve the hands-on stakeholders and clear roles and responsibilities.
Have a project plan signed off with a realistic timeline.
Allot resources and have a budget approved.
Keep your stakeholders informed of the plan through meetings, progress reports, completion status, and updated timelines.
Adjust the plan as needed with stakeholder support.
Test the technology, train users, and get proper approval before full implementation.
Provide user’s guide and technical support.
Measure technology utilization and decide on future version improvements.

Digitalization processes may face limitations such as incomplete or inaccurate data, technological barriers, lack of resources or expertise, and resistance to change. These limitations can affect the efficiency and effectiveness of digitalization efforts and may require additional strategies and resources to overcome.

Some common challenges in digitalization processes include issues with data privacy and security, difficulty integrating legacy systems with new technologies, lack of digital skills and knowledge among employees, and the high cost of implementing and maintaining digital technologies. Other challenges may include resistance to change, regulatory compliance, and ensuring that digital solutions align with business goals and customer needs.

Any undertaking has a risk component to it. In implementing your chosen digital technology, risks need to be identified, managed, and mitigated. Steps include:

Identify and evaluate potential failures in a system or process. This may include issues with the software, cybersecurity, hardware, facilities, and manpower, among others.
Their potential effects whether it will be a showstopper or have no effect at all.
Determine the likelihood of the failure occurring. If it is almost certain, it is no longer a risk but a problem that must be solved right away.
Tests and actions to prevent identified risks from happening. Mitigate the effects of the failure.
Have a contingency plan in case it happens.
Identify the person or team responsible for it.
Budget allotted.

The security of your digital technology tools, systems, and processes relies heavily on your organization’s cyber-security policies. This includes:

Implementing strong passwords. Using 2-factor authentication for identity verification.
Keeping software and systems up-to-date.
Consistent on-schedule backup of important data
Training and reminding employees on safe online practices.
Monitoring network activity for any user or system irregular activity.
Process in responding to security incidents.

Measuring performance

The effectiveness of digital technologies can be measured by analyzing performance metrics, cost-effectiveness, return on investment, and meeting objectives. Feedback from stakeholders and users will be influential as well. Collecting usage and results data is necessary including:

For digital marketing and website technologies, metrics often collected include user engagement, conversion rates, and cost-per-acquisition, among others.
For systems often accessed by users, data on uptime, response time, error rate, and user satisfaction. Additionally, feedback from stakeholders and end-users can also provide valuable insights into the effectiveness of a system.
For software, whether out of the box or customized, data often looked at are performance consistency, accuracy, maintenance, data handling, user support, speed, and security threats.

So much has changed since the 2017 ILO report as the growing number of businesses began looking for ways they can improve their ways of generating revenue, streamlining supply chain operations, digitalizing processes, and allowing remote work.

Digitalization in the Philippines