Digital transformation can create up to P5 trillion in annual economic value by 2030, according to a new Google Philippines – commissioned report released Oct. 19, 2021.
Of this value, P3.5 trillion could come from technologies that help businesses mitigate the economic impact of the COVID-19 pandemic and similar events in the future.
The report, made by AlphaBeta economists, explored eight transformative technologies and their economic potential to local industries, from Artificial Intelligence (AI) which can drive data-based public health interventions, mobile internet for digitizing retail distribution channels to the Internet of Things (IoT) for supply chain tracking.
“Digital adoption is crucial for the Philippines to unlock new opportunities and gain resilience in the post-pandemic future,” stressed Google Philippines Country Director Bernadette Nacario.
“Beyond its immediate economic impact, the COVID-19 pandemic can have long-term implications,” she warned.
These include the emergence of a hybrid workplace that supports digital freelancing, accelerating the shift towards digital payments, and severe disruptions to the business operations of small enterprises.
“By providing businesses access to global markets, equipping businesses with digital capabilities to conduct electronic transactions, and facilitating remote work, technology can help businesses manage the long-term economic implications of the pandemic,” she pointed out.
The Google report identified three courses of action to maximize digital transformation. These include enhancing digital skills training and education, accelerating digital adoption and innovation, as well as promoting digital trade opportunities.
Already, local businesses, consumers and the wider society haul in over P578 billion in annual benefits, via increased revenues and millions of connections online, Nacario noted.
Indeed, “Digital transformation plays an important role in economic recovery,” confirmed Department of Trade and Industry (DTI) Secretary Ramon Lopez.
Even before the pandemic, Google and the DTI have been digitizing small businesses through the MSME Caravan campaign, he cited.
“For the past two years alone, we are able to train more than 46,000 MSME business owners and their employees,” according to Secretary Lopez.
“We will continue to work closely with our partners from the public and private sectors to fully unlock the opportunities of our rising digital economy and empower Filipinos to succeed and grow online,” he pledged.