TECH4GOOD
FORMER DICT UNDERSECRETARY MONCHITO B. IBRAHIM
Former Chicago Mayor and now US Ambassador to Japan Rahm Emanuel recently said: “You never want a serious crisis to go to waste. And what I mean by that is, it is an opportunity to do things that you think you could not before.” Certainly, this pandemic has forced most businesses, organizations, individuals, and governments to become more innovative in finding ways to cope with the crisis. And one of the silver linings that came out of this is the digital transformation of society. Practically everyone has turned to technology to bring some semblance of normalcy to their continued existence. Digital adoption has taken a quantum leap in just a couple of years’ time.
What is digital transformation? Is it the same as digitization? Or digitalization? Let me try to differentiate these terms first before we look at how this pandemic has made digital technology profoundly change our society. A lot of people use those terms interchangeably. And I believe, we all need to understand the differences for us to really appreciate the term “digital transformation.” Digitization simply describes the conversion of any physical document into a digital format. Think of converting a physical receipt into PDF by scanning it or taking a photo of it with your smartphone. With digitalization, it refers to the use of digital technology to change a business process. Taking the case of the receipt that you just scanned, you can just attach the digital copy when filling out an online reimbursement form instead of submitting the physical receipt. Finally, digital transformation represents the impact caused by the process of digitalization that has resulted in new operational processes, culture, and customer experiences. With the digital receipt, the bookkeepers do not have to enter the information in the receipt into the system. Instead, their time could now be better spent in more important areas requiring attention. How has the pandemic digitally transformed us, individuals? Obviously, most of us have moved dramatically toward online channels because of lockdowns resulting in huge advancements occurring in digital transformation in our day-to-day lives. It has profoundly changed the way we look at doing groceries, paying our bills, socializing, accessing medical services, education, and even dealing with the government among other things. It has also changed our priorities and attitudes towards work. Now that everyone seems to be getting comfortable with digital technology, the impact of things like artificial intelligence in the workplace would hopefully be easily understood and accepted. I believe this is a hugely important transformation that will impact all of us and our everyday lives, more than we think. What about business? To most businesses, it is not just about staying competitive anymore — it is mainly about survival. “There are decades in which nothing happens, and there are weeks in which decades happen,” Lenin once said. A new McKinsey Global Survey of Executives confirms the rapid shift toward interacting with customers through digital channels. Suddenly, every business, big and small, had to devise digital ways to continue connecting with their customers. Most were not perfect solutions, but, at least, they have allowed these businesses to sustain their operations to some extent. Take the case of Work-From-Home arrangements, the McKinsey survey respondents say their companies would have taken more than a year to implement a workable solution. Aside from remote working, adapting to changing customer needs like a switch to services that reflect health sensitivities, and customer preferences for online interactions have all become a top priority during these times. To most of them, the crisis has removed the barriers to the implementation of quick solutions. How have governments transformed? Obviously, the pandemic has rapidly sped up the way governments not just operate, but also in coming up with ways to respond to the crisis. We are now seeing more online platforms that allow virtual transactions and the move towards a paperless environment. To enable the government to communicate with the public easily on a wide scale, the use of social media platforms is becoming ubiquitous among government units. Things may be changing fast as far as communicating conveniently and quickly with the government is concerned but we hope that doing everything digital should now become the norm for all government transactions. The pandemic has resulted in the multiyear acceleration of digital and has brought about a sea of change in the mindsets of everyone on the role of digital technology in society. We need, however, to make sure that this transformation is inclusive. We need to realize that there is a generation gap in the use of technology and it is affecting how it is taken by everyone. Knowing how to use the platforms will also assure them that they are safe to use. Building digital skills should always be a top consideration for all players in order for everyone to really benefit from the digital transformation of society.