Digitalisation is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business. We hear every day that digital transformation is important for market performance and growth. Every company aspires to become digital, but only a fraction are successful in doing so and reaping the full benefits of the revolution.
Digitalisation is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business. We hear every day that digital transformation is important for market performance and growth. Every company aspires to become digital, but only a fraction are successful in doing so and reaping the full benefits of the revolution.
As per the predictions and forecast for digital transformation for the year 2022 by the International Data Corporation (IDC), investment levels for 2022–2024 are expected to be $6.3 trillion and represent 55 percent of all ICT investment by the end of 2024.
Global spending on the digital transformation of business practices, products, and organisations would expectedly reach $2.8 trillion in 2025, more than double the amount allocated in 2020. Digital transformation spending will have a compound annual growth rate (CAGR) of 16.4 percent over the 2021–2025 forecast period as organisations pursue a comprehensive digital strategy for people, processes, technology, data, and governance.
The tremendous acceleration of business digitalisation around the world has made it necessary for businesses to be technologically responsive; otherwise, they risk substantial setbacks in growth and revenues. When the global pandemic Covid-19 wreaked havoc on humanity in the recent past, it also served as a stimulus for digitisation. The Covid-19 lockdowns showed just how quickly the world can change and how important going digital is.
The pandemic has undoubtedly been a catalyst for digital transformation and adoption worldwide. Several enterprises that were not technologically advanced went obsolete. There's not even a single industry that has not been affected by the digital revolution.
Individual consumers are cautious about how producers have crafted their services to align with rapidly shifting trends and how ecology is integrated into every element of a company today. Organisations may not be able to ignore the importance of digitalised practices in achieving a customer-focused approach and future diligence. Digitalisation drives critical decision-making and a solution-driven approach to coping with global difficulties, regardless of industry, whether in marketing innovation or financial business strategy.
Fortunately, it is not too late to continue (or even begin) our digital transformation journey — and join many others as we have done in the past. Mobile internet (5G), digital literacy, e-commerce, and digitising potential sectors are key technologies with transformational potential for businesses and the potential to create significant economic value for Pakistan.
With blazingly fast linked gadgets that will catalyse digital transformation, the fourth industrial revolution of networking technologies will revolutionise our planet. 5G, the next-generation of high-speed mobile wireless communication, is leading the charge. It will connect nearly everyone and everything, including machines, objects, and gadgets.
The impact of 5G on the digital transformation industry, on the other hand, will be enormous. Think about the vast volumes of data that are now flowing through all of our smart devices today. Now consider all of the features and opportunities that will be available when all of this technology communicates more quickly and consistently.
However, smartphones, are the missing link in Pakistan's quest to become a truly digitally inclusive society. The affordability barrier to smartphone adoption has increased as a result of new taxing and fees associated with smartphone ownership.
Before 5G can be implemented in the country, we must make cell phones accessible and inexpensive for the common citizen. Reducing mobile-specific taxes and duties would help to increase mobile ownership.
Furthermore, Pakistan has a long way to go in terms of digital literacy. Increased digital literacy benefits the economy in a number of ways. The fourth industrial revolution can create a “digital divide” that will widen the economic disparity between those who are digitally literate and those who are not.
According to the World Economic Forum, Pakistan boasts the world’s most affordable internet service. So, where we are lacking? We must acknowledge that the traditional concept of literacy is no longer adequate. In light of current dynamics, literacy should be defined as the capacity to read and write as well as the ability to use digital technology (such as tablets). Providing people with digital skills can help us achieve our goals.
There is a lot of untapped potential ahead, and with the type of new technology and features being offered every day, the landscape of e-commerce will transform into live commerce in the coming days, months, and years.
We witnessed a Pakistani e-commerce behemoth live stream the Cricket World Cup 2021 on its app, and this tactic was crucial in luring customers who would not have otherwise signed on and made purchases. In China and South Asia, live selling and live commerce accounted for around 10 percent of the gross merchandise value (GMV) of e-commerce giants’ sales.
Pakistan is one of the remaining few countries with an underdeveloped e-commerce sector, despite having a sizable digital economy. The government should focus on e-commerce to move forward towards a digital Pakistan and promote a knowledge economy through a Digital Pakistan Policy to facilitate growth of e-commerce.
We cannot discuss the digital world without discussing un-digitized agricultural sector that carries a heavy potential and contributing a good share in our country GDP yearly. Around 90 percent of the country’s farmers had small holdings (less than 12.5 acres of land) and could not afford to invest in technology to improve their operations.
They were compelled to use low-yielding seed varieties and obsolete farming techniques. We are experiencing an agricultural catastrophe, and we must tackle it properly through widespread digitalisation.
There is need to emphasise the importance of investing in agricultural businesses that are developing solutions. Digital technologies can also help Pakistan’s agricultural sector in another way as well. An agriculture information portal can be established given that the majority of people have access to mobile phones.
It will provide price, weather, water quality, and supply data from agricultural markets to farmers. The government should consider making the shift to digitalisation since it will help the country overcome various obstacles and ensure smooth procedures.
Undoubtedly, Pakistan faces significant social, economic, geopolitical, and administrative challenges. Many countries have experienced comparable obstacles in the past and effectively transformed them into opportunities via strong economic planning, good governance, and policy implementation consistency.
Our issues, we believe, present unparalleled chances for dramatic advancement once adequately addressed. As we enter a period of tremendous change and complexity, it is critical that we update our economic development framework and advance our country towards digitisation.
The writer is an accountant
