The multinational company EY launches “Challenges and trends survey of companies in Latam 2023”, event where 996 executives from different sectors from 18 Latin American countries participated.
The main challenges for companies in Latin America have to do, in part, with how to improve productivity and growth through the digitalization process. On the other hand, there are external factors that business sectors must deal with, such as inflation and the political environment of different countries in the region.
“In a scenario of weak economic dynamics, political instability and high inflation, the main challenge for organizations is the development of digital transformation that allows them, among others things, to improve productivity and reduce costs,” he said. Eduardo Valente, leading partner of EY Latin American Markets in an interview with DFSUD.
According to the respondents, The main internal challenges for Latin American companies in the next three years are technology and digital transformation (38%); market share growth (37%); and, improving operations, productivity and costs (35%).
“Companies must continue to seek to increase their market share by implementing new strategies and business models,” the executive explained. And he added that the pandemic has changed the way companies operate, giving them capabilities to better deal with developments in industries.
thought external factors – in a global aspect – promote the global economic scenario (47%); political uncertainty (41%) and the entry of new competitors, both global and local (32%).
As in external factors, but in the local aspect, promote economic stability (57%); followed by political uncertainty (49%); and inflation (35%).
Trends adopted by businesses
Regarding the world trends of the next three years, the development of technology and the use of data to improve the performance of the company are discussed.
“Digital transformation continues to be a priority for many companies in Latin America. This includes adoption of technologies such as cloud, artificial intelligence, data analysis and process automation to improve efficiency, decision making and customer experience,” Valente explained.
Latin American executives mentioned that the most important thing is to focus on innovation (76%); then cybersecurity and data protection (74%); and by the same percentage, technology-driven productivity.
Looking to the future, respondents think the disruptive technologies for the coming years are: analytics (74%); big data (71%); and cloud and artificial intelligence (both with 68%).
“Some leading companies in the region have advanced in their digital transformation and are taking advantage of the opportunities offered by technology, but many still face many challenges in this process,” added the fact with a digital divide between large. and small companies, said the expert.
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The current view of companies
34% of those surveyed indicated that they are thriving in the new reality: implementing strategies and/or business models; 30% indicated that they are getting stronger: growing and taking advantage of new opportunities; and, finally, 20% said that they react to contingency: adapting to the new scenario and reinventing the business.
Despite the difficulties mentioned above, the Latin American companies surveyed have a good view of their current business models, or are working to improve them. 56% of executives say they have an adequate strategy and 41% say they don’t, but are working on perfecting it.