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Software Giant Changes Paradigms to Make City Smart

Javier Cordero - Oracle Mexico
President and Director General

STORY INLINE POST

Wed, 11/01/2017 - 11:10

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Q: What does the digital revolution mean and how is Mexico embracing this concept?

A: The world is undergoing a digital transformation that is not about technology adoption but rather about empowering people to create new business models that generate real progress. For instance, Netflix changed the entire industry paradigm and business model and started something bigger. While a lot of technology is required for a business such as Netflix to function, the big turnaround is not necessarily technology but the change in paradigm that was made possible through the existence of an enabler. In Mexico, Oracle is focused on supporting the country’s digital transformation through our technology management. We are enablers for companies and we are looking for new business models within this digital transformation.

This new way of thinking has to be incorporated by all companies, including SMEs. The growth of e-commerce has made competition global instead of local. When it comes to digital transformation, Mexican companies are understanding the strategic value of business models powered by the internet. A few years ago, incorporating a digital strategy was a response to the need to become more efficient, to save money or to just follow a trend. Companies are now venturing into a new digital world to find new business models and to offer new products and services to a more demanding public.

The use of technology is no longer exclusive to big corporations. It is not a matter of size and scale, it is a matter of how the world operates. The world has changed and fortunately, Mexican entrepreneurs are beginning to understand this. This means that we are seeing a significant transformation toward the digital world, regardless of the company’s size.

Q: In terms of infrastructure, how do you evaluate Mexico’s readiness to adopt the digital revolution?

A: When it comes to digital transformation, neural networks (ANNs) are fundamental. It is not only telecom companies that are responsible for their development, but networks in general must strengthen to support the existing demand for connectivity. Right now, we are focusing on the traditional business but new industries such as IoT are connecting everything to the internet.

Mexico does not have the infrastructure to support this transformation just yet but this is slowly changing. There are several companies heavily investing to reinforce the existence of the 4G network. Telecom companies are now working toward a new generation of 4G where users will be able to access cable-speed connections without being connected to a cable. This will lead to new business models that we cannot even imagine right now.

Q: What is Oracle’s definition of a Smart City and what are the main components it must have?

A: A Smart City is one that achieves harmony and efficiency between its inhabitants and suppliers. To achieve this, Smart Cities require IoT, the Cloud and Big Data. IoT is fundamental, since every element of the city must be connected to send information to the Cloud. All these data become Big Data and must be analyzed to obtain intelligence and thus make cities more efficient.

The evolution of Smart Cities must now include public policy. Logically, in Smart Cities, tax collection is more efficient, which means that more money is available for infrastructure and education projects. With education, it is easier to access better-paid jobs, which generates a lower crime rate. The trigger for all this to happen is management technology, which is what enables Smart Cities. Unlike other companies that have very focused management technologies, we are working alongside the digital transformation.

Q:How can Oracle help fast-track the development of Smart Cities in Mexico?

A: If a project does not become self-sustainable and does not transmit knowledge to other generations, it is very hard for it to survive. Unfortunately, almost every infrastructure initiative in this country is contemplated over a period of only six years. There are some infrastructure projects that are imperative, but are so expensive that they cannot be completed within the six-year time frame. This means that most governments prefer to shift the responsibility to the next administration. The only real way to provide continuity is to implement projects that are self-financing. But beyond this there needs to be the political will to improve the country. Oracle is working on these aspects, creating self-financing projects that can transfer knowledge to institutions. We have been working in Boulder, Colorado, alongside the city’s government to establish self-financing projects that do not depend on budgets from future administrations.

Q: What areas of opportunity has the company recognized within Mexico’s digital development?

A: Every human discipline and science is on the path toward greater digitalization. For instance, with the Telecommunications Reform, public television is now digital, as are the taxation system and administrative procedures. This means that data has to be managed, stored, transported and analyzed, regardless of the discipline. Oracle is focusing on all these tasks. Digital

databases, information storage and transportation models are all developed by Oracle. We see limitless possibilities within digitalization. Worldwide, we are experiencing double-digit growth and in Mexico we are growing at triple digits. This growth is not a coincidence; it is inertia from technology that is working.

Q: Where do you see Mexico in terms of digitalization in five years?

A: Digitalization in Mexico has several nuances. It is hard to answer since it varies depending on the industry. In the next five years, the telecoms industry will be highly developed, because it is the vehicle for digital transformation. It is an industry that generates significant business opportunities surrounding the IP part of telecommunications, which is experiencing noteworthy growth.

The financial sector will also experience significant development. The current low levels of access to banks and financial services present both a challenge and a growth opportunity. We cannot transform ourselves into a first world country with the low levels of banking access we currently have. That is why the financing sector is making a concerted effort to become more sophisticated. Unlike others, the manufacturing industry is not developing at the required pace.

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