Enabling Business Through Digital TransformationWed, 02/21/2018 - 11:37
Q: What is Oracle’s role in the development of the digital revolution in Mexico?
A: The world is undergoing a digital transformation that aims to empower people to create new business models that generate real progress. For instance, Netflix changed the entire industry paradigm and business model. While it is true that a lot of technology is required for a business such as Netflix to function, the big turnaround is the paradigm change that was made possible through the existence of an enabler. In Mexico, Oracle focuses on supporting the country’s digital transformation through our technology management. We are enablers for companies and we are looking for new business models in this digital transformation.
The growth of e-commerce represents a paradigm change and 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 answered the need to become more efficient, to save money or to just keep pace with the trend. Companies now are venturing into a new digital world to find new business models and to offer new products and services. For instance, when talking about retail, only 10 percent of what is sold in the world is through an e-commerce platform while 90 percent is sold through traditional channels. The percentage of sales through e-commerce is very low but almost 90 percent of what is sold through traditional retail is influenced by the internet.
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 Mexican entrepreneurs are beginning to understand this, which means that we are seeing an important transformation toward the digital world regardless of a company’s size.
Q: What are the challenges of implementing this digital revolution in a country like Mexico?
A: More than anything, it is a cultural and educational challenge. Oracle works alongside hundreds of educational institutions to contribute study programs and workshops in an effort to gradually change people’s mindset toward this new economy. If we do not start changing this mindset, the country will continue facing a lag in its productivity index. We need to make Mexican businessmen incorporate the innovation chip into their DNA.
Q: How ready is Mexico to undertake the digital revolution?
A: When it comes to digital transformation, neural networks are fundamental. I would say that it is not only telecom companies that are in charge of this part, but networks in general must be strengthened to support the existing connectivity demand. We are focusing on traditional businesses but new areas, such as IoT, are connecting everything to the internet.
Mexico does not have the infrastructure to support this transformation. However, we are on the right path. There are several companies heavily investing to reinforce the 4G network. Telecom companies are now working toward a new generation of 4G where users can reach cable-speed connections without being connected to a cable. This will lead to new business models that we cannot even imagine now.
Q: What areas of opportunity has the company recognized within Mexico’s digital development?
A: Every human discipline and science is walking down the path of digitalization. For instance, with the telecoms reform, public television is now digital. The taxation system or administrative procedures are also digital. Everything is digital. This means that data has to be managed, stored, transported and analyzed by something, regardless of the discipline. Oracle is focusing on all these tasks. Digital databases, models to store and to transport digital information are all from Oracle. We see limitless possibilities of digitalization. Worldwide, we are experiencing double-digit growth and in Mexico we are growing at a three-digit pace. This growth is neither a fluke nor the consequence of skilled salespeople, it is inertia from a technology that is working. It is a historic moment.