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The Omnipresence of the Cloud in Mexico

By Angela Gomez Aiza - SAP Mexico
President

STORY INLINE POST

By Ángela Gómez Aiza | President - Mon, 12/05/2022 - 15:00

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As consumers, we are rarely aware of the value chain behind the products or services we consume or use. We do not know that behind those vegetables we cook, the music we listen to, the car we drive or the clothes we buy, the cloud probably played a fundamental role in making that happen. 

Today, organizations must ensure greater value for their customers and collaborators and as a result, they need strategies based on technological innovation that not only help them manage increasingly complex internal processes, but also help them manage business networks around the world. This is impossible without considering the cloud.

The power of the cloud is ubiquitous, reaching all industries and organizations of all sizes. This is no exception in Mexico, and a few months before the end of the year, the technology on this platform continues to grow, reporting double-digit growth in SAP during the third quarter of the year, thus consolidating 16 consecutive quarters of growth. 

The flexibility, efficiency, security, and specialization that the cloud gives companies today allow business models to be reinterpreted in a more agile and accurate way. In the last two years, we have called Business Transformation as a Service, through comprehensive offerings such as RISE with SAP, which showed growth in its public cloud version. 

Such is the recent case of Mexican companies like FRISA, a leading metallurgical company in the forging and steel sector; Distribuciones DANA, a leading company in product distribution; and Altex Group, a leader in the production and processing of fruits and vegetables in a sustainable way, which recently relied on the power of RISE with SAP to move to the cloud.

The cloud enables companies to achieve business objectives by enabling complex infrastructures on a platform available to all, making it easy to manage data and analytics, develop applications and integrate them with intelligent technologies.

The Cloud in Mexican Industries

As predicted by the technology consultancy IDC, the cloud will continue to grow at a rate of 30.4 percent by 2023 in Latin America, highlighting the growing demand for automation processes driven largely by the pandemic, which has made companies in various areas decide to migrate to the cloud.

In the third quarter of the year, we have witnessed the move toward the cloud of three key industries for the country's growth and competitiveness: 

  1. Retail, a sector that contributes 20 percent of the country's GDP, strengthens its investment in innovation with SAP, reflected in triple-digit growth in this period. An example of this is La Europea, the No. 1 company in Mexico within the wine, spirits and gourmet food sector that advances its omnichannel strategy with Emarsys of SAP Customer Experience to offer a unique and memorable experience to its customers in each interaction. Uniting the physical world with the digital one, La Europea reiterates its commitment to its customers.

  2. Automotive, which accounts for 20 percent of manufacturing GDP and about 3 percent of the country's GDP, increased its technology adoption by three digits with SAP. An example is Dalton Corporación, a conglomerate in the manufacturing, real estate, financial, automotive and services textile industries, which has put its employees at the center of its digital transformation strategy by adopting SAP SuccessFactors to customize the training and professional development strategies of each employee.

  3. Financial Services showed double-digit growth with SAP. The strengthening of the fintech sector in the country has boosted the growth of the financial sector in the country. It is estimated that by the end of this year there will be more than 64 million fintech users in the country. While they are digital companies, they still have process automation challenges to solve. Proof of this is Yofío, a Mexican fintech that offers Latin American businesses the ability to grow through easy, fast, and secure credit, and which has adopted SAP Business ByDesign to standardize, simplify, and automate its processes, as well as accelerate its time to market. 

Priorities in Technological Investment

Although we can already observe the behavior of the economic sectors in terms of digitalization, it is time to double-click and identify how Mexican entrepreneurs invest in innovation, which is based on three major areas: Industry 4.0, experience management for employees and expense management.

  1. Industry 4.0 makes everything in the value chain smart, from fully automated manufacturing to intelligent warehousing and logistics management, not to mention the potential to move toward sustainable models. It is often thought that the companies that base their strategies on Industry 4.0 are from the manufacturing sector but this concept of value chain automation is not exclusive to production companies. In the retail sector, there is great potential to automate processes in the supply chain. For example, the Mexican company Dportenis, a chain with more than 200 sportswear stores, is a good example of this, because it will optimize its new distribution center with SAP Extended Warehouse Management to transform inventory management and standardize its processes.

  2. The management of experiences in collaborators is a trend that has remained throughout the year as a priority of Mexican business. This has been enhanced by the new hybrid work models, as well as the imminent challenges related to the future of work, such as the attraction and retention of the best talent as well as the professional development of our employees. Proof of this is Diavaz, a company specialized in offering comprehensive services and solutions of value for the energy industry, reaffirms its confidence in SAP SuccessFactors as the cloud platform for its talent management. With this, the company will have a world-class platform that will allow it to fully automate its payroll process and improve the experience of its more than 3,700 employees.  

  3. Last but not least we have expenditure management. In an environment of complicated economic recovery with historic levels of inflation, the best strategy of companies is to take care of spending. This was reflected in the triple-digit growth of our SAP Concur platform that enables payment automation and ensures compliance with corporate policies thanks to the artificial intelligence and data analysis program integrated into this solution.

The arrival of the cloud allows the democratization of innovation and we will see more and more companies innovate their processes thanks to the accessibility, flexibility, and specialization of the cloud. The next time you go to the supermarket, take a ride in your car, or make a payment, you  should be aware that behind that process was the audacity of some manager who had the vision to reinvent their businesses. 

Photo by:   Angela Gomez

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