The digitisation of companies impacts productivity by as much as 25%

Digital transformation goes beyond technology and goes to the core of every company: its business model.

📸 Hitesh Choudhary I Pexels

Reading time: 4 min

The importance of the path towards digitisation embarked on by our societies is unprecedented and four times as significant as the industrial revolution 

The digital transformation of households and companies is no longer a topic to be debated, as it’s become a matter of necessity, as demonstrated during the pandemic we’re witnessing, given that, if it weren’t for the digital advances, the ensuing social and business standstill could have caused real chaos.

From this standpoint, the challenge lies in designing a future adapted to the new social and business needs. We’re referring to processes, legislation and, above all, connectivity. The above is vital if we’re to move forward along the road to higher productivity in companies of all sizes and greater quality of employment

The 2030s, the prodigious decade

According to the data available, the digital transformation of the business fabric could increase the Spanish GDP (gross domestic product) by between 1.5 and 2.5 percentage points per annum until 2025 and raise the productivity of SMEs by between 15% and 25%. 

More specifically, according to the data provided by Telefónica, companies that are already digitised have increased their productivity or sales by more than 10%. 

The 5G network is also expected to have 2,600 million global subscribers by the end of 2025, according to Digital Trends (2020), thus enhancing the digital transition of businesses and families. 

The European Commission has declared the 2030s to be the digital decade, the ideal time for companies to focus on the transformation of their business models. 

In the coming years we’re going to see one of the greatest challenges facing our society: the digital transformation of the business fabric. 

The challenge 

The digital transformation is a revolutionary process within the company, as it means major changes in cultural and organisational aspects with a view to modifying the organisation.

Going by the accelerated experience of the pandemic, it can be said that it goes beyond the technological field and enters the core of every company: its business model. 

This is the great challenge, as it necessarily involves re-thinking aspects that have been key and regarded as immovable and, therefore, very difficult to address if there is no appropriate culture of change. 

Necessary tools

Within this context we have to assess the impact of not only the mindset but also the tools that are available. As the MEP Pilar del Castillo stressed during the last debate organised by the EIF (European Internet Forum) and GSMA within the framework of the activities held at last Mobile World Congress in Barcelona, “connectivity has been the common thread that has sustained the digital technologies which, in turn, have enabled us to meet many of our needs during the worst part of the crisis. The pandemic has thus underlined the need to speed up our digitisation process”. 

Connectivity is a pre-requisite for industry to reinforce its capacity to innovate in manufacturing, transform the patterns of energy use and, in short, improve living conditions. 

Del Castillo concluded that: “with the implementation of 5G, we’re facing a qualitative leap that will benefit the entire ecosystem of digital technologies”.

5G connections, the great opportunity

Increased productivity, mobility and profitability. The application of 5G technology in companies is already having a positive impact. A situation that from now on can only improve thanks to the boost it offers to travel the path of digital transformation.

From the operator’s perspective, there isn’t a single sector that can’t benefit from the features of the state-of-the-art network, namely greater bandwidth, lower latency and higher speed. However, the industrial sector is the one that’s undergone the greatest and most profound transformation iThere is not a single sector that cannot benefit from the characteristics of the next-generation network: higher bandwidth, lower latency and higher speed. However, it is the industrial sector that has undergone the biggest and most profound transformation in recent years. 

What’s known as Industry 4.0 has greatly benefited from the irruption of Information and Communication Technology. Other sectors that have also been favoured include the car industry, which has introduced robotisation into its production.

Transport and logistics, which are now more efficient as a result of traffic analysis and fleet control. Healthcare, which reaches all patients thanks to telecare, including remote surgery and the use of health and hospital management tools. Public services, with the development of smart cities that use tools to manage public lighting, water and traffic, among many others that we could mention. 

More competitive companies

The transformation of companies requires a holistic approach in which digital technologies such as data analysis, security, the Internet of Things and open platforms play key roles. 

The fifth generation is the gateway to the use of innovations such as IoT, Big Data, cloud computing, Artificial Intelligence and virtual reality.

The digitisation of business environments can generate income by creating new opportunities and partnerships between organisations, optimising business processes through data analysis to support decision-making, controlling expenses, saving costs and helping companies to retain talent by means of teleworking and the option of offering their employees ongoing training plans.

These are benefits within the reach of all kinds of large, medium-sized and small companies in any productive sector.


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