Why the Digital Transformation is the Future

As far as economic drivers go, digitalisation takes the lead. It matters, that’s why countries and companies are investing heavily in the digital world. Public and private administrations are taking notice and doubling down on efforts that they believe will be major investments toward the ease of commerce, flow of goods and services, and greater opportunities for governments, industries and consumers. 

“It will create new jobs, improve productivity and boost growth. But it also brings challenges: digital skills shortages, data protection issues, cybersecurity risks, and the need to ensure that public services are accessible and affordable,” according to Digital Adoption. 

Walking the walk 

The European Commission launched the Digital Single Market Strategy (DSMS) with an investment of “€1 trillion between now and 2023 to build a digitalized society,” per Digital Adoption. 

The premise? That digital technologies are transforming the way business is conducted around the world and in the European Union. The goal is to create a single market for the digital age, transforming the over two dozen national digital markets of countries participating in the EU into one all-encompassing market. 

Challenges to EU citizens and businesses have been many when harnessing online services and tools. 

“These barriers mean that consumers have restricted access to some goods and services, businesses cannot reap all benefits from digitisation, and governments and citizens cannot fully benefit from this digital transformation,” according to the EU. 

A Digital Single Market opens up opportunities while also removing notable differences between online and offline worlds, thus removing barriers to cross-border online activity. 

What all of this means is that, if the project is successful, consumers can work, shop, study and live anywhere in the EU. 

According to the EU, the DSMS is based on three pillars:

1. A digital infrastructure that enables people and organizations to access information and communicate freely.

2. An open regulatory environment that allows firms to compete globally while protecting citizens from unfair practices.

3. A modern industrial base that creates high-quality jobs and promotes innovation.

These pillars and investments include research and development, networks and infrastructures, education and training and support for subject matter experts.

What about Canada? 

In Canada, economic performance has had a direct correlation with digitisation, according to recent Statistics Canada findings. 

While Canada was already behind the adoption of digital technologies, the pandemic accelerated efforts, partly due to necessity. 

An immense number of people quickly transitioned to remote work while consumers had to begin making the bulk of their purchases online. This led to businesses having to ramp up e-commerce efforts and create better platforms in which to sell their services and products. 

“Wide digital adoption has leaped forward several years in a matter of weeks during the COVID-19 crisis), and these changes are likely here to stay even after the pandemic,” according to the study. 

Data shows that from 2002 to 2019, labour productivity grew 22.1% cumulatively in the digitally intensive sector, while the non-digitally intensive sector came in with 6.3%. 

Canadian digitisation efforts of the last 20 years seem to have benefitted Canadian industries. 

“While the evidence may not suggest a causal relationship, it does suggest digitalization is associated with a higher labour productivity growth,” according to the study. Further testament to the benefits of digitisation is that the pandemic had a significantly smaller impact on industries that have adopted more digitalisation. The Statistics Canada findings note this benefit “likely is a result of the flexibility and adaptability brought by digitalization.”

The pandemic prompted worldwide change in an instant, and humanity largely met the necessary push toward greater innovation and digitisation. While many aspects of the world seemed to slow down, commutes went by the wayside, and people became alienated for safety reasons, an entire network of experts were hard at work, helping the online world meet the immediate surge of demands. The continued push for greater digitisation will help governments, industries and people face the intricacies of tomorrow.