Industry 4.0 combines advanced production and operations techniques with smart technologies meant to integrate companies and people and making businesses more productive and profitable. This concept, known for a few years now and which became robust in 2020, is the present and future of companies.
Even with the benefits that it brings to societies through different productive branches, it is evident that as far a technology in Latin America is concerned there exist areas of opportunity for the priorities of the Region’s governments.
A study conducted by Cirion Technologies, a leading provider of digital infrastructure and technology for organizations in several segments and industries, reveals that investment in development in Latin American countries is significantly lower compared to other territories.
Mexico invests 0.5 percent of its GDP- this percentage is below worldwide average, positioned at 2.2 percent – only above Colombia and Chile, which invest less than 3 percent, while countries like Israel invest 4.5 percent.
According to this analysis based on data provided by the Organization for Economic Co-operation and Development (OECD), the benefits of Industry 4.0 would reflect a 3% additional growth by 2030 in the region’s countries, provided the existing digital gap was closed, therefore governments should invest an additional 60 percent of their applicable budgets.
Based on the expectations, closing this gap would mean the creation of approximately 700 billion dollars and around 400 thousand jobs a year, in the region.
IT infrastructure implementation, as well as digital transformation as a whole will enable business endurance, growth, and self-differentiation in the marketplace; increasing their international competitiveness and optimizing natural resources.
In the case of healthcare, telemedicine is the outcome of digital infrastructure, which provides a series of benefits for patients and healthcare professionals, such as lower barriers for healthcare access, and decreased costs.
Another economic sector that has bet in technology is agribusiness. Machine Learning, Artificial Intelligence, Video Analytics, Geolocalization, and Blockchain are some of the technological solutions that serve producers needs looking to optimize resources, increasing competitiveness, and reducing the negative impact of climate events. Using data from sensors, cameras, and drones, more accurate decisions can be made in a shorter period, since they are based on data and statistical analysis information.
Industry 4.0 has also knocked on the door of education. Higher education institutions implemented technologies to resume classes in person using solutions to help with crowd detection and job monitoring in the face of Covid-19.
The financial sector has invested in technology for years, aiming at quality service and customer protection. However, solutions evolved and today there are tools in place to guarantee ATM monitoring remote areas of the country.
Retail is another sector working in sync with technological solutions. Because of digital marketing we can tell customers’ preferences and what products they purchase. From e-commerce, online sale platforms and businesses can identify clear business models to increase sales.
All these contemporary trends will be developed more effectively thanks to 5G technology, which boosts speed to have 10X faster broadband connectivity for mobile phones and up to 40% faster for industrial applications. Additionally, these recent technologies came to tackle those challenges that we are facing as a society.
Such a revolution is likely to change the way things are done, though it could also affect how customers interact with them and the experiences they expect to have while interacting with companies. Beyond that, it could spark changes in the workforce, something that would call for new skills and new jobs.
Data Products Director
With over 25 years in the Telecommunications industry, Jaime Duran is Data Products Director of Global Sales for Cirion. He is in charge of managing and developing Mexico, Central America, and the Caribbean, leading a regional team to oversee customers and opportunities between Latin America and other worldwide regions. Jaime graduated as Electrical Engineer in Manhattan College, has a master’s in electrical engineering from the University of Notre Dame, and an MBA from the INALDE.