Digital Economy in Latin America: Advantages and Disadvantages

Latam is in an era of digitalization, this revolution has come to change the way in which many companies operate, generating an exponential growth making them get better and better results. Below, we will discuss what the digital economy is about, some examples and what advantages it can bring to your company.
Reasons for the growth of the digital economy in Latam:
To begin with, the digital economy refers to the processes of production, marketing and any commercial activity that takes place in the virtual format. It is the economic activity that arises from millions of online connections that occur between companies and people through different devices and with a variety of data.
As time goes by, the digital economy is taking shape and doing away with the beliefs of how a company should be structured, what interaction they should have and above all, how to reach their consumers to offer their products or services.

Examples of digital economy
Since the arrival of digitalization, companies have increasingly sought to stand out from the competition, successfully reaching their customers. Let’s see some examples of digital economy being applied.
1- Digital banking: Merging the internet with traditional banking, we get a fast service at our fingertips, a whole physical banking office on a mobile device.
2- E-commerce: Through the internet, it encompasses the entire process of buying and selling your product or service, allows personalized messages that tend to be better perceived by customers and therefore generate better results.
3- Digital platforms: It refers to the commercial establishment, but on the Internet. It translates to the website where the execution of tasks that you seek to offer for your business occurs.

What are the advantages and disadvantages of this modality?

Before implementing it in your business, it is important to know both sides of the coin, the positive and the negative, the advantages and disadvantages.

Increased security in transactions

The fear that exists in people when entering their data on the web is a fact that cannot be denied, the risk of losing money is undeniable, so security should always be the priority in the technologies you decide to use.

This can be a disadvantage, but at the same time it is a challenge, gaining the trust of your clientele takes time and work. Fraud is present in the digital world despite the fact that security systems are constantly being improved.

Adaptation to new technologies

Technology is your greatest ally, it enables the use of less time in the buying process, which is a positive aspect. If it is not used optimally, it can result in losses and dissatisfied customers.

Minimize costs

It is of vital importance to make your product or service known in as many of the media where your clientele is, therefore, the greater amount of money that can be saved adds to the development of a marketing campaign, by avoiding costs such as posters or printing of flyers, and in some cases renting of premises.

Data analysis and efficient decision making

Digital tools today facilitate decisions in a business thanks to the accurate reports that they provide, allowing you to know which process should be optimized or which of them is working to enhance it. In short, they allow you to make good decisions, therefore, provide a higher quality service.

Collecting data for the business

The shopping experience is pleasant when there are good navigation results. If the user, with the information received, is convinced to buy your product or service, it is because your business is doing things right, you have a strategy that works.

In short, we can say that the digital economy is nothing more than an excellent business strategy that facilitates the realization of business processes using technology. At Pulse, we are experts in providing the boost your business needs if you are looking to position yourself in the Latin American market. How can we help you? Contact us.

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