By Valentina Carvajal Caballero
On August 1st, a key corporate event was organized by the Association for the Progress of Management (APD) in partnership with Clan Nativus. APD, a renowned organization dedicated to promoting management excellence, joined forces with Clan Nativus, a collaborative platform that empowers businesses with digital tools and solutions for successful digital transformation. This event, held in Bogotá, Colombia, brought together leading experts and executives from Colombia and Latin America to discuss the transformative impact of digital technologies.
Key topics on the agenda included the metaverse, augmented reality, cybersecurity, NFCs, blockchain, human talent development, artificial intelligence in finance, business productivity, and automatization. Renowned speakers and senior managers from prominent companies and multinationals shared their insights and experiences, shedding light on the opportunities and challenges presented by digital transformation.
At the heart of the discussions was a recurring theme: the profound impact of digital transformation on human talent. While technology offers immense potential for growth and innovation, it also presents significant challenges that must be addressed to ensure a just and equitable future for all.
The Technological Divide: A Growing Conflict
Digital transformation promises improvements in efficiency, innovation, and competitiveness. However, it has also created a significant divide between companies that can quickly adapt and those that lag behind. This phenomenon not only affects market competitiveness but also directly impacts human talent development. Large, well-funded companies have the ability to invest in advanced technologies such as artificial intelligence, blockchain, and augmented reality. These investments not only transform their operations but also allow them to attract and retain top talent. Employees in these companies have access to continuous learning tools, enabling them to stay updated and competitive in an ever-evolving job market.
This disparity is particularly evident in the region’s SMEs, which often lack the resources to invest in advanced digital tools and infrastructure.This creates an imbalance in job opportunities and talent development. For example, during the forum, a prominent Colombian SME owner shared his experience of struggling to compete with larger rivals due to limited access to digital marketing tools. While his business had a strong product, he was unable to reach a wider audience and increase sales without investing in online advertising and e-commerce platforms.
The Skills Gap: A Barrier to Progress
The rapid pace of technological change has created a skills gap in Latin America. A study by the World Economic Forum found that 54% of Latin American workers will need to acquire new skills or upgrade their existing ones by 2025 (WEF, 2020). This skills gap is particularly pronounced in rural areas and among marginalized populations, where access to education and training is limited.
One of the most memorable moments of the forum was a panel discussion featuring TOTTO -Colombian brand known for its high-quality backpacks, bags, and accessories, popular across Latin America and beyond- the panelist shared its experience of adapting to the changing job market and the challenges they faced in acquiring new skills. Many expressed concerns about job security and the fear of being left behind in the digital age.
Cultural and Political Implications
The cultural impact of digital transformation in Latin America extends beyond the workplace. As companies evolve, so too must the skills and cultural competencies of the workforce. However, the uneven adoption of digital technologies is causing a cultural rift. Traditional industries, which form a significant part of the Latin American economy, are struggling to keep pace with the rapid changes, leading to a cultural resistance to digitalization.
Moreover, the political landscape in Latin America plays a crucial role in shaping the digital transformation agenda. Governments in the region are increasingly recognizing the need to invest in digital infrastructure and education to prepare their populations for the future of work. However, political instability and varying levels of commitment across countries have resulted in inconsistent progress. In some cases, digital transformation initiatives are being used as political tools, leading to short-term gains rather than long-term development.
For example, countries like Brazil and Mexico have made significant strides in promoting digital literacy and supporting SMEs in their digitalization efforts. However, in countries with less political stability, such as Venezuela, the lack of coherent digital policies has further marginalized large segments of the population, exacerbating social inequalities and limiting the potential for economic growth.
The Impact on Employment and Wages
While automation and artificial intelligence can lead to job losses in certain sectors, they can also create new opportunities in others. However, the distribution of these opportunities is uneven. A study by the International Labour Organization (ILO) found that the digital economy has created 12 million jobs in Latin America and the Caribbean since 2010, but many of these jobs require high-level skills that are not widely available (ILO, 2022).
During the forum, a representative from a leading tech company named Baker Tilly, discussed the company’s efforts to create new jobs in data analytics, artificial intelligence, and cybersecurity. While the company was committed to providing training and development opportunities for its employees, the representative also highlighted the need for governments and educational institutions to invest in workforce development programs to ensure that workers have the skills needed to fill these new roles.
Potential Solutions: Towards Inclusive and Secure Digital Transformation
During the forum, several solutions were proposed to address the emerging conflicts of digital transformation. One of the main recommendations was the creation of technological inclusion policies that promote equitable access to digital tools. This could include government subsidies or support programs to help SMEs access the same technologies as large corporations.
Additionally, the need to develop continuous learning programs accessible to all employees was emphasized. Companies must take responsibility for offering digital skills training, whether through online courses, workshops, or professional retraining programs. This will not only improve employees’ competitiveness but also contribute to the long-term success of businesses.
Regarding cybersecurity, strengthening regulatory frameworks and companies’ internal policies to protect both business and employee information was recommended. Creating secure digital environments is essential to ensuring that digital transformation does not become an unnecessary threat.
Digital transformation presents both opportunities and challenges for human talent in Latin America. By addressing the skills gap, promoting digital inclusion, and investing in education and training, governments and businesses can help ensure that the region’s workforce is well-equipped to thrive in the digital age. As the forum concluded, it was clear that the future of work in Latin America depends on a collaborative effort to harness the power of technology while mitigating its risks.
About the author:
Valentina Carvajal Caballero is a communication and digital media student at La Universidad de Los Andes. As an Information Officer at IFIMES, she applies her expertise in research and digital transformation to advance the organization’s goals.
Founder of Clan Nativus Phydigital Agendas, Valentina combines her entrepreneurial drive with a deep understanding of Latin American digital landscapes to promote positive change through technology.
Bibliography:
- World Economic Forum (WEF). (2020). The Future of Jobs Report 2020. World Economic Forum. https://www.weforum.org/publications/the-future-of-jobs-report-2020/
- International Labour Organization (ILO). (2022). World Employment Report 2022: The Future of Work. International Labour Organization. https://www.ilo.org/research-and-publications/flagship-and-major-reports/world-employment-and-social-outlook/world-employment-and-social-outlook-trends-2022
- Inter-American Development Bank (IDB). (2023). Digital Transformation in Latin America and the Caribbean: Challenges and Opportunities. Inter-American Development Bank. https://flagships.iadb.org/en/MicroReport/digitalizing-public-services-opportunities-for-latin-america-and-the-caribbean
Resources on Digital Divide and Inequality in Latin America
- World Bank. (2021). Digital Development: Bridging the Digital Divide in Latin America and the Caribbean. World Bank. https://blogs.worldbank.org/en/latinamerica/poor-digital-access-holding-latin-america-and-caribbean-back-heres-how-change-it
- United Nations Economic Commission for Latin America and the Caribbean (ECLAC). (2020). The Digital Divide in Latin America and the Caribbean: Challenges and Opportunities. ECLAC. https://www.cepal.org/en
Resources on Cybersecurity and Digital Risks
- Latin American Cybersecurity Outlook 2023. (2023). [invalid URL removed]
- International Telecommunication Union (ITU). (2022). Global Cybersecurity Index 2022. ITU. https://www.itu.int/pub/D-STR-GCI.01
