Authored by Mukund Seetharaman, Vice President and Regional Director, Latin America, Wipro Limited.

According to IDC consulting projections, investments in technology and innovation will account for more than 50% of Latin America's GDP over the next three years. According to the consultancy, companies in the region, led by Brazil and Mexico, will invest around $380 billion by 2022 to establish themselves in the digital economy.

These numbers show us that digital transformation projects and initiatives are set to accelerate in the coming years. Companies in Brazil, Mexico and Latin America are shifting their focus to enhance the experience for customers who are more connected, have greater demands, and seek comfort and ease through technology. To keep up with new customer expectations, companies will have to invest in technologies and assets that will boost their sales processes, product design, supply chain and human-resources management, among other key functions.

Cloud, big data, artificial intelligence, internet of things, automation, design thinking ... these are just some of the many solutions available to companies in a world where transformations are constant. Yet, there are unsuccessful cases of digital transformation, and complaints that investments have not brought the expected return.

Where are companies going after all? - If new technologies continue to be incorporated into the market, why do so many digital transformation projects fail or fall short? According to a recent survey conducted by Wipro Digital with more than 1400 C-Levels, the answer is simple: digital transformation is not just about technology acquisition. Many companies have put too much emphasis on deploying technology without considering the impact of those deployments on employees at various levels. Technology cannot exist on its own. It requires skilled teams to design, implement and manage it. Without the right people in place, and without a corporate culture ready to embrace these new technologies, digital transformation projects will struggle to succeed.

Human-centric design is key to success - Digital transformation projects that put people at the center of decisions are more likely to succeed than those looking at technology adoption alone. If employees seem poorly adapted or unfamiliar with the demands of digital transformation, some companies may seek new talent rather than investing in education, training and capacity building. This can result in high employee turnover at various executive and management levels, harming the company over a period. Any transformation process, however automated, always involves people. Therefore, people must be considered a fundamental pillar of digital transformation, not just replaced, to better position the company for success over time.

Cultural Transformation is Part of Digital -, Executives must do their bits to raise awareness about the unique needs of digital transformation and foster a culture that will help the organization embrace and enable this innovation, be more agile and dynamic.   There is no magic formula. The solution must be built continuously, and this cultural transformation must be sponsored by leaders within the corporation. Only with the efforts and engagement of leaders can this new culture can be seeded throughout the company and naturally incorporated. “Do digital” is different from “Be digital”. To be digital, businesses will have to go beyond simply adopting new technologies. The path is laborious, but it will surely benefit the organizations tremendously.

In short, the phenomenon of digital transformation is irreversible in the new economy. Companies should review their past initiatives, learn from mistakes and successes, and plan this new wave with solidity and focus on business needs.

Cultural Transformation is Part of Digital -, Executives must do their bits to raise awareness about the unique needs of digital transformation and foster a culture that will help the organization embrace and enable this innovation, be more agile and dynamic.   There is no magic formula. The solution must be built continuously, and this cultural transformation must be sponsored by leaders within the corporation. Only with the efforts and engagement of leaders can this new culture can be seeded throughout the company and naturally incorporated. “Do digital” is different from “Be digital”. To be digital, businesses will have to go beyond simply adopting new technologies. The path is laborious, but it will surely benefit the organizations tremendously.

In short, the phenomenon of digital transformation is irreversible in the new economy. Companies should review their past initiatives, learn from mistakes and successes, and plan this new wave with solidity and focus on business needs.