Technology plays a key role in transforming our economy into an intelligent economy. Disruption truly is at the heart of our country’s growth story.
This thought leadership report discusses in detail about the role of digital technology in transforming our economy. This report also highlights the roles played by key players in the transformation of our economy, viz. consumers, businesses and the government.
Our everyday lives are increasingly becoming dependent on technology. With approx. 422 million internet users in India currently, businesses don’t really have a choice but to reinvent the way they interact with and deal with customers. There is a complete paradigm shift in the way businesses think and function these days as customers are becoming more and more tech-savvy. Not just businesses, even the government has realized the importance of technology for effective and efficient governance.
Business models are being disrupted time and again by either existing players or new entrants. Either way, ‘disruption’ is a term we have learned to live with. One of the most important drivers for any disruption happening today is technology. Technology has hence been one of the greatest levelers our industries have ever experienced. Start-ups, riding on the back of technology, are now overtly challenging established organisations in their own games. The competitor base has largely increased thanks to technology being able to solve most of the existing pain areas customers faced. Startups have become market leaders in spite of not owning any physical assets, unlike their major competitors. Such drastic changes in business models is only possible with the help of technology.
The ‘Digital India’ program by the government is significant push to citizen services are available to each and every citizen in the country. The government has realized that technology can truly bring about an inclusive economy without barriers now that smartphones and internet are increasingly becoming hygiene factors in every household. For instance, BHIM witnessed significant traction from consumers, as the total application downloads crossed 20 million, having registered 11.8 million transactions on its interface during first quarter of FY18.
This report also focuses on the latest concepts and developments in technology such as IOT, Robotic Processes Automation, Blockchain, Big data analytics, Artificial Intelligence, etc. It is interesting to see how each of these developments have had significant impact on almost all industries. Not just that, these technologies have proven that disruptions can happen at the blink of an eye and hence re-skilling is a continuous process. The two industries that are at the center of focus in this report are the healthcare and automotive industries. The report discusses on the disruptions like tele-consulting, wearables, 3D printing, etc. happening in the healthcare sector and connected vehicles, driverless cars, on-demand services, etc. happening in the automotive sector. Even though these sectors are progressing rapidly in terms of the rate of adoption of technology, there are numerous challenges for both these industries that have been discussed in this report.
KPMG in this report, recommends focus areas for businesses to initiate the digital transformation journey. These transformation journeys are not without complex challenges. Some of the most critical challenges for organisations have been highlighted in this report. If not handled appropriately, these challenges might result in not being able to sustain the momentum.
Finally, KPMG provides six key recommendations to the industry and the government to enhance and boost the digital economy. These recommendations deal with reskilling the workforce, bridging the digital divide, enhancing the regulatory frameworks, instilling an innovative and collaborative ecosystem and lastly, the need for strong security and privacy framework.
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