Level 3 Communications

Emilio Madero

Digital Disruption and the Future of XaaS

The rapid rise in disruptive digital technology is driving global business towards a digital tipping point; pushing companies to move towards a digital convergence of their business models, products and value chains. The adoption of new digital technologies and business models brings disruption to a company’s value propositions and business operations, and can affect the company’s entire ecosystem.

Whether they’re digitizing their existing processes or looking to completely change the way they do business, companies that fail to adopt new technological trends risk being displaced in the market. What are the new business models driving this change in the industry? How should we be thinking differently? And how do we execute against that vision?

study by the gA Center for Digital Business Transformation in Latin America (CdBT), shows that although Latin American businesses have been integrating digital technologies, adoption has not yielded the anticipated regional productivity gains across industries. It’s worth noting that while adoption of digital technology across industries is high, with an average adoption index of 79.18 out of 100, assimilation at the business process level is low.

Why the disconnect? Let’s face it, digital business is a path not all of today’s companies are prepared to take. The gA study suggests that simply integrating a few technologies is not enough; technology adoption must be combined with process retooling, organizational restructuring and human resource training. Critical to the success of implementing this holistic approach is gaining leadership commitment. Leaders need to identify which technologies will drive rapid transformation, and which providers can best support and augment internal resources.

One technology enabling digital transformation in the Latin America region is cloud services. According to IDC, 66 percent of Latin American organizations are using or planning to implement some form of cloud service.

As the profile of cloud services grows, so does XaaS (Everything as a Service). XaaS refers to services accessed on-demand over the internet via the cloud. XaaS benefits include greater agility, new magnitudes of productivity, improved scalability, reduced response time and new advantages in IT services. The XaaS concept is one of the “hot” topics and services companies in Latin America should look into if they have not already done so, but successful implementation requires expert guidance, training and partnerships.

These trends in Latin America will be further discussed during Level 3 Latam Technology and Business Forums. To learn more, go to www.forolevel3.com.

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With more than 20 years’ experience in the area of products and services marketing, Emilion is currently Marketing and Communications Vice President for Level 3 in Latin America. To chill out, he loves to run and be with his wife and four kids.