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In the pre-5G era, who have not adapted their services and operations to the digital environment yet is increasingly getting far from their target audience. After all, most of our present activities go through a smartphone. And, apparently, their use will only increase.

In the pre-5G era, who have not adapted their services and operations to the digital environment yet is increasingly getting far from their target audience. After all, most of our present activities go through a smartphone. And, apparently, their use will only increase.

Digital disruptiveness is transforming sectors that seemed impervious to change – from transportation to banks; from retail to industry; from logistics to communication. All of them were affected (and will be even more) by technology.

Your business certainly is feeling, in practice, the effects of this transition. The arrival of 5G mobile network, expected in Brazil by 2020, will greatly move the market, as a whole.

That is because with the new technology’s advent, we will have access to internet speeds of 1Gb/s, meaning that navigation will get at least 50 times faster than today, with 4G.

In short, do you know what this network advance has to do with your business? Everything, since it will transform the capacity of all companies, and with that, the way they communicate and operate.

By 2020, the planet will be even more connected. According to the American company Andreessen Horowitz, it is estimated that by the end of next year, we will have 50,1 billion active devices.

According to Pietro Delai, consulting and search manager at IDC Brasil, this is the right moment for corporations to take maximum advantage of the novelties and of everything that is soon to be.

“The key-word is speed. If you do not release your idea or digitize your work tomorrow, your competitor will, and that could take you out of the market. Entrepreneurs need to prepare for this new cycle and, mainly, have a structure to promote growth in the digital economy.

Mindset Change

Brazilian corporations’ mindset, according to him, was always one of the major setbacks for digitalization. “More than 60% of the technology budget is often used for legacy work. In other words, companies are spending more with the old than with the new”, he says.

At least, that is what was happening in the Brazilian companies. Seemingly, the entrepreneurs’ mindset is changing.

In the next 3 years, most companies are going to be dedicating their efforts to run against time. “Many did not have a broader view, and are still in the process of awareness so that they can develop their opportunities.”

This topic will be in focus of every company of the world this year, according to IDC. By the end of 2019, investments in digital transformation may hit US$ 1,7 trillion, a 42% raise compared to 2017.

“There are also companies that believe that digitalization is a big-institution-only project. But the truth is that all companies, independent of size, can benefit from it”, he guarantees.

Delai exemplifies this affirmation talking about a small architecture office in São Paulo. Before the construction even began, the client had already visualized the complete project.

Technology, in this case, comes in to reduce costs and to offer a groundbreaking experience. “With a QR Code and virtual reality glasses, someone can enter the project with a smartphone, make changes and have the exact idea of how their building will be”, he says.

According to him, actions like that boosts client satisfaction levels and brings more profitability to the company. “Brands have to develop their business thinking about these small digital apparatus”, he affirms, referring to smartphones.

And they really do, after all, Brazilians are great enthusiasts of these gadgets. In 2014, 104 smartphones were sold per minute. According to Fundação Getúlio Vargas (FGV), currently the country has more than one active mobile per citizen.

Keeping tabs on the greater digital dependency, the market, of course, has greatly sophisticated its products. The South-Korean Samsung presented their new creation, that promises to bring a challenge to their biggest competitor, the American Apple. It is called Galaxy Fold, their first foldable smartphone.

Samsung inova
Samsung innovated when it presented their new foldable smartphone.

The great insight of the gadget is that the 11,7 cm smartphone turns into a 18,5 cm tablet. In the international market the smart device will cost US$ 1,9 thousand. However, Brazilians will have to wait, since there is no release date for it in Brazil.

Chinese Huawei did not fall behind, and have also released a foldable phone of their own during Mobile World Congress, in Barcelona: the Mate X. The company has been calling it the “Quickest 5G phone in the world”.

If it is true or not, we cannot affirm, but the photo addicteds will certainly like the phone over a simple detail. Their lens are from the German brand Leica, one of the most prestigious brands in photography.

Price promises to be saltier than the charged by the competitor Samsung: about US$ 2,6 thousand. And in the same way, it does not have a release date in Brazil yet. Is it the beginning of a “fold war”? We can only wait.

Digital transactions in the rise

Technology has also moved the financial sector. According to Febraban’s Bank Technology in 2018 research, financial transactions via digital channels have jumped from 4,4 billions in 2016 to 5,3 billions in 2017.

It proves that consumers are preferring digital transactions over cash handling. About transaction volumes, the withdrawal in bank agencies and ATMs have dropped almost 40 billion in 2017. These numbers justify fintechs’ success and the proximity payment trend, with cards, smartphones and other devices.

And speaking of digital payments, we cannot let Asia aside. The Alipay service, from the Chinese powerhouse Alibaba, have changed the way chinese people buy and pay for their products (watch it here).

It is estimated that the payment app is used in 53% of all transactions – their competitor WeChat Pay, from the also Chinese Tencent, takes up 40% of the market.

In a way to attract chinese customers, the American pharmacy store chain Walgreens, that has over 10 thousand stores in the United States, is already taking those apps as payment method. In Brazil, we are seeing similar initiatives by restaurant and stores, that are being supported by banks and credit card companies.

According to Pietro Delai, actions that bring with them more convenience will have more and more success over here. “People want practicality, and because of that, all digital solutions that come to simplify our routine oftentimes have success”, he says. And we also have a great propeller for these initiatives: Brazilians themselves are great tech fans”, he concludes.

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The CWS News is composed of journalists and technology specialists. Here, studies, researches and articles about digital transformation are published constantly.