For their part, 77% of large companies have replaced at least one human-driven process with machines or technology, while only 46% of SMEs have done so.
A real overview of the incorporation of digital technologies in the companies of our country, as well as their progress, gaps and challenges, is what delivers the studyo “Digitalización de las Empresas en Chile” (in English “Digitalization of Companies in Chile”), conducted by Entel Digital in conjunction with various associations and guilds nationwide.
The study contains a sample of more than six hundred responses from owners, directors and managers of companies of all sizes and productive sectors in the country. 75% of the participants came from the SME segment.
The initiative was carried out in alliance with the Chilean Chamber of Construction, the Regional Institute of Business Administration IRADE Biobío, the National Chamber of Commerce, Services and Tourism of Chile, the Chamber of Commerce, Industry and Tourism of Puerto Montt, the Industrial Corporation for Regional Development CIDERE Coquimbo, and the platform of small and medium-sized suppliers for large mining companies in Antofagasta and Tarapacá, SAWU.
“The idea of doing this study is related to the transformative purpose that Entel has today as a company. Through technology we can positively impact society in a sustainable way, but for this we must first know the current state of digitization of companies in our country, in alliance with all the actors that make up the ecosystem", says Julian San Martin, vice president of Entel Digital.
Among its main conclusions, the survey shows that SMEs are more aware than large companies that digitalization can help them grow. The latter associate digitalization mostly to “Productivity” (78%) and “Making processes more efficient” (68%), i.e., they see digital solutions as a support for greater efficiency in existing business areas, and not in the creation of new models, products or businesses that boost their growth.
For their part, SMEs show a different approach: 46% associate digitalization with ‘Growth’, compared to 35% of large companies. Meanwhile, micro-enterprises lead this trend with 48%, a perception that shows the importance of incorporating digital solutions, mainly related to online sales channels and customer service. This phenomenon has increased during the last three years due to the pandemic and the lack of presence in commerce.
“I think one of the main findings of this study is that it shows that large companies are not seeing digitalization as a tool for growth, but rather to improve efficiency. Innovating and digitizing is crucial to generate new models, products or services that allow companies of all sizes to grow and thus boost the country and society as a whole”, says the vice president of Entel Digital.
Another of the conclusions of the study is that the larger the size of the company, the higher the degree of digitization and that SMEs still have a long way to go. Thus, 93% of large companies are progressing or at an advanced stage of digitization, compared to 63% of SMEs.
Lack of resources is the main limitation mentioned by both SMEs and large companies at the time of making the decision to digitize their organization (26%), while the lack of an adequate organizational culture to do so is mentioned by 18%. However, of the total number of companies that have not digitized or are in a nascent stage, 71% consider that they should start in the short term, i.e., there is a sense of urgency.
Digital talent
Another important finding of the study is related to the digital talent required by companies today. According to the results, there is a gap in terms of training plans for workers: only 31% of SMEs consider it; while 61% of large companies consider it.
Although both SMEs and large companies believe that their workers understand the importance of training (53%), regarding the adaptation of workers to the challenges of digitalization, the view of both small and large organizations is not optimistic. 40% believe that it is difficult to find people who can adapt to these new challenges and, even more complicated, to find workers with sufficient skills for digitized work environments (46%).
A gap is also revealed between large companies and SMEs regarding work automation. 77% of larger companies report that they have replaced some process carried out by people with machines or technology, a proportion that reaches 46% in SMEs.
Digitalization in the regions and productive sectors
Although all the productive sectors of the country consider digitalization as a key factor for their activity, construction, agriculture and transportation appear as the sectors that are lagging behind in incorporating new technologies to their processes.
In territorial terms, the Los Lagos Region is the one with the lowest continuous work of its companies in digitization (31%), arguing, in addition, in a higher proportion compared to other regions, that it is not a priority or strategic for the company and that they do not know how to do it. The Valparaíso Region, on the other hand, reports a greater effort in adopting technological processes (49%).
In the same line, regarding the existence of training plans for workers on digitization, only the Valparaíso Region reports the existence of more initiatives in this regard (37%), followed by Antofagasta (29%), Biobío (19%) and Los Lagos (16%).
Regarding the needs that regional companies believe they could cover thanks to a digitalization process, there is consensus that increasing productivity and efficiency is the main one. Followed in second place by “Increase sales”, in Antofagasta, and “Make better decisions through the use of data” in Valparaíso, Biobío and Los Lagos. This undoubtedly shows that having more and better technological solutions is in the vision of regional companies as a way to improve their processes, although the decisions to adopt technology have yet to materialize.
In summary, the survey gives a real picture of the state of digitization in Chilean companies and shows that organizations are carrying out this process at different rates, depending on their size and sector. Differences in perception, technological gaps and the need for training are relevant factors when analyzing the complexity of digitization among the different sizes of companies and economic sectors, but there is a strong perception (90%) that digitization is positive for the country’s economy.
In this sense, the expectations of Chilean companies regarding digitalization are totally positive: 94% consider that it will have favorable impacts on their work, on the productivity of workers (88%), on salaries (66%), and on job creation (62%).
About Entel Digital
The value proposition of Entel Digital is a portfolio of services that integrates the development of digital solutions and the best technologies and IT infrastructure to meet the challenges of digitization of organizations of all sizes and industries, driving business growth and efficiency in a sustainable way.
12 Sep, 2023
For their part, 77% of large companies have replaced at least one human-driven process with machines or technology, while only 46% of SMEs have done so.
A real overview of the incorporation of digital technologies in the companies of our country, as well as their progress, gaps and challenges, is what delivers the studyo “Digitalización de las Empresas en Chile” (in English “Digitalization of Companies in Chile”), conducted by Entel Digital in conjunction with various associations and guilds nationwide.
The study contains a sample of more than six hundred responses from owners, directors and managers of companies of all sizes and productive sectors in the country. 75% of the participants came from the SME segment.
The initiative was carried out in alliance with the Chilean Chamber of Construction, the Regional Institute of Business Administration IRADE Biobío, the National Chamber of Commerce, Services and Tourism of Chile, the Chamber of Commerce, Industry and Tourism of Puerto Montt, the Industrial Corporation for Regional Development CIDERE Coquimbo, and the platform of small and medium-sized suppliers for large mining companies in Antofagasta and Tarapacá, SAWU.
“The idea of doing this study is related to the transformative purpose that Entel has today as a company. Through technology we can positively impact society in a sustainable way, but for this we must first know the current state of digitization of companies in our country, in alliance with all the actors that make up the ecosystem", says Julian San Martin, vice president of Entel Digital.
Among its main conclusions, the survey shows that SMEs are more aware than large companies that digitalization can help them grow. The latter associate digitalization mostly to “Productivity” (78%) and “Making processes more efficient” (68%), i.e., they see digital solutions as a support for greater efficiency in existing business areas, and not in the creation of new models, products or businesses that boost their growth.
For their part, SMEs show a different approach: 46% associate digitalization with ‘Growth’, compared to 35% of large companies. Meanwhile, micro-enterprises lead this trend with 48%, a perception that shows the importance of incorporating digital solutions, mainly related to online sales channels and customer service. This phenomenon has increased during the last three years due to the pandemic and the lack of presence in commerce.
“I think one of the main findings of this study is that it shows that large companies are not seeing digitalization as a tool for growth, but rather to improve efficiency. Innovating and digitizing is crucial to generate new models, products or services that allow companies of all sizes to grow and thus boost the country and society as a whole”, says the vice president of Entel Digital.
Another of the conclusions of the study is that the larger the size of the company, the higher the degree of digitization and that SMEs still have a long way to go. Thus, 93% of large companies are progressing or at an advanced stage of digitization, compared to 63% of SMEs.
Lack of resources is the main limitation mentioned by both SMEs and large companies at the time of making the decision to digitize their organization (26%), while the lack of an adequate organizational culture to do so is mentioned by 18%. However, of the total number of companies that have not digitized or are in a nascent stage, 71% consider that they should start in the short term, i.e., there is a sense of urgency.
Digital talent
Another important finding of the study is related to the digital talent required by companies today. According to the results, there is a gap in terms of training plans for workers: only 31% of SMEs consider it; while 61% of large companies consider it.
Although both SMEs and large companies believe that their workers understand the importance of training (53%), regarding the adaptation of workers to the challenges of digitalization, the view of both small and large organizations is not optimistic. 40% believe that it is difficult to find people who can adapt to these new challenges and, even more complicated, to find workers with sufficient skills for digitized work environments (46%).
A gap is also revealed between large companies and SMEs regarding work automation. 77% of larger companies report that they have replaced some process carried out by people with machines or technology, a proportion that reaches 46% in SMEs.
Digitalization in the regions and productive sectors
Although all the productive sectors of the country consider digitalization as a key factor for their activity, construction, agriculture and transportation appear as the sectors that are lagging behind in incorporating new technologies to their processes.
In territorial terms, the Los Lagos Region is the one with the lowest continuous work of its companies in digitization (31%), arguing, in addition, in a higher proportion compared to other regions, that it is not a priority or strategic for the company and that they do not know how to do it. The Valparaíso Region, on the other hand, reports a greater effort in adopting technological processes (49%).
In the same line, regarding the existence of training plans for workers on digitization, only the Valparaíso Region reports the existence of more initiatives in this regard (37%), followed by Antofagasta (29%), Biobío (19%) and Los Lagos (16%).
Regarding the needs that regional companies believe they could cover thanks to a digitalization process, there is consensus that increasing productivity and efficiency is the main one. Followed in second place by “Increase sales”, in Antofagasta, and “Make better decisions through the use of data” in Valparaíso, Biobío and Los Lagos. This undoubtedly shows that having more and better technological solutions is in the vision of regional companies as a way to improve their processes, although the decisions to adopt technology have yet to materialize.
In summary, the survey gives a real picture of the state of digitization in Chilean companies and shows that organizations are carrying out this process at different rates, depending on their size and sector. Differences in perception, technological gaps and the need for training are relevant factors when analyzing the complexity of digitization among the different sizes of companies and economic sectors, but there is a strong perception (90%) that digitization is positive for the country’s economy.
In this sense, the expectations of Chilean companies regarding digitalization are totally positive: 94% consider that it will have favorable impacts on their work, on the productivity of workers (88%), on salaries (66%), and on job creation (62%).
About Entel Digital
The value proposition of Entel Digital is a portfolio of services that integrates the development of digital solutions and the best technologies and IT infrastructure to meet the challenges of digitization of organizations of all sizes and industries, driving business growth and efficiency in a sustainable way.
For their part, 77% of large companies have replaced at least one human-driven process with machines or technology, while only 46% of SMEs have done so.
A real overview of the incorporation of digital technologies in the companies of our country, as well as their progress, gaps and challenges, is what delivers the studyo “Digitalización de las Empresas en Chile” (in English “Digitalization of Companies in Chile”), conducted by Entel Digital in conjunction with various associations and guilds nationwide.
The study contains a sample of more than six hundred responses from owners, directors and managers of companies of all sizes and productive sectors in the country. 75% of the participants came from the SME segment.
The initiative was carried out in alliance with the Chilean Chamber of Construction, the Regional Institute of Business Administration IRADE Biobío, the National Chamber of Commerce, Services and Tourism of Chile, the Chamber of Commerce, Industry and Tourism of Puerto Montt, the Industrial Corporation for Regional Development CIDERE Coquimbo, and the platform of small and medium-sized suppliers for large mining companies in Antofagasta and Tarapacá, SAWU.
“The idea of doing this study is related to the transformative purpose that Entel has today as a company. Through technology we can positively impact society in a sustainable way, but for this we must first know the current state of digitization of companies in our country, in alliance with all the actors that make up the ecosystem", says Julian San Martin, vice president of Entel Digital.
Among its main conclusions, the survey shows that SMEs are more aware than large companies that digitalization can help them grow. The latter associate digitalization mostly to “Productivity” (78%) and “Making processes more efficient” (68%), i.e., they see digital solutions as a support for greater efficiency in existing business areas, and not in the creation of new models, products or businesses that boost their growth.
For their part, SMEs show a different approach: 46% associate digitalization with ‘Growth’, compared to 35% of large companies. Meanwhile, micro-enterprises lead this trend with 48%, a perception that shows the importance of incorporating digital solutions, mainly related to online sales channels and customer service. This phenomenon has increased during the last three years due to the pandemic and the lack of presence in commerce.
“I think one of the main findings of this study is that it shows that large companies are not seeing digitalization as a tool for growth, but rather to improve efficiency. Innovating and digitizing is crucial to generate new models, products or services that allow companies of all sizes to grow and thus boost the country and society as a whole”, says the vice president of Entel Digital.
Another of the conclusions of the study is that the larger the size of the company, the higher the degree of digitization and that SMEs still have a long way to go. Thus, 93% of large companies are progressing or at an advanced stage of digitization, compared to 63% of SMEs.
Lack of resources is the main limitation mentioned by both SMEs and large companies at the time of making the decision to digitize their organization (26%), while the lack of an adequate organizational culture to do so is mentioned by 18%. However, of the total number of companies that have not digitized or are in a nascent stage, 71% consider that they should start in the short term, i.e., there is a sense of urgency.
Digital talent
Another important finding of the study is related to the digital talent required by companies today. According to the results, there is a gap in terms of training plans for workers: only 31% of SMEs consider it; while 61% of large companies consider it.
Although both SMEs and large companies believe that their workers understand the importance of training (53%), regarding the adaptation of workers to the challenges of digitalization, the view of both small and large organizations is not optimistic. 40% believe that it is difficult to find people who can adapt to these new challenges and, even more complicated, to find workers with sufficient skills for digitized work environments (46%).
A gap is also revealed between large companies and SMEs regarding work automation. 77% of larger companies report that they have replaced some process carried out by people with machines or technology, a proportion that reaches 46% in SMEs.
Digitalization in the regions and productive sectors
Although all the productive sectors of the country consider digitalization as a key factor for their activity, construction, agriculture and transportation appear as the sectors that are lagging behind in incorporating new technologies to their processes.
In territorial terms, the Los Lagos Region is the one with the lowest continuous work of its companies in digitization (31%), arguing, in addition, in a higher proportion compared to other regions, that it is not a priority or strategic for the company and that they do not know how to do it. The Valparaíso Region, on the other hand, reports a greater effort in adopting technological processes (49%).
In the same line, regarding the existence of training plans for workers on digitization, only the Valparaíso Region reports the existence of more initiatives in this regard (37%), followed by Antofagasta (29%), Biobío (19%) and Los Lagos (16%).
Regarding the needs that regional companies believe they could cover thanks to a digitalization process, there is consensus that increasing productivity and efficiency is the main one. Followed in second place by “Increase sales”, in Antofagasta, and “Make better decisions through the use of data” in Valparaíso, Biobío and Los Lagos. This undoubtedly shows that having more and better technological solutions is in the vision of regional companies as a way to improve their processes, although the decisions to adopt technology have yet to materialize.
In summary, the survey gives a real picture of the state of digitization in Chilean companies and shows that organizations are carrying out this process at different rates, depending on their size and sector. Differences in perception, technological gaps and the need for training are relevant factors when analyzing the complexity of digitization among the different sizes of companies and economic sectors, but there is a strong perception (90%) that digitization is positive for the country’s economy.
In this sense, the expectations of Chilean companies regarding digitalization are totally positive: 94% consider that it will have favorable impacts on their work, on the productivity of workers (88%), on salaries (66%), and on job creation (62%).
About Entel Digital
The value proposition of Entel Digital is a portfolio of services that integrates the development of digital solutions and the best technologies and IT infrastructure to meet the challenges of digitization of organizations of all sizes and industries, driving business growth and efficiency in a sustainable way.