The Digital Transformation Dilemma

What is the digital transformation dilemma? It is where countries try to remain competitive by investing in the newest technology while making a concerted effort to focus on domestic development to give their citizens access to basic technology.

While the future belongs to everyone, it is clear that few countries will shape and lead it - and there are a lot in the running. In short, countries must be forward facing and on the cutting edge of innovation and technology to remain a prominent player in the global economy and not fall behind.  In addition, in order to increase their domestic economy, they must remain competitive, produce global products, and focus on international market expansion.

However, these same countries often have difficulties in providing steady internet access to large sections of their population. This is evident in the United States where the new $1 trillion dollar infrastructure law includes $65 billion (USD) for the expansion of broadband access to improve internet services to rural areas and lower income families in order to help close the digital divide. The problem in the United States and many countries became impossible to ignore after the recent global pandemic where it was glaringly obvious that many communities have been left behind in terms of access to technology.

How can a country focus on winning the space race, dominating research and innovation, navigating digital currency, and conquering the metaverse - all while many of their citizens cannot even access the internet? How can a country remain competitive by investing in the newest technology to attract and maintain domestic and international investment when they have a large workforce with low technical skills? This is the digital transformation dilemma that most countries face.

However, the two areas are not mutually exclusive. In fact, this delicate balance is necessary in today’s economy. The key question is how should a country set its priorities and focus its resources? Can it adequately balance propelling the country forward technologically and pursing innovation to remain competitive while ensuring that its citizens do not fall behind and can thrive in the future.

Beyond technology, there is an issue of greater importance facing many countries with the expanding wealth gap and disappearance of the middle class. Without a thriving and technologically savvy workforce, it is hard to stay competitive. Also, with the rise of automation and artificial intelligence, jobs will only get more complex and local populations will need greater technology access and training in order to meet future job demands and have more opportunities for gainful employment.

As the digital transformation dilemma is a complex issue, it is nearly impossible to provide easy solutions because every country has finite resources and other important competing priorities. However, the importance of its consideration cannot be overstated as countries continue to face an increasingly competitive future

Published by Victoria Nwasike