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Digitalization: key to implementing an inclusive and sustainable economic model in Latin America

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Latin American manufacturing has been hit hard by the COVID-19 pandemic in 2020, with significant decreases in industrial production, intra-regional trade and exports compounding existing barriers to growth. However, accelerated digitalization prompted by the crisis offers an opportunity for transformation, closer intra-regional cooperation and trade integration, according to a webinar panel of experts convened by the Global Manufacturing and Industrialisation Summit (GMIS) Digital Series on “Latin America and the Caribbean: Manufacturing and Economic Growth in the post-Covid-19 Era”.

Silvia Hooker Ortega, Manager of International Affairs at the National Society of Industries in Peru, observed that enterprises in several Latin American countries had re-shored capital, worsening regional trade and production, with a fall of 22 per cent in exports expected regionally. “This challenge consists of rethinking previous models of development and moving towards more sectoral models, where we can invest in capacity-building and research in order to generate regional value chains that allow us to grow in the region, generate decent employment and ensure that a crisis such as the current one does not affect us so drastically in the development of our countries,” observed Hooker Ortega.

Clemente Ruiz Durán, National Researcher of the National Council of Science and Technology (CONACYT) and professor at the National Autonomous University of Mexico, noted that digitalization had allowed the region´s economy to continue functioning. He stated that public investment in digitalization would enable sustainable energy, mobility, communication and transport systems. Ruiz Durán also urged pairing initiatives between micro, small and medium enterprises (MSMEs) and large firms for integration in regional value chains, and training programmes. “I propose to turn our eyes towards Latin America instead of the rest of the world,” he said. “I believe that this is a great opportunity and if we do it well, it can be the beginning of a redefinition of industrial development in Latin America,” concluded Ruiz Durán.

Tomás Karagozian, President, UIA Joven/Unión Industrial Argentina, stressed the importance of a regionalized economy, advocating for increased dialogue and consensus in order to “overcome recurring crises that we go through every four to five years.” Karagozian noted that, while digitalization had accelerated during the pandemic, and the region is poised to benefit from productivity increases, Latin America continues to face issues of management and leadership, and value chain integration. “I believe that we must all work on digitalization and (…) towards stronger and more consolidated productive matrices at local level with a great regional connection, and with global participation in terms of information exchange, digitalization and sharing of experiences,” urged Karagozian.

Concluding the discussion, Diego Masera, Chief of the Regional Coordination Division for Latin America and the Caribbean at the United Nations Industrial Development Organization (UNIDO), said the crisis as an opportunity to move towards sustainability, social equity and the achievement of the Sustainable Development Goals. “Indeed, this crisis provides an opportunity to change our approach to the development of manufacturing in the region. In this regard, we must focus our energies on supporting more inclusive, sustainable and people-centred development,” he urged.

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Does Buying a Chinese Smartphone Pose a Privacy Risk?

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Chinese smartphones have garnered a pretty bad privacy reputation in the last few years, which stems from several issues, such as lack of consumers’ trust and the fact that global political events have not really been in China’s favor. Somewhere around the mid-2010s though, China’s global image changed a lot for the better, especially with their appearance in the smartphone industry and when it comes to advances in 4G and 5G technology.

The smartphone industry is one of the fastest growing sectors in the global technology industry. Particularly in the last decade, which gave us the smartphone revolution, global device sales have skyrocketed from just 100 million in 2007, to over 1.5 billion today. Smartphones are also the most popular way through which people access the internet, which makes this sector critical for tech companies.

14 years ago now, we experienced the launch of the first Apple iPhone in 2007, which would undoubtedly mark the beginning of a new Information Age. As the years went by, we have seen big players such as Samsung entering the market, as well as most recently Chinese companies like Huawei and Xiaomi eating up global market share with their very affordable smartphones. It isn’t just Huawei and Xiaomi, though, let’s not forget Oppo and Vivo too, who have held small but stable market share, even gaining popularity in the United States.

Apple never really took off in China like it did in the rest of the world, as the nation favoured national production and local brand loyalty, but Apple has always been in demand there. Outside of China though, Apple had absolutely dominated the smartphone market for a long time with the entire world anxiously awaiting their next press conference, and what their new iPhone would be like. The market dominance then switched hands between Apple and Samsung for a few years, with Samsung being dominant most of the time.

Now, however, the global smartphone market has changed. With so much competition on the horizon (Samsung, Xiaomi, Huawei), as well as Apple charging very lofty prices for their latest offerings (and having lost some of their charm along the way with radical design changes), Chinese players have adapted and grasped a firm hold on the market for the foreseeable future. Offering familiar minimalist design approaches that Apple is known for, as well as having totally revamped their marketing, Chinese smartphone brands are now a true contender to the established giants. Ultimately, the most important target market for Chinese smartphones is the US and EU markets.

There is a big problem there though, it looks like there are serious privacy issues that plague Chinese smartphones and their reputation. Let’s look into this below.

What Is The Problem With Chinese Smartphone Brands?

With news of Huawei being banned (Xiaomi is also blacklisted) from Western countries, their reputation is not in a good place. Today, there are many Chinese smartphone brands available, with Huawei and Xiaomi being the most recognizable internationally -the ones that have sold the most outside of China. Some of the other ‘budget’ brands are Honor and Realme, for example, which may not be known to most people. There are many more Chinese smartphone brands, but way too many to list.

With so much political tension between the US and China, what does this mean if you are planning to buy/already own a Chinese smartphone? Unfortunately, it is a fact that Chinese smartphones have experienced many privacy and security related issues with their devices, which fall into the categories;

  • Pre-installed spyware
  • Malware vulnerabilities
  • Data theft
  • Hardware ‘Backdoors
  • Weak encryption

Beyond pre-installed malicious software in Chinese smartphones, there are additional risks from installing very popular Chinese-made social media apps, such as;

  • TikTok
  • WeChat

Takeaways For Your General Smartphone Security

Having covered why there is so much negative buzz around Chinese smartphones and their privacy risks, let’s remember that a lot of it comes from the political tension between China and the US. There have been countless allegations of spying, hacking and data risks. Beyond this, there is a more important fact for the regular user. It is that Chinese phones are Android-based, which has a much larger user base and is as such more susceptible to attacks.

Let’s emphasize one thing; yes, that doesn’t mean that these devices are safe, but what is safe nowadays? Should this deter you, a regular citizen, from buying a Chinese smartphone? It is difficult to say what is considered ‘safe’ nowadays, and depends a lot on who you are and whether your data is so sensitive that governments will try to access your phone (for most people, this is not an issue).

However, for the privacy conscious individuals out there, there are some things you must implement for your safety and peace of mind, no matter what kind of device you use, or which country it comes from;

  • Always use a trustworthy Virtual Private Network, or VPN
  • Consider that iOS may be safer than Android overall
  • Make sure that you have a strong password on your phone
  • Ensure that you have multi-factor authentication at every juncture
  • Do not share sensitive information online if possible
  • Always keep your smartphone software up-to-date
  • Never download unverified software, or access third-party app stores

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Earth Observation Data Could Represent A Billion-Dollar Opportunity For Africa

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Earth observation [EO] data provides a billion-dollar opportunity for economies on the African continent, one that could create jobs and build new resilience after COVID-19.

The newly released report Unlocking the Potential of Earth Observation to address Africa’s critical challenges lays out the multiple economic benefits from EO data. The report was written in collaboration with Digital Earth Africa, an initiative that is a world first in providing freely accessible data that maps the entire African continent.

This report marks the first known time the potential impact of EO for Africa has been quantified. According to estimates, EO could be worth up to $2 billion a year thanks to:

1. A strengthened EO industry. Improved use of EO data could lead to an extra $500 million in yearly EO sales along with new job opportunities and increased fiscal revenues.

2. Boosted agricultural productivity. Better data could potentially be worth an extra $900 million a year, thanks to water savings and productivity gains for farmers, not to mention reduced pesticide usage.

3. Better regulation of gold mining activity. Data allows countries to crack down on illegal mining, providing a potential savings of at least $900 million from reduced environmental damage and fiscal evasion.

The report shows the opportunity available in EO data to strengthen economies and reach sustainability goals. EO data can help governments make more informed decisions regarding water, agriculture, food security and urbanization. Advancing new collaborations between public and private efforts can incentivize data sharing to develop EO industries on the continent even further.

Dr Adam Lewis, Managing Director of the Digital Earth Program welcomes the findings of the report as the first of its kind to quantify the potential benefits of the program. “Through collaboration with key partners both within Africa and across the globe, we have made significant progress in turning this potential into a reality. Over the last 12 months the program has met a number of milestones in improving access to data and services within Africa. Working with Amazon Web Services as well as international space agencies and the private sector, we have been able to provide access to locally stored analysis-ready satellite data within Africa.” Adam said.

“We are proud to support Digital Earth Africa’s efforts to make Earth observation data more easily accessible to African nations,” said Ana Pinheiro Privette, Lead for Amazon Sustainability Data Initiative. “Through the Amazon Sustainability Data Initiative, Amazon is making available petabytes of Earth observation data, which provide valuable insights for communities to manage climate impacts including increased floods and droughts.”

Valuing the impact of EO is an emerging practice globally, with recent reports covering the Asia Pacific, Australia, the European Union and the UK, but this is the first such report for Africa. The report was developed following examination of the readiness of African countries to effectively and efficiently grow their geospatial capabilities, integrated with study of the potential economic benefit of EO data adoption on specific sustainable development focus areas.

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Data-Driven Operations Are Key to Future of Manufacturing

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In the near future, manufacturing companies will collaborate in hyperconnected value networks in which data-and-analytics applications drive productivity, new customer experiences and societal and environmental impact. A new white paper, Data Excellence: Transforming Manufacturing and Supply Systems, released today presents the challenges for manufacturers and provides the steps to overcome them.

According to the report, nearly three-quarters of 1,300 surveyed manufacturing executives consider advanced analytics to be critical for success and more important today than three years ago. However, only a few companies capture the full value that data and analytics can unlock to address manufacturers’ most pressing challenges. Less than 20% of surveyed participants prioritize advanced analytics to promote either short-term cost reductions or longer-term structural cost improvements. Only 39% have managed to scale data-driven use cases beyond the production process of a single product and thus achieve a clearly positive business case.

Surveyed manufacturers cited various challenges that impeded their efforts to further scale and implement data-and-analytics solutions within their plants and across networks:

  • They struggle to prioritize the right value-adding use cases from a broad range of applications
  • They have not put in place technological enablers, such as data security or advanced algorithms
  • They lack critical organizational enablers, such as skills and capabilities and effective internal governance

This study by the World Economic Forum, in collaboration with the Boston Consulting Group (BCG), features insights from a unique community of 40+ manufacturing organizations and leading academics and public sector representatives, identifying six priorities to capture value from data and analytics in manufacturing:

  • Define a data-to-value strategy and roadmap
  • Incentivize internal and external ecosystem partners
  • Build capabilities to capture and use data
  • Implement an open platform to unlock data silos
  • Enable connectivity for low-latency, high-bandwidth data flows
  • Ensure data security and privacy

“These findings will help accelerate our journey to support companies in devising a path forward to reach the next level of data-based manufacturing excellence, build trust among manufacturing, suppliers and customers, and unlock new value through the development of new data-driven ecosystems,” said Francisco Betti, Head of Shaping the Future of Advanced Manufacturing and Production at the World Economic Forum.

“Manufacturing is on the verge of a data‑driven revolution,” said Daniel Küpper, Managing Director and Partner of BCG and a report co-author. “But many companies have become disillusioned because they lack the technological backbone required to effectively scale data-and-analytics applications. Establishing these prerequisites will be critical to success in the post-pandemic world.”

As a next step, the community is co-developing a Manufacturing Data Excellence Framework, which comprises value-adding applications as well as technological and organizational success factors. Companies will be able to leverage this framework to accelerate the development of globally connected manufacturing data ecosystems.

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