Digital Transformation is at the Tipping Point

S Mohini Ratna, Editor, VARINDIA

Digital acceleration is a business strategy that guides the company's future. It shifts the focus from digitizing a process to adopting the latest technologies, such as automating business processes, data visualization, ML, and AI. 

India’s digital transformation is at a tipping point. Seven hundred million connected Indians, affordable smartphones and data, record high digital payments, the digitization of citizen services, and a vibrant start-up ecosystem have put the technology sector on track to become the single largest contributor to the national economy. 

The government of India aims to enhance the contribution of digitalization by 20% of GDP by the end of the financial year of 2025 and if the expected target is achieved in the given timeframe; we may observe an exponential boom in the digital market industry. 

This is a significant increase from the current level of 11%. If this target is achieved, it would mean that the digital economy would be worth around $1 trillion. India is now one of the fastest-growing digital economies in the world. The country is a leader in mobile payments, digital finance, and e-commerce. 

Secondly, with the rise in the development and deployment of AI systems, it is essential to establish responsible guidelines to ensure fair, ethical and safe usage of AI based solutions. There is a need to develop technology that is understandable to the end users, providing strong safety and performance guarantees, and to raise awareness of the impact of the technology on society. 

Generative AI is expected to automate many routine and repetitive tasks, which will free up workers to focus on more complex and creative work. This will require workers to have strong critical thinking and problem-solving skills. A report says, about 34% of organizations are using AI application security tools. This number is expected to grow significantly in the coming years. 

If the government's target is achieved, it would have a major impact on the Indian economy. It would create new jobs, boost exports, and improve the efficiency of businesses. It would also help to bridge the digital divide and improve the lives of millions of Indians. 

At the same time, another report states, the cloud burst or Cloud repatriation is happening at a faster speed, it is the process of moving data and applications from the cloud back to on-premises infrastructure. 24% of organizations are planning to move out of the cloud over the next two years. This is a significant number, and it raises the question, why so many organizations are considering moving away from the cloud. It may be due to increasing cyber breach and customers feeling that cloud is expensive. 

The cloud is a target for cybercriminals, and businesses that store data in the cloud are at risk of being hacked. Repatriating data to on-premises infrastructure can help to reduce the risk of cyber breaches, as on-premises infrastructure is typically better secured than the cloud. 

To resolve the issue, Government of India has come out with Digital Personal Data Protection Act, 2023 - India's first law to protect personal data. It's a remarkable step forward, but it also raises legal and policy challenges. Now the Policy and privacy experts are talking about Nuances, technicalities and complexities of the DPDP Act, 2023. 

Thirdly, the Indian government has imposed restrictions on the import of laptops, tablets, and PCs. The government is concerned about the import of laptops, tablets, and PCs from countries like China, which could be used for espionage or cyber-attacks and to boost domestic manufacturing. 

67% of essential services in India witnessed more than 50% disruptive cyberattacks in 2022-2023. This is a significant increase from the previous year, when only 45% of essential services experienced such attacks. 

A recent news states that the government is likely to extend the free import of laptop, tablets and computers to September 30, 2024. The move is sure to provide respite to manufacturers, including Apple, Samsung, Dell, HP and Lenovo and others. The window will help the companies, who rely on imports, to meet the surge in the demand of their products in the country during the upcoming festive season. 

Going forward, synthetic intelligence (SI) is a newer challenge that we will have to face in the world of AI. This would enable computers to perform activities that are presently too complex or time-consuming for them, such as natural language interpretation, object recognition, and decision-making. SI has the potential to revolutionize many industries and aspects of our lives.