DIGITAL SECTOR
Compiled by Yamini Sequeira
FAST TRACK INDUSTRY 4.0
Harsha Randeny addresses the impact of technology on digital transformation
Q: How do you view the role of AI, cloud computing and IoT evolving in the local context – and how would traditional industries be impacted by such technologies?
A: The integration of artificial intelligence, cloud computing and the Internet of Things is revolutionising key industries and sectors – particularly healthcare, agriculture and manufacturing.
AI in particular is enhancing service offerings by enabling hyper personalised experiences and improving the accuracy of outcomes.
In healthcare, AI is transforming diagnostics, especially through image recognition technologies such as MRI and X-ray analysis. The agriculture sector is also benefitting from IoT technologies, which optimises resources such as water and fertiliser while improving crop yield predictions. This contributes to more informed decision making at both the farm and governmental levels.
In manufacturing, the Internet of Things facilitates predictive maintenance by monitoring machinery conditions, thereby reducing downtime. Cloud computing offers scalability and cost efficiency particularly for SMEs – they can now access advanced technologies such as artificial intelligence and big data analytics without substantial upfront investments.
As businesses integrate AI and IoT, they gain a competitive edge by driving operational efficiencies and enhancing customer experiences. The financial services industry – including banks and insurance companies – is also adopting artificial intelligence for customer engagement through bots and automated agent models.
Q: What main challenges do businesses face when transitioning to a digital first model?
A: Businesses face several challenges when transitioning to digital first models – resistance to change is a major barrier, as both the leadership and employees often rely on traditional methods that have been successful in the past.
Failing to adapt to technological advancements can result in market disruption. To address this, organisations must cultivate a culture that embraces technological change and the opportunities it brings.
The prevalence of legacy systems is another challenge requiring substantial investments to upgrade. Many organisations face difficulties in allocating resources to modernise infrastructure, which hinders the adoption of new technologies. Companies must prioritise timely investments in digital transformation to remain competitive.
Furthermore, cybersecurity and data privacy concerns remain, especially in sectors such as healthcare. Organisations must implement robust policies and protocols to safeguard sensitive data, and comply with regulatory standards. Governments also play a key role in establishing frameworks to address these challenges.
Overcoming resistance to change, upgrading legacy systems, and ensuring robust cybersecurity and data privacy measures are essential steps for businesses navigating the digital transformation journey.
Q: What are the key drivers that will shape Sri Lanka’s adoption of Industry 4.0 technologies in the next five or so years?
A: The primary drivers of the adoption of Industry 4.0 technologies will include government initiatives, economic growth and workforce development. Government policies including tax incentives, grants and infrastructure development will play a pivotal role in scaling these technologies nationwide.
The establishment of frameworks particularly in manufacturing, such as the connected factory model, will enable local industries to remain competitive by meeting international quality and safety standards.
Economic growth and industrial development are critical factors with a focus on creating support frameworks for the manufacturing industry to adopt Industry 4.0 technologies. Additionally, a skilled workforce and targeted educational initiatives will be essential to the successful implementation and long-term sustainability of these technologies.
Q: How can the need for technological progress be balanced with the protection of data sovereignty, particularly as cloud adoption grows in the region?
A: Sri Lanka is making significant strides in addressing the balance between technological progress and data sovereignty.
A comprehensive cybersecurity policy coupled with the Electronic Transaction Act (ETA) and Personal Data Protection Act lays a strong foundation for data security. These laws and policies ensure that data is protected from both a governmental and citizen perspective.
Moreover, data classification policies are crucial to ensuring that sensitive information is managed appropriately. A robust cybersecurity framework capable of adapting to evolving technologies such as AI is vital for maintaining this balance.
Public-private partnerships (PPPs) will also play a critical role in fostering innovation and building local knowledge, further supporting the country’s efforts to uphold data sovereignty while progressing technologically.
Q: What is one area of digital transformation that you believe will have the greatest impact on Sri Lanka’s economy over the next decade – and why?
A: Digital transformation in government services particularly through digital identity systems and payment platforms will have a notable impact on Sri Lanka’s economy. By enhancing digital platforms for tax collection, customs and other government services, the country can improve its revenue visibility, efficiency and transparency.
The implementation of digital services will streamline processes, minimise inefficiencies and increase economic transparency. This will ultimately lead to better governance and a stronger macroeconomic environment, aiding the nation’s recovery and growth.
A shift towards digital transactions will not only improve the user experience but also increase Sri Lanka’s financial inclusivity and accountability.
