November 26, 2020 - BY Admin

Impact of Digital Transformation in Nepal

Nepal has embarked on an economic and technological revolution after the digital transformation throughout the county.  The increasing involvement of digital technology in every field is unsettling the traditional methods of businesses and making a clear pathway to an entire digital economy. The digitalization of Nepal has the vision to transform the nation into an empowered society. As the digital infrastructure grows to be the core utility to every citizen, we moved a step closer towards globalization.

How is Nepal adapting to digital change?

The digital transformation of Nepal has started to make an impact on the nation. 20 million Nepalese, almost 70 percent of the total population has access to the internet. As the connectivity becomes more omnipresent and digital capabilities improve, technology is poised to quickly change nearly every sector of Nepal’s economy.

Digital transformation has also started to make a change in communication practices. Quick internal communication and personalized external communication have made the business sector even more effective. Huge access to the internet is being used for digital communication, online marketing, and e-commerce. Due to the huge influence of the latest technology, e-commerce has been in the trend. User-friendly online shopping avenues and easy digital payment platforms have paced up the trend. The use of ATMs, debit cards/ credit cards, and digital gateways for payments is pretty common. The education sector has also witnessed the digital transformation after the establishment of Nepal Open University in 2073. The effort of the government to digitize the agricultural sector is also visible with the programs like agriculture management information system.

Issues for digital transformation in Nepal:

Historically speaking, the technological revolution has been ignored due to poor vision in development activities. Grappling with long-term policy planning and management has been our true problem. Disconnected enterprise, lack of facts, lack of strong database, inefficient markets, and poor service delivery are responsible for the slow transformation. Disempowerment and corruption of the government and local level is equally a barrier.

How to pace the digital transformation?

Policymakers and planners are the core to keep our pace with the global digital revolution. Digital transformation is possible with the involvement of diverse stakeholders to identify and invest in specific socio-economic priorities. Substantial investment in process innovation, organizational capabilities, and institutional learning should be made. Every dollar invested in information technology should be matched with the four-dollar investment in training and change management process improvement.

Digital technology can make the business economy very competitive and powerful. Rapid digitalization is the vital need for an expeditious and as well as sustainable socio-economic growth of Nepal. Looking at the efforts from private entities and government, creating a digital economy in Nepal seems to be a possibility. It might be our chance to upgrade as a developed nation.