The digital transformation of businesses could create up to PhP5 trillion in annual economic value by 2030, a new Google Philippines-commissioned report finds.

Of this value, PhP3.5 trillion could come from technologies that help businesses mitigate the economic impacts of the COVID-19 pandemic and future similar events.

Key findings from the report include:

• Businesses derive 363.4 billion pesos in annual benefits from Google tools and services, through increased revenues, millions of connections with customers and greater efficiencies, saving time and money;
• App developers in the Philippines earn 384 million pesos in annual revenue through Google Play, reaching over one billion users globally;
• Consumers receive 214.5 billion pesos in annual benefits by experiencing greater convenience, access to information, and enhanced productivity. Search saves users almost five days a year; and
• By enabling businesses to unlock new revenue streams and expand their businesses through the use of Google Ads, AdSense, and YouTube, Google indirectly supports over 110,000 jobs in the Philippines

This could be a game-changer for the Philippine economy, as the country is still hard-struck by the global health situation and has lagged far behind other nations.

Prepared by economists at AlphaBeta, the report explores eight transformative technologies and the robust economic potential they bring to Philippine industries.

This includes Artificial Intelligence (AI) which can be used to drive data-based public health interventions, mobile internet to help digitize retail distribution channels, and the Internet of Things (IoT) for use in supply chain tracking.

Digitizing MSMEs

To fully realize and unlock the opportunities presented by digital transformation, the report has identified three main pillars of action the Philippines could take: enhancing digital skills training and education, accelerating digital adoption and innovation, and promoting digital trade opportunities.

There exists a huge potential for the Philippines, and a lot of positive work has already been done in this area within the last year.

The Department of Trade and Industry (DTI), through its secretary Ramon Lopez is wary of the important role digital transformation plays when it comes to the country’s economic recovery post-pandemic.

Which is why Google and the DTI have been digitizing small businesses through its Micro, Small and Medium Enterprises (MSME) Caravan campaign for the past two years, being able to train more than 46,000 MSME business owners and employees.

In fact, Google’s tools and services are already helping the Philippine digital economy, as local business, consumers and the wider society derive over 578 billion pesos in annual benefits through increased revenues and millions of connections online.

Increasing sales

One of the businesses that benefited from the digital training workshop is Germano’s Chilli which continues to thrive until today.

Germano’s Chilli started in 2008 to recreate the experience of eating chili garlic from restaurants to people’s homes. The concept was fairly new at that time and the business struggled with brand awareness.

Owner Gerome Panlilio then took a Google Philippines-hosted seminar in 2018 to get himself acquainted with features such as Business Profile (formerly Google My Business) on Google Search and Maps, as well as vital knowledge and tools.

This enabled his products to be searchable online, which led to more revenue. Before the pandemic, Germano’s Chilli’s online sales only peaked at 3 percent, but in the past year and a half, it increased to 15 percent.

Digitizing is the way to go

Google Philippines is aiming to aid more businesses like Germano’s Chilli, creating a world that supports digital freelancing and accelerates the shift towards digital payments to let go of disruptions to business operations.

Providing business such access to global markets and equipping them with the necessary digital capabilities to expand reach, business will be able to manage the long-term economic implications of the COVID-19 pandemic.