Arek Skuza, Interim US Strategy Director at Future Processing
Digital transformation is the integration of technology into all aspects of an organisation, fundamentally changing how an enterprise operates and delivers value to its customers. As numerous industries embrace this evolution, the global digital transformation market is estimated to reach a CAGR of 16.5% to $1,009.8 billion by 2025, up from $469.8 billion in 2020. This upward trajectory signifies the limitless possibilities for enterprises when contemplating digital development within their organisation to stimulate innovation and growth.
Trying to keep up with the frantic speed of customer experience technology may overwhelm organisations. However, since digital transformation is vital to any company’s growth, it has never been more critical to comprehend where digital transformation is heading. And, while consumer expectations alter, technology that was significant before may no longer provide the same excellent experience today. In a volatile world, staying current on emerging trends in digital transformation means having complete faith in an organisation’s future. Every business benefits from digital transformation. And, with the correct technology, enterprises can reach their consumers where they are – in real-time.
It’s difficult to anticipate which innovations will persist and which will fade away, but certain themes appear poised to determine the future of digital transformation:
For years, Cloud computing has been a work in progress, and it is now only gaining momentum. Enterprises are starting to move their attention away from on-site data centres toward Cloud storage, resulting in a significant digital shift for enterprises worldwide. According to a Gartner report, Cloud spending motivated by innovative technologies is becoming mainstream among enterprises globally, and the global market for Cloud storage is estimated to grow to $390 million by 2028.
Cloud computing allows for simple and scalable access to digital resources and IT solutions. It has changed the way organisations function, allowing them to retrieve data from anywhere around the globe at any time. Employees may work more productively and collaboratively on projects without having to travel or invest in physical infrastructure. Cloud technology also simplifies the secure storing and remote access to large volumes of data.
Artificial Intelligence and Machine Learning
Customers now demand speed and efficiency in every potential touchpoint and interaction. As Artificial Intelligence (AI) and machine learning become more prevalent, the bar for excellence will rise above the capabilities of a human workforce alone. However, adopting this technology can help to enhance the ability of employees. Organisations worldwide have spent a total of $58.3 billion on AI as of 2021 and this spending is expected to increase up to $309.6 billion by 2026.
An AI system thrives when used to automate repetitive, manual processes or collect critical data on the fly, allowing employees to focus on driving revenue. AI operates regardless of working hours or time zone differences due to its ability to function around the clock. However, AI only represents half of the potential. Employing ML, AI and other systems can continuously improve and modify performance by learning from any and all data. The more data it collects over time, the more insights the ML software can provide.
Process automation has evolved tremendously. These solutions allow for the management of many processes and have a significant impact on corporate efficiency. This is due to the fact that these technologies are tailored to the individual demands of organisations, therefore, it is vital to identify the correct technological configuration for certain corporate settings and procedures in order to execute them efficiently.
Automation is on the agenda of every enterprise aiming to free up employees’ valuable time and eliminate errors. The number of low-effort activities such as handling vendor bills, tracking down information, or re-creating information frequently slows down teams. Organisations may expand easily while lowering operating costs with automation. According to Forrester, researchers predict that by 2030, automation will have eliminated 29% of jobs while creating 13%. The desire to increase efficiency is predicted to motivate organisations to automate processes in order to boost productivity.
Every organisation that wants to take advantage of digital transformation faces an impending threat from privacy concerns. IoT devices and 5G will only add fuel to the fire of data breach risk. Enterprises of all sizes will inevitably violate public privacy expectations, and their reputations will suffer as a result. Cybersecurity is poised to become a critical competitive advantage for companies willing to invest in the market and communicate their security and privacy policies to customers. Combined with data protection, cybersecurity is critical due to the increased communication and business operations that take place in the Cloud, meaning it is no longer an optional solution.
Remote and Hybrid Working
The introduction of the new normal has resulted in a substantial structural change in the way organisations operate. To adjust to these current dynamics, organisations must be innovative and flexible. The notion of a hybrid workforce, in which employees can work from home or the office as needed, and a remote-first culture, is gaining popularity. Its mobility and convenience make hybrid and remote working a compelling economic case for enterprises that can implement it – with the necessary infrastructure and resources.
According to CompTIA, 41% of enterprises will place a greater focus on communication and innovative technology skills for working remotely, while 42% anticipate more efforts to upskill and reskill current employees in order to be able to work remotely some or most of the time. Consolidating and streamlining an organisation’s technology enhances the way employees communicate, allowing an enterprise to stay ahead of the competition.
Digital Transformation Journey
The way an organisation functions changes as a result of digital transformation. This process includes systems, procedures, workflow, and culture. It impacts every level of an enterprise and brings data from various departments together to help them function more productively. Digital transformation, particularly in the current age, assists in increasing efficiency, boosting customer value, risk management, and continual and higher navigation of revenue generation opportunities. According to Gartner, 56% of executives believe that digital advancements have resulted in higher revenue.
However, if digital initiatives lack a well-structured framework that allows them to operate, no matter how inventive or innovative an organisation’s tech solutions are, digital transformation will surely fail. To avoid pitfalls, enterprises should concentrate on developing a well-structured, continually re-evaluated digital transformation strategy. With 89% of organisations already adopting a digital-first business strategy or planning to do so, it is estimated that by 2025, 75% of executives will be able to new emerging markets and industries through digital platforms.
Digital transformation benefits organisations of all sizes and is essential for enterprises that want to be in business for the foreseeable future. Organisations can only enhance internal operations and provide a high quality customer experience with the assistance of innovative digital technologies that operate seamlessly together – alongside a human workforce. Synchronisation is at the heart of digital change.