Digital transformation is here to stay in 2024 and beyond, to support this statement, we would like to highlight few digital trends that has shaped every industry in terms of customer experience, supply chain, sales and many more business functions across organizations.
Organization of all sizes have gone through major transformation in the journey of digital adoption process. Large enterprises have sprung surprises with controlling costs, increasing productivity, enhancing customer experience and adding value to overall supply chain, whereas small enterprises are still struggling to gain full advantage of digital adoption and the major problem has been with the change management, inability to justify ROI.
Although businesses have long understood the value of the future of digital transformation, other priorities sometimes take precedence over it. On the other hand, prioritizing digital efforts has emerged as one of the most critical business enablers for success in a world where competition is on the rise.
“In 2023, the field of digital transformation showcases an overwhelming adoption rate, with over 90% of organizations engaging in various digital initiatives, emphasizing the pervasive nature of digitization across industries (Source: Gartner). This shift is further underscored by the fact that a mere 23% of businesses find themselves without any dependency on digital operations or products, highlighting the widespread integration of digital technologies into the core of organizational processes (Source: Forrester).”
“Digital transformation is no longer merely a strategic choice but a business imperative, as expressed by 27% of managers who recognize it as crucial for survival in the competitive market. The investment and spending trends in digital transformation are equally noteworthy. Direct investment in digital transformation is projected to soar to an impressive USD 7 trillion, reflecting a robust CAGR of 18% from 2020 to 2023 (Source: IDC).”
“The economic repercussions of this shift are significant, as organizations undergoing digital transformation are expected to make up over 50% of the global GDP by 2023, totaling an approximately USD 53.3 trillion (Source: Research and Markets).”
“The digital transformation market is set to experience substantial growth, with a projected CAGR of 23% between 2019 and 2025, reaching a market value of USD 3.3 trillion (Source: IDC).”
“Seventy percent of surveyed organizations identify leveraging technology to simplify workflows and manual processes as their top priority, indicating a focus on operational efficiency (Source: Quixy).”
“The driving forces behind digital transformation efforts are diverse, with 51% originating from growth opportunities and 41% spurred by increased competitive pressure (Source: Prophet).”
“Looking ahead, while the Internet of Things (IoT) dominated the digital transformation market in 2019, Virtual Reality (VR) and Augmented Reality (AR) technologies are predicted to experience the fastest growth until 2025 (Source: Research and Markets), showcasing the dynamic and evolving nature of technological priorities within the digital transformation strategies.”
Unlike previous year, this year too will see the same trends in digital journey and even expanded use of automation technologies. Similarly, effective use of cloud technologies, low-code/no-code tools, hyper-automation, AI, and other technologies would greatly aid company scaling.
Hybrid work, intelligent search, Customer Data Platforms (CDPs), AIOps and machine learning, and platforms that link Agile, DevOps, and ITSM are some of the most recent advancements in digital transformation technology.
‘Media and Entertainment’ is an industry that saw a rapid transition due to the digital transformation managed services trend. Amid interactive video ads and content-driven strategies widened social media and other internet platforms, the media and entertainment industry has seen the proper form of digital transformation strategies in recent years.
Not just media and entertainment, every industry is taking the same path. While in parallel, consumers are demanding more content in more unique ways!
Digital transformation describes the business process of transitioning to digital systems for efficiency, scalability and cost-effectiveness. This process could translate into the shift of obsolete systems to third-party digital solutions that make these systems work more efficiently.
However, digital transformation generally requires a degree of restructuring for enhanced business operations. Some examples of this restructuring might include:
Beyond this, it also involves a cultural change, with businesses needing to challenge the status quo, discard long-standing company processes in favor of new and undefined ones, and accept failure in the name of innovation.
Organizations have been putting their feet into the risky river of disruption because of the fear of being left behind. Post-pandemic, the capacity to quickly adjust to supply chain disruptions, faster time-to-market pressures, and customer expectations has become essential.
Similarly, an IT spending survey of 501 IT executives worldwide suggests that leaders recognize digital transformation as a prerequisite for competing in today’s market and a strategy for long-term success. For 75% of survey respondents, it’s their top priority, followed by cybersecurity (73%) and cloud migration (65%). (Source: PIXELPLEX)
Key business indicators impacted through digital transformation:
1. Automation-driven Efficiency
The global Robotic Process Automation market size was valued at USD 3804.23 million in 2022 and is expected to expand at a CAGR of 24.04% during the forecast period, reaching USD 13855.99 million by 2031 as per market research report.
As organizations delve deeper into the multitude of RPA use cases, security emerges as a top priority. Safeguarding sensitive data, ensuring confidentiality—especially in industries like healthcare—and managing the inherent risks of technology adoption become imperative.
Enterprises must construct robust security frameworks aligning with the highest industry standards to fortify their digital landscape against potential threats.
2. Data Privacy and Governance
The massive data generation across devices and upward trend of digital adoptions has raised the concerns amongst regulators in terms of security. Robust measures are essential to protect against threats and unauthorized access. Stricter regulations and heightened consumer awareness demand ethical and secure data handling.
As digital transformation progresses, investing in data privacy isn’t just a precaution. Therefore, it’s a strategic imperative for businesses aiming to thrive in a digitally connected world.
3. Artificial Intelligence and Machine Learning
Generally, at the core of digital transformation, Artificial Intelligence (AI) and Machine Learning (ML) are indispensable for businesses aiming to unlock the full potential of data. Evidently, predictive analytics, personalized customer experiences, and streamlined operations are just the tip of the iceberg.
As data becomes the cornerstone of decision-making, AI and ML pave the way for innovation, efficiency, and competitiveness. Surely, in 2024, these technologies will continue to drive transformative change across industries, ensuring organizations adapt and evolve.
4. Everything as a Service
Everything-as-a-Service, also known as Anything-as-a-Service (XaaS), is the latest digital transformation trend that pushes the “as-a-service” model. XaaS extends the basic cloud service concept by including additional services such as:
XaaS also paves the way for “Servitization,” providing a combination of products and services in a single package. Amazon’s Alexa, which offers AI-driven services alongside portable hardware items, is a simplified example of servitization.
5. Edge Computing
At the core of this paradigm shift are edge devices, seamlessly connecting public clouds, internal data lakes, and the broader internet. Whether integrated into existing IT infrastructures or strategically added, these devices empower businesses with enhanced agility and efficiency, creating a bridge between centralized cloud resources and the distributed nature of end-users.
The strategic placement of edge devices significantly reduces latency, bringing computing closer to end-users and amplifying agility. This proximity enhances collaboration, provides real-time business insights, and broadens connectivity beyond traditional firewalls.
Edge computing introduces a new era of flexibility, allowing organizations to tailor technology deployments based on their unique needs. As enterprises strategically embrace edge computing, it becomes not only a technological advancement but a pivotal enabler of digital transformation, fostering innovation, collaboration, and operational efficiency in the digital transformation of the future.
6. Data Analytics Trends
Data analytics is playing a crucial role in driving digital transformation in organizations. It enables businesses to enhance customer experience by understanding their behavior and tailoring services effectively.
Additionally, data analytics helps optimize operations by streamlining processes, reducing inefficiencies, and making informed decisions aligned with strategic objectives.
By investing in analytics tools, capabilities, and fostering a data-driven culture, businesses can leverage the power of data to make better decisions, adapt to changes, and stay ahead of the competition in the data-centric future of 2024.
7. Multi-cloud Strategy
Multi-cloud is the practice of using multiple cloud providers for cloud computing services. By diversifying their cloud options, companies can benefit from the unique strengths of multiple platforms. The fact is that hybrid cloud adoption enables organizations to strike a balance between the enhanced security and control offered by private clouds and the scalability and cost-efficiency of public clouds.
According to Grand View Research, the multi-cloud management market was valued at $8.03 billion in 2022 globally and $9.94 billion in 2023. Now, with an expected compound annual growth rate of 28% between 2023 and 2028, the size of this market may reach a whopping $56.02 billion. The stats say it all—multi-cloud management is a growing trend.
8. Blockchain
Blockchain, the epitome of secure and transparent transactions, is reshaping industries by eliminating intermediaries. Evidently, finance, supply chain, and healthcare are witnessing the transformative power of blockchain, enhancing traceability, reducing fraud, and ensuring data integrity.
As digital transformation advances, organizations embracing blockchain app development gain a competitive advantage by streamlining operations, mitigating risks, and ensuring the integrity of their digital assets.
9. IoT: Connecting the Dots for Seamless Operations
The interconnected web of IoT is becoming the backbone of industries, offering unprecedented opportunities for efficiency and competitiveness. Therefore, real-time monitoring, predictive maintenance, and automation are reshaping how businesses operate.
Whether in manufacturing or healthcare, adopting IoT is a strategic move for organizations looking to remain agile, responsive, and at the forefront of the digital evolution.
10. 5G Technology: Powering the Digital Transformation Engine
The fifth generation of mobile network technology is known as 5G. Multi-peak data speeds, minimal latency, a better user experience, better connectivity and availability, and increased network bandwidth are some of 5G’s essential traits.
Edge computing and 5G can result in some fascinating advances. For instance, IBM will provide Verizon and Telefonica with cloud services to power 5G networks.
In turn, automation of routine jobs will prevent network problems using technologies like artificial intelligence (AI), drone-initiated inspections, and video inspections.
