Digital transformation has been around for a while, but new technologies have elevated it. Businesses are rethinking their strategies to compete and go digital. They compete with a growing number of established companies and startups trying to stay ahead of digital transformation trends.
Organizations can also take a step back thanks to digital transformations and decide where to focus their efforts and which strategic approaches are still relevant in the current environment. For example, companies that are having difficulty developing their own IT services can evaluate whether any internal legacy technology needs to be replaced with software-as-a-service (SaaS) provider technologies.
An essential part of the business operations of a modern organization is digital transformation. However, according to McKinsey, some businesses that have started their digital transformation journeys have found it difficult to realize the benefits. According to a recent study, companies that “launched some flavor of digital transformation” have, on average, only realized a third of the anticipated revenue benefits, according to McKinsey research.
Digital transformations involve not only the newest technologies but also organizations and culture. In order to successfully execute a digital transformation, chief information officers (CIOs) must collaborate closely with chief executive officers (CEOs) and other business executives on necessary cultural shifts.
Here are some reoccurring trends that support organizations in launching successful digital transformation projects, even though no two digital transformation strategies are alike.
Trends in digital transformation that provide businesses a competitive edge
Trend: Machine learning and artificial intelligence
The second year of generative AI tools’ broad adoption is about to begin. Because of this, businesses are becoming more and more interested in learning how to use the full range of ML and AI technologies to enhance their operational procedures. According to a recent IBM Institute for Business Value survey, having the most sophisticated generative AI gives a company a competitive advantage, according to three out of four CEOs.
It seems more and more likely that in the upcoming years, artificial intelligence will show off a wide range of applications where it will complement human labor and simplify tasks rather than displace sizable segments of the labor force. For instance, by drastically cutting down on the amount of time it takes for humans to generate ideas, write summaries, and acquire crucial knowledge, generative AI as a prompt engine will increase efficiency. Additionally, it will produce more intelligent chatbots that can answer basic inquiries, enhancing customer satisfaction and freeing up customer support representatives to handle more complex issues.
Machine learning is also going to be a very useful tool for data-driven companies that want to get more out of their data analytics procedures. For instance, businesses that rely on the supply chain will be able to make better decisions faster thanks to applied machine learning. By doing this, they will be able to deal with market and environmental factors that may cause the delivery of finished goods, raw materials, or both to be delayed. Nevertheless, businesses still require people to make decisions about what to do after ML analysis of the data.
Trend: Automation
Automation will be a major factor in increasing human productivity, much like AI and ML. Large portions of manual labor that can and should be automated are likely to be discovered by organizations going through digital transformations. Robotic process automation (RPA), for instance, can automate e-commerce tasks like order fulfillment, inventory control, and customer support.
Trend: Cloud computing
Over the last few years, organizations have been moving to the cloud. By using a multicloud, private, or public cloud, they are doing away with the laborious task of managing their own data centers. Cloud service providers leverage cloud technologies to ensure security and uptime, freeing up organizations to concentrate on their main operations.
Trend: Cybersecurity
Many services are now online, making businesses more vulnerable to cyberattacks. An organization’s legacy security system, designed for less dispersed workers, may not work well in the current climate. Organizations are embracing the “shift-left” movement as one strategy to combat cybersecurity head-on. With this method, cybersecurity concerns are more deeply ingrained in the code at the outset of the development cycle.
The blockchain, which can improve data integrity and secure transactions, is another method that businesses are experimenting with cutting-edge security measures.
Trend: Internet of Things and edge computing
To drive value, more dispersed devices will need to be more interconnected. Connectivity and communication between technologies are made possible by the Internet of Things (IoT). For example, manufacturers can use IoT in their factories to perform preventive maintenance, or identifying when their machines require repair. Edge computing brings enterprise applications closer to data sources, like local edge servers or IoT devices, increasing the efficiency and power of IoT.
Trend: Shifts within the industry
Various industries are impacted by digital transformations in different ways. For example, the pandemic forced hospitals and other healthcare providers to reconsider their entire business model. They redirected funds and resources to set up robust video conferencing telehealth services and improve patient access to medical records. However, doing so necessitated a large investment in cybersecurity improvements and data protection since a data breach involving private medical data could be disastrous.
In order to reach a wider range of partners and access larger ecosystems, financial services providers have been using APIs more frequently. Also, consumer brands have discovered methods to enhance the in-store and online customer experience. One such example is Wimbledon, which developed voice-activated AI commentary for its website and app’s video clips.
Trend: Low- code or no-code
With the introduction of more visual coding techniques, digital transformation is drastically altering technology development. While no-code allows non-developers to participate in the development process, low-code assists the DevOps team by streamlining some aspects of coding. This method demonstrates how technological innovations, such as the development of visually oriented coding, are combined with societal shifts to create digital transformation. This change dismantles silos and encourages everyone to contribute to the creation of products and solutions, making development more approachable for non-technologists.
Trend: Working remotely
Before the pandemic, workers were more dispersed. Some employers require employees to work in the office every day, but many prefer remote or hybrid work. They must rethink their work processes, how they track attendance and productivity, and how they integrate their essential digital tools. For example, in order to allow employees to log in and access confidential documents, organizations might need to set up a more robust and powerful virtual private network (VPN).
Make the most of the trends in digital transformation
Even though each digital transformation journey will be unique, a number of new technologies and organizational strategies will have a significant influence on almost all of them. A digital transformation requires resources and time, and it is never fully completed. Therefore, in order to prevent future costly and needless changes, organizations should make an effort to approach them with an awareness of the most recent trends and tools.
Digital transformations have many advantages if done properly, even though they are expensive and ultimately alter how an organization does business. Businesses that are successful in implementing digital transformations will maintain their competitive edge, foster stronger bonds with their staff and clients, and be more equipped for future developments.
New customer experiences brought about by emerging technology and social forces are upending established business models and causing expectations and demands to shift. Business organizations can navigate an increasingly dynamic, complex, and competitive world with the assistance of IBM Consulting‘s professional services. In order to give them a competitive edge and a clear focus on business impact, IBM assist them in integrating digital transformation with their business strategy.
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