Digital transformation has become a necessity for organizations that want to thrive in today’s business world. Such a process means adapting their operations so as to shift to the virtual sphere. By integrating digital innovations into their systems, businesses can ensure their long-term stability throughout the digital age.
Though it was once possible for most businesses to use hybrid-digital or non-digital models, COVID-19 cemented the need for digital transformation. Before COVID-19, only 16% of companies in the world utilized technologies to run their businesses. Following lockdown policies, however, businesses only had two choices: to embrace digital transformation or to risk their survival. That said, if you want your business to survive in the digital era, you would do well to staying up-to-date on workplace trends and the possible changes that could be coming down the pipeline. In this vein, here are the current and future digital transformation trends to keep in mind.
Current Trends in Digital Transformation
The three most current trends in digital transformations primarily come from the need to make businesses accessible to both workers and customers. This accessibility was first made possible by cloud-based infrastructures. These cloud services make it possible for organizations to store, manage, and process huge amounts of data on server networks. As such, business teams can remotely access information, build and tests apps, and communicate with customers without the need for high-maintenance and expensive IT infrastructure. This is why cloud services are considered a core component of digital transformation.
The second trend that’s essential for digital transformation is customer data platforms (CDP). These are software programs that collect and organize customer data from emails, social media, and other touchpoints. From these programs, businesses can gather accurate customer profiles that allow them to make decisions based on real data, which keeps in line with their customer’s needs and preferences. As a result, companies can keep track of consumer trends that are integral to their sustainability—all through digital platforms.
Finally, since data is constantly interchanged on digital platforms, the third trend is to deploy heightened cybersecurity measures because they are essential. Data breaches have become huge threats in the digital landscape due to the acceleration of digital transformation. The FBI reported that there were eleven times more phishing complaints in 2020 as compared to 2016. To respond to the rapid digital transformation, educational institutions are training more professionals through online cybersecurity degrees. These programs ensure that cyber professionals can secure cloud migration, protect company data, and manage internal networks through OT security resources. These include video analytics programs that aid in authentication systems as well as IoT-connected smart devices that make for more robust data protection.
Digital Transformation Trends to Expect in the Next Five Years
Companies can access accurate, real-time data by integrating the Internet of Things (IoT) into their systems. IoT refers to a network of internet-connected devices that enable communication and data transfer from various locations. In line with this, McKinsey & Company estimates that more than 43 billion devices will join the IoT family by 2023. This technology is crucial for digital transformation because it can streamline supply chains, automate processes, and improve customer experiences through increased connectivity.
Companies are also finding new ways to leverage edge AI-powered technologies in their operations. This is a promising innovation that can detect, process, and mimic human activities. Thus, it is predicted that edge AI technologies, like video analytics, will be highly utilized in manufacturing processes to increase productivity levels. These digital technologies can reduce human errors and automate processes through machine learning algorithms. Therefore, while edge AI technologies handle operations that can be automated, human workers can focus on more complex tasks. And as AI and machine learning capabilities continue to progress, businesses will find that more of their operations can be assigned to smart programs.
Digital Transformation is Just the Beginning
Businesses all across the board are investing in technological innovations to make their operations more suitable for the digital age. With the help of technology, businesses can improve their systems, strategies, and customer experience. And following these trends, the business landscape is sure to progress even further, gaining access to more advanced tools such as IoT technology and AI software. Indeed, the industry finds itself in digitally rich times and businesses would benefit to invest early in these technological tools.