Developing a clear business vision is among the most sensible activities entrepreneurs and founders can be involved in. This can be done through Digital Transformation. It focuses on your business and helps with everything from business decision-making and alignment to identifying where you can win in your market.
In the early stages of a transformational journey, it becomes more difficult to define a powerful digital transformation strategy using Digital Transformation trends to create a new value in response to disruption. So, here are some Digital Transformation trends for setting up your strategic goals for business success. In order to keep up with trends, it is necessary to take apart the Digital Transformation trends in 2023 for the software development industry.
Before that, let’s brush up on Digital transformation a bit!
Digital transformation allows organizations to integrate various digital technologies to manage and/or modify business processes, culture, and customer experience. It helps the business to run efficiently with greater agility and allows employees, stakeholders, and customers to have many business advantages. Digital transformations have changed the style of working in the field of business completely.
The digital transformation strategy can be a part of an organization differently depending on its requirements and working process. Some organizations plan to use cloud computing while other organizations will use AI as part of digital transformation. To be a part of digital transformation, every organization has to set its mindset and need to plan the process accordingly.
Impact of digital transformation strategy in the post-pandemic era
After the pandemic, organizations have focused mainly on operational efficiency and innovation. Data and cloud have become a part of accelerator digital transformation and it has helped companies to grow faster and more efficiently.
According to data from Statista, worldwide spending on digital transformation by businesses has increased to 1.3 million USD in the year 2020. This clearly shows an immense growth of around 10.4% in investments in digital transformation technologies and services.
The COVID-19 pandemic has sped up digital transformation considerably across the globe. Companies have decided to improve their operational efficiency and improve customer experience, which is the key to influencing target audiences during economic difficulty. This is the main reason behind significant growth in digital transformation worldwide and the adoption of digital transformation trends.
In addition, companies have already initiated their efforts to transform digitally in the past and now started to show positive signs of going deeper and broader by implementing digital transformation trends in 2023 that will improve customer experience, create new revenue streams, and shape businesses.
Defining the importance of digital transformation for today’s businesses
Digital transformation helps businesses and organizations meet the demands of modern consumers. Also, it plays a crucial role in business survival in the face of the future market. It helps businesses to keep up their race in today’s economic environment, which tends to change consistently in response to evolving technology.
In simple words, digital transformation can be characterized as the efficiency enhancement of the digital capabilities of the company’s process, product, and assets in today’s time. These enhancements will play a significant role in increasing customer value, managing risk management, and generating more revenue opportunities.
CIOs and CTOs should step up and deliver the needed support to their teams on establishing more channels and creating more business models to compete in the evolving marketplace
Here’s how these five key ways Digital transformation strategies can help you optimize your business operations:
Transforming business operations digitally is not an easy task; it requires a strategic plan. However, these five ways help to build a game-changing digital transformation strategy.
1. Business Strategy Transformation
Today, most companies have leveraged the benefits of advanced technology. Technology becomes central to business operations. Being a part of the digital transformation strategy, business strategy transformation can certainly limit expenses and increase efficiency. It will help to make strategic choices to transform business, improve performance and help to grow more ambitious than before.
2. Business Operations Realignment
Business Operations Realignment is one another key in digital transformation strategy. Adopting new ways of running a business will enhance the business processes and allow higher agility during crucial phases. Digital processes and online transactions help the customers and also increase the efficiency of the employees. It also improves functionalities such as manufacturing and supply chain procedures.
3. Adoption of New Practices for Agility and Experimentation
Digital transformation brings changes by introducing modern engineering procedures. It certainly increases customer expectations and practically helps in making quick decisions and adapting to the changes which are based on innovations. This digital transformation strategy of adopting a newly working style and the advanced techniques together bring a positive change in the organization.
4. A Flexible Technology Cores for Sustainable Change
Organizations have to remain flexible and adaptive to new technology and techniques. If the organization gets used to a particular technology, then it can reduce speed and scale completely. To have a sustainable change, a modular approach is necessary that helps in serving the customers better.
5. People change management
The entire work of the organization can be easily changed by implementing this digital transformation strategy. It keeps track of digital foundation and digital operations along with the workforce that is digitally skilled to work according to the changing work culture.
The accountable people of an organization decide which new technology to adapt and integrate to get better results. It is also required to determine the rules and responsibilities of the members of the organization. The transformation of the technology brings a sustainable change that helps in building the organization and also offers new techniques to the employees.
After a complete understanding and analysis of the entire process involved in the digital transformation, the management of the organization needs to concentrate on making desired changes in adapting to the new digital technology. It will help in making the right decisions at the right time to run a business in the right way.
Could be worth noting Why Digital Transformation Trends in 2023 Matters
1. Blockchain becomes a part of digital transformation:
One of the most important Digital Transformation Trends, Blockchain can play a role by using hybrid cloud and cloud-native apps. Blockchain technology has become part of most projects with the use of distributed ledger technology (DLT). Blockchain offers higher transparency and also enhances the performance across border transactions. It also manages data resiliency, security, and cost of the projects while running the business. Blockchain supports peer-to-peer (P2P) technology and it works on OpEx versus CapEx cost models.
Blockchain works on a digital distributed ledger and stores records of every transaction. Blockchain offers complete safety and security to the data, which is stored in a centralized format. The data can be easily accessed from different nodes in a distributed manner. Blockchain works on the write once-append much technologies that allow transactions to be added using a secure digital signature to the chain of transactions that already exists
According to the data released by Fortune Business Insights on the global market size of blockchain technology, it is noted that the global blockchain market size is 7.18 billion USD and it is expected to reach around 163.83 billion USD by the year 2029. For the past couple of years, the impact of the pandemic has lowered anticipated growth in blockchain across all regions when compared with pre-pandemic periods.
The global shipping company and also the leading produce and commodity suppliers are using blockchain technology to create immutable business transactions and audit trails. Blockchain offers sophisticated transactional transparency that not only offers security but allows real-time communication to manage supply chain, payment networks, and healthcare data sharing by offering complete security. Blockchain is primarily used for faster processing and data safety, which makes the digital transformation suit perfectly well for the business.
2. Artificial Intelligence (AI):
Robust technology such as Artificial intelligence (AI) has been involved in the digital transformation process and changed it into digital innovations in the form of machine learning (ML), natural language processing (NLP), and deep learning with the help of predictive analysis. These are the most modern technologies that analyze the data, automate the tasks on a routine basis, and keep us informed about the highly prioritized tasks to follow.
Artificial intelligence, one of the mostly adopted Digital Transformation trends, offers the best customer care services. It can offer the below-listed services to the customers as the use of classification tools is useful in managing the services efficiently and accurately.
- Resolve the issues with complete understanding and offer effective solutions through the customer support channels and Einstein classification tools
- Offer the recommended algorithm to analyze the products sold using customer data.
- Manage website traffic and customer interactions effectively utilizing these engines
According to the data released by Fortune Business Insights on the global market size of AI technology, it is noted that the global AI market size is 387.45 billion USD and it is expected to reach around 1,394.30 billion USD by the year 2029. We have seen the impact of the pandemic has drastically increased the anticipated growth in AI technology for the past couple of years across all regions compared to pre-pandemic periods.
Chatbots also called AI bots- Siri, Alexa, and Google Assistant are popular among users and offer various services to the customer. AI bots save nearly 8 Billion dollars while dealing with customers and offering constructive solutions to issues faced on a regular basis. It certainly makes digital transformation highly impactful. AI services can be used to validate customers and also to keep track of product warranties. It can also deal with customers with the help of emotion analysis.
3. Robotic Process Automation (RPA):
Robotic Process Automation (RPA) is an advanced technology and another important Digital Transformation trend that offers artificial intelligence, machine learning, software robots, chatbots, and other interesting advanced techniques that have become a part of business and industries. RPA technology is commonly used in various businesses and can be a part of various activities such as data processing, data migration invoicing along with data audits. Robotics Process Automation can make processes automatic which is certainly highly effective for digital transformations.
These operations are error-prone when carried out manually. The wrong entries could disrupt the processes of the algorithms. But the RPA process offers accurate techniques of data management and streamlining the activities by automation. The new techniques can involve software testing and DevOps methodology. These modern ways of dealing with the business will make the customers happy and employee productivity will increase.
According to the data released by Fortune Business Insights on the global market size of RPA technology, it is noted that the global RPA market size is 10.01 Billion USD and it is expected to reach around 43.52 Billion USD by the year 2029. Looking at the given stats, it can be seen that there is an increase in the anticipated growth in RPA technology across all areas after post-pandemic periods.
Digital transformation with RPA is a process of controlling business workflows using digital technology and the latest software. The newly introduced changes in the workflows will benefit the business and can offer better services to customers. It also helps the employee to get involved in processes and to remain agile while offering excellent results. This digital transformation trend can offer the advanced features of digital transformation by evolving the processes in the form of data protection, application development, and tackling processing issues and operational problems. RPA will continue to offer IoT transformation services.
4. Augmented Intelligence:
One of the most adopted Digital Transformation trends, Augmented Intelligence can bring improvements to workplaces offering higher security, increased productivity, and keeping track of fraud and illegal activities. Augmented Intelligence can boost business through quick and prompt decision-making.
This digital transformation trend, AI, helps in boosting human abilities and it can revolutionize the way of working. It works similarly to AI and other automation applications that allow a new set of information to users who can make better decisions instead of using automated decision-making skills. Artificial Intelligence allows machines to think and work like humans but augmented intelligence allows the machine to help human beings with particular tasks and to help in prompt decision making. It allows various conditions that can make the decision-making process simple and highly effective while understanding the data formats. Today, businesses are benefiting from the use of augmented intelligence, which helps in synthesizing information.
Most companies find it difficult to hire people with suitable experience or business knowledge. The use of Augmented Intelligence services will reduce the burden on the employees while carrying out the process effectively. Augmented Intelligence can help in preparing data and gaining insights. It can help employees in analytics with the help of advanced technology. Augmenting intelligence managers with all types of data that is available from multiple sources. It can access the information by analyzing the data from every angle and it helps the organization in gaining more information.
Everything as a service XaaS is a model which can be utilized as a part of digital transformation. XaaS, one of the popular digital transformation trends, can be implemented on the basis of a per-device per month model, which mainly works on organizational demands. The objective of XaaS is to make customers highly valuable. XaaS makes services available in the areas of SaaS, IaaS, and PaaS. There are many other services available in today’s market; companies need to pick the right one for implementation on various processes.
The digital transformation started a long way back, even before the pandemic. The services XaaS and its functionalities work as a part of digital transformation and most of the company achieved a growth rate of 32% for managing the various business services. And it has been considered a higher growth rate than expected. The subscription-based business models have opened an opportunity for the organization to combine the production services as part of a single package.
One of the cost-effective digital transformation trends, XaaS has higher flexibility. It is utilized for getting multiple solutions in business management. Most technical companies purchase this software, which is significant for saving costs and can be utilized on different platforms significantly. XaaS offers innovative technology that allows the infrastructure to skill automatically. It offers a wide range of opportunities that are based on market demands. XaaS uses advanced technology to offer useful ways of decision-making, primarily for business houses. It also offers complete cyber security and office protection from cyber-attacks and data theft. XaaS makes the digital transformation easier and more effective.
6. Generative AI:
One of the other Digital Transformation Trends, Generative AI is a part of AI which effectively makes digital transformation possible. It offers the most modern techniques that help the business to run with the help of technology rather than humans. The new generation technologies have offered useful solutions that help in practically overcoming business challenges.
Generative AI, one of the innovative Digital transformation trends, can keep track of the processes and methodology used in the business and optimizes business activities. It also provides differentiated services that can allow getting in touch with the customers at all different levels and it enhances the business capabilities higher.
Most of the organizations that have made AI a part of their internal business work have already gained profits by productivity and offering excellent services to customers. The use of superior technology has enabled the business to transform to a higher level by expanding the customer network and allowing gaining higher prospects.
AI understands customer behavior and customer requirements well. It offers a 360-degree view of the customers. It gets a holistic overview of the customer requirements and it allows offering the best results. Generative AI tracks data points on an everyday basis. It performs dynamic analytics which can understand the changing needs of consumers and the market trends. AI understands the usefulness of operation on effectiveness and it can allow the innovating processes to be carried out that help in digital transformation with higher gains.
7. Hybrid Work Environment:
A hybrid work environment mainly depends on trust and ownership values. It allows organizations to understand the high potential work area that manages the work to be performed effectively. The hybrid work decisions can be combined and managed by the management managers and the employees. A hybrid workforce environment played a major role in the organization during the pandemic. It has offered many opportunities to employers and also for the employee to manage the business in terms of work design, roles and responsibilities, and organizational structures.
A hybrid workforce environment has made managers believe in employees. The managers have set the objectives and trusted the employees to gain better results. Employees have managed to work under various circumstances as per the requirements but always work comfortably giving better outputs.
According to data released by Statista, the global market value of the collaboration software, which is used in the hybrid work model, was 16.3 billion USD in 2021. And revenue from collaborative software is expected to reach 18 billion USD by 2025.
The hybrid workforce model, which is also considered one of the digital transformation trends, worked in critical conditions and remained beneficial to the organization, while managers found it difficult to make decisions regarding the business and the work. A hybrid model organization mainly works in the area of developing critical skills. It helps to gain competitive advantages. These skills are useful in handling innovations and being a part of an organization that grows faster.
8. Cloud-based and cloud-native platforms:
After decades of experiments, some companies have started adopting cloud technology with its capabilities and considered it one of the Digital transformation trends. Cloud technology supports innovative techniques. It can scale the organization efficiently and can help in planning better marketing strategies with minimum technology risk.
But most CIOs and CTOs refer to the use of traditional implementation methods but cannot be used with the cloud technology. The cloud opportunities are not incompletely used while managing the business applications in the cloud, there is a chance of increasing risk and disruption by getting under attack.
The companies have to make use of cloud platforms for the transformation of the business into Business technology, and then they should follow 3 factors given below:
- Investment should be made in business domains that are suitable for cloud technology by offering higher profits.
- Make use of a constructive technology that can perfectly suit the business and controls the risk factor completely.
- Companies have to develop an operating model and implement it using cloud technology.
CIOs and CTOs have to understand cloud adoption techniques. But it also requires understanding the scale and scope of the entire business, and it also needs complete support from company management. Making use of the cloud can reduce several issues and digital transformation can be possible. But to implement cloud services, the entire business setup and the business operations need to be changed according to the newly available cloud technology.
Let’s get started on digital transformation for business success
Organizations have to adapt to the new-age technologies of digital transformation. It can help in boosting the business while facing challenges. Innovative technology will bring positive changes in the working of the organization. It will help you to keep pace and enhance the scale of the business as per the increasing competition.
Digital transformation should be one of the top priorities of the business if you are desiring to achieve your goals. With the help of advanced technologies and modern techniques, digital transformation will unquestionably shape the future for sure.