Digital transformation trends are increasingly being adopted by companies because of the way they promise to transform business operations and shape the landscape in the current digital era. Key digital transformation trends include Xaas, cloud-based platforms, AI and ML, and intelligent search among others. In this blog, we will discuss the relevance of digital transformation trends and the crucial role played by them to stay up-to-date and increase competitiveness. The 11 best trends have been elaborated to deploy in your organization to gain maximum out of it.
Let us kick off by first understanding the core concept of Digital Transformation and how it has been a role player to stay competitive in the present scenario.
Defining Digital Transformation
Digital transformation refers to the process of integrating technology into the everyday business operations of a company. This process has several advantages and this is why companies are increasingly adopting it. Digital solutions provide a more efficient work environment, lead to higher growth in revenue, and increase customer satisfaction.
The process marks a shift from the traditional way of carrying out functions and enters the modern sphere with the help of digital tools. It prioritizes customer experience and encourages strategic planning for a more agile and innovative version of the company. This blog will further elaborate on the need for digital transformation trends.
Importance of Digital Transformation in Today’s Business Landscape
Now that we have an idea about what digital transformation is, it is high time to understand the importance of the process in the present business landscape. Adopting digital solutions has become the need of the hour because of the various benefits, some of which are as follows:
a. Improved customer experience: Digital transformation enhances customer experience through AI-powered chatbots that are available 24×7. Customers can get their problems solved by contacting customer care at any time of the day. Moreover, it also provides personalized suggestions based on past purchases.
b. Better data collection: Companies can also access data easily and use it to their advantage. More insightful data gives them the ability to use predictive analytics and be prepared for change. This also places them in a better position against the other competitors.
c. Higher revenue: Digital solutions also increase the revenue of the company that deploys them. They can easily define the expected ROI and compare it with their actual achievement. Higher revenue means higher profits, which can further be used as capital and invested in further production.
Major Digital Transformation Trends
Digital transformation trends define the industry as it helps to stay updated and increase efficiency as well as productivity and transform business operations completely. And that is why companies are very adamant about getting them right to get the maximum out of it. In this section, we will elaborate on 11 key digital transformation trends that will be driving the industry in 2023.
a. Large-scale use of low-code platforms
Many companies are moving towards low-code platforms, one of the major digital transformation trends, which enable businesses that are non-technical to create, develop and use the software. It does not require the knowledge of coding as it uses drag-and-drop tools to create customized solutions. With low-code platforms, companies are also indulging in rapid prototyping, rapid deployment, and new product development.
b. More migration to the cloud
Many companies are migrating to cloud-based solutions to store their data and reduce the unnecessary costs and burden of maintaining them. Cloud technology is also used for outsourcing and the improvement of accessibility. Hence this digital transformation trend enables the company to access data instantly, your employees can make changes to the present state of things from anywhere and at any time.
c. AI and machine learning
The use of artificial intelligence (AI) is becoming widespread such that it is being used extensively to enhance customer satisfaction, improve decision-making, and enable a more rationalist approach. Similarly, machine learning (ML) encourages companies to regularly train and retrain all employees efficiently.
The integration of the two allows companies to strategize the future course of action justly. Moreover, AI and ML can together enhance the performance of employees, and help them learn through data. The best part about this digital transformation trend is that it is available 24×7 and needs no rest!
d. Intelligent search
This is one of the most unique digital transformation trends, which integrates tools like ML, semantic search, computer vision, and even AI to provide customized search results to customers. It uses information about customer behavior wisely and presents recommendations as per their experience.
As per McKinsey, employees spend almost 1.8 hours daily looking for and accessing information. This boils down to 9.3 hours a week. Considering these statistics, intelligent search is a faster, smarter, and more efficient way of catering to the demands of customers.
This digital transformation trend is one of those trends which cannot be ignored. Most companies are tired of doing repetitive tasks and fail to focus on the more important ones because of this. When you adopt automation, it not only relieves you of this stress but also reduces human errors.
As per trusted sources, as many as 80% of the leaders in the corporate world have asserted that they are fastening automation at their levels and moving towards remote labor. This tool enhances performance, increases customer experience, and provides a digital solution for all your problems.
f. Higher investment in Blockchain
Blockchain happens to be one of the key digital transformation trends which marks a shift from traditional business operations. It is being used in almost every industry that one can name, including healthcare, finance, and even supply chain management. It lets users create smarter business contracts and provides a safer environment for sensitive information.
g. Virtual business collaboration
The need for virtual collaborations due to the pandemic-sponsored work-from-home, companies have started investing in virtual solutions. This is one of those digital transformation trends that has entered the sphere post-pandemic, which forced all companies to go digital. The use of digital tools for everything has increased rapidly across the industry.
h. Customer data platforms (CDP)
This is another one of the major digital transformation trends that integrate several software to provide a more customer-centric experience to those who matter. Such platforms enhance customer satisfaction and spot opportunities for the future to help the company grow exponentially.
Most companies are adopting customer data platforms to integrate all their data into one system. CDP empowers them to understand customer behavior and make rational decisions for the betterment of the company. It stores all the data in a unified form and makes accessing the same possible.
Everything as a service or XaaS caters to the needs of customers and provides services and software on demand. It is an extended version of the SaaS model. XaaS allows you to access services like infrastructure, and storage of data from a single service provider.
Amazon is a popular platform that provides cloud storage to its customers, especially on its platform named Amazon Prime. This trend is therefore being adopted by several other companies, as it allows them to offer their services based on monthly subscriptions and there is also an increase in the demand for such content.
With a rise in the use of digital solutions, comes the threat of cyber-attacks on important information like customer data. Since this part of a company is crucial, cybersecurity becomes one of the key digital transformation trends. Technological advancements have increased risks like data theft, data loss, and even hacking of a company’s servers.
Microsoft enabled the “zero trust approach” to reduce such risks. You can also start with some potent strategy or deploy digital solutions that can alert you if there is any attack on your system. It is also advised that companies evaluate or analyze customer data rightly to drive rational decisions.
k. Hybrid Workforce Model
Since the pandemic struck the world, a new model of work has been created which involves working both remotely as well as on-site. This model is called the hybrid workforce model which is increasingly being adopted as one of the major digital transformation trends.
As per trusted sources, about 54% of people who work remotely have accepted that they prefer working in the hybrid mode. This change has been rapid post-COVID-19 and the work-from-home regime. Many companies are using this trend to get the better out of their employees. It gives the workforce ample amount of time to relax and work from the comfort of their homes.
Let us sum up the pros and cons of these 11 digital transformation trends now:
|Digital Transformation Trends||Key Features||Pros and Cons|
|Low-code platforms||1. Suited for non-technical businesses|
2. Creates websites without the need for coding
|Pros: It does not require any prior knowledge of coding.|
Cons: It can be expensive, as it is a rented service.
|Cloud Migration||Used for outsourcing.||Pros: Improves accessibility of data and relevant information.|
Cons: Expensive and prone to cyber attacks.
|AI and ML||Available round the clock.||Pros: Helps understand customer behavior and increases rational decisions.|
Cons: Does not allow the use of unstructured data.
|Intelligent Search||Uses technology to search for relevant data and gives customized results.||Pros: Reduces time wasted in manual search.|
Cons: Too much reliance on technology for even petty tasks.
|Automation||Use of machines through robotic process automation (RPA).||Pros: Reduces human error and saves time.|
Cons: Displacement of the human workforce, and requires huge investment
|Blockchain||Provides a decentralized system and better security options.||Pros: Creates smarter business contracts.|
Cons: Does not allow easy modification of data and can be expensive.
|Virtual business||Companies can create contracts virtually.||Pros: Does not require too much investment and can be done remotely.|
Cons: Lack of face-to-face interaction or personal bonding.
|CDP||Creates platforms to store customer information for later use.||Pros: Helps understand customer behavior and increases rational decisions.|
Cons: Does not allow use of unstructured data.
|XaaS||Provides everything as a service through monthly subscriptions.||Pros: Wider range of services available at the click of a few buttons.|
Cons: It can have performance issues and does not work without prior payment.
|Cybersecurity||Works on the safety of online information.||Pros: Can save important information from being lost.|
Cons: Requires huge investments.
|Hybrid Workforce||A mixture of remote and on-site work environments.||Pros: Increases the performance and work done by employees.|
Cons: Reduces personal interactions and employees may not be willing to work efficiently.
Pros and Cons of Digital Transformation Trends
In this blog, we have discussed the key digital transformation trends that are driving the industry presently. We have created a list of the 11 key trends that each company must deploy for better results. We hope this helps you out!