Humans are curious by nature. The desire to experiment and explore is built into our DNA. Organizations must also maintain the same desire to discover new and profitable business models with a spirit of continuous improvement.
The world of industries and the global market will be completely transformed by digital transformation in the coming years. Over the last five years, an increasing number of businesses have made the transition to digital. Many of them are involved in large-scale industry-wide changes. By 2025, global spending on digital transformation technologies is expected to reach 2.8 trillion dollars. This represents a 40% increase over the next three years. The performance of industrial and business operations from remote locations has been one of the most important trends in this digital integration.
Change is difficult, but it is required. With the support of digital transformation, businesses are redefining and empowering themselves. IKEA, a Swedish furniture company, is a success story in this sense. IKEA adopted digital transformation after seeing the wind of change. It forayed into the smart home market by developing new-age products.
Companies must formulate smart strategies to keep up with the pace of technology and information. This can be triggered by various factors, most of which can occur concurrently.
• Digitizing Core Operations
• Promoting Tech-Savvy Leadership
• Upgrading IT Infrastructure
• Creating The Workforce of The Future
These developments are already influencing how organizations engage with consumers and each other, ranging from adopting clever technologies like Artificial Intelligence (AI) and Machine Learning (ML) to Cloud-based platforms.
Modern technologies enable businesses to provide better personalization and more efficient ways to present their product portfolio to potential customers. Various statistics highlight the significance of this phenomenon.
According to International Data Corporation,
• By 2023, 60% of leading CEOs will have shifted their management focus to innovative digital solutions.
• By 2023, 75% of organizations [up from 27% today] will have comprehensive digital transformation implementation roadmaps.
• By 2025, 75% of business leaders will use digital platforms and ecosystem abilities to improve adaptability and future-proof their platforms.
The right digital imperatives can help organizations and governments drive transformations that align with their overarching goals while remaining flexible in the face of future strategy changes. When it comes to bridging the digital divide, e-governance will play an instrumental role in developing a citizen-oriented, equitable digital society. According to recent findings by United Nations, quality of life will directly correlate with the level of e-governance services offered by the countries.
One of the major market trends is anticipated to be the increasing demand for blockchain-as-a-service (BaaS) based cloud platforms among large organizations. The global BaaS market was worth USD 1.90 billion in 2019 and is expected to be worth USD 24.94 billion by 2027, growing at a 39.5% CAGR during the forecast period.
[Read More: Steering the Digital Transformation in Education]
According to PwC research, over 50% of organizations believe that Immersive Customer Experience, Accelerating Tech Adoption, and Effective Change Management will be the key factors in digital transformation efforts. These factors will play a significant role in differentiating smart companies from the rest in the coming years.
Let’s explore them in depth,
1. Accelerated Tech Adoption- Businesses can achieve more by shifting their attention to digital acceleration and adopting modern technology. Cloud services, 5G, Machine Learning (ML), and Artificial Intelligence (AI) have accelerated the automation and digitalization of core business operations while delivering new insights and possibilities. It is clear that these transformational technologies are not isolated from each other, and their boundaries will be blurred as time goes on.
2. Immersive Customer Experience -Immersive Customer Experience is described as a holistic brand experience - across all touchpoints and throughout a customer's journey with a brand. Traditionally, the job of technology in this context has been to simplify operations and reduce hassle in the consumer's life. Consider recommendation algorithms that assist us in deciding what to buy or customer care portals that handle issues. These will continue to be important in 2023, but the game has changed with the introduction of Metaverse. It's time for businesses to board the virtual train and become early adopters before it departs. While the metaverse is becoming the next frontier for boosting client experiences, widespread adoption and accessibility will be crucial.
3. Effective Change Management - Change Management aims to adopt strategies for implementing, controlling, and assisting people during organization-wide change. It is one of the most important strategies for ensuring a successful transformation, which is probably why CIOs are now one of the most coveted and compensated people in business today. According to McKinsey & Company, employee resistance and a lack of management support cause 70% of Change Management efforts to fail. The ability to address and adapt to change within an organization will be a critical component of survival for many modern businesses as we move into the more competitive era of digitalization.
To transform themselves in a world of seemingly infinite unknowns, businesses are establishing initiatives that can effectively identify, analyze, and incubate digitization. They are also exploring new opportunities and leveraging advanced technologies to chart a course to the next horizon.
The future will be about more than just technology. It will include the incubation of technology, purpose, and balance, which will drive people's growth and business strategies. Business leaders are betting big on intelligent environments, which will bring a new level of sophistication to the physical realm. As a result, it is critical to look beyond just the hype surrounding digital transformation and discover how they are shaping our future.
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