Businesses, irrespective of size or type, are adopting digital transformation companies. Each business is adopting digital technologies to help customers and clients offer better products and services.
Earlier, it would take years to complete the end-to-end process of developing a technology-driven strategy and putting it into practice.
Businesses frequently dedicate 80% of their budget and resources to KTLO (keeping the lights on) or the upkeep of their current infrastructure and systems.
Statista projects that in 2022, spending on digital transformation technology will amount to $1.8 trillion.
What is Digital Transformation?
Digital transformation involves utilizing digital technology; it helps build new corporate practices, cultural norms, and consumer experiences.
Furthermore, it involves adapting corporate tactics for the digital age by using emerging technology.
In contrast to traditional attitudes and strategies, the goal of digital transformation is to turn attention away from sales and customer service and toward the actual customers.
Regarding corporate goals, customers are a high priority, and firms build their goals on what customers require.
Web and mobile apps are warmly welcomed as part of the digital transition, replacing paper documents. As a result, corporate functioning turned into a sustainable approach.
It has been found that online shoppers prefer to do their business online and that, in 2020 alone, 80% of consumers engaged in online shopping.
Why does digital transformation matter?
Now that you are familiar with the idea of digital transformation and its purpose, it is important to know why your company should adopt the trend. Some of the reasons are:
- Modern Necessity
- Help to improve customer satisfaction
- Help with easy collaboration
1. Modern Necessity
We live in a contemporary, digital, and sustainable environment. Thus, it is vital to adapt to this digital change.
Organizations must adjust to digital transformation trends to make a major shift from a traditional to a modern environment and maintain market competitiveness.
Since circumstances change throughout time, so should tools and tactics. Organizations must invest in the new development of digital changes to be competitive in the market.
2. Help to improve customer satisfaction
The fact that the level of client happiness increasingly defines company outcomes is another reason you need to work towards digital transformation.
Organizations now run digitally and use new technologies to do more in less time and give clients better service.
You can follow the development of successful businesses and see that they have appreciated their users through time.
Due to increased market rivalry, consumers favor businesses that respect their needs.
3. Help with easy collaboration
Digital transformation includes internal interactions, such as staff communication, cooperation, and relationships with the outside world.
Artificial intelligence helps build effective communication within your firm, regardless of business model or company size.
By utilizing digital solutions, businesses can coordinate with their team members and guarantee that each assignment is completed by the deadline.
Top digital transformations trends to follow in 2022
- Increase in the use of Customer Data Platforms
- Hybrid Working Environment
- High-end Cybersecurity
- Multi-Cloud Architecture
- Intelligent Search
- Increase in Democratization of AI
- Digital Payments Combined with Virtual Solutions
- Complete Automation
- Integrated Agile, DevOps, and ITSM Platforms
- The Use of Total Experience
- Software 2.0
1. Increase in the use of Customer Data Platforms
There is hardly any company that doesn’t gather customer data. As a result, there is more information than ever available to businesses.
Companies can gather all kinds of customer information, whether interacting with the business or buying one of your goods or services. This is true for both small and large businesses.
The only distinction is how this information is put to use to understand consumer behavior and wants.
Smaller businesses with a constrained team wouldn’t have a problem with this.
However, extracting information from such a large data pool can be challenging for organizations with diverse products and clients.
This is where CDP comes into the role. To develop more individualized and interesting marketing efforts for your customers, you can use a customer data platform (CDP), a single source of customer data.
CDPs would seem to be exclusively the domain of the marketing division, but this is not the case.
The finance and IT departments can use CDPs to quickly decide on services, goods, and other investments for the organization.
2. Hybrid Working Environment
Hybrid working is a flexible work arrangement in which individuals alternate between working part-time in a virtual office and working part-time from home or another place.
It is a working environment that many businesses provide. As a result, there has been a steep rise in this working method post-pandemic.
Business executives have been managing the pandemic emergency in their daily operations for the past two years.
One of the methods implemented at the beginning of 2020 due to government rules against the pandemic was the work-from-home approach or remote work culture.
Digital transformation plays a major role in this process. Several transformation attempts have been launched to address the growing problem of how to work remotely and still be productive and efficient.
In addition, business leaders have been using hardware and security solutions to help employees stay on top of their jobs and responsibilities.
3. High-end Cybersecurity
For not many years, the digital transformation started as an avant-garde method of process and product development.
Companies have started accelerating projects like DevOps as part of their quicker go-to-market strategy. However, security was one item that was removed at the time.
Gartner estimated that the inability of security teams to manage digital risk would result in catastrophic service failures for 60% of digital organizations by 2020.
In the last few years, cyber-attacks have increased in recent years. In 2020, there were around 445 million cyber-attacks.
Hence, to reduce the issue, companies are investing in CISOs (Chief Information Security Officers) to manage risk, and they place cybersecurity at the top of their priority list.
4. Multi-Cloud Architecture
A multi-cloud architecture is when one or more private or public clouds are used to distribute software and workloads within an enterprise.
The COVID-19 scenario has prompted a drive for multi-cloud architecture adoption that helps reduce the business’s continuity risk.
In addition, businesses want to manage the current working model more efficiently, which places a more significant focus on security and facilitates remote work.
Disaster recovery, the need for data residency, and resilience are just a few of the many reasons why a multi-cloud strategy is now vital for businesses.
Moreover, businesses must look for cloud management and automation solutions to help them manage their numerous cloud environments.
They can use these to test new delivery models and meet agility requirements.
5. Intelligent Search
Other names for intelligent search include cognitive search, natural language search, and AI-powered search.
Smart search is made possible by artificial intelligence development companies, which breaks down data silos and enables customers and employees to get the information they require in under a second.
Using the intelligence search, the user can retrieve any location or data set, including large data in databases, document management systems, etc.
But how do an intelligent search and conventional search engine searches differ from one another?
In many cases, your inquiries about doing business go unanswerable by search engines like Google, Bing, etc.
Intelligent search is a crucial component of any digital transformation strategy. However, a collaboration between knowledge and data sharing is difficult to keep up in both situations.
As a result, the adoption of intelligent search in digital transformation will continue.
6. Increase in Democratization of AI
One of the significant developments in digital transformation for 2022 is the democratization of AI, which can speed up digital transformation within a company.
In simpler words, democratizing AI means making it available to every company and, ideally, every individual working there.
The process entails utilizing AI-based tools to identify trends, forecast, and improve. Every business, from huge enterprises to tech-savvy startups, will attempt to integrate AI into its systems and procedures.
The integration of AI into the healthcare sector is an excellent example. Tech enthusiasts claim that there has been a massive change in the healthcare industry post-implementation of AI.
7. Digital Payments Combined with Virtual Solutions
In digital transformation, restaurants and cafés create contactless ways to collect consumer orders.
It includes both in-seat and online ordering for delivery or takeout of food.
In-seat ordering is a technology that allows patrons to purchase meals from their seats using a smartphone app rather than standing in line or skipping the performance in theaters and convention halls.
Customers can browse menus, order meals, and pay using their phones while seated using QR codes.
Similarly, using digital payments is a terrific way to avoid speaking with anyone in a store. Anyone or any business can participate in the digital economy.
One of the many digital transformation initiatives in the banking sector includes digital payments.
According to Statista, the total value of transactions in the digital payments market is anticipated to reach $6,685,102 million in 2022.
8. Complete Automation
Automation and digital transformation go hand in hand. It is mostly explained by the fact that when one technology is adopted, the other inevitably follows.
By automating, businesses will quicken the rate of digital transformation, bringing massive change. Digital transformation is the outcome, whereas automation is the process.
Another factor driving firms to prioritize automation is COVID-19, especially those working in manufacturing and other auxiliary industries.
The World Economic Forum reports that 80 percent of CEOs are accelerating efforts to automate business procedures and introduce new technologies.
We can also anticipate automation in other sectors, like cybersecurity and retail.
9. Integrated Agile, DevOps, and ITSM Platforms
IT service management (ITSM) involves controlling the complete delivery of IT services to clients. To put it simply, IT teams use repeatable procedures to respond effectively to end-user needs.
Automation and integration are crucial digital changes for companies across various industries trying to upgrade their DevOps, ITSM platforms, and agile workflows.
Therefore, your IT department must provide services to your business satisfactorily and appropriately.
ITSM includes fundamental tenets of agile software development, including frequent delivery, consistency, and simplicity.
In addition, users and processes can be aligned using agile ITSM technologies.
A self-service support desk is one of these options, made possible by machine learning technology.
For every company, data is crucial, but it needs to be sorted and analyzed to be fully utilized.
Then, you can use smart data analytics to mine the processed raw data for useful information.
As a result, it enhances decision-making and boosts the organization’s productivity.
Data and analytics will play a crucial role in the coming future for companies to accelerate digitization and digital transformation activities.
According to Gartner, 90% of company strategies in 2022 would specifically include information as a crucial business asset and analytics as a critical capability.
Moreover, it will affect different departments, bringing a significant change in the process.
11. The Use of Total Experience
User experience (UX), customer experience (CX), and employee experience (EX) are three essential aspects of creating a total experience (TX), which improves brand impression on an all-encompassing level.
In addition, you’ll observe the development of disruptive applications as TX progresses that address the problems customers and employees face.
12. Software 2.0
Technology in Software 2.0 uses the requirements specification to generate source code automatically.
Deep Learning (DL), which aids in developing neural networks for automated code drafting, helps accomplish the task.
To deploy Software 2.0, firms must learn about DataOps (Data Operations) and MLOps (Machine Learning Operations).
Data teams use the DataOps approach to enhance the accuracy and efficiency of their data analytics operations.
However, MLOps, a subset of DataOps, aids in improving machine learning processes, bringing in automation, and focusing more on comprehending business objectives.
The digital transformation in 2022 is highly applicable in IT departments, tech firms, and other fast-growing industries.
Utilizing solutions that give companies access to these technologies can help firms move toward an innovative, digital, automated, and modern future.
The result would be an overall success in meeting market demands, dominating the present competition, preserving customer delight, and sustaining productive, aligned teams. In addition, promising new trends in digital transformation can speed up corporate growth.
However, the process of selecting and implementing technology is not an easy job. Before developing the company’s digital strategy, you must establish specific objectives and declarations.
It is the right time when you need the right digital transformation company or assisting hands to handle the implementation of digital transformation jobs.