By adopting digital technologies, businesses can implement newer business models and change the way they operate. It used to take years to go from building a technology-driven strategy to implementing it. The majority of businesses’ budgets and resources are spent on KTLO (keeping the lights on), which refers to maintaining existing infrastructure and systems. Businesses adopted the latest digital transformation trends at a quadrupled pace following COVID-19.
By 2022, there will be $1.8 trillion in expenditures on digital transformation technologies, according to Statista. Spending on digital transformation has changed over the years, as shown in the chart below.
In the years between 2017 and 2024, global spending on Digital Transformation Technologies and Services will be:
In 2023, which technologies should businesses prioritise when it comes to digital transformation?
An overview of digital transformation trends for 2023 can be found in this blog.
Top 9 Digital Transformation Trends
A company can win the race of leaders versus laggards by taking advantage of the top digital transformation trends.
Smart IoT and 5G
5G network is a mobile network of the fifth generation. There are a few key characteristics of 5G, including multi-peak data speeds, low latencies, improved user experience, improved connectivity, and an increased network bandwidth.
Innovations can be achieved by combining 5G with edge computing. IBM will, for instance, provide Verizon and Telefonica cloud services for managing 5G networks.
By automating daily tasks using AI, drone-initiated inspections, and video inspections, issues with networks will be avoided.
These are some of the use cases of 5G in the IoT domain:
- Automobiles connected to the internet:- A vehicle can store and initiate bi-directional communication with low latency and high bandwidth using 5G.
- Logistics and shipping:-Shipped items can be tracked easily and accurately. Customer experience will be improved by updating precise delivery timelines.
- Healthcare provided remotely:-Remote patient monitoring will also be seamless with 5G connectivity. It is also possible for health experts to offer assistance at any time and from anywhere irrespective of their location.
The Zero Trust security model maintains strict access controls and does not trust anyone by default, not even those inside the network perimeter.
Cyberattacks have increased as many organizations adopt remote-first cultures. In order to prove resilient, it is therefore necessary to introduce zero-trust security.
A zero-trust, cloud-based security model is already being planned or implemented by organizations. By implementing the new solution, trust, authority, brand reputation, and safe B2B communication can be established.
Application, data, identity, endpoints, networks, and infrastructure can all be secured with zero-trust security.
Zero-trust security consists of three primary principles:
Based on a requirement document, software 2.0 automatically generates source code. Code drafting can be automated with Deep Learning (DL) that builds neural networks.
Business must become proficient in DataOps (Data Operations) and MLOps (Machine Learning Operations) in order to implement Software 2.0.
The purpose of DataOps is to improve the efficiency and accuracy of data analytics activities by improving the quality of the data and the efficiency of the data teams. Alternatively, MLOps fall under DataOps and are responsible for improving machine learning operations, automating them, and enhancing the understanding of business requirements.
Fabrication of data
MarketsandMarkets predicts that the global data fabric market will grow to USD 4.2 billion by 2026.
Data Fabric: What is it? Using an interesting analogy, Gartner explains data fabric. The following are two scenarios involving self-driving cars:
During manual driving, no automated features are usedWhenever a driver loses focus, the automated features automatically correct course
Similarly, data fabric works in a similar way. By making suggestions using the data fabrics, data teams are able to become more productive (as needed). Data experts can hand over complete control of course corrections to data fabrics once they are satisfied with automated course corrections. By managing monotonous tasks through data fabrics, the data teams can focus on their core responsibilities.
Business and IT processes will be largely automated thanks to Hyper Automation. There will be a significant increase in investments in automation, whether it is RPA (Robotic Process Automation), low-code/no-code adoption, or AI and machine learning.
The following are some examples of hyper automation-oriented initiatives:
- RPA (Robotic Process Automation
Automating repetitive work with software robots is called Robotic Process Automation. Business operations are scalable with RPA, and speed to market is increased.
It is estimated that 93% of businesses will deploy RPA by 2023, according to Deloitte.
- Platforms with low-code
API integrations are also made easier with low-code tools, which do not require extensive programming knowledge on the developer’s part.
Using Airtable as an example, you can build applications with drag-and-drop functionality. As a result of Airtable’s popularity and adoption rate, the company now has a value of $11 billion.
Software can be created using “drag-and-drop” features provided by low-code platforms. A non-techie can use it since no coding knowledge is required.
An integrated approach to brand perception is reflected in total experience (TX), which combines customer experience (CX), employee experience (EX), and user experience (UX).
Efforts to transform their business models into world-class customer and employee advocacy will account for 60% of large companies by 2026
Why Digital Initiatives Are Important
- 58 % of companies said they would improve customer service.
- 57 % increase in employee productivity
Many CRM applications (Customer Relationship Management) and CXM applications (Customer Experience Management) can be found online. Customer and employee pain points will be solved with disruptive applications that emerge with the evolution of TX.
Anything-as-a-Service, or Everything-as-a-Service, is the latest trend in digital transformation that focuses on the “as-a-service” model. SaaS, PaaS, and IaaS are the traditional cloud service models, but XaaS expands on these concepts to include:
- Storage as a Service (STaaS)
- Containers as a Service (CaaS)
- Function as a Service (FaaS)
- Security as a Service (SECaaS)
- Unified Communication as a Service (UCaaS)
- Video as a Service (VaaS)
By combining products and services into a single package, XaaS also makes it possible to “Servitize” services. Alexa, Amazon’s AI-driven assistant which offers portable hardware along with AI-driven services, is an example of servitization.
In a recent partnership between HPE and Veeam, XaaS has been demonstrated in the real world. Data protection, data availability, and business continuity and resilience are all areas HPE and Veeam excel in.
HPE and Veeam have forged a partnership that ensures your data is protected regardless of where it is located (on premises or off-premise). A “as-a-service” model is used to offer data protection services.
Artificial intelligence that generates new content using existing content (images, texts, audio, videos) is known as generative AI (Generative Artificial Intelligence).
Generally, Generative AI is best understood as Face apps, in which the user submits his or her image and the app displays how they would appear across various age groups based on the image.
Generative AI can be implemented using three different techniques, including:
- Graph Ansatz Network (GAN): Composed of generative and discriminator neural networks
- Transformers: GPT3, LaMDA, Wu-Dao
- An artificial neural network architecture based on variational autoencoders
Augmented Reality Clouds (AR Clouds) create digital 3D copies of the real-life environment using its spatial properties. In addition to allowing real-time sharing of the experience with multiple users, it is also called the digital twin of any real-world environment.
While AR Cloud’s success will depend on 5G’s maturity, companies such as Facebook, Apple, Google, Amazon, Visualix, and Scape technologies have been investing in AR Cloud.
Organizations undergo digital transformation by implementing digital technologies that cause disruptions and increase revenue. Business growth can be accelerated through promising digital transformation trends every year.
Nine key digital transformation trends were discussed in this blog, including 5G and IoT, zero-trust security, software 2.0, Data Fabric, Hyperautomation, total experience, everything as a service, and generative AI.
You should aim to innovate and introduce a unique selling point (USP) that contributes to quantifying ROIs regardless of what technology you select.
Frequently Asked Questions
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