Digital transformation refers to using digital technologies to create new business models and change how businesses operate. The impact of COVID-19 almost quadrupled businesses’ adoption of the latest digital transformation trends. The entire process of implementing a technology-driven strategy and building it would have taken years. Companies spend 80% of their budget on maintaining existing systems and infrastructure.
Suppose organizations want to remain competitive in this rapidly changing environment. In that case, it is high time to change their strategy and accept changes that will significantly impact customer experience. Organizations must adapt quickly to stay competitive in this constantly changing environment. This requires remaining current with the latest digital transformation trends.
Digital transformation is the process of moving to digital systems that are more efficient, scalable, and affordable. This could be simply the conversion of old designs to third-party solutions that make them more efficient to use. Digital transformation requires restructuring to improve business operations.
Here are some examples of digital transformation in action:
• Transitioning to advanced telecommunications.
• Migration of systems to the cloud
• Machine learning adoption.
Businesses can use digital transformation to improve their operations. Companies and enterprises can reap the benefits of digital transformation beyond a general upgrade.
Why Should Businesses Adopt Digital Transformation?
Businesses all around the world are increasingly turning to digital transformation. It’s not the first time you have heard about it, and it won’t be the second. However, if we keep hearing the same term repeatedly, it can lose its meaning. So why should businesses think about adopting digital transformation strategies?
What are the benefits of integrating a digital transformation approach in your business environment? Most businesses know they need to start their digital transformation journey but don’t understand why. As you begin your digital transformation journey, here are the top benefits of integrating Digital Transformation Managed Services
in your business environment.
Lower Operational Costs
Businesses can cut operational costs by automating most IT operations, internal business tasks, and marketing strategies. Automation helps companies save time and money while concentrating on the core projects that drive business value.
Organizations will spend less time on repetitive or minor tasks that are more likely to result in costly human errors and can instead focus on improving customer experience.
Enhanced Work Efficiency
Businesses can reduce costs and streamline operations by integrating multiple digital platforms in a single workflow. Digital transformation can also help companies maintain accurate inventory levels thanks to detailed reports and intelligent analytics tools. Digital transformation also leads to increased sales.
Brands can connect with customers in new ways through digital technology, which makes it easier for consumers to find what they need online. According to research, digital solutions are more effective at growing companies than those that do not. This can be as high as 18%.
Enhanced Customer Experience
Products and services are essential. But, it is equally important to consider factors like customer experience and how they interact with the brand. Customers have many options today. They are armed with information and can access it easily via the internet. They look forward to a great customer experience, regardless of which brand they work with.
Digital transformation includes several elements, such as prompt customer service via automated Chatbots and personalized content through data analysis tools across multiple online platforms. This helps companies improve the customer experience and enhance their customer journey.
Scale as Your Business Grows
There is a myth that digital transformation is only for large business enterprises, and small businesses or start-ups cannot take advantage of it. It is incorrect. You can scale your business and save money by bundling digital transformation tools. Legacy systems that aren’t designed to scale can become a barrier to your business, leading to lost opportunities and expensive re-platforming. Your competitors will have the chance to gain an edge. Combining digital tools creates an efficient but cost-effective toolkit that scales with your business.
Protect and Control Data
Many companies are adopting digital transformation due to increasing digital data breaches. Data protection is essential. Although some people may be skeptical about cloud computing, top cloud providers are required to ensure strong security, privacy and governance features. Data security is the ultimate responsibility of every business.
Organizations have no excuses when it comes to protecting their data with the help of modern technology. An improved security posture is often one of the most important outcomes of a successful digital transformation. This allows businesses to secure their devices and back up their data in security emergencies.
With an effective IT digital transformation, you’ll be able to respond quickly to market changes and customers’ needs. 2020 was the most disruptive year in business practices in a long time. Times like this highlight the importance of partnering with digital transformation companies for adaptability and flexibility in business. There are lots of Digital Transformation Benefits. Choosing the right software and integrating it properly is essential so your business can be more flexible during a transformation.
12 Predictions for Digital Transformation in 2022
The speed at which the technology advances assures no sign of slowing down in 2022 and beyond. And as a business owner, you must remain aware of emerging digital transformation trends. It will help your business enhance customer satisfaction and productivity to gain a competitive advantage over your competitors. To help you out in this situation, we have curated a list of top digital transformation trends that you should watch out for in 2022. So buckle up!
Low Code Tools to Overcome Labour Shortage
For most businesses, the DevOps skill shortage is still a significant issue. According to US Bureau of Labor Statistics reports, there will be a shortage of around 1.2 million developers by the year 2026. Low-code or no-code app development tools have emerged as a savior to overcome this.
For the last few years, low-code software development tools have been a source of creating business solutions in the IT community. The myth that low code tools will replace the developers is also fading away as these tools have become a helping asset for the developers.
With these tools, businesses can quickly solve more straightforward internal problems that take too much time. Hence, they can focus on core, higher-quality tasks to ensure better productivity.
Low-code tools allow developers to solve complex problems quickly, which usually takes too much time. Hence, companies can focus on higher-quality tasks for enhanced productivity. By integrating low-code software and hiring professional developers, organizations can work on increasing digital impact to gain a competitive edge in the market.
Hyperautomation Takes Over
There is no doubt that hyper-automation is becoming a crucial factor of digital transformation for businesses to automate most of their tasks. Being an essential part of digital transformation, it has become one of the simplest ways to achieve stability with reduced costs.
AIOps is one of the digital transformation sectors that has accelerated hyper-automation. Organizations use AIOps solutions to centralize business data and leverage algorithms to aggregate system failure alerts.
Cloud-based solutions have many benefits, including cost savings, scalability, and ease of use. Many companies are switching to cloud-based software instead of traditional on-premises solutions. Cloud-based business applications are more cost-effective and efficient than standard on-premises software.
Companies and businesses that use digital technology need to have better data security. Hackers are becoming more sophisticated, and so is technology. Therefore, it is essential to increase data security.
Cloud-based services offer enhanced cyber-security features that keep data secure and help companies stay safe. Digital innovation will make it a priority for businesses to use cloud solutions for data protection in the upcoming years.
Everything as a Service (XaaS)
Everything as a Service (XaaS), one of the most important digital transformation trends, is expected to continue to gain traction through 2022. XaaS allows organizations to offer their products or services as subscription-based services. Cloud computing and remote access are covered by a wide range of services, including software as a Service (SaaS), platform-as-a-service (PaaS), infrastructure service (IaaS), communication as a Service (CaaS), and network as service (NaaS), etc.
Because many IT resources and services can now be delivered this way, XaaS has become an ironic name for cloud services. Companies were forced to install and buy the license of software before cloud computing and XaaS were introduced. Businesses can now cut down on costs and get exactly what they need to run their business.
Data-Driven Business Management
Digital technologies produce a large amount of easily tracked and accessible data. This data can be used to provide valuable business insights if it is handled correctly. Even companies familiar with digital transformation don’t always make the most of their data.
In 2022, this trend will likely change as Digital Transformation Services will be in high demand as the need for data-driven services increases. Companies are increasingly shifting to data-driven business management and looking for ways they can encourage a data-centric culture in their workplace.
Increased CDP and CRM Adoption
Customer expectations for digital experiences and brand services have never been higher. People expect a consistent experience when interacting with brands online. They also want to feel valued by the brand. The opposite can lead to disappointment and frustration and cause clients to leave.
Businesses should use customer data platforms (CDP) and customer relationship management tools (CRM) in 2022 to stay in touch with clients and deliver a great customer experience.
Businesses can use customer data platforms to gain insight into the behavior of their clients and how they use their products. This knowledge allows the company to improve customer onboarding, identify product problems, and reduce customer loss.
CRM tools, on the other side, collect information about customers’ profiles and interactions with the company throughout their lifecycle.
Organizations must adopt Agile and DevOps principles to improve employee, customer, and developer experience and democratize innovation.
We are seeing more companies consider how their organizational structures and team topologies can be restructured to support mature value streams and product teams. This would allow organizations to focus on their transformation beyond technology domains by leveraging the best of Agile, DevOps, and product-focused thinking.
Democratization of AI
The democratization of AI can accelerate digital transformation within businesses, making it one of the most important digital trends for 2022.
Another way to put it is that democratizing AI means making it available to all organizations and, if possible, all people within those organizations.
This includes using AI-based tools for spotting and recognizing trends, making decisions, forecasting, learning and improving. All companies, whether large or small, tech-savvy, will attempt to integrate AI into their systems and processes.
Some may not have the resources necessary to integrate this technology. Still, others can get started with their AI journey by using AI-as service providers and AI solutions offered by companies such as Google, Microsoft and AWS.
Digital Workplace Tools
In 2022, the hybrid working model will be the norm. It allows employees to split their work hours between the office and home. The hybrid model can be fully remote, with frequent office visits and everything in between, depending on the employees’ preferences and company policy.
Everyone around the globe has had to try this method because of the pandemic. The results are encouraging and show that it may not hurt productivity.
Companies are using digital workplace technologies to support this type of work arrangement. This allows employees and management to organize their day, keep track of progress, and stay connected regardless of where they may be.
Internet of Things
The Internet of Things (IoT), which has the potential for digital transformation within businesses, is one of the most important trends in digital transformation for 2022. They can also be connected to exchange data. These data can improve efficiencies, create new business models, or provide better customer experiences.
Businesses can use IoT technology as a key to digital transformation since it is becoming more affordable and easy to deploy. Gartner predicts that the Internet of Things in 95% of new product designs by 2025 will be part of the latest products. The falling cost of IoT devices, increased computing power and decreasing sensor prices are the main drivers of their proliferation.
As the Federal Aviation Administration (FAA) and 5G carriers struggled for agreement on 5G safety on aircraft, 5G was slowing down at the beginning of the year. They have now agreed to allow 5G to grow faster than ever.
What does this all mean for businesses? Employees and customers expect better digital experiences due to the fast-paced transition into a 5G-driven age. This will require investments in 5G technology. 5G internet speed will make digital experiences more enjoyable than ever. Tech companies will continue to encourage employees to work remotely.
Consumers will also expect better, more data-driven services as AR/AI becomes a reality during the 5G era.
Augmented Reality Cloud
Beyond all the trends mentioned above, augmented reality (AR cloud is emerging as one of the most crucial predictions for digital transformation. AR-Cloud is referred to as digitally augmenting real-world surroundings. With AR Cloud, organizations can improve internal communications and connections across their business ecosystem. One great example of AR Cloud is Pokémon Go.
The Key Takeaway
With each passing year, new digital transformation trends are emerging that have the potential to drive business growth. Businesses are adopting digital technology to drive revenue and trigger disruption.
Be aware that digital transformation is more than technology when you create a digital strategy. It is not as simple as choosing technology and using it. You must establish concrete goals and partner with professional Digital Transformation Consultants to define your company’s digital strategy. It will help you in reaching your business’s digital transformation goals and make better decisions regarding your digital strategy.