Digital transformation is not a new buzzword. Enterprises have been on the path of digitalization for many years. However, digital transformation has seen acceleration over the past two years owing to the pandemic, as it highlighted the urgency for companies to adopt emerging technologies.
As of 2022, we can clearly say that the digital transformation era has arrived. It is projected that the global digital transformation market will grow from $469.8 billion in 2020 to $1,009.8 billion by 2025, which is around a 16.5% Compound Annual Growth Rate (CAGR). The rapid shift towards digital transformation is urging companies to quickly transform their business strategies to remain competitive and fulfill customer expectations. This implies that companies should remain in the loop with the latest and future trends in digital transformation. Therefore, this blog will closely look at what the future of digital transformation is expected to look like.
The Future of Digital Transformation
It is not easy to predict what will be the future of something when the world is experiencing many historic events, such as the COVID-19 pandemic, record-breaking inflation, hikes in global interest rates, etc. However, the way digital transformation has grabbed the attention, its rate of adoption and enhancement will grow exponentially with every passing year. As per the Foundry’s 2021 Digital Business study, 91% of organizations have either adopted or have plans to adopt the digital-first business strategy. So, let’s explore the 6 key digital transformation future trends that are/will cast their impacts aggressively:
- Multi-Cloud Adoption
Companies are actively shifting from on-premises resources to cloud services, as cloud technology globalizes the business operations and allows employees to access, work, and collaborate from anywhere. Moreover, the cloud also provides access to low-cost and infinite storage space. However, cloud adoption is now shifting towards multi-cloud, which implies that companies take services from multiple public cloud services to fulfill their business needs. As per the Flexera 2022 State of the Cloud Report, 89% of the surveyed organizations are implementing multi-cloud strategies. The multi-cloud approach helps companies to become more agile, elevate security, improve network performance, and enhance risk management.
- Blockchain Technology and Metaverse
When we talk about blockchain today, it is mostly associated with cryptocurrencies. But blockchain also has roots in the business community, such as enhanced security due to its immutable records. However, companies are currently struggling to implement blockchain due to some complications, such as managing supply chains, handling transactions, etc. However, blockchain technology is here to stay and shows promising signs of adoption at a rapid pace. Similarly, the growing buzz around metaverse – the fictional universe – is also on an exponential growth with the target to become an $800 billion market by 2024.
- Hybrid Work Model
The daily business operations have shifted to a new normal with the pandemic. Even post-pandemic, remote working is not going away anytime soon. In fact, organizations are focusing to become more flexible and agile in it and that’s what employees want as well. As per the Gallup survey, 54% of employees who worked in a remote environment like to split their work schedules between on-premises and remote working. This hybrid work model is on the rise and is expected to become more popular in the future.
- Investments in Artificial Intelligence and Machine Learning
As of today, AI-driven marketing tools are becoming popular. AI is being used to elevate the capabilities of sales and marketing tools, such as assisting in creating a personalized content experience. That’s why companies are opting for AI-based technologies in their digital transformation journey. Moreover, the efforts to automate tasks, get advanced insights, and improve productivity are all encouraging companies to invest more in AI and ML.
- Digital Banking
The banking sector was hit badly by the COVID-19 pandemic, as the strict lockdowns and SOPs urged the banking sector to provide digital solutions to customers. Moreover, it also led to the formation of new digital banking platforms in many parts of the world. Therefore, more digital transformation is expected in the banking sector to streamline digital banking and elevate customer experiences.
As companies are shifting their manual processes to digital activities, cyber-attacks are also growing aggressively. Cybercrimes are expected to cost the world $10.5 trillion annually by 2025. This growing concern around cybercrimes has urged companies to strictly adhere to cybersecurity policies. Therefore, we will witness more investments and emphasis on cybersecurity in the future.
Digital transformation is the need of every business from startups to enterprises. With active response and the adoption of digital changes, companies can stay ahead of their competitors and offer a better user experience. Moreover, the rapid pace of technological advancements is also signaling constant changes in the digital transformation landscape. In short, the world is going to experience many new and prominent trends in digital transformation in the near future.