Increase Your Productivity with 5 Ways of Digital Transformation Current and Future trends

The Covid-19 pandemic has been a major catalyst for digital transformation across all sectors, with companies forced to rethink their digital strategies. As a result, investment in digital transformation is projected to reach $1.8 trillion by the end of 2022 and $2.8 trillion by 2025.

For business leaders, it is crucial to stay aware of new trends and technologies and adapt accordingly. This article presents 5 digital transformation trends and recommendations which can better prepare companies for their digital transformation journey.

1.?????Cybersecurity

????????????Rushed digital transformation is creating security risks. In the haste to move operations online and take advantage of new technologies, many organizations are neglecting security protocols. This leaves them vulnerable to attacks from cybercriminals. To protect your organization, it’s important to take the time to properly assess and implement security measures.

Cybersecurity is a critical issue for businesses of all sizes. By leveraging artificial intelligence (AI) and machine learning (ML), companies can speed up the detection of malware and ransomware. However, this technology can also produce false positives. A combination of traditional methods with AI/ML is therefore a better approach.

Additionally, companies need to change their overall strategy when it comes to cybersecurity. Cybersecurity mesh is a trending new approach to implementing cybersecurity technologies in a modular way. Company managers should also add cyber security experts to the team who are experienced in mesh architectures for better results.

RPA also has implications for automating cybersecurity in your business.

2.?????Upgrading to 5G

5G technology can provide a major boost to companies through its 10-20 times higher speed, significantly larger device connectivity, and 10 times higher benefits. With 5G, companies can speed up the implementation of digital solutions and significantly improve their internet-based software. 5G will be a game-changer for businesses, and those who adopt it early will have a major advantage over their competitors.

Company managers should focus on creating a strategic 5G plan to better prepare the business for future implementation. Another focus should be to create an implementation strategy that includes details regarding the current IT systems, relevant security considerations, and budget details based on ROI. Additionally, companies can also start educating their employees about the technology and the company’s expected results after the implementation.

3.?????Artificial intelligence (AI)

There's no doubt that AI has had a major impact on businesses and industries around the world. In fact, the AI market is projected to reach $126 billion by 2025. That's because companies of all sizes are investing in the technology, in order to take advantage of its many benefits.

For example, AI-based tools allow businesses to recognize trends, make optimal decisions, produce accurate forecasts, and improve operations. As a result, AI is helping businesses to stay competitive and succeed in today's market.

Considering your business needs is important before implementing AI-based tools. While some businesses have the resources to implement expensive AI solutions, others with limited financial resources can leverage AI-as-a-service or AI solutions by Google, Microsoft, and Amazon (AWS).

Implementing Generative AI in creative and R&D departments can also help companies create better content. For example, by using generative AI techniques in pharmaceuticals, a drug was successfully created to treat obsessive-compulsive disorder in less than 12 months. Gartner also predicts that more than 30% of new drugs will be discovered using generative AI by 2025. In addition, Generative AI can also be used in creating designs. For instance, Jacobs engineering created a spacesuit using generative AI techniques. Company managers should focus on understanding and studying generative AI to identify potential implications in their business.

4.?????Business Automation

Automation is another technology that is transforming businesses worldwide. More businesses are now investing in RPA (Robotic Process Automation) to enhance their business processes than ever before. As shown in Figure 3, the global RPA market is projected to increase to $13 billion by 2030, which is a ~1200% increase from 2020. Hyper automation is another discipline that enables digital transformation in businesses.

Test automation is another area that can create digital transformation by shifting manual testing to automated testing.

Companies can leverage hyper-automation to efficiently identify, examine and automate numerous business and IT processes. To effectively implement RPA in your business, check out Prepare and Implement RPA Successfully.

To reduce automation maintenance costs, companies can implement autonomic systems to dynamically modify algorithms and optimize process automation behavior within a workflow.

However, implementing process automation can be expensive; therefore, companies need to have a complete understanding of the scope and ROI before deciding to implement and choose a solution.

5.?????Customer Data Analysis

Customer data is an essential tool for companies when making decisions. CDP software provides a unified customer database that is easy to access and provides real-time data. The pandemic has made the market for CDP even stronger, with projections indicating that it will reach $3 billion by 2025.

Businesses can use CDP to help facilitate digital transformation by providing relevant data regarding customer transactions and behavior (in the form of customer profiles) and fueling the implementation and improvement of digital solutions. For example, automotive companies can combine customer and weather data to create an AI-based predictive model to provide driver accident risk insights. Before implementing CDP, managers should consider which systems already exist in the company and which solutions could be improved with CDP integration. It is also important to clearly define your customer data strategy and the budget you are willing to allocate for the CDP implementation project.