Published: 19 Aug 2020

Top Digital Transformation Trends to Watch in 2024

Last Updated: 24 Jan 2024

• Digital Transformation
  

Content
1. What is the importance of Digital Transformation?
2. Latest industry statistics on Digital Transformation
3. What are the benefits of Digital Transformation for your business?
4. Latest Digital Transformation trends to look for in 2024
  4.1 5G to lead the boards
  4.2 AI adoption to continue
  4.3 API based integration platforms
  4.4 Digital twins to rule
  4.5 Reimagining customer and employee experience
  4.6 Blockchain to smoothen supply chains
  4.7 RPA to move up the digital transformation charts
  4.8 Smart cities, connected vehicles & drones to become predominant
  4.9 XaaS to take a smooth lead 5. Conclusion

What is the importance of Digital Transformation?

Digital transformation (DX or DT) is a buzz word that has had its own dominance in the recent years and it is gaining immense momentum due to the connected applications and booming mobile devices. Enterprises across industries are at a juncture of the integration of digital technology into all the areas of their businesses with an underlying objective to deliver value to their customers.

Wikipedia defines Digital transformation as the use of new, fast and frequently changing digital technology to solve problems and it is about transforming processes that were non-digital or manual to digital processes. This DX technology is more about how businesses can better connect with today’s digital customers and has been influencing major sectors like eCommerce, banking, healthcare, pharma, supply chain, and many more of them.

DT is not a simple change but an organization wide change that is brought about by people, processes, operations and the use of latest technology. It is more about the integration of digital technologies into all the areas of business operations. Necessarily, it is the integration of information and data from one end, and technology and mobility from the other end. These together when embedding into an organizations business strategy, are bound to deliver a better digital customer experience.

Therefore, every business has to ensure they transform their approach more towards engaging and enchanting their customers with scalable and high performing digital applications. The process of digitization helps businesses to better track their operations, enhance productivity, augment effective digital strategies and deliver great experience to customers.

Latest industry statistics on Digital Transformation

–> According to Meticulous Research publication in Globenewswire, “The digital transformation market is said to be $3294 billion by 2025, growing at a CAGR of 22.7% from 2019.”

–> According to Markets and Markets, the global digital transformation market size is expected to grow from USD 469.8 billion in 2020 to USD 1009.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 16.5%. Major growth drivers of the market are the increasing penetration of mobile devices and apps and the increasing adoption of cloud services.

–> According to a Forbes article, 70% of companies have a digital transformation strategy in place or are working on one. 21% companies think they have already completed digital transformation. Nearly half of all companies say improving customer experience and customer satisfaction were the leading influences to start a digital transformation.

The digital transformation success has been stated as, companies that earn $1 billion a year, earn an additional $700 million over three years, by investing in customer experience. 56% of CEOs say digital improvements have led to increased revenue.

–> According to Grand View Research, “The global digital transformation market size was valued at USD 284.38 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 22.5% from 2020 to 2027.” Digital transformation holds the potential to streamline and integrate all business operations for increasing business performance efficiency.

What are the benefits of Digital Transformation for your business?

– Transforms customer experience by delighting customers with user-friendly applications

– Ensures to deliver better insights with data driven metrics and predictive analytics

– Ensures to develop customer aligned digital products and services

– Helps to achieve culture change with greater collaboration between departments

– Leads to increased agility and speed across the entire organization

– Delivers greater resource management and fosters a digital culture across the channel

– Opens new doors for increased transparency and opportunities with better collaboration

– Delivers more improvised dashboard insights with advanced data analytics

– Paves way for continuous improvement across the organization and a new way towards innovation

Latest Digital Transformation trends to look for in 2024

Businesses across industries should be well aware of the below digital transformation trends which are likely to dominate the digital world.

1. 5G to lead the boards:

This 5th generation mobile network (5G) is supposed to be the most expected trend in 2020 as big telecommunication providers are already working on its deployment and is likely to rule the world.

This technology will be used in recent technology advancements such as smart manufacturing, smart vehicles, and smart cities. It is also likely to revolutionize the other industries such as education, healthcare, agriculture and other business sectors in a huge way. This 5G accelerates the digital transformation journey by transmitting huge amounts of data with extremely high speed to deliver data at unimaginable speed.

2. AI adoption to continue:

The Artificial Intelligence (AI) adoption across enterprises will be up by 10% according to a research and such businesses will hold twice the market share of those that don’t adopt this technology. Evidently, AI and machine learning (ML) are the DX trends that are going to penetrate into more industry fields. This technology is said to revolutionize the healthcare industry, education, marketing, retail, eCommerce, recruitment and human resources, and many more others.

3. API based integration platforms:

Undoubtedly, it is the multi-cloud strategy which is the way forward for businesses that helps to maintain a balance between cost effectiveness, versatility of operations and security. The most promising solution for businesses is the utilization of application programming interfaces (APIs) to expose application’s connectors which other systems can use to exchange data.

Organizations can use EiPaaS (Enterprise integration platform as a Service) tools which will become the new norm for most mid-sized and large-sized organizations. Going forward, using API based integration is likely to become the very survival mechanism for organizations.

4. Digital twins to rule:

These digital twins are digital representations of real-world objects which by using sensors embedded in physical objects can automatically process data and visualize it. These digital twins are highly useful in supply chain management and manufacturing industries as they help enormously in reducing costs in supply chains.

Typically, the collected data is mined to get insights and patterns using advanced analytics and machine learning algorithms. These algorithms can predict outcomes based on reading historical data and can be used to identify various downtimes, malfunctions or quality errors across applications.

5. Reimagining customer and employee experience:

Most of the online eCommerce channels are relying more on transforming consumer experience by ensuring single click ordering, quick deliveries and personalized shopping experiences. Businesses are more focused towards improving customer experience with new innovative ideas, and ensure how digital can help in achieving it.

Forbes in one of their article on digital transformation trends that will shape 2020 states that: moving forward, digital transformation will be less about traditional benefits like cutting costs and more about reimagining experiences for customers, employees and partners.

6. Blockchain to smoothen supply chains:

Blockchain technology is all said to play its role in repairing the broken economy due to the pandemic by aligning the supply chains to fix them by processing and verifying transactions quickly and efficiently. In April, the Department of Homeland Security named blockchain an essential technology for fighting COVID-19 and repairing the broken economy.

7. RPA to move up the digital transformation charts:

Robotic process automation (RPA) with its intelligence process automation is likely to rule as lot of investment is placed in it to ensure software driven automation with the help of AI. By automating repeatable tasks by robots, it reduces the time on showing how something really works. This technology will show its own place in the development of smart cities and automated cars which will be the future technology innovations to rule the world.

8. Smart cities, connected vehicles & drones to become predominant:

Undoubtedly the usage of RPA, AI, ML and other digital technologies to build smart cities, driverless cars and automated drones will rule the digital innovations. Various digital technologies can be used to improve the infrastructure of cities, improve energy usage across segments, help in security and improved mobility across digital channels.

The simplified access to various real time data improves and simplifies human lives with various IoT connected devices as digital is invading humans to make tasks easy.

9. XaaS to take a smooth lead:

This is a new trend where everything as a service (XaaS) via cloud over the internet will be the new norm with growing trends of DX.

Saas (Software as a Service) & PaaS (Platform as a Service) have already been in use for some time now, but XaaS has so many more benefits both for businesses and customers which includes scalability of processes with cost effectiveness with no CAPEX and OPEX. This way of everything as a service will ease the way services are offered to digital businesses.

Conclusion

Digital transformation is the way forward for businesses as it helps organizations in improving their customer experience along with theirs, and streamlines their operations to save time and efforts. There are many benefits businesses get by leveraging DT, and it is recommended to integrate new technologies into their everyday business operations. Leverage next-gen testing services digital testing services to get digitally suitable products that are bound to deliver great value to your customers.