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Top digital transformation trends for 2023

What is digital transformation?

The process of digital transformation is how firms integrate technologies into every aspect of their operations to bring about profound change. The road to digital transformation can take many different directions, and each organization’s journey will be different. To improve its client experience, a business might implement AI or cloud computing, for instance. Alternately, it might restructure its supply chain to better utilise machine learning.

For the majority of businesses, digital transformation necessitates a change from conventional thinking to a more collaborative, experimental strategy. These new approaches to work lead to fresh ideas that, in turn, can enhance customer satisfaction, encourage staff creativity, and promote fundamental business success.

Why is digital transformation so important?

How businesses operate is being redefined by digital change. Businesses are experiencing cost savings and rising profitability because to better data collecting and a better customer experience. The movement toward digital transformation will pick up speed. IDC forecasts that by 2023, digital transformation will get 53% of all IT investments.

In just the previous ten years, technology has rendered many items obsolete or almost so, including paper maps, film cameras, landlines, classified advertisements, DVD players, and the list goes on. The same thing has been done to practically all conventional corporate operations.

You were constantly being told that you had to “adapt or perish,” that transformation is “essential to survival,” and that your organization had to “evolve or go extinct” even before this pandemic flipped the business world on its head.

The hundreds of new business capabilities being produced by technology render twentieth-century business models unproductive and unsustainable. All things being equal, the vast majority of customers will select the experience that most closely matches their constantly changing digital expectations during and after the pandemic.

This entails shifting sales to e-commerce platforms, expanding the functionality of apps for ordering and delivering a variety of goods, and stepping up social media communication and presence.

2023 Digital Transformation trends

1. AI take over

In practically every industry, routine work will be mechanized using AI and machine learning. Three fields, deep learning, autonomous decision-making, and human speech processing, have the potential to significantly advance AI.

Adoption of AI as a service will be one of the most pervasive trends for small and medium organizations in 2023. Applications for transformative AI are currently available through monthly subscriptions, which are frequently purchased for a comparatively lesser income.

In 2023, contactless, autonomous shopping and delivery will be increasingly popular. AI will simplify the purchasing and delivery of goods and services for consumers. AI-driven technologies will also become more prevalent in the content creation industries.

The potential for increased utility of artificial intelligence necessitates additional testing to confirm the accuracy of the data it generates. The term “modelops” was created by technology research and consulting firm Gartner to define the governance requirements necessary to manage the AI lifecycle.

2. Metaverse growth

IThe metaverse was mentioned in passing last year, but it is now included in the entire list of forecasts for 2023. Over the past year, the metaverse has steadily begun to expand as more businesses seek to conduct business there. Even though I still believe we are still a few years away from a fully developed metaverse, I believe we will start to see more realistic blueprints for what it would entail.

Economic growth in this environment is predicted to be extremely strong, reaching $800 billion by the middle of this decade and $2.5 trillion by 2030. The metaverse, in its original vision, can offer good potential for businesses in terms of expanded social presence, remote working, payments, healthcare, product trading, etc.

Despite the difficulties Meta is facing in forming its plans, we have already started to witness some of the capabilities of the metaverse age, which will fundamentally alter how we work, consume, and have entertainment.

3. Multi-cloud solutions

2022 was the year of the hybrid cloud; however, 2023 will see a further transition to multi-cloud. By utilizing the services of various providers like AWS, Google, Azure, Oracle, IBM, and others, businesses aspire to maximize their use of the cloud.

Users will use more multi-cloud services, which will result in a rise in user numbers. This implies that business workloads will operate in a hybrid public-private cloud environment.

Cloud-native applications are able to scale more easily and produce better results for businesses as a result of widespread user acceptance. Businesses can adjust to rapidly evolving business needs, such as cloud storage, networking, and security, thanks to multi-cloud.

4. Advancement in Automation

Although businesses have already begun implementing automation, Mulesoft predicts that in 2023 there will be more widespread adoption of the technology. The goal is to enable company executives to accomplish more with less.

With corporate instability brought on by soaring inflation, rising energy prices, tightening labour markets, and geopolitical turmoil, this will eventually assist them in driving efficient growth, improving productivity, and generating cost savings.

Hyper automation is already a major concern for many enterprises. According to research, 80% of companies plan to use hyper automation in the next 24 months.

5. Quantum Computing

The next top trend is Quantum Computing, which is a type of computation that makes use of quantum phenomena like quantum entanglement and superposition.

Thanks to its remarkable ability to quickly query, monitor, analyse, and act on data, regardless of source, this technology trend is also helping to limit the spread of the coronavirus and to create viable vaccinations. Banking and finance is another industry where quantum computing is being used to manage credit risk, for high-frequency trading, and to detect fraud.

Today’s quantum computers are many times faster than conventional computers, and major companies like Splunk, Honeywell, Microsoft, AWS, Google, and many more are working to further this technology. By 2029, it is anticipated that the global quantum computing sector would generate more than $2.5 billion in revenue.

6. Cyber Security

Given that it has been around for a long, cyber security may not seem to be a new technology, but it is developing much like other technologies. This is partly due to the ongoing emergence of new threats. The malicious hackers who are attempting to gain unauthorized access to data won’t give up anytime soon, and they will keep looking for ways to get beyond even the strictest security measures.

Additionally, it’s because modern technology is being modified to improve security Cybersecurity will continue to be a popular technology as long as there are hackers since it is continually changing to avoid them.

Technologists are more involved in product development as a result of technology becoming more integrated into goods, including security. Managed security services (30%), network security (22%), mobile security (9%), and web and email security (8%), are projected to see the highest levels of cyber investment.

7. VR & AR accelerates

Virtual Reality (VR) and Augmented Reality (AR) are the rising technological trends. While AR improves the environment, VR immerses the user in it. Although up until now, gaming has been the main use of this technology trend, training and education has also taken advantage of it.

We can anticipate a deeper integration of these technologies into our daily life in 2023. AR and VR are frequently used in conjunction with some of the other cutting-edge technologies we’ve included here. They have huge potential for use in marketing, training, entertainment, education, and even post-injury rehabilitation.

8. Internet of Things (IoT)

IoT is another intriguing emerging technology topic. Nowadays, a lot of “things” are constructed with WiFi connectivity, allowing them to connect to the Internet and to one another. the IoT, or the Internet of Things. The Internet of Things is the wave of the future, and it has already made it possible for gadgets, home appliances, cars, and many other things to be connected to the Internet and exchange data there

In both our personal and professional lives, smart gadgets are becoming more prevalent, but up until now, different platforms or operating systems have caused some communication issues. Therefore, 2023 will be the year that universal standards and protocols are created in order to improve communication.

In 2023, it is anticipated that global spending on the Internet of Things (IoT) will total 1.1 trillion dollars. In the upcoming years, new technologies like 5G are anticipated to propel market expansion.

9. Low-code or No-code development

IT teams are constantly under pressure to meet the demands of the digital transformation. However, the talent required to lead these initiatives is more scarce than ever.

According to Gartner, IT departments that give their business users this kind of empowerment are 2.6 times more likely to hasten the digital business transformation. Businesses are waking up: With the likelihood of increasing, more than half (55%) already have a “very mature” or “mature” approach that enables business users to combine apps and data sources enabled by APIs.

10. Total Experience (TX) strategy

Businesses have traditionally prioritized enhancing customer experience (CX) in order to promote growth, protect revenue, and foster loyalty. They now understand that enhancing the employee experience (EX) is equally important to success, though.

By 2023, more and more top businesses will consider total experience (TX) as a way to enhance both customers’ and workers’ experiences, especially in those places where they collide. By utilizing current technology investments that form the cornerstone of important consumer and employee experience projects, this strategy will produce superior shared experiences and generate more business value.

According to Gartner, 60% of big businesses will modify their business models by the year 2026 using TX to attain “world-class customer and employee advocacy levels.” Organizations offering a whole experience will surpass rivals in satisfaction measures for both CX and EX by 25% by 2024.

11. Sustainable Technology

The sustainability of the environment is one of the most important issues facing civilization today. Given that our world is becoming more and more dependent on software, IT strategies are essential for achieving the lofty objectives set forth by corporations and governments.

Additionally, by opening up new growth opportunities, investments in sustainable technology may boost operational resilience and financial performance. In recent years, many businesses have made significant organisational changes with a focus on lowering and monitoring CO2 emissions, moving to the cloud, streamlining and automating operations, etc.

A greener and more sustainable future can be built using technologies like artificial intelligence (AI), blockchain, cloud computing, extended reality, or robotics, among many others, without compromising productivity and economic growth. Approximately 90% of technology leaders currently acknowledge sustainability as a critical IT aim in their company and anticipate budget increases for it of 10% to 20% over the following three years.

12. New Energy Solutions

The resolve to develop business models that are more environmentally conscious goes hand in hand with the current energy problem. Combining the two results in novel formulations that can help us lessen our growing reliance on hydrocarbons. Because of this, technology in use can change the scenario.

Careers in the environment and in data are also growing in the alternative energy sector. These professions are relevant to persons with social science training and science specialties.

Benefits of Digital Transformation

Improved Customer Experience

Think about how your digital transformation may not just increase team productivity but also give your consumers more seamless, intuitive experiences. This includes everything from email correspondence to user portals, digital goods, and even the frequency of your outreach to potential customers.

Consumers have high standards for their online experiences. Customers are accustomed to having a huge selection, affordable rates, and quick delivery. Customer experience (CX) is the new front on which brands are competing. According to Gartner, more than two-thirds of businesses claim that their main competitive advantage is customer experience.

CX “has emerged as the key engine of sustained corporate growth,” according to Accenture. They contend that a single point rise in CX scores can result in annual growth of millions of dollars. Showing customers that you cherish their privacy is one approach to set your company apart from the competition. Give the client authority over how their data is gathered and used, and give them the freedom to decide how their data will be used.

Stronger Data-driven insights

Customer insights may be unlocked via data. You may develop a business strategy that is even more centered on your customer by better understanding your customers and their wants. These insights can promote corporate growth by utilizing both structured data (personal customer information) and unstructured data, such as social media metrics.

Strategies may deliver more relevant, individualized, and flexible content thanks to data. When you go digital, you may monitor KPIs and examine the information you gather while engaging in digital marketing.

By using data-driven insights, businesses may rethink their business strategy, better understand their customers, and make smarter decisions that lead to higher ROI.

Improved Data Collection

The majority of organisations amass vast amounts of consumer data, but the true benefit comes from utilizing this data for analysis that can advance the company. A system for acquiring the appropriate data and fully incorporating it for business intelligence at a higher level is created via digital transformation.

It develops a method by which multiple functional divisions within a company can convert raw data into insights across numerous touch points. This results in a single picture of operations, production, finances, and commercial prospects for the customer journey.

In this process, it’s crucial to assess how client data is being gathered, saved, processed, and shared. When you’re reevaluating your tech stack, you’ll want to make sure that a layer of SaaS data encryption is used to safeguard sensitive data travelling into and out of your customer relationship management (CRM) software and other platforms.

Consider how you can give your customers more control over their personal data when you examine the customer journey as part of your digital transformation, leveraging data privacy as a competitive advantage.

Consider how you can give your customers more control over their personal data when you examine the customer journey as part of your digital transformation, leveraging data privacy as a competitive advantage.

Customers are becoming more conscious of and concerned about how their data is being gathered and used. By implementing strict privacy policies and providing customers with the option to change their minds at any moment, you can demonstrate to them that you value their data.

Improved Collaborations

Digital transformation promotes a digital culture by giving team members the appropriate tools that are suited to their surroundings. These tools not only make it easier to collaborate, but they also help the company as a whole advance digitally. The change to a digital culture is essential for firms to continue operating sustainably. It forces team members to upgrade their skills and learn digitally so they can profit from the digital transition.

As executives establish the organization on digital congruence, digital transformation presents a fantastic chance for internal cohesion. A seamless transition will occur once everyone is working toward the same goals.

Enhanced Resource Management

Information and resources are combined through digital transformation to create a set of business tools. It combines corporate assets and lessens vendor overlap in place of scattered databases and software. Applications, databases, and software can all be combined as part of a digital transformation to create a single location for business insight.

A department or functional unit cannot be a part of digital transformation. It covers every aspect of a corporation and can promote innovation in processes and efficiency amongst units. Every department, from sales and marketing to finance and the C Suite, makes use of sensitive data. Data must be optimized and secured wherever it travels, and teams must be given

Higher Profits

Businesses that transition to the digital economy become more productive and profitable. Take into account these findings provided by Oxford Economics and the SAP Center for Business Insights:

• 80% of businesses that have successfully undergone digital transformation report higher earnings.

• 85% of companies claim to have grown their market share.

• Leaders anticipate 23% larger revenue increase than followers on average.

Improved Agility

Organizations become more agile thanks to digital transformation. Businesses can embrace Continuous Improvement (CI) practice’s and increase their agility through digital transformation by learning from the world of software development. This creates a speedier environment for invention and adaptability while also opening the door to advancement.

Enhanced Productivity

The correct tech tools combined with efficient workflow can increase productivity. It enables team members to work more productively by automating many tedious procedures and connecting data across the entire enterprise.

How Gizmeon powers Digital Transformation?

How businesses operate is being redefined by digital change. Businesses are experiencing cost savings and rising profitability because to better data collecting and a better customer experience. The movement toward digital transformation will pick up speed. IDC forecasts that by 2023, digital transformation will get 53% of all information and communication technology investments.

With Gizmeon, you can take advantage of digital transformation, knowing that your data is secure throughout every step of its journey through these new technologies.

If you’re wondering how to begin your road towards Digital Transformation, then get in touch with us through our website or drop us a line at info@gizmeon.com.

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