Digital transformation is upon us.
It started with PCs, the internet, and social networks and it will continue to develop in ways that we can barely imagine. No one knows what the world will look like in just a few years, but here's what I think will happen.
Digital transformation is the process of integrating digital technologies into your core processes to improve your competitiveness and efficiency.
It's not a project, but a journey.
It's not a one-time event, but an ongoing process of change and improvement that takes place over time. It requires you to change how you do things in order to remain competitive in today's fast-changing world.
1. Cloud Computing
Once upon a time, all IT was on-premise and consisted of physical hardware that was managed by the company itself. Then virtualization came along and allowed you to run multiple operating systems on one physical server. Then cloud computing came along and offered virtualized infrastructure as a service (IaaS) over the internet.
Nowadays, most companies are using cloud computing in some form or another—whether they’re storing their emails in Google Drive or hosting their websites with AWS (Amazon Web Services).
2. Internet of Things
You’ve heard of the Internet of Things (IoT), right? It's the connection of physical devices, vehicles, buildings, and other items—embedded with electronics, software, sensors, actuators and network connectivity that enables these objects to connect and exchange data.
One key area where IoT will be essential is digital transformation in healthcare.
As a patient-centric model has emerged over recent years, there's more focus on making sure patients are informed about their care and can communicate with providers when they want or need to. This shift in communication has led some businesses to consider how they can better serve their customers through technology tools like chatbots or virtual assistants like Siri or Alexa.
3. Big Data Analytics
Big Data Analytics refers to the process of extracting knowledge from large data sets, which is used by businesses to make better decisions. Big Data Analytics is an integral component of Digital Transformation and AI.
Big Data Analytics enables organizations to build comprehensive profiles and understand how customers interact with their products or services. This information can be used for marketing purposes, both online and offline, including personalized offers based on individual preferences or behaviors. Some companies are even using AI technologies in conjunction with Big Data Analytics to automate decision-making processes such as fraud detection or automated bidding on large e-commerce platforms like Amazon or Alibaba.
In 2023 we expect that organizations will continue using Big Data Analytics as a key component of digital transformation initiatives.
4. Artificial Intelligence
Artificial intelligence (AI) is a form of machine learning that is used to make decisions and predictions.
AI allows a computer to learn from data and make decisions based on the data it has been trained on, as well as relevant information that has been input by humans. For example, if you've ever used Amazon's Alexa or Google Home, then you've experienced AI in action: these devices use your voice commands to provide functionality such as setting reminders and playing music.
5. Virtual and Augmented Reality
AR and VR are rapidly becoming mainstream technologies, extending the capabilities of existing systems while opening up new opportunities for collaboration and innovation.
AR is being used by companies like IKEA in their online catalogs to let you see what your furniture might look like in your actual home before you buy it. Meanwhile, VR has been used as a training tool for employees at companies where employees can learn how to use tools correctly before putting them into practice on job sites.
These technologies are changing the way we shop, visualize the future of our homes and businesses, communicate with customers, and sell products to them. We're going to continue seeing these technologies grow as they become better and more accessible for everyone!
6. Robotic Process Automation
RPA is a technology that automates repetitive business processes by using robots.
These tasks are often simple and repetitive a involve processing data in a structured format. For example, if you wanted to create an invoice for each new customer that signed up for your service then RPA could automate this task by scanning through files from your database and generating invoices based on the information provided within them.
The benefits of RPA include:
- Faster performance (this comes down to how quickly robots can process tasks)
- Improved accuracy (robots don't make mistakes)
- Reduced human error
7. Digital Innovation Hubs (DIH)
Digital Innovation Hubs (DIH) are rapidly becoming the new hot thing in digital transformation.
When you think of innovation, what comes to mind? Perhaps you imagine a doctor huddled over a microscope or an engineer tinkering with some circuit board on the back of your smartphone. These images represent the traditional idea of innovation: lone geniuses working in solitude who come up with new ideas and technology that changes how we live our daily lives.
However, this concept is changing as organizations expand their definition of innovation beyond these conventional notions and adopt more collaborative approaches to problem-solving within their organizations.
Digital Innovation Hubs, or DIHs, are an organizational structure designed specifically for fostering collaboration among teams involved in digital transformations across all departments so they can work together to achieve common goals and deliver better results faster than before.
In addition to being effective at driving successful transformations for companies large or small, DIHs offer numerous benefits including: Reducing complexity by centralizing knowledge, increasing engagement, creating accountability, building leadership skills, improve performance metrics.
Blockchain is a secure and transparent way of storing data. It's a decentralized database that maintains a growing list of records called blocks.
Each block contains data representing transactions, such as sending or receiving bitcoin (the cryptocurrency), along with other information needed to verify the block's integrity. The blockchain is maintained by a distributed network of computers, which are referred to as "nodes" in the network.
These nodes regularly update their own copies of the blockchain with new blocks of data from other nodes in order to receive updates from other computers on their own copy of the blockchain, thereby maintaining consensus across all nodes on what is considered an accurate version of history.
9. Immersive User Experience (UX) such as Voice, Chatbots, NLP etc.
Immersive user experience is one of the most exciting trends in digital transformation.
Immersive UX enables users to experience information through various sensory modalities, such as sight and sound, which can be leveraged to create truly immersive experiences. Examples include chatbots and voice assistants such as Siri, Alexa, Cortana etc., augmented reality (AR), virtual reality (VR), mixed reality (MR), holograms and avatars, advanced speech recognition and natural language processing (NLP), among others.
The important thing to remember is that immersive UX can be applied across all industries with varying levels of complexity based on the type of technology being used as well as whether it’s being deployed on devices or via cloud solutions.
The 9 trends we’ve just discussed are all part of the next phase of digital transformation, and they promise to bring some new and exciting developments to the world. We’ve only begun to scratch the surface of what the future holds, but there are so many more possibilities beyond what we’ve described here.
The possibilities that come with digital transformation may be limitless, but over the next few years, we can expect some big changes in how businesses run their operations and engage with customers.
If you are looking to deliver innovative digital experiences to your customers, let us know! We can help you develop disruptive capabilities. Contact us today.