With the entire globe dealing with lockdowns and major office staff forced to work from home, there is a catastrophic situation that does not seem to end.
However, International Data Corporation (IDC)’s Worldwide Digital Transformation Spending Guide suggests that digital transformation (DX) spending shows no signs of reduction despite the challenges posed by the COVID-19 pandemic.
In the same report, it was quoted that global spending on digital transformation technologies and services is expected to grow by 10.4% in the year 2020 to $US 1.3 trillion. However, it is relatively slower than the growth of 17.9% achieved in the year 2019. But, it still remains to be holding itself well despite the drastic reductions in the overall technology spending due to Coronavirus.
Hotels, theme parks, bars casinos, and movie theaters will see an increase of only 5.3% in DX spending in the current year, which is 18.4% down from the year 2019.
This goes to show that there is a prominent need for a revival of digital transformation in the year 2020. Here are some statistics that highlight this ever-growing need even more.
- “It would become very difficult for digital transformation to succeed without a common understanding and a clear vision across the organization,” says Neil Osmond, Distinguished VP Analyst, Gartner.
- According to research, it has been estimated that two-thirds – 68 percent – perceive that the future of the business will revolve around people and AI working in unison.
- It has been predicted that by the year 2020, more than 40% of all data analytic projects will revolve around customer experience.
What is Digital Transformation?
Before we move ahead, let’s look at the definition of digital transformation. It can be defined as an integration of digital technologies into various facets of the business. In simple words, it is all about changing the way of operations and delivering value to the customers. It is also a cultural change required by the companies to continuously improve themselves and get acquainted with failure.
The question now is, what is the best way to revive digital transformation in the current year? In the forthcoming sections, we will try and address this question and look at some of the lessons from the digital transformation trends that we have seen in the year 2020.
Without much ado, let’s get started with the pointers.
1. Customer Experience
This sounds very basic when it is said. But, delivering connected and personalized experience to the customer is, in fact, the most difficult part, and is actually the heart of digital transformation. The ultimate aim of an organization is to provide a frictionless omnichannel customer journey that can be accessed anytime from anywhere across the globe. The customers are also expecting the same thing from their service provider.
According to MuleSoft, the average number of applications utilized by each organization is 900 while only 29% of those apps actually integrate with each other. The challenge for digital transformation is to face the increasing complexity and plurality of digital channels.
This is one of the most important things to watch out for this year as 69% of the customers are of the option that disconnected customer service would be a huge motive behind them to change their service provider.
Today, users are looking for products & services that meet their needs & expectations with the help of smart, expedite, and easy-to-use procedures, with absolutely zero friction between different channels and no geographical limitations.
2. Company Culture
Foster a company culture where you give importance to freedom of thought, action, and innovation. The environment of your company should be such that every individual feels the need to contribute towards initiating change.
Most of the time, companies are found guilty when it comes to practicing an “open” workplace culture. Prioritize openness within the office. New joiners must be made aware of the new culture that the company is trying to create.
It is imperative to look for feedback from your team members & show openness and willingness to accept their suggestions. This will make way for larger changes within your company.
Another way to exhibit openness is by being diligent based on those retrospectives which result in a healthier and more successful company. Be prompt enough to gather feedback and track the changes you make on the basis of your retrospectives.
3. Data & AI
As time will fly, there will be truckloads of data that companies will have based on their customers' interaction. Based on research conducted by Genpact, it is predicted that by the year 2025, AI-driven enterprises will become ten-times more efficient and hold twice the market share of those that do not adopt this technology. Therefore, adopting AI technology into your business quickly becomes more of a necessity in the next five years.
To quickly adopt this new technology, modularity will be crucial. This will be attained with the help of pre-trained AI accelerators that serve as a building block for transforming processes. It will ensure companies to distinctly automate and optimize crucial tasks within an end-to-end process.
Then it would become possible to avoid time-consuming development and swiftly build applications. These accelerators will showcase several with their first steps toward AI adoption.
Everything-as-a-Service (XaaS) has redefined the service sector. On top of this, it enables you to purchase any IT service with the cloud. This way, it ensures the delivery of anything, including technologies, products, or tools as a service through the internet.
Earlier, the cloud was thought to be for SaaS, IaaS, and PaaS models. But, today, it is possible for you to run your entire It environment in the cloud. With the help of XaaS, it is possible to create new services that can provide ample industrial opportunities.
On top of this, it is an affordable consumption-based pricing model which ensures that you get unlimited scalability and built-in security by paying for only the services availed. It has been estimated that the global XaaS market will grow at a fantastic CAGR of 24%.
Blockchain is mainly remembered for its cryptocurrency, i.e., Bitcoin. However, it is much more than that. It is a decentralized peer-to-peer network employed to record transactions. It provides decentralization, transparency, and immutability.
In fact, Gartner in one of their blogs listed blockchain amongst the top ten strategic technologies of the year 2020. It has been estimated that blockchain has the potential to disrupt industries by providing trust and transparency by enabling value exchange across businesses.
The other advantage of blockchain is, it tends to reduce transaction costs and improve cash flow. It has been predicted by Gartner that blockchain will be fully scalable by the year 2023. Several experts claim that blockchain is overrated.
However, reputed companies like Samsung, Alibaba, and Microsoft are planning to launch their blockchain applications. Chances are, we will see blockchain technology in a variety of fields like real estate, food safety, and intellectual property.
The industries that have been slowest over the years’ growth in DX spending have been hit hard due to the economic downturn caused by COVID-19.
When we talk about 5G, it would not be a surprise to see ourselves getting closer and closer towards drones, smart cities, and autonomous cars. Various sources claim that several strategic alliances between automatic manufacturers and tech companies. Brands like BMW and Intel are partnering up. Uber is trying to build an autonomous fleet. Amazon has taken a real-step in the year 2020 to ship goods with an autonomous drone.
Despite the global catastrophe we have seen this year, there is still hope that digital transformation will salvage the businesses as a whole and give them some smiles at the end of the day.
With the help of the things that we have mentioned in this blog, you can expect a definite revival of digital transformation taking place. At the end of the day, if businesses are able to flourish with the help of digital transformative technology, it would be impact everyone across the globe positively