Alyssa Futterer, Senior Marketing Technology Manager at Blytheco, has over 12 years of digital, communications and content marketing experience with 5 years in software tech specializing in the ERP, EDI, and SaaS space. Alyssa leverages her relevant experience to create content that educates and informs customers and industry professionals, and helps to improve their businesses through innovative software technologies. Connect with Alyssa on Linkedin.
Top 7 Digital Transformation Trends for 2022
At the end of 2020, almost every business (that could) operated under newly remote models due to the pandemic. This lightning-fast shift meant an upgrade in infrastructure, cyber security measures, and cloud settings, among other digital technologies. As a result of the exploding remote work market, businesses spent more than $15 billion a week on technology as they prepared for and executed the sudden transition.
While digital technology adoption has taken a quantum leap over the last several years, this growth is only the tip of the iceberg. Now, at least 89% of businesses already have a digital-first business strategy, and still, the digital transformation market is expected to grow to $3.3 trillion by 2025 at a CAGR rate of 23%.
The Market Overview of Digital Transformation
One thing is constant amongst CEOs and business leaders: the pandemic accelerated the digital transformation plans for many businesses. And while these investments have put companies' years ahead of their timelines, it is expected that digital transformation spending efforts will increase to a compound annual growth rate of 15.5% between 2020 and 2023. That is an estimate of $6.8 trillion.
Companies already invested in digital innovation are 2.7 times more likely to succeed. Hence, more companies strategize their business model based on digital platforms like low-code software. Additionally, businesses must provide value at the speed of need. This need for speed calls for added leverage supplied through technology.
What Should You Consider During Digital Transformation?
Among the many transformations in digital business technology, some of the most significant enhancements include:
- Cloud migration
- Customer experience
- Automation and agility
- Big data and analytics
- Compliance and governance
An organization's digital transformation is essential because it improves the efficiency of operations, which, in turn, makes it easier and faster to meet customer expectations and marketing objectives.
The Digital Transformation Trends You Should Know
- Internet of Behaviors (IoB): This is the act of using user-driven data to influence human behavior based on behavioral psychology analysis and perspective, especially in sales and marketing. For instance, big brands use IoB to familiarize themselves with customers' interests and behaviors during the purchase process. The insights gained from customer behavior are then used to improve targeted marketing campaigns.
- Cybersecurity mesh: With the increasing adoption of digital technology and data collection, impenetrable security measures are invaluable. Companies now seek robust privacy and security solutions, especially because cybersecurity attacks are the fastest-growing crimes in the United States. Personal information is also at risk since many people are becoming lenient toward blunders by organizations.
- Privacy-enhancing computation (PEC): These technologies enhance privacy in trusted environments that share data through third-party environments. The goal is to protect data from cyber-attacks and breaches. PEC protects a user's personally identifiable information (PII) when they share data.
- Anywhere operations: This business model is meant to help businesses better support their customers, manage the distribution of services, and empower employees. The operating archetype allows companies to enable anywhere-access without compromising output and efficiency. It also supports organizations as they continue to build a blend between the virtual and the physical customer. This winning combination is perfect for the implementation of the remote workplace culture.
- Distributed cloud: This is the practice of delivering public cloud services to different physical locations even as the provider operates, governs, and develops the public cloud service. This type of distributed cloud makes it easier to meet regulatory agency requirements, and the services gain closer proximity to the user source. Distributed clouds also reduce data costs for the user.
- AI engineering strategy: With the increasing adoption of AI automation technology, there is a growing need for an AI engineering strategy that provides the tools and framework to set up the AI systems in environments of intense degrees of ambiguity, dynamism, and intricacy. The goal is to deliver the full value of the AI investments through the performance, dependability, and interpretability of the AI models. AI technology is especially significant in ensuring that people spend more time on work that provides value and less time on mundane tasks.
- No code/low-code: Software is at the heart of digital transformation, and low-code software increases the ability to build software, processes, and apps much faster. Now, anyone can create customized apps to contribute to the organization's success. That is, marketers, sales reps, and human resource individuals can now build and configure customized apps for their departments even with no coding skills. This will increase automation.
The Challenges of Digital Transformation
- Lack of agility, a clear plan and vision, and the necessary skills for the adoption of new technologies
- The challenge of accelerating automation using intelligent decision making
- The challenge of improving customer experience
- The management of the compliance requirements and data protection
- The ineffective use of data
- Management of the digital workforce, especially in hybrid work models
In a Nutshell
Even though digital transformation is still at the beginning stages of its adoption in different industries, it’s setting apart business leaders from followers. As today’s digital environment continues to elevate, any company opting for growth within the next few years should implement these six digital transformation trends within their strategy.
Contact us to learn how you can start your digital transformation journey.