January 31, 2023
Before the pandemic, the elephant in the board room was that the biggest obstacle to digitization was never the digital component, even though, from the outside, it looked like it was. According to KPMG’s 2020 CEO Outlook published in August 2020, 3 in 10 CEOs flagged the difficulty in making quick technology-related decisions across the business as the top challenge, followed by the lack of insight into future operational scenarios as the biggest impediments to digital transformation; IT capability only came in third on the list of challenges.
Three years later and the market is a lot different than we feared when the pandemic was sweeping the news. The world has reached farther in digital transformation than ever imagined B.C. (Before Covid).
With this in mind, here are three digital transformation trends we believe will play a major role this year and in the near future.
As IDC predicts, companies worldwide will spend up to $3.4 trillion on digital transformation roadmaps. This cost is a long-term commitment to catering to the digital-first customer experience mandate across today’s business landscape. However, considering the “pandemic” accelerator, a lot of companies have meaningfully advanced on their digital transformation journey.
We can now speak of a new stage, that of digital optimization: processes are in place, data is being leveraged – the journey doesn’t end here. It’s time to integrate data, decision making, content, delivery and engagement services to modernize the customer experience. Simply digitalizing a traditional process is just the first step. The real value is in creating new business models, revolutionizing customer retention and opening up the gateway to cross-functional data democratization with access and utilization beyond your standard team of data scientists and analysts.
Traditionally, companies use a planning-first approach where a standard process of market testing, proof of concept, and launch culminate in a typical 18-month go-to-market timeline. Digital moves much faster than that, and a product that took 18 months to launch may have already missed its value for its audience today.
To extract value from digital transformation, companies need to allow it to further optimize the old ways of doing business, whether it’s about using product analytics tools, digital platforms and, maybe most important of all, shifting towards a data culture and a digital mindset across the organization.
The main drivers of digital optimization are data access democratization, a value-led growth mindset and a best-in-class technology stack.
Sustainable technology is an umbrella term covering aspects related to mitigating current environmental issues as well as technology created with sustainability at the core. In this respect, digital transformation is by itself one of the most important enablers of sustainability. As finely differentiated by Accenture, there are two sides to every story, and sustainable technology is no different: consider both “sustainability by technology” as well as “sustainability in technology”. For example, considering the latter, while AI is creating immense business value, it also requires vast energy resources to process equally vast amounts of data, making it a realistic proposition of weighing in the benefits versus the costs.
Sustainable technology is quickly becoming an important topic, past decks circulated within management boards of large supply chain corporations. As Gartner estimates, by 2025 half of global CIOs, regardless of industry, will answer to performance metrics around IT sustainability. These metrics flow beyond cost optimization, energy performance and asset usage, into ESG goals that shape responsible business practices such as traceability, accountability, or wellness. This framework benefits greatly from technology enablers like cloud services, AI, automation and advanced analytics. It’s appreciated that sustainable technology as a prerogative goes well beyond internal IT practices, into key enterprise and customer operations.
We believe digital transformation and sustainable technology are two of the great overarching themes that will shape the coming years, and it’s a great opportunity for data, AI, cloud and more to serve and, at the same time, to be responsibly deployed in increasingly efficient frameworks.
The push-and-pull of the AI prerogative is still quite divisive, however this doesn’t mean that intelligent automation or augmentation aren’t realistic solution approaches that bring tangible value in today’s business landscape.
When the wise business leader connects augmented intelligence to the specific needs of their company and particular audience, in a tailored approach, the gains can be immense both in revenue as well as in customer satisfaction. Augmented intelligence solutions can help with a plethora of tasks such as trend identification, approvals, compliance, business function processes and, most important of all, customer experience.
Augmented decision making requires a framework that spans people, data, processes and technologies like cloud-based architectures that increase agility and scalability. We believe that now more than ever before it’s important to have a data-driven culture approach where every employee has access to data and is enabled to use it to bring value.
To conclude with, technology and digital transformation strategy were vital to overcome the hurdles of recent years. It’s a valuable investment, and, perhaps most importantly, it’s vital to acknowledge that the journey goes on. As data reveals more and more insights into customer behaviours, fresh opportunities will arise that can generate new business models and perspectives.
Your organization can benefit greatly from a comprehensive digital transformation strategy. By leveraging technology and data-driven insights, you can streamline operations and improve customer experience. Our digital transformation strategy experts can help you achieve your goals by providing the tools, expertise, and support you need to succeed. Whether you’re looking to automate processes, implement a new digital platform, or adopt a new way of working, we have the expertise to help you succeed.
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