Digital transformation has been on the fast track ever since our businesses were forced to adapt to the global pandemic and the new normal of remote working. Whether it was based around data-driven sustainability or cloud-first remote working, digital transformation quickly became key to staying ahead of the competition and, ultimately, to staying in business. And the trend for transformation hasn’t slowed down since. As we push further into 2023, digital transformation remains a key strategic goal for many businesses. The fact is that while the global pandemic’s impact has subsided, there are constantly new challenges emerging. Whether it’s supply chain issues or impending recession, businesses need a way to be able to transform and react quickly.
Why is Digital Transformation so Important
It’s vital for businesses to be aware of the most recent trends in digital transformation, so they’re able to implement the technologies that will help them to run more efficiently, remain agile and gain a competitive edge. While the journey of digital transformation is challenging, with the right strategy in place, organisations are able to streamline operations, automate manual tasks and improve efficiencies. What’s more, digital transformation can help organisations to identify new business opportunities.
8 Key Digital Transformation Trends for 2023
Thanks to the huge business benefits it offers, digital transformation continues to be front of mind. As businesses become more widespread and interconnected, they need to effectively adopt new technologies and to have the people and processes in place to help them thrive. The following eight trends can help businesses to head in the right direction, offering ways to enhance daily operations and respond effectively to market changes.
1. Low Code Platforms
Low-code platforms are development environments, such as Microsoft PowerApps, that put the power in everyone’s hands to design, build and deploy applications. They use graphical user interfaces and drag-and-drop tools that are intuitive for non-technical users and enable them to create custom solutions without needing to write any code. Low code platforms offer several business benefits, including time and cost savings and scalability. Moreover, they enable rapid prototyping and deployment and have facilitated new product development.
2. Cloud Migration
As businesses rely more and more on cloud technologies to reduce costs, improve accessibility and outsource routine tasks, they are also moving existing business systems to the cloud. Instead of spending time and resources modernising systems and writing new code, it gives businesses the option of quickly migrating what they already have and benefiting from cloud efficiency. While modernisation is the next step, cloud migration enables businesses to use resources more wisely, reduce the cost of maintaining on-premises infrastructure and benefit from the scalability and flexibility of the cloud.
3. AI and Machine Learning
Advanced technologies such as artificial intelligence (AI) and machine learning (ML) are leading the way when it comes to digital transformation. AI can help businesses to improve decision-making by delivering new insights into customer behaviour and desires. Meanwhile, ML helps businesses to use data to create more personalised experiences for their customers. More and more software is incorporating these technologies to help deliver increased intelligence, drive automation and enable improved business insights.
Automation is one of the primary drivers for digital transformation and it continues to be a key trend for 2023. Business process automation enables businesses to remove the need for human involvement in many procedures, increasing productivity and improving the customer experience. Automation and digital transformation go hand in hand, one tends to follow the other. As businesses look to automation to solve business challenges, digital transformation is often the end result. What’s more, in 2023, hyper automation will be a major technology trend as technologies such as low code, AI, ML and robotic process automation (RBA) are used together to take automation to the next level.
During the rush for digital transformation due to the global pandemic, security was often an afterthought. However, in 2023, as digital transition initiatives are front and centre and businesses have more time to focus on strategy, there is a distinct refocus on security. Quick go-to-market strategies can no longer leave security on the sideline. With the rise in cloud computing comes a rise in cyber attacks and business risk. It’s vital for security practices to keep up with the speed of digital transformation. In 2023, this will often involve incorporating AI and Ml into security practices, although ensuring the basics are firmly in place is fundamental to supporting new security technologies.
While it isn’t yet in common use, 5G is on the horizon and will become more mainstream during 2023. The adoption of 5G will speed up transformation efforts with increased capacity to deliver content, services and experiences in new ways at incredible speeds. 5G has the potential to transform business models and operations by dramatically changing how services are delivered to end users. With faster speeds, lower latency and higher density than 4G networks, businesses will be able to significantly enhance the performance of their applications, with huge amounts of data being processed in real time.
7. Data Analytics
Data-driven decision-making is key to digital transformation. After all, data is the key to all business operations. However, it needs to be sorted, processed and, indeed, analysed to deliver its full potential. Smart data analytics enable businesses to extract valuable information from raw data. In 2023, smart data analytics will help businesses to find solutions to complex problems, predict customer behaviour, optimise processes and more.
8. Everything as a Service
While software as a service (SaaS) is already incredibly popular, giving businesses access to applications over the internet. The everything as a service (XaaS) model takes this a step further. The XaaS model recognises the vast number of services, products, tools and technologies that businesses use over the internet and delivers them from one provider. In 2023, more businesses will turn to XaaS to improve operations and create a unified solution for their digital transformation needs.
How Will Your Business Transform in 2023?
Today, every business operates in a crowded marketplace where customers have a huge amount of choices and incredibly high expectations. To remain competitive, businesses need to be able to deliver incredible experiences that are data-focused. Businesses are also responsible for operating sustainable operations that have a positive social and environmental impact. Adopting the new trends when it comes to digital transformation and having the right team, technologies and tools on board will be key to success both in 2023 and beyond.