Dec 09, 2022|
New technologies were already emerging in the workplace even before the start of the pandemic, which was urging businesses to become more digitalized. With the pandemic, businesses had to quickly deploy digital technologies to address the rapidly changing circumstances. Today, almost every business is on a digital transformation journey somehow. In fact, Gartner reports that around 91% of businesses are involved in some form of digital initiative.
This global digital transformation trend forces us to explore what will be the key future digital transformation trends in 2022 and upcoming years. So, let's explore some of the vital digital transformation trends we are most likely going to see in the near future. But first, let's quickly look at the significance of digital transformation today.
How Digital Transformation has become a must today?
Technology is not just elevating our lives, but it is also making it easy for businesses to carry out their day-to-day operations. Digital transformation helps businesses keep up with the ever-changing customer demands and streamline their operations to compete better. Some of the other factors that highlight the significance of digital transformation are as follows:
- It reduces cost by digitalizing and automating processes.
- It empowers businesses to have remote/distributed workforces.
- It enhances productivity and operational efficiency.
- It triggers the culture of innovation, empowering businesses to quickly adapt to any disruption.
- It offers data analytics for better decision-making.
- It helps in attracting new talent.
- It makes businesses more agile in responding to market changes.
- It streamlines B2B collaboration.
In short, it does not make sense to run a business today without deploying some form of digital transformation.
4 Future Digital Transformation Trends
The digital transformation market globally is anticipated to grow by $1009.8 billion by 2025 compared to $469.8 billion in 2020. This shows the importance of digital transformation in the business world. If we talk specifically about digital transformation trends, then below are the 4 key digital transformation trends in 2022 and upcoming years:
1. Hybrid Work
Hybrid work is a flexible work environment in which employees can split their time between working on-premises and working remotely. This working model is rapidly growing ever since the start of the pandemic and it seems to evolve even further with every passing year. The Accenture Future of Work Study 2021 reported that 83% of workers prefer a hybrid work model.
Overall, the work environment of the future is anticipated to be highly connected, where organizations will rely on virtual connections for team collaboration, while employees will expect more freedom of working premises.
2. Cloud-Based Solutions
Cloud-based solutions are on an exponential rise for the past few years. Cloud services bring a lot of benefits for businesses, such as cost-effectiveness, scalability, ease of use, etc. As per Cybersecurity ventures, over 100 zettabytes of data will be stored in the cloud by 2025.
Cloud-based solutions also offer enhanced cybersecurity, which is crucial in the current cyber-concerned era. Organizations are shifting from traditional on-premises IT infrastructure to cloud-based infrastructure actively and the trend is going to become more aggressive with new advancements in cloud computing.
3. Automation with AI and ML
One of the key aspects of digital transformation is automating day-to-day business operations. Businesses are actively automating their crucial operational areas, including marketing, accounting, customer support, etc. As per McKinsey and Co.'s global survey of 2020, 66% of businesses have executed automation in 1 or more business functions.
Moreover, artificial intelligence and machine learning are also helping a key role today. For example, businesses now have access to resourceful data analytics for better decision-making. So, we will definitely see more investment in AI and ML that will not just empower organizations to automate workflows but also process vast data volumes accurately.
4. Everything as a Service (XaaS)
XaaS is a service on-demand model where the customers can only subscribe to some part of the service and only pay for what they actually need. The XaaS market is on rapid growth currently, as the market size is anticipated to grow from $349.71 billion in 2020 to $2384.12 billion by 2028.
XaaS helps customers to avoid vendor lock-in and lower their costs. From the business side, XaaS empowers them to innovate and experiment faster. But XaaS does come with some limitations currently, such as customization of services is a bit difficult currently. However, XaaS has a strong potential to grow with more organizations gradually offering XaaS-based services. So, XaaS is another key digital transformation trend to witness in the coming years.
Digital transformation is set to flourish aggressively owing to the rich offerings it has to offer. Most businesses are currently in the adoption phase of digital transformation, while a few of them are in the enhancement phase. Overall, digital transformation promises the digitalization of business operations no matter the business nature. Above we have discussed the four major digital transformation trends in 2022 and the upcoming year. Other than the above points, there is a lot more to expect from digital transformation. So, buckle up and keep witnessing how the business world gradually becomes more digitalized.
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