Digital Transformation in 2023 and beyond: Trends to watch

A startup expert Manoj, holds 23+ years of multi domain experience, with proven success in heading & streamlining profit centre operations, invigorating businesses, managing P&L and devising & executing winning strategies to maximize top & bottom line growth.

The recent advancements in technology have benefited humans and businesses alike. By making regular tasks simpler for people these digital revolutions have permanently changed how they go about their daily lives. And for organizations, these transformations have made it easier to conduct business. In fact, today, more and more companies are incorporating new age technologies into their businesses with the aim for maximum accuracy. According to a Statist a analysis, global IT investment is anticipated to reach roughly 4.5 trillion dollars in 2022, a three percent rise from 2021.

Artificial intelligence, machine learning, cloud computing, big data analytics, augmented and virtual reality are amongst the significant contributions of technology that have benefited businesses to a great extent. Large amounts of data management have always been a worry for organizations, but thanks to the development of these contemporary technologies, the process has become relatively easy. In fact, cloud technology has made it simple to store and access business data, which will ultimately save you time and money. According to a Statista estimate, as of 2022, about 90 percent of business owners have already adopted cloud technology. While another five percent is also testing out the use of quantum computing at the same time.

With the emergence of cloud security, firms have found the perfect platform to safeguard their data cutting down all sorts of risks

As businesses today are becoming increasingly global and linked, it calls for them to find ways to use digital technology more efficiently. Below given are certain digital transformation trends to watch out in 2023:

AI & ML: Customers increasingly place a high value on efficiency and responsiveness when interacting with a business. Hence, it has become crucial for organizations to align their services in a way while leveraging the right technology to provide satisfying experiences to consumers. Since both of these contemporary technologies assist organizations in making better judgments, AI and ML have emerged as a beacon of light for industry. AI aids businesses in developing insights about customer behaviour, demographics, and preferences. ML, on the other hand, assists companies in utilizing that data and offering clients individualized experiences. This, as a result, is helping companies manage their customer data efficiently and use it to their advantage.

Increased Automation Adoption: Today, more and more businesses are increasingly moving towards automation in order to free up their employees of repetitive and monotonous tasks and allow them to focus on areas that require actual attention. In fact, the volume of low-effort jobs, such as monitoring vendor invoices, finding data, or recreating paperwork, frequently causes firms to lag behind. But with automation, companies may grow more quickly while spending less on overhead.

In fact, in order to optimize customer experience, businesses today are utilizing AI-backed bots. These bots manage data entry, onboarding, and payroll processing and answer customer queries to provide them with a better experience. According to a report by MarketsandMarkets, the global business process automation market is anticipated to increase from 9.8 billion dollars in 2020 to 19.6 billion dollars in 2026, at a CAGR of 12.2 percent over the course of the forecast period.

Rise in Blockchain Investing: Blockchain is another contribution of technology that has proved to be a boon for businesses. It has drastically decreased overhead and transaction costs by lowering paperwork and the scope of errors, doing away with the need for third parties or intermediaries to authenticate transactions, thereby ensuring seamless business operations.

Securing and safeguarding data has always been a matter of concern for businesses. But with the advent of blockchain, data security is no longer a worry because it employs permissions to restrict access and encrypts personal data. Additionally, blockchain contributes to the reduction of fraud and unlawful activity by producing a record that cannot be changed and is secured end-to-end. In fact, as time passes, corporations will favour blockchain technology over anything else. According to a Statista analysis, the market for blockchain technology was estimated to be worth 5.85 billion dollars in 2021 and is expected to increase to 1.235.71 billion dollars by 2030, showing a compound annual growth rate of 82.8 percent.

Growing use of Cloud Technology: Cloud technology has brought into being a new way of securing a huge amount of data. Businesses have always faced potential risks around data in the form of data theft, data breach, or data corruption. But with the emergence of cloud security, firms have found the perfect platform to safeguard their data cutting down all sorts of risks.

Way Forward
Today, it has become impossible to overlook how technology is affecting business, especially given how quickly it is evolving. A significant transformation in how organizations function today has been brought about, particularly by artificial intelligence and cloud technologies. Mckinsey's research claims that the pace of change has been multiplied by ten thanks to advances in artificial intelligence, machine learning, robots, and other technologies. The Industrial Internet of Things(IIoT) is estimated to connect 50 billion devices by 2025, and 70 percent of manufacturers are anticipated to frequently use digital twins(by 2022). Since the pace and spread of technologies are pushing innovation to the outer limits of the organization, firms must be prepared to adopt the most promising solutions from all fronts.