Building up speed, innovation and agility across functions remain some of the biggest challenges that companies are facing in 2023. Complexity increases when the time element, which is still “never enough”, and the ever-changing customer behavior and demands come into the picture.
Thus, the endless road towards digital transformation continues through 2023. The global digital transformation market size, which was evaluated at USD 731.13 billion in 2022, is anticipated to have a compound annual growth rate (CAGR) of 26.7% from 2023 to 2030 – says a Grand View Research report.
Gartner defines Digital Transformation as “the process of leveraging emerging technology and supporting skills to build a robust new business model.” Roughly put, it helps your business grow. The concept merges the power of technology with the human way of thinking differently. Because technology can’t be the only driver that causes the changes we want to see. It’s a “team sport” that needs people to think and act differently when approaching a new challenge.
The ability towards driving growth and navigating through disruption is of the essence. In order to grow this “muscle”, businesses should focus on the following 4 key directions.
1. A wider adoption of low-code and no-code platforms
Simple. Easy. Done in no time. These are some of the reasons that support the adoption of low-code / no-code platforms. The concept lies at the crossroads of automation and human touch. This way non-technical business users feel empowered to develop, to design, build, and deploy software applications. It basically represents a breath of fresh air away from the twisted world of coding.
Low-code / no-code platforms have become popular in the past years and will continue to do so as they present many advantages in terms of time, cost, scalability, and risk reduction. These benefits have given rise to new use cases such as:
- rapid prototyping
- rapid deployment
- new product development
Anticipating how certain digital products will behave on the market is hard even when you already have all the data. Through the usage of these platforms businesses could determine more quickly whether their products can survive in a certain ecosystem or not. Time is crucial, so an early adjustment at a certain stage can have a definitive effect on the final digital product.
2. Composability – the new face of doing business
Forbes rings the alarm: businesses need to wake up to the fact that new problems cannot be tackled with archaic solutions, even though they may have worked well in the past.
A viable solution is represented by applying the concept of composability. This enables businesses to tear down bulky, legacy applications into distinct components that can be designed, scaled and maintained independently. Much like lego blocks that one can arrange and rearrange, but also discard when necessary.
Business composability can help organizations achieve a number of benefits, including increased agility, faster time-to-market, improved customer satisfaction, and reduced costs. By creating a more modular and flexible business architecture, companies can more easily adapt to changes in the market and customer needs, experiment with new business models and product offerings, and take advantage of emerging technologies and trends.
Business composability is a critical aspect and a key enabler of digital transformation because it helps organizations to leverage digital technologies to create new and more agile, customer-centric, and innovative business models.
3. How’s your Digital Immunity?
The term immunity is no longer referring just to a person’s state of health. This protection shield is considered to be a business model that companies need to take into consideration to reduce risks and deliver value.
But what does it mean exactly? According to Gartner, it combines practices and technologies from observability, artificial intelligence (AI)-augmented testing, chaos engineering, auto remediation, site reliability engineering and software supply chain security to increase the resilience of products, services and systems.
Gartner also predicts that by 2025, organizations that invest in building digital immunity will reduce system downtime by up to 80% – and that translates directly into higher revenue.
Cloud computing technology usage is on the rise and Google is pointing out that it’s also playing a big role in reinforcing the security of enterprises in 2023, serving as the gateway to a “global digital immune system“.
Hence, digital immunity is becoming a “must-have” that companies need to adopt and implement. Especially since according to the same Gartner report nearly half of respondents (48%) stated that the primary objective of their digital investments is to improve the customer experience (CX).
4. AI & ML continue their supremacy
In 2023 Artificial Intelligence (AI) and Machine Learning (ML) will remain the most important technologies for digital transformation. Why?Because AI powers the entire process of offering better insights about customers behavior, demographics and what they are really into. It can help organizations streamline operations, improve decision-making, and create new opportunities for growth and innovation.
At the same time, ML takes the story even further and uses the data to offer customized and personalized services, products and experiences to its customers. By leveraging ML, organizations can improve operational efficiency, reduce costs, and gain a competitive advantage in the digital landscape.
The customers’ constant high expectations in terms of efficiency and speed have a direct influence on why AI and ML are becoming more mainstream and represent the ultimate confidence in the future of doing business.
The recent COVID-19 pandemic has highlighted the importance of digital transformation for businesses. For example, as remote work has become the norm, businesses that have already invested in digital transformation were able to adapt more quickly and continue operating. On the other hand, businesses that are still reluctant to adopt it, are bound to struggle to maintain operations and reach their customers.
In conclusion, businesses are left facing many challenges this year too. Digital Transformation demands to find new ways of changing the management strategy, increase the adoption of new tools & processes, discover and attract proper IT talent, resolve basic security concerns, allocate real budgets for change and adjust the culture mindset. Busy times ahead!