Presently, the majority of operations across many industries are going through digitalization, aiming to improve processes by leveraging digital technologies and digitized data. Behind this goal of achieving digital success are requirements and expectations to be met.
A powerfully innovative and comprehensive ecosystem of products and solutions is making digital transformation a progressive trend, one where companies evolve their overall business processes and customer experiences. Such growth is the pivotal step that’s taking the business world into the digital age.
Whether in financing the change of existing structure or creating something entirely new, global spending on digital transformation is expected to reach more than $6 trillion by 2023. Those with digital-first strategies are said to be more likely to achieve their business goals than competitors.
Regardless of this, however, the success rate of digital transformation is thus far below 30%, and a full return on investment has yet to happen.
When digital strategies lack a well-structured mechanism, leadership commitment, effective monitoring, high-caliber talent and a business-led data platform, they are bound to collapse. No matter how innovative or unconventional the solutions are, processes, people and technology must all come together for a desirable outcome.
Thus, by facilitating internal and external transformation, a business’s value will increase due to better resource management, more valuable insights into customers and subsequently higher profits.
Technologies Implemented
According to the World Economic Forum, by 2025, $100 trillion will be added to the world economy through digital transformation. In fact, digitally transformed organizations are expected to contribute more than half of the global GDP by 2023.
Improving customer experience and customer satisfaction are the leading drivers for kickstarting a digital transformation strategy. In support of this, Gartner predicts that, in 2022, 90% of corporate strategies will specify information as a critical business asset and analytics as a core competency.
Emerging technologies are indeed becoming the cornerstone for businesses’ digital progression. Investing heavily in omnichannel touchpoints allows a reimagining of customer experience, specifically in using application program interface (API), machine learning and intelligent processing.
Using cultural and strategic influence to create and consume APIs is essential to achieving business agility. This could hasten the introduction of new ideas to the market and unlock new asset value.
Additionally, AI-based machine learning can continue to be utilized often to deliver simpler, faster, and more automated networks that analyze data to help businesses thrive.
An ecosystem-driven cloud integration platform can also deliver the capabilities and methodologies to support the IT system integration and modernization needed for digital transformation initiatives. This will accelerate enterprise transformation.
With the nationwide deployment of 5G, IoT applications will also reach a new standard. In this digital era where businesses have to stay connected at all times, the 5G network, with its high speed, greater capacity and lower latency, is imperative.
Billions of IoT devices need more bandwidth, fast transmission capabilities and seamless connectivity, and all of this can be achieved with the integration of 5G, the upcoming 6G and other emerging wireless capabilities.
With this in mind, the field of system integration (SI) is vital. This is the process of interconnecting all of a company’s IT systems, technologies, applications and software to function as a single system. By enabling interoperability between the different business tools, SI can boost the speed of information flow, reduce operational costs, offer consistent communication and even increase sales.
Furthermore, the pandemic has accelerated digital transformation in many areas, including the digital universe founded via blockchain. The surge of metaverse use cases is foreseen as being a huge part of the “new normal” in the years to come.
Continuous Innovation
Business agility and growth can lead to innovation, making digital transformation an important long-term goal. By empowering innovation and change, organizations are primed to attain digital success.
According to McKinsey, digital-savvy industries have higher digital transformation success rates than traditional companies. This can be seen most directly from the massive efforts within industries such as cybersecurity, future mobility, healthcare, fintech and telecom. Innovation leaders and professionals are working hand-in-hand to ensure that the products and services of today will bring a better tomorrow.
Bridging the potential gaps between the traditional and digital aspects of a business is no silver bullet. Innovation requires initiatives, ideas and dedication — daring to challenge existing solutions and try out new ideas to manifest potential. Technical competence, framework and structure are also keys to successful innovation.
Kevin Susman, VP of brand and communications, MATRIXX Software, previously defined innovation as the “fundamental reimagining of the established way of doing things.” And what’s needed to compete on the innovation front is to make the “entirety of the ownership experience” fundamentally different.
Having said that, digital transformation is about realizing the value of technology and pursuing innovation. In the UAE alone, 90% of organizations have fast-tracked their digital transformation programs within a single year – accomplishing in a few months what would normally have taken many years.
As businesses move toward innovation and digital transformation, upskilling employees to harness digital tools and data is also necessary. Utilizing digital natives, those who grew up with digital tools, companies should also involve, motivate and optimize digital immigrants, those who are most open to learning and changing in this valuable journey.
