Enterprises are poised to experience a notable shift in priorities, with 60% of businesses now focusing on revenue growth, customer experience, and competitive positioning over cost-related goals for digital transformation, according to a GSMA Intelligence Research report.
The report, “The Rise of Digital Industries: Navigating Enterprise Needs, Investments, and Supplier Decisions,” also revealed the significant growth of digital technology investments over the next six years.
Enterprises are projected to allocate 9% of their revenue to digital transformation from 2024 to 2026, growing to 11% between 2027 to 2030.
Pablo Iacopino, Head of Research at GSMAi, stated, “Enterprises of all sizes are eager to advance their digital transformation and are making the necessary investment. As a result, a supplier competition is fierce.”
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Driving Digital Transformation with 5G and AI
The report highlighted the significance of 5G networks and connectivity, with 85% of enterprises underscoring them as “extremely important” to achieve digital transformation success.
Enterprises are poised to allot 21% of digital transformation budgets to connectivity and associated devices and 13% to mobile networks, including 5G. Meanwhile, fixed and Wi-Fi networks are expected to be allocated 8%.
Enhanced security and connectivity are set to emerge as top investment priorities, accounting for 57% and 52% respectively, between 2024 and 2030.
AI accounts for 14% of technology expenditures in enterprises and is set to improve customer experiences, strengthen security protocols, and increase employee productivity.
Notably, 90% of companies incorporate generative AI (GenAI) into their digital strategy, with only 33% implementing it in advanced ways across multifaceted channels.
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IoT’s Growing Adoption
The report also highlighted the increasing adoption of Internet of Things (IoT) technologies in businesses and the growing interest in eSIM technology for IoT deployments. eSIMs are projected to account for 42% of the total IoT cellular market by 2030.
Commenting on the industry’s continued focus on connectivity and modern innovation, Iacopino underscored, “Telcos need to go beyond just providing network services since enterprises are increasingly looking for partners who can help them throughout their full digital transformation journeys, combining technologies such as 5G, AI, IoT, and cloud to improve efficiency, security, and drive results.
“The cost implementation and complexity of tech integration are the top two deployment challenges faced by enterprises. This means the role of [the] tech orchestrator will become even more important and demanded in the future, which presents new opportunities for multi-service suppliers.”
The GSMA Intelligence Research report highlights how enterprises are accelerating their digital transformation journeys and demonstrating renewed interest in utilizing a diverse array of suppliers to meet the growing demands of AI and 5G technologies.
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