The digital transformation that businesses should know
Definition of digital transformation
Digital transformation is a process that a business uses technologies to optimize its manual processes in order to make its employees and especially customers have better experiences. It is where all paperwork is converted into digital platforms for better management, thus improving customer services.
Why is it important?
The most likely reason for businesses taking on digital transformation is that they need it for survival. Take a look at the S&P 500 for example. In 1958, 61 years is the average time of US corporations remained on that index, 18 years by 2011. Today, every two weeks companies are replaced on the S&P. Technology is the key in that shift, companies have to find it and apply to unlock the path to success. IDC predicted that the digital transformation budget will reach $1.97 trillion in 2022.
What is the drive for the transformation?
Outdated processes and legacy technologies have been burdens of companies that they need digital transformation to replace them. The Federal IT Dashboard shows that over 70% of IT spend government went on running and maintaining legacy systems.
In the healthcare sector, “nearly 80% (79.8 percent) of clinicians prefer to use hospital-provided pagers, amid widespread use of smartphones and other electronic devices by healthcare providers, and 49 percent of those clinicians report most frequently receiving patient care-related updates via pager.”
Examples such as these cover all sectors, and the persistence of outdated technology hinders the willingness of CIOs to embark on a digital transformation plan with success. Forrester’s study shows that CIOs invest an average of 72% of their budgets on current IT issues, while just 28% spend on new initiatives and innovation.
Noticeable digital trends in 2020
Organizations in 2020 will be left behind if they don’t take into consideration of digitally cultural change
Some key digital trends that business leaders should pay attention to:
- Rapid implementation of modern operating frameworks, including cross-functional collaborative teams;
- A shakeout as those would have leapfrogged their rivals in big data management and analytics.
- Effective use of AI learning and machine learning.
- Continued operations of merger and acquisition in the IT outsourcing sector.
- Consultancies who will shape new interactive alliances.
- Expanding the use of the digital cloud.
- Fresh metrics of performance for digital transformation.
- More exposure to the importance of technology projects over the long run.