Digital transformation is taking the world by storm, and an increasing number of organisations are adopting digital technology to modernise their operations, processes, products and services. Forecasts reveal that a total of $3.4 trillion will be spent on digital transformation globally by 2026. And given digital transformation has the potential to revolutionise business operations, this statistic is not surprising. It will enable organisations to become more efficient and insights-driven, giving them a competitive advantage over those that fall behind the latest digital transformation trends.
There are four key areas of digital transformation, including data, technology, people and processes. Some of the most influential examples of digital transformation across sectors in recent years include transitioning to remote-first working arrangements for many businesses, automation of customer services in retail, and e-portals for patients in healthcare - to name a few. Let’s take a look at some of the most popular digital transformation trends for 2023, and why they will be pivotal for business success this year.
‘As organisations are moving towards adopting these trends FDM has observed that – whilst initial investment in these was forced upon by the pandemic, a digital transformation agenda requires additional skilled resources and a clear approach to delivering with the people side of change. This has left organisations to grapple with two key challenges: how do they deal with competition for talent and the evolving skills required; and how do they ensure the organisation has addressed the people changes required to adopt the new ways of working. This has forced organisations to look at alternative ways to deliver their change. Which in turn has resulted in a number of organisations turning to FDM to provide solutions to these challenges.’Garth Newboult, Principal Consultant at FDM Group
What are the most popular digital transformation trends for 2023?
- Low Code No Code
- Cloud Migration
- Artificial intelligence (AI) & Machine Learning (ML)
1. Low-Code No-Code
Gartner predicts that low-code no-code platforms will account for over 65% of software development by 2024, and the industry will be worth $13.8 billion in 2023. Low-code no-code is a type of software development that requires very little code (low-code) or no code at all (no-code) - hence the names.
The key benefits of low-code no-code include:
- Almost anyone can use low-code no-code with limited training with a low risk of errors
- Low-code no-code platforms have automation features to streamline software development
- Highly accessible with quicker turnaround times and low risk for error, low-code no-code can lower development costs significantly
So, what does this mean for digital transformation? Firstly, the accessibility of low-code no-code means the development of software for businesses, whether for internal or external use, can be shared across the organisation. This means that skilled developers, business decision-makers and any other parties can have greater input into the software that will improve either internal operations or customer-facing products - producing a higher quality programme that better suits business needs.
Similarly, with the current digital skills gap resulting in £63 billion in losses for the UK economy per year, adopting low-code no-code could help you bridge the gap without the need for highly-skilled software professionals. Read more about how low-code and no-code development could change the future of software development
2. Cloud Migration
McKinsey reports that most companies aim to allocate 80% of their IT budget toward cloud by 2024, including PaaS, IaaS, SaaS and private cloud. Moreover, McKinsey estimates that pioneering businesses in cloud migration should expect substantial financial gains, potentially unlocking $1 trillion in value.
The growing popularity of cloud computing can be greatly attributed to greater efficiency and accessibility, as well as improved scalability and security. These four benefits of cloud computing feed into digital transformation success in the following ways:
- Efficiency - Cloud computing provides on-demand access to computer system resources, and can improve business efficiency in a number of ways. Some examples include improving remote working efficiency, reducing operational, software and hardware costs, increasing cross-department collaboration and simplifying scalability. This will all save a business time and money in the long run. According to Microsoft, 80% of businesses report saving money, seeing better productivity and improved security through cloud adoption.
- Accessibility - Cloud adoption will enable employees, clients and stakeholders to access information or applications from anywhere in the world through the internet. This can be particularly useful for remote businesses or global organisations, and will be especially important as businesses rely more heavily on digital solutions.
- Scalability - Cloud computing enables businesses to scale their IT solutions up or down to meet changing requirements, be that data storage capacity or processing power. Therefore, cloud will be crucial for businesses either expecting rapid growth in demand or that have a long-term development strategy.
- Security - Businesses report a 94% increase in security after adopting cloud. Security will be integral to keeping digital files, data and programmes safe, reducing the risk of breaches as businesses progress with digital transformation.
Although there are countless benefits to cloud computing, there are a few things to consider before carrying out a cloud migration and a few questions you’ll need to ask yourself. Do you want to host on a public, private or hybrid cloud infrastructure? Are your teams ready to embrace such a significant organisation culture change? Are you in the right position to cater for the migration costs and realistic timelines? Do you have backups in case disaster strikes?
A cloud migration is a huge project that requires a bespoke approach that takes into account your individual business requirements. Involving the experts can help make the transition to cloud as seamless as possible. At FDM, our Cloud Engineering Consultants are trained in a variety of cloud specialisms and can support your business every step of the way.
Salesforce reports that 95% of IT and engineering leaders are prioritising workflow automation within their organisations, in order to break silos, improve employee productivity and boost customer experience. Salesforce surveys also reveal that 89% of workers are more satisfied with their job thanks to automation. Either way you look at it, automation is certainly changing businesses for the better.
Automation is a digital transformation trend that will have one of the biggest impacts across organisations, streamlining business processes, reducing manual labour, cutting costs and improving both employee productivity and organisational efficiency. With less time spent on tedious, repetitive tasks that could be carried out by automation, teams are left with more time to spend on more important work. In fact, it is estimated approximately 45% of business activities can be automated using existing technology. This demonstrates ample opportunities for businesses to prioritise their outputs and increase productivity, leaving the mundane tasks to the ‘robots’ and breakthrough projects to the humans.
Digital transformation is not a static concept and is often seen as a journey that is constantly evolving. Once you accomplish one aspect or overcome a hurdle towards your digital goals, you will be looking for the next step. Automation will be key to maintaining and improving ongoing initiatives, while you work on developing new innovations,
At FDM, our RPA Consultants are highly-trained in a variety of roles within Automation operations, and can integrate seamlessly into your internal teams to spearhead your automation projects.
4. Artificial Intelligence (AI) & Machine Learning (ML)
Artificial Intelligence (AI) and Machine Learning (ML) are becoming increasingly important in many aspects of the world, including business and digital transformation. In fact, it is predicted that the AI market will grow by 52% between 2017 and 2025. AI and Ml will be adopted to support digital transformation across industries, including healthcare, logistics and national security, for example.
AI is used for data analysis and predictions to inform effective digital organisational strategies and personalise interactions, as well as optimise workflows and provide around-the-clock reliable services. Similar to automation, this will free up valuable employee time and cut labour costs. It will also play a huge role in decision-making, since it can detect business weaknesses, predict market trends and provide real-time insights. This will help businesses improve their forward planning and make informed business decisions for future success.
The use of blockchain is on the rise across organisations, with 81 of top 100 companies currently using blockchain technology to facilitate digital transformation. Blockchain is essentially a collection of secure records, which are linked together and protected using cryptography. It provides a shared and distributed ledger, which is made up of blocks and transactions, and enables participants across an organisation to access a single version of a record. This ensures higher security and transparency, which can be especially useful for financial institutions for example. Blockchain users can also use smart contracts without the need for a human notary, cutting out the middleman.
All of these characteristics of blockchain help businesses overcome key workflow challenges, such as Know Your Customer (KYC), credit reporting, document transfer, source of funds and ACH transactions - aiding in the digitalisation of various processes. As such, businesses looking to follow in the footsteps of top organisations should consider this digital transformation trend.
As you can see, there are a multitude of trends in digital transformation that have helped businesses in all sectors achieve great things. Going into the year, you will likely not have the resources to focus on all five trends, and that’s only natural. In fact, it can actually be beneficial to focus your attention on one trend at a time to ensure it is implemented properly, and your teams are fully on-board with the transformations taking place. Cloud migrations will be particularly important for almost all businesses,
Although these digital transformation trends have the potential to transform your business, it’s important that these technologies are correctly integrated into your business culture and existing strategies. Hiring the right people will make all the difference in your efforts towards digitalisation. Building a team of specialised technical professionals with an eye for business, who truly understand your organisation’s needs, will be greatly beneficial. It will also be imperative that you measure the success of your digital implementation, and pivot your strategies accordingly as you go along.
If you’re looking to revolutionise your business and join these digital transformation trends, you’ll need the right people to help you lead the way. Check out the FDM technical consultant services or get in touch to find out how we can help you build specialised digital teams.