Top Digital Transformation Trends that Will Define Business Value In 2022

Introduction

The COVID-19 pandemic wreaked havoc on businesses, pushing them to rethink how they work, trade, and communicate. According to an IBM study, COVID-19 caused 60% of firms to accelerate their digital technology investments, and more than half (55%) permanently changed their organisational strategy.

Companies must have a solid technological foundation and rethink how they manage their resources, infrastructure, and people. They must address crucial metrics that were neglected, de-prioritized, or disregarded during COVID-19’s early days of adaptation.

The top Digital Transformation Trends that will define business value in 2022 :

1. Businesses will rely more on connected Cloud Solutions

    With the continued growth of the cloud, the number of enterprises using it will only grow. This is seen by the continual increase in sales of cloud management software. This expansion has various implications. One of them is that the cloud will be scrutinised more closely. Businesses will understand that relying only on one cloud provider is not a good idea.

    Many large companies now provide both private and public clouds as part of their services. Amazon Web Service (AWS), Microsoft Azure, IBM, Google, and Alibaba are the top five providers.

    Unsurprisingly, the majority of them provide methods to benefit from multi-cloud architecture, either directly or indirectly. Multicloud Manager is IBM’s offering, Anthos is Google’s, and Alibaba Cloud includes a number of tools to help with multi-cloud administration. Azure and AWS, on the other hand, provide customers with virtual machines via which they may link cloud services to their desktops.

    2. Increased investing in Machine Learning and Artificial Intelligence

    Every day, businesses generate a deluge of data, and numerous experts constantly extol its value. However, there are reports that we barely utilise 1% of the data available to us. Despite the fact that there is a lot of decent data analytics software on the market, this is the case.

    Digital leaders are also encouraged to spend more on this trend as processing capacity improves. The current adoption rate of AI for data processing is also promising. If it keeps at its current pace, the above-mentioned 1% data use might climb to almost 3% by 2020.

    3. The use of Security-by-default will be essential.

    Concerns about security have long been a stumbling hurdle for digital endeavours. Security issues are impeding the pace of innovation, according to 87% of IT and business executives, while 73% believe particular security and governance problems have worsened as their systems have gotten more linked.

    Application programming interface (API) assaults will become the most common attack vector for business online applications by 2022, according to Gartner. This will force businesses to use better security tools.

    4.Companies must accept the Emergence of Hybrid Ecosystems.

    The capacity to create seamless digital experiences for both workers and consumers is critical to the success of contemporary businesses, according to IT and business professionals. As businesses seek solutions to this topic, universal API management will become more prominent in 2022.

    Many firms were able to handle the obstacles that the pandemic posed because of cloud technology. They have, however, significantly increased the complexity of today’s digital ecosystems. Currently, 92% of businesses have a multi-cloud strategy in place, with 82% having a hybrid cloud configuration.

    Conclusion

    The majority of firms began their digital transformation journeys before 2021, yet this year has undoubtedly altered the direction of several initiatives. With more than half of businesses accelerating their digital transformation initiatives, these digital innovations and trends are only expected to rise in the year 2022.

    How to achive Long-Term Success with Digital Transformation

    As Digital Transformation is significantly reshaping the enterprise, many companies are pursuing a large-scale change to gain digital inclusion advantages or stay up with the competition. According to a recent International Data Corporation poll, direct investment in digital transformation is expected to surpass USD 6.8 trillion between 2020 and 2023. The Pandemic has also shed light on how digital transformation may help businesses respond more swiftly to changing market conditions while maintaining operational stability.

    Executives are now under pressure to prioritize digital business transformation that addresses immediate demands while also laying the groundwork for future innovation and competitive advantage. Changes in processes and infrastructure, such as moving workloads to the cloud, installing AI throughout the company and re-evaluating how, where, and by whom work is done, may be required. This may include changing network capabilities and establishing edge computing equipment for some.

    Digital transformation’s role in Enhancing Organizational Resilience

    The organization’s resilience can be known by the way with which it observes, adjusts to, and recovers from a crisis. Businesses’ perceptions increase as a result of digital transformation. Furthermore, because of its capacity to quickly capture changes in the internal and external environments, digital technology may be employed as part of the transformation process.

    Organizations may also use digital technology to instantly connect internal and external sources of information, enhance the scope and depth of their knowledge, speed up decision-making, and radically cut reaction times. By embedding AI algorithms in intelligent products and services, businesses may implement automated algorithmic judgments. In addition, an organization’s capacity to recognize, integrate, coordinate, and reconstruct itself increases when it is digitally transformed.

    Take the “virtual first” approach.

    Executives may enable the future of virtual corporate infrastructure through intelligent digital transformation. Leaders may evaluate where physicality could become optional and which technologies and cyber tactics are required to support a primarily digital workplace and workforce by taking a virtual-first approach. Both may have implications for how organizations acquire, manage, and engage talent in a post-pandemic environment and how management practices that match with a business strategy might support a virtual-first culture.

    Enabling the Cloud provides agility and extensibility

    Cloud capabilities assist companies in moving at the pace of their markets and acting as an expandable business platform in today’s volatile environment. Digital transformation brings an organization up to date with current technologies and makes it simpler to add new capabilities to its tech stack.

    Automate decision-making

    Organizations may use AI/ML technology to set thresholds to indicate when a specific input needs human intervention, while the remainder can be automated. In addition, businesses may access additional AI capabilities in the cloud and use them to enhance customer management and product innovation, and workforces can become more comfortable with a degree of automated efficiency. Customer modelling, for example, is now included in leading customer relationship management products to anticipate and identify individuals who are most likely to depart.

    Conclusion

    A business becoming successful is a process, and digital transformation can help you accomplish it. Enterprises have to seek ways to connect the existing and future worlds. You may, for example, pivot more rapidly and adapt more effectively by updating your services, processes, and infrastructure running and reforming at the same time. That’s what we’re talking about when it comes to digital transformation.