It's natural to expect a fresh wave of digital transformation trends in the new year. After all, you probably recognize that:
- Each year, Digital transformation becomes more of a key component of modern business
- Technology stops for nothing—it progresses constantly
- The economy can influence DX thinking and approaches, but does not reduce its influence
In this post, we introduce several trends that have been identified as important to consider if you want to keep your business relevant and high-performing.
The Future of Digital Transformation Is Big on Automation
Organizations leverage business process automation to remove the need for manual execution of tasks. Such solutions can boost productivity, improve the customer experience, and allow for a greater degree of digitization
in operations. However, implementing these solutions can present a significant learning curve for those unaccustomed to using digital technology. (You should, of course, Plan for Adoption).
Digital Experience Trends Prioritize Composability
According to research, the average organization employs 976 different applications. That's a lot of systems creating a lot of data. And right now, many of these systems are poorly connected.
90% of organizations are unable to create integrated user experiences due to insufficient (or non-existent) integrations between the myriad applications they use. This has made composability—a design feature that allows for inter-relationships between discrete systems or components—an increasingly important digital experience trend. As such, any business wanting to provide seamless user experiences—for prospects, customers and internal teams— must have composability as a core pillar of business strategy.
Total Experience (TX) Strategies, Key to Digital Transformation 2023
Research revealed that 46% of senior IT leaders are now evaluated on employee experience, while 48% are judged on customer experience. This establishes a high priority to drive innovation and remain competitive in a crowded market—with current and prospective consumers and employees.
This is especially important to think about when employment scenarios are short on qualified talent and long on job openings. In such cases, many organizations struggle to find the right people for their teams. Downstream problems can occur when internal mechanisms aren't aligned with external demands and expectations.
As such, going forward, TX strategies may play an even greater role in business success. Viewing operations and stakeholders more holistically can enable your company to perform better.
Digital Transformation Proliferates with Everything as a Service (XaaS)
The concept of Everything as a Service (XaaS) is essentially an extension of Software as a Service (SaaS), which gives access to applications via the internet. XaaS provides consumers access to a range of services—such as infrastructure, data storage, and processing power—using a similar delivery approach. The XaaS model often offers operational and cost advantages, making it a viable option for many organizations.
For this reason, we anticipate XaaS to continue quickly gaining traction in the digital transformation arena over the next 12 months.
A Not-to-Miss Digital Trend: Beefing Up Customer Data Platforms
Customer data platforms (CDPs) enable the combination of different applications and databases. By unifying customer information from disparate sources into one comprehensive platform, organizations are able to glean insights regarding consumer trends and make better-informed decisions. This helps businesses design and offer more personalized or compelling customer experiences.
Because of the potential gains and despite any possible shortcomings, automation is one of the biggest DX drivers to consider. This is no wonder given that over 80% of corporate leaders say they're accelerating work process automation and growing their usage of remote labor.
That's powerful stuff! Which is why many organizations are already starting to increase their reliance on CDPs. As more and more companies realize the value of having a unified view of customer data—like smarter decision-making that can lead to optimized operational and marketing efforts—you can expect CDPs to improve and to become more prevalent.
Virtual Business Collaboration Demands Digital Transformations
The COVID-19 pandemic irrevocably altered how we do business. Businesses discovered that they couldn't function in old ways.
One mega change that came out of this difficult period was companies began using or aggressively ramping up their adoption of digital technologies. However, many businesses quickly realized that the tools employees had for remote working weren't working well. This significantly influenced a trend of implementing more and better virtual collaboration software.
Though the pandemic seems to be winding down and the world's getting back to business as usual, the new norm is not what it was pre-pandemic. Remote and distributed work arrangements are here to stay. Companies that wish to remain sharp are going to continue supporting this workplace evolution.
Digital Transformation Trends Point to More Migration to The Cloud
Cloud technologies can help companies cut expenses, enhance accessibility, and delegate tedious routine maintenance tasks. They're often more efficient than comparable on-prem solutions and can free organizations to focus on their core capabilities and offerings.
So don't be surprised when we tell you that recent digital transformation trends indicate an increased rate of migration to the cloud. Businesses want to keep a good thing going!
Bonus Trend: Investment
Nothing in life—or business—is free. (And frankly, usually not cheap, either.)
Money fuels innovation. It takes reasonable investment to accomplish digital transformations, including the trending ones we discuss above. So, it should come as no surprise that organizations on board with DX trends— and real-world DX implementation— will continue investing significantly into related projects and initiatives in 2023, even with an unclear economic forecast.
Move Your Business Forward the Smart Way—With Splice
Jumping on the latest digital bandwagon just because it’s the “thing du jour” isn’t necessarily a winning business strategy. You’re going to be investing resources—time, money, people power—into pursuing digital transformation initiatives. So, it’s best to make sure they’re worth it and you go about them efficiently and effectively.
A great way to help your business get optimal results is engaging a digital transformation partner that’s deep into these trends and the tech behind them.
That’s what we do here at Splice. We work with companies—like yours— to select, create, and implement next-gen digital solutions tailored to your needs. The outcome is intelligent digital transformation to competitively carry your company into the future.