Why Digital Transformation Is Still Important in 2022
If you’ve not made the digital switch, then the world is leaving you behind. But it’s not too late to start. Here is why digital transformation is still important in 2022.
Digital transformation (DX) is essential to business success and customer experience. DX is the integration of digital technology across all areas of a business, fundamentally altering your operations and how you deliver value to your customers. A few years ago, especially pre-COVID, digital transformation was a “nice-to-have” for organizations. With the major disruptions to business activities globally, DX has become practically inevitable for any organization that wants to stay competitive and relevant.
It is now a cultural shift that challenges organizations to continuously deviate from the status quo and experiment with agile and intelligent processes characterized by artificial intelligence, machine learning and advanced analytics. Although digital processes started decades ago, we’re yet to fully unravel the endless possibilities it brings. In fact, digitally transformed organizations are projected to contribute more than half of the world’s GDP by 2023. As the years go by, more digital transformation trends are introduced that every business must implement. And now, in 2022, digital transformation is more important than ever.
The Importance of Digital Transformation in 2022
There are four pillars of digital transformation – engaging customers, empowering employees, optimizing organizational processes, and transforming products. These pillars provide a model that organizations can use to achieve measurable business growth. They also highlight the areas in a business where digital product development drives growth and improvement.
Here are some important reasons for digital transformation :
Improved Customer Experience
Digital transformation involves data-driven processes and predictive analytics that can contribute to enhancing customer experience. By integrating DX processes, your organization can generate helpful insights on customer behaviour that helps personalize their experience.
Enhanced Security and Data Privacy
With the increased cybersecurity risks for businesses, digital transformation has never been more crucial. Hackers are developing new ways to break down firewalls and bypass protocols. Organizations must employ secure agile principles that process data without third- party intervention to ensure the security and privacy of employee and customer data. DX allows organizations to build secure cyber architecture and frameworks that protect them from cyber-attacks.
Ensures Better Decision Making
Digitalization is changing the way companies use big data. Now, digital transformation technologies, especially the Internet of Things (IoT), can help businesses to mine a large amount of data from multiple streams into a data pool. With the help of advanced analytics and other AI systems, businesses can make better data-driven decisions that align with customer expectations and strategic decisions that lead to better business opportunities.
Improves Employee Productivity and Company Culture
Digital transformation is essential in helping employees streamline their core responsibilities, which increases productivity and stimulates growth. AI and automation can move departments such as HR or accounting from manual to automated processes. By improving workflows and introducing modern technology, there will be less loss of time, energy, and resources. Ultimately, this will lead to sustained growth, which can increase employee engagement, especially among the younger generation.
Increased Revenue And Profutability
Digital transformation is the fastest way to increase revenue while cutting costs at the same time. Increased employee productivity, more business opportunities, reduced operational costs, and improved customer experience contribute to revenue growth and improved bottom line.
Top Seven Digital Transformation Trends in 2022
Here are seven crucial digital transformation trends that IT and business leaders must look out for in 2022:
- Reliance on cloud computing solutions to drive innovation
- Predictive analytics and other AI-Powered business processes are projected to drive the highest growth in DX.
- Focus on data-driven business management and personalization.
- Increased acceptance of working from home (WFH) models such as fully remote or hybrid.
- Investing in employee and customer onboarding.
- Increased adoption of Blockchain technology such as NFTs and the Metaverse.
- Prioritizing security in software development life cycle.
From being valued at $469.8 billion in 2020, the global digital transformation market is forecast to grow to 1,009.8 billion by 2025 – at a CAGR of 16.5%. Although there are already lots of opportunities for businesses, it is clear that digital transformation is still in its early days with more room for innovation. The time to become a digitally transformed business is now.