2020 was an unprecedented year, filled with unexpected challenges and digital transformation was the key for organizations to keep up with the chaos. As a result, according to data from Gartner, 69% of organizations accelerated their digital transformation initiatives. While 2020 was all about survival, the theme of 2021 seems to be about developing the capability to quickly adapt to future challenges and preparing for long-term success.
According to the International Data Corporation (IDC), 30% of organizations will increase innovation and reinvent their business model in order to future-proof their business. Meanwhile the IDC also predicts that through 2022, 70% of organizations will have “accelerated use of digital technologies, transforming existing business processes to drive customer engagement, employee productivity and business resiliency.”
Digital transformation looks completely different in 2021, and as new trends arise it offers up new challenges to organizations and enterprises.
The fast-paced transition to 5G that is bound to erupt this year, will require investments in 5G technologies. Remote work isn’t going anywhere — at least any time soon — and 5G internet speed could be instrumental in improving all digital experiences currently limited by laborious internet speed.
Organizations are also under more pressure than ever before to digitize services quickly at scale that meet customer demands and create new revenue channels. With more customers and employees relying on digital technologies to access business services, both the technologies themselves and the digital transformation strategies will be crucial for successful customer experiences.
A renewed interest in cybersecurity is also being touted by experts as being one of the most important components of digital transformation this year. According to Fintech News, there was a 238% rise in attacks on banks, and a 600% increase in attacks on cloud servers from January to April 2020 alone.
Some experts suggest that AI and machine learning will be an important proponent in bolstering cybersecurity initiatives. Besides increasing cybersecurity, AI promises immense value in the domain of customer experience improvement. Access to the right set of data, tools, and talent enables business leaders to jump ahead of the competition and deliver more meaningful digital experiences.
Though one of the biggest changes in digital transformation is reducing the carbon footprint of operations and creating a sustainable and green organization. In 2021, organizations have an opportunity to transition from traditional, carbon-heavy operations to digital-first environmentally friendly business operations.