These trends will reshape digital transformation and develop a smarter economy.
The pandemic had hit the world hard and many businesses collapsed. However, the crisis enabled rapid technology adoption and accelerated digital transformation across the industries. Companies started leveraging disruptive technologies to deliver value to customers and enhance business growth and productivity. With consumers largely shifting to online platforms and due to the pandemic-induced restrictions, businesses started building a digital presence to cater to their audience. With technology being integrated everywhere and considering the changing business landscape, digital transformation has a lot to offer this year. Let us look at the top 10 trends that will shape the digital transformation journey of businesses in 2021.
1. 5G Will Become the New Normal
In the current scenario, digital is normal and businesses are striving to manage operations from homes and remote spaces. 5G had already been hailed much during last year and from this year onwards this technology will gain more prominence. 5G network can provide unprecedented speed and connectivity that can cater to the growing demand for increased bandwidth and reliable connectivity. 5G going mainstream will enable better IoT connectivity, enhance user experience and digital collaboration, and accelerate digital transformation.
2. Blockchain to Witness Development
With rapid technology adoption last year, blockchain has been brought to the limelight. Although it earlier resonated with cryptocurrency, blockchain is now adopted in different industries, especially in financial institutions. Blockchain’s capabilities are being explored and recently India appointed a panel that is said to focus on the exploration and expansion of blockchain technology in different industries. In the coming years, blockchain will play a crucial role in cybersecurity and will mature with increased adoption in industries.
3. Prioritizing Cybersecurity
The pandemic that surfaced last year made cybersecurity more relevant as there were many and continuous attacks on several companies in a short time. Since most of the companies switched to remote working, there arose a need for better and vigilant security measures. Robust cybersecurity practices are one of the top priorities of businesses going through digital transformation and planning to adopt it. The speed of digital transformation must be on par with a company’s security strategies and infrastructure.
4. A Heads-up to Digital Banking
The finance and banking sector were some of the most impacted industries with rapid digitalization. Most of these services went online and initiated digital payments, digital credit application processes, online loan applications, etc. They are on a move to enhance the digital user experience through efficient digital transformation. Coming years will see a rise in digital banking and open banking initiatives. Digital payments services and digital banking will reshape the transformation in the financial sector.
5. Customer Data Platforms Will Storm
Data is the fuel in today’s customer-centric business models. However, gathering and managing data can be quite difficult without good infrastructure. Customer Data Platforms or CDPs step in here. CDPs collect data from all sources, organize, tag, and make them usable. There is an abundance of data available today and businesses often end up not utilizing them to maximum benefit. Data analytics has also become a potential ingredient to enhance growth and efficiency. Considering these factors, CDPs will empower and revolutionize digital transformation.
While businesses are actively migrating to the cloud, it is imperative to note the growth of a multi-cloud system. It will remove common barriers providers face and also eliminate vendor lock-ins. Multi-cloud and hybrid cloud systems will flourish this year and beyond and will shape the transformation of businesses. Multi-cloud enables the user to distribute cloud computing assets, software, and applications across different cloud platforms. They can also use several public and private cloud infrastructures.
7. Quantum Computing to Mainstream
Recently, Google announced that it will develop a commercial-grade error-free quantum computer within a decade. Although quantum computing has not been commercialized fully yet, it has become a vital research subject. Many industries will explore quantum computing in the coming years to enhance digital transformation.
8. XaaS and Transformation
Everything as a Service or XaaS has already gained importance in the business ecosystem. It is a generalized term for cloud service delivery models and it recognizes all the different products and services across the internet. It can simplify technology deployments and as the services will have quick access, it can be widely employed by companies. The XaaS model can enhance agility and help businesses in streamlining digital transformation.
9. Remote Work To Stay
Since the pandemic, offices have been working from home and in remote conditions. Several surveys and studies suggest that this remote work strategy is to stay here for long. Companies have identified the potential benefit of working remotely and this has also led to accelerating digital transformation. There will be more innovations and smart technologies to cater to the needs of the ‘work from home’ population.
10. Automation at the Core
Automation can increase the pace of digital transformation and businesses will largely focus on automating the processes and ERP in years ahead. During the pandemic, several companies had to adopt automation to remain in the market. Thus, automation has become the core of digital transformation. With AI, machine learning, and robotics being integrated into businesses, it will be possible to automate the Enterprise Resource Planning model to enable better growth and agility.
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