Ingredients to accelerate digital transformation in 2021

2020 was characterized by being full of uncertainty, turmoil, and health problems. And we are still dealing with post-Covid situations that devastated almost every industry. However, in 2020, the entire world witnessed multiple digital transformations that changed the digital strategy of companies despite all the negativity.

<<< Automation and digital transformation: the key to growth >>>

From Chinese hospitals using 5G-enabled robots to perform healthcare operations to the world's giant manufacturers announcing the launch of 5G phones in the coming years, 2020 was all about the digital revolution. Due to this great digital wave, different organizations are turning their business online and building digital presence to remain relevant in the market. This new digital wave has introduced us to new technologies that will take care of businesses.

Whether you're planning to implement CRM software, a project management tool, a team collaboration tool, or maybe an online survey tool, here we've listed the most popular ingredients for accelerating digital transformation in 2021 and beyond. But, if you are not tech-savvy or clueless about digital transformation, relax! Because here we are going to talk about the basic definition first. So why waste time? Let's start from the beginning!

What is digital transformation?

Digital transformation is a process that leverages advanced technologies to modify existing commercial processes or create a new one. Redesigning business with new digital technology helps meet market demands, improve customer experience, and increase workforce productivity.

An effective digital transformation is not just about changing technology. Digital transformation works on different aspects of an organization, including supply chain, workflow, customer and employee engagement, etc. In short, digital transformation is renewing business by transforming the way you used to do business and embracing digital technology to improve business processes.

"To make a real Digital Transformation, think of how you can weave a ‘digital thread’ through your operations, products and services to support new customer experiences you’re trying to create". - Neil Ward-Dutton

Digital transformation can indicate anything. From digital optimization to IT modernization, it reflects an organization's mindset to make its business grow. If you plan to provide customer service through online surveys, chatbots, video chat, and emails, then you are thinking about digitizing your business. If you're spending time and money storing data in the cloud, that's transformational, too. Advanced digital technology can change your business inside and out. You have the power to improve internal and external work processes in your company. 

<<< Continuous improvement: Have your processes improved in the last 5 years? >>>

Looking ahead, here are some digital transformation situations you can expect to rule the business world in the coming years:

Use of automation

Automation has become the most essential ingredient of modern business and digital transformation in 2021. Automation is managing to position itself as a savior of all mundane business workloads, tasks, and workflows. In short, automation is one of the key ingredients of digital transformation in 2021. According to Statista, the automation industry will generate almost $214 billion worldwide in 2021. From this statistic, it is clear that automation will continue to help businesses run smoothly shifting its focus from repetitive work processes to business growth.

Especially after the Covid-19 outbreaks and disruption in business workflow, several brands are turning to automation to make sure their business stays afloat. The need for automation technologies like AI, machine learning, and RPA is now more popular than ever. As companies want to reduce costs and increase efficiency, RPA or Robotic Process Automation is also gaining popularity.

A recent research study by Gartner stated that by 2022 RPA technology is expected to reach $2.4 billion. RPA can automate a rule-based, repetitive work process. Your company can use RPA tools to communicate with other digital systems, retrieve information, control transaction processes, capture data, etc. Although financial companies were the first industry to adopt RPA, in 2021, we can expect the expansion of RPA in other industries such as healthcare, manufacturing, retail, and much more.

Using the hybrid cloud system

Companies are rapidly moving towards a hybrid cloud infrastructure today. With the development of SaaS and on-premises solutions, hybrid cloud systems are helping organizations meet all of their business objectives. Big cloud companies like AWS, Google, IBM, Oracle have made significant investments in resources to make hybrid cloud systems a reality. OEMs like Dell, HPE, and Cisco are also making massive investments to connect cloud and on-premises tools.

This huge investment is because the future for hybrid cloud systems looks promising. It deals with exponential data growth while maintaining system integrity.

The hybrid cloud system has also expanded from traditional IT to industrial applications. However, it is essential to consider how the migration from the cloud will affect the existing database and system performance. After all, migration and transformation to a hybrid cloud system can be an expensive business. Since the cost of a hybrid cloud is associated with several other costs such as storage costs, server costs, platform costs, software maintenance costs, and employee training, among other things.

Integrating a hybrid cloud system can be expensive. But when implemented correctly, businesses can lower their IT expenses in the long run.

The growth of hybrid cloud systems has been gradual. However, the sudden disruption due to the coronavirus has forced organizations to adopt an agile hybrid cloud infrastructure to rapidly develop and deploy different digital services.

Chatbots will keep on improving

In the years to come, chatbots will continue to have an impact on digital transformation. Chatbots for websites and chatbots, in general, will play a major role in increasing customer engagement and experience digitally. According to Gartner, 47% of organizations will rely on chatbots for customer support. And the size of the chatbot market will grow from $2.6 billion to $9.4 billion in 2024 at an annual growth rate of 29.7%. Surprising, isn't it?

Here are some ways chatbots will transform businesses in the years to come:

• Chatbots will help handle simple customer inquiries by automating the process. It will enable businesses to provide a great customer experience in the future.
• Chatbots will reduce the number of human collaborators as hiring staff 24×7 can be costly for different organizations.
• AI bots can give instant answers based on information 24×7. Therefore, customers who want quick answers will benefit from the chatbot experience.
• Chatbots can easily automate the sales and lead generation process by qualifying leads as leads on their social media platforms and websites.

Chatbots are here to stay in the future as more and more businesses take advantage of their attractive features to improve efficiency. This smart tool offers a sleek user interface and chat-like experience to add life to the boring data collection process. The team designed a chatty survey using the feedback bot to effortlessly collect data. And the result? Well, the Deloitte Greenhouse team witnessed a huge increase in survey responses compared to traditional survey forms.

Investment in cybersecurity

Cybersecurity has never lost its relevance and will continue to grow more so in 2021. With the Covid-19 crisis, cloud systems, and disparate workforces, cybersecurity has become one of the most critical aspects of digital transformation. In 2020, from January to April, the world saw an increase of approximately 238% in cyberattacks on banks and a 630% increase in cloud-based attacks.

During the pandemic, with only a few employees working on the secure on-site network, organizations must update their cybersecurity strategies. Companies are at risk of being attacked by hackers, but the danger of internal security breaches makes cybersecurity crucial. Therefore, companies have to invest more in the security of their systems to manage their work team.

5G will be the future 

We are already hearing a lot about the advantages of 5G in recent years. From ultra-low latency, higher availability, high network capacity, and higher bandwidth, 5G will have a huge impact on human life. Recently, several organizations have begun to realize the value of 5G as digital collaboration and video conferencing have become central to any remote workforce. Also, strong connectivity and broadband became a genuine requirement in recent years.

During the pandemic, the world witnessed a 120% increase in the use of smartphones and social networks, which increased by 69%. We depend on cell phones, networks, and other devices. Modern organizations cannot deny the requirement for a strong network and cannot afford to go offline. That is why 5G has become a vital part of the digital transformation roadmap. By 2024, there are expected to be 1.9 billion 5G subscriptions worldwide. As many organizations are moving from a traditional workplace to the home office, the value of 5G will be a primary ingredient in accelerating digital transformation in 2021.

In today's world, digital transformation has become a buzzword. Businesses across all industries are going digital to reap the benefits of fast customer service, cost-effectiveness, and of course, data-driven businesses. If you are still not sure how to digitize your business strategy, here are some benefits you can consider:

Benefits you can expect from digital transformation in 2021

Digital transformation will help your company save a lot of time and resources by freeing your employees from overwhelming daily tasks. From sending multiple emails, billing, and responding to customer feedback, you can improve your business efficiency with automation. Additionally, moving your important business data from private or public environments to hybrid cloud environments reduces operational costs. Here are some of the benefits you can expect from digital transformation in 2021 and beyond:

Data-driven insights

Going digital will allow you to track and analyze the data you've gained from various digital marketing efforts. You can use this data to optimize your business process and get better results. Companies are driving major cost and revenue shifts by implementing data-driven insights into their workforce. Additionally, using data-driven insights helps businesses measure customer activity, employee engagement, inventory, and more. By understanding the expectations and needs of your customers, you can create a customer-centric digital strategy framework for businesses.

Data-driven insights will allow you to create business strategies using both personal customer information or structured data and social media metrics or unstructured data. And don't forget the importance of data in making business decisions. 90% of business and data analytics professionals have stated that data and analytics are the top drivers of their company's digital transformation initiatives. There is no doubt that data is one of the most valuable business resources.

Help employees be more productive

Workforce engagement has been a hot topic in 2020. The pandemic forced even the most traditional companies to face the fact that remote work is the future. And employees were looking for ways to increase their productivity while working from home. During the pandemic:

• 64% of organizations were concerned about employee productivity.
• 55% of companies were concerned about online communication while working remotely.

From these statistics, it is clear that organizations depend on digital technology to increase their growth and productivity. This is why different tools like Microsoft Office, Zoom, Google Meet, and survey tools gained immense popularity during the pandemic.

Digital transformation will not only help you solve communication crises, but it will also help connect different departments within the same company. For example, project management software has all the features a company needs to streamline its entire work process. From project, task, and contact management to team collaboration, reporting, and billing, these tools can make work easier.

Transformed customer experience

The world is obsessed with technology, social networks, and the digital lifestyle. Modern customers no longer worry about having the best product; they seek convenience while doing business, prompt service, and valuable solutions to their problems. And to stay connected with these "millennial" customers, companies must embed digital transformation within the organization. According to IDC, 79% of organizations said they increased their digital transformation budget during COVID-19.

Companies are making multiple attempts to support progressive web apps, smart chat-bots, conversational surveys, native apps with world-class UX, augmented reality, etc. Due to digital transformation, companies will have access to customer data and can use it to understand their preferences and expectations.

Up-to-date skills and knowledge

Most companies are afraid to invest in digital transformation as they believe it will be a profitable affair. But recently, the uncertain environment of covid-19 forced several companies to wake up to new technologies so they have realized the value of digital transformation.

One very popular example: Blockbuster was once a famous video rental company, which was contacted by Reed Hastings in 2000. He asked the company to pay $50 million for his company, Netflix. But Blockbuster didn't realize the true potential of an online streaming platform and simply turned down the offer while Netflix focused on digitization. A whopping $194 billion, that's what Netflix is worth in 2020.

As the importance of digital transformation and new technologies continues to grow in the marketplace, there will be a high demand for specialized skills in digital transformation management. Companies will be looking for different skill sets, such as artificial intelligence, machine learning, cloud computing, augmented reality, data analytics, and growth hacking. By implementing digital transformation, companies will enable their employees to update their skills for years to come. This will open up new opportunities for organizations to remain competitive in the digital realm.

Easy to collaborate

Recently, the traditional business has been transformed tremendously. They had to learn how to grow their businesses amid this uncertainty and contactless interaction. This accelerated the need for advanced project management software, collaborative tools, survey software, analytical tools, etc. Some examples of these tools are Slack, Trello, Asana, Google Sheet, Google Forms, etc.

Digital transformation makes it easier to collaborate with remote teams by keeping essential documents in the cloud and using project management tools to organize workload. With this software, you can collaborate with your customers and team members in real-time. And the best part is that these technologies are more scalable than any other traditional method.

Conclusion

These technologies, as mentioned above, will continue to grow in the future. If your organization is interested in increasing leads and profits, digital transformation is the ultimate solution. These ingredients will help modern businesses stay connected, and soon businesses will discover different ways to take advantage of digital technologies to improve profitability.

Companies must empower their workers with the right tools to embrace this new digital culture. It will help organizations improve their skills and take advantage of the benefits of digital transformation. There is no doubt that this new digitized culture of 2021 will bring about many changes.

So far we have listed the ingredients that every company will need to accelerate the digital transformation in their organization; now, it is your turn to go digital.