5 Digital Transformation Trends That There’s A Good Chance We’ll See In The Next Five Years
Digital transformation plays an undeniably pivotal role in today’s businesses. And there’s no doubt that continuing digital transformation will shape the future of the business world.
As companies in all industries prepare for the future, it’s helpful to look forward at how digitization may shape the next several years. We can’t forecast future trends with 100% accuracy, but we can make some predictions.
Most of the trends on this list are things we’re already seeing. They’ll just become more and more pronounced over the next few years if digital technology continues to evolve in the direction it’s going now. If you want to get your business ready to face the digital future, then these are five trends that you’ll want to be aware of.
1) Strategically Preparing For Transformation
International Data Corporation (IDC), a trusted IT advisory firm with over 50 years experience, published their Worldwide Digital Transformation 2019 Predictions in November of last year. One of the things they predict is that by 2020 “at least 55% of organizations will be digitally determined.”
In this context, “digitally determined” means that the organization is getting ready to digitally transform within the next several years. This process involves strategic, organizational, technological, and financial preparation for successful digital transformation. The more important digital technology becomes in the business world, the greater the pressure on companies to start digitizing. More and more companies are responding to that pressure by developing a strategic plan for going digital.
2) Getting CEOs More Involved
IDC predicts that by the year 2022, 60% of CEOs will have spent part of their careers leading digital initiatives. They also think the CDO title will be phased-out as digital technology becomes a part of every C-level executive’s responsibilities.
This agrees with a prediction made in the Forbes article “Top 10 Digital Transformation Trends For 2019.” In this article, Daniel Newman, principal analyst of Futurum Research and CEO of Broadsuite Media Group, says that it’s time for C-suite leaders to recognize that they must take ownership of digital transformation initiatives. Digitization is no longer simply another job for the IT department. It’s a vital business initiative that requires top-level involvement.
3) Greater Use Of Blockchain
Right now, blockchain technology is kind of a mess. There are a number of obstacles to overcome before we see large-scale adoption of this technology. Even so, there’s the potential for this powerful technology to transform how we do business. And it’s probably not going to take very many years before we see that happen.
IDC predicts that by 2021, about 30% of manufacturers and retailers “will have built digital trust through blockchain services that enable collaborative supply chains and allow consumers to access product histories.” In addition, they predict that blockchains will enable certain companies to extend “their digital platforms to their entire omni-experience ecosystems, thus reducing transaction costs by 35%.”
4) Increasing Use of AI and Bots
As digital technology becomes more sophisticated, businesses will assign a larger number of tasks to automation. One of IDC’s predictions for the near future is that by 2020, 30% of G2000 companies will implement “advanced digital twins of their operational processes.” This will streamline-organizational processes so much that companies will need “one-third fewer knowledge workers.”
Bots aren’t able to handle everything, though. More and more companies will be “upskilling” their workforce rather than just firing people. The type of jobs workers are doing will change as they work alongside bots and other types of AI. But there will still be jobs for real people. In fact, another of IDC’s predictions is that by 2023, 35% of human workers will be working alongside AI technology. This means it’s time for company leaders to start redesigning operational processes, performance metrics, and recruitment strategies to account for future changes in how the workforce will operate.
5) Looking At New KPIs
Digitization changes the way companies do business. These changes mean you’ll need to start looking at new key performance indicators to measure success. IDC predicts that by 2023, “95% of entities will have incorporated new digital KPI sets.” These KPIs will focus on factors including product/service innovation rates, data capitalization, and employee experience to guide companies in navigating the digital economy.
A cross-industry survey conducted by MIT Sloan Management Review and Google discovered that most companies aren’t currently using KPIs to drive change. Most don’t even use KPIs for review or performance tracking as rigorously as they could. Since digital transformation will change which KPIs are most useful to track, now is a great time to change how your business utilizes KPIs. It’s time to start using KPIs to guide organizational decision making in a powerful way. If you use them right, they can become much more than just a tool for performance management.
One Last Thing
One of the things your company needs in order to successfully complete digital transformation is reliable business process automation software. Automating key business processes is one of the first steps when implementing a strategic plan for digital transformation. And since you want to get your digitization right the first time, you’ll need a reliable software supplier to work with.
If you’re looking to automate processes including purchasing, accounts payable, capital project management, and more NextProcess is has products that are the perfect fit for your needs. We offer a BPA software suite that works seamlessly together and with your existing ERP. Plus, we have a successful implementation rate near 100% – one of the highest in the industry. Our team is dedicated to setting up your software so it works perfectly. We’re also available to answer any questions you have in the future and we’ll continue to maintain and upgrade software as-needed. Contact us today to learn more and schedule a free demo.