The pandemic propelled many businesses to adopt digital technologies faster than ever before. While the immediate rush to adopt new technologies and services that address pandemic-related challenges has subsided, investing in digital transformation has not: Worldwide spend on new technologies and services is steadily increasing year over year and will reach US$3.4 trillion by 2026, according to recent Statista research.
Here are four trends that could help your enterprise ramp up its digital transformation strategy:
1. Accelerating automation
Pre-pandemic, many organizations across all industries hesitated to automate tasks due to concerns that technology could not be trusted to deliver accurate results. According to a recent Intuit survey, the number-one issue accountants have with AI adoption is trusting its accuracy.
However, many business leaders are now tuning into the possibilities that automation offers. We are at the tipping point of automation becoming much more widespread: McKinsey reported that 70% of organizations are at least piloting automation technologies in one or more business units or functions. One of this technology’s many benefits is time savings, so businesses can empower their teams to work smarter and focus on more important strategic or creative tasks.
Automation also eliminates human error, which is an inevitable part of data entry and other manual processes that can have a notable impact on a business. If your business isn’t focused on automation now, it will be soon.
2. Leveraging valuable data
Countless businesses are leveraging data today, but not all utilize it to the fullest extent. Often there’s so much data available that the business isn’t sure how to sift and make informed decisions from it.
With accelerated digital transformation and the increased adoption of various tools over the last few years, businesses have an abundance of data at their disposal. I expect to see businesses implement more technology solutions to help them understand and act on what their data is showing.
For example, if yours is a product-based business, you can analyze sales insights to identify your customers’ top preferences and make smart decisions about inventory. This will ultimately help your business grow faster.
3. Investing in cloud-based tech
Driving a successful digital transformation strategy is possible only if you’re commanding a lean ship, and cloud-based software solutions make it easier to manage and streamline operations. More than 82% of businesses reported reduced costs after adopting cloud technology.
4. Developing the team proactively
Organizations will also become more proactive and skilled at preparing their teams for technology adoption. Businesses are implementing processes to ensure the successful rollout of new tools. They are allocating resources for training and oversight to encourage the swift adoption of cutting-edge technologies.
By dedicating time to help your teams understand how to leverage the tools available, you’ll be able to work more efficiently, and your business can be more focused on growth instead of playing catch-up.
If your company is truly going to digitally transform, you must reexamine the foundations of its strategies and the systems that support them. This is where bottlenecks typically exist. Understanding these four trends in digital transformation will help your organization usher in a new era of operating that will help you thrive under current and future market conditions.
[ Learn the non-negotiable skills, technologies, and processes CIOs are leaning on to build resilience and agility in this HBR Analytic Services report: Pillars of resilient digital transformation: How CIOs are driving organizational agility. ]