Digital transformation roadmap has become the driving force behind every successful company. This transformation roadmap has created numerous opportunities for innovation across all industries and, the world is witnessing a complete reinvention of the way of doing business be it products, services, and customer experiences being delivered to the market.
The question is, how the future looks like? Since the inception of social media, the Internet of Things, mobile, and technologies like AI/VR - the dynamics of the market has changed completely. We are living in an era where digital stores are gradually replacing physical stores. The line between the two has blurred increasingly, and there is a need to adapt to the digital transformation framework.
Digital transformation is a complex process that changes how enterprises work and go to market, which creates a long-term opportunity for partners equipped to take customers on this ongoing digital journey. This is why we thought this is a perfect opportunity to share a few tips and recommendations from Sonata Software that may help you think clearly for your digital strategy ahead.
At least 60% of companies worldwide are now implementing digital transformation strategies. IDC forecasts that the digital transformation opportunity will exceed $20 trillion, or 20% of global GDP. As per a report, in 2019, businesses worldwide invested $1.7 trillion across the IT spectrum and focused on implementing digital transformation solutions.
Many of these enterprises are investing more in modern digital platforms and cloud services as innovative business models are at the heart of this changing era. Born digital players have proved that a platform strategy is the best bet for the enterprise to grow and remain competitive in the market. What enterprises must do is to take the digital platform strategy to their advantage and build an ecosystem of customers, partners, and suppliers.
Let us have a look at a few key digital transformation trends that will dominate in 2021:
Digital Platforms and Ecosystems
Enterprise will undergo a full organization-wide digital platform strategy that will be the core of this transformation change. They will build ecosystems that will engage the larger picture. Instead of going narrow with a just technology focus, this approach has much bigger implications.
Cloud
Needless to say, cloud applications will explode. The sheer benefit of migrating from Capex to Opex is just cannot be ignored. Enterprises will spend on cloud services, cloud-enabling hardware, software and services, creating a $500 billion opportunity and a diversified cloud environment.
Hyper agile applications
Enterprises will also make a shift towards creating a hyper agile architecture. It’s inevitable. IDC predicts that by 2021, over 80% of the application development on cloud platforms (PaaS) using microservices and cloud functions, and over 95% of new microservices deployed in containers will be hosted on a hyper agile architecture that will ensure a faster and scalable framework.
Reimagined customer engagement
Tailored made customer experience will be created by leveraging customer data for actionable insights. This kind of personalized digital experience with targeted offers and specific recommendations will help create an unforgettable brand experience. The investments made in big data, analytics, AI, and CRM, to facilitate customer engagement will eventually pay off.
Optimizing business operations
The business needs to be uber responsive and, this can be achieved by improving service levels and reducing operational costs. All the products and service needs to be re-imagined in a digital context. The operations need to be transformed into more adaptive, agile, and efficient in meeting internal needs and customer requirements. The opportunity can be done with digital platforms is enormous and, we are just staring at the starting point. We need to put the larger picture always in the perspective. Just focusing on the technology itself won’t suffice. The right mix of business and tech strategy together will bring value to the overall digital platform strategy. That is why at Sonata our Platformation™ strategy is paying off well for our customers accelerating their digital agenda and scale. We would love to hear your take on what are your top business priority that is aligned to the larger picture.
FAQs
What is digital transformation?
Digital transformation is a process of reinventing enterprises completely using digital technologies and frameworks. The core of digital transformation relies on creating amazing customer experiences and creating a connected ecosystem. Digital transformation starts and ends with the customers which have pushed all the enterprises towards crafting unique user journeys.
Why is digital transformation important?
Digital transformation has become the core of successful companies. It has become mandatory to help enterprises in keeping up with changing customer demands and adapt to the changing technology. Especially after the onset of COVID 19, the world has seen huge demand for digital platforms and, every company is moving towards the same. The new normal era is all about transforming companies digitally.
What is the future of digital transformation?
Companies are spending a major portion of their budget on implementing digital transformation strategies. IDC has predicted that by 2023, the global investment is about to reach a staggering $2.3 trillion. It is also expected that companies will move from Business to Business (B2B) to Business-to-Business-to-Consumer (B2B2C) keeping customer experience as the core of it.
What are the emerging trends in digital transformation?
Artificial Intelligence and Machine Learning are expected to revolutionize the manufacturing industry. Companies are looking at cloud-based implementations and, there will be a significant rise in the use of the Internet of Things (IoT). It is expected to increase by 43 billion by 2023, as per a report from McKinsey.
Sonata Software specializes in building platforms and frameworks to accelerate your digital transformation journey. Watch out for this space for more updates. Worried about your digital transformation journey? Reach out to us today and, we will show you the way forward.