Technology is being rethought through digital transformation to meet modern requirements. In comparison to five years ago, both corporate imperatives and customer expectations have altered. There is always more to be done even if many businesses have been digitally altering their business processes. While others might have stepped out only tentatively or not at all. Because there are so many opportunities, businesses of all sizes should consider how to adapt digital transformation to their particular industry.
How has digital transformation meaning changed over the years?
The late 1990s and early 2000s are when the phrase “digital transformation” appears for the first time. Back then, the term “digital transformation” referred to the process through which organisations switched from using paper-based systems to digital technologies. As everything had previously been documented on paper, necessitating extensive physical file documentation systems, this was a groundbreaking development. However the main goal of this usage was to move procedures online, albeit more simply than it is now. The broader organisational and cultural changes that are now connected to digital transformation were not included.
The nuances of “Digital Transformation” as we know it today began to emerge in the mid-2010s. From this period, digital innovation became more pervasive and integral to almost every aspect of both business and society. This usage encompasses a broader set of changes that organizations must undertake to fully leverage the potential of digital technologies, including changes to business models, processes, culture, and customer experiences.
Today, the term ‘digital transformation’ is widely used across industries and has become a key focus for many organizations seeking to remain competitive in the digital age.
How has Digital Transformation Technology changed over the last 5 years?
The last five years have seen a significant shift in the way businesses approach digital transformation strategies. 5 years ago, in 2018, many of the technologies that are prevalent today were just beginning to make traction.
With the advances in technology, there was also a change in business models: the focus shifted from technology-driven initiatives to customer-driven initiatives. To support this shift in focus, emerging technologies, such as cloud computing, AI, and IoT, are today playing a more prominent role in driving digital transformation.
Here are a few key differences between digital transformation then and now:
Increased adoption of cloud computing
As of 2022, 60% of all corporate data is stored on the Cloud. Cloud computing has become a mainstream technology, and more and more companies are adopting cloud-based solutions for their digital transformation strategy.
Five years ago, digital innovation was primarily focused on automating manual processes and digitizing paper-based systems. Today, the focus has shifted to creating new business models and revenue streams through digital channels.
AI and ML were in their initial growth stage
Five years ago, artificial intelligence (AI) and machine learning (ML) were just beginning to gain popularity, and cloud computing was still a relatively new idea. These AI technologies are now commonplace. And according to data, more than 37% of organisations have utilised it in some capacity. Of course, if you factor in the fact that the majority of software systems that businesses subscribe to include AI-driven analytics, this number might be significantly higher.
There have been recent breakthroughs in AI technologies such as Natural Language Processing, computer vision, and autonomous systems.
Expanding 5G Networks
5G networks were not available five years ago, whereas now they are becoming increasingly common in many parts of the world. In fact, in 2018, many mobile devices still used 3G, though 4G was more the norm.
58% of Americans today say their phone plan includes 5G. Though, it still has a spotty worldwide reach. However, with faster download speeds, the use case for businesses will expand. 5G will be a game changer for businesses with numerous Internet of Things applications (IoT). It will enable increased use of robotic automation for industries on their factory floor. With increased data transmission speed and lower latency, it will improve most business applications. For example, there will be better eCommerce experiences and much better immersive gaming experiences.
Augmented Reality (AR) and Virtual Reality (VR)
AR and VR were still relatively new technologies in 2018, but since then, they have gotten more popular and advanced, with new applications appearing in industries such as gaming, education, healthcare, fashion, etc. To increase reservations, some use cases for augmented surgical stimulators in VR tools involve taking visitors inside a business’s facility.
Another well-known example of how this technology is being used in daily life is augmented reality navigation. Google Maps has included it to improve the regular navigation we have relied on to get us from A to B.
Many of us have utilised Augmented Reality in various smartphone apps. For instance, ever bought furniture online? Consumers can select a product and then point their mobile device at any location inside their home to see it superimposed. This means that customers will have a better overall shopping experience because they will be able to view how goods like clothing, electronics, and furniture would look in their own homes.
Internet of Things (IoT)
Telematics and IoT were already a growing trend in 2018, but it has continued to expand rapidly in recent years, with more and more devices being connected to the internet and the use of data analytics and artificial intelligence to extract insights from this data. Usage-based insurance in America makes use of IoT sensors to report back mileage usage and driving behaviors. 19 major Auto insurers currently offer usage-based insurance.
Smart Homes
While smart home devices were already available in 2018, there are now many more options on the market and they have become more affordable, leading to wider adoption. Smart homes are those where homeowners can control lighting, appliances and security devices, etc. through a smartphone using an application that needs an internet connection.
Blockchain
In 2018, blockchain technology was already well-known but it had not yet gained widespread use. Blockchain technology has advanced significantly in recent years, with new applications appearing in industries including finance, supply chain management, and digital identity.
2023 will be a year where many firms will be looking at automating more of their business activities. Moreover, cloud-native technologies will be completed. Companies will invest in strategies that will incorporate both customer (CX) and Employee (EX) efforts.
If your organisation still is on the fence about taking the initial step into digital transformation, these data could convince you. According to an IDG study, 52% of the organisations surveyed claim that using AI-assisted processes increased worker productivity. Talk to our team of AI and business process automation experts for a no-holds barred discussion. We have been providing advanced AI solutions to many of your compatriot businesses in the USA.
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iTech India 