The acceleration of digital transformation and how it’s affecting every industry
This blog has been expertly reviewed by Sean Morris, Chief Technology Officer at Nasstar.
The phrase "digital transformation" has become commonplace in recent years. But it’s no passing trend. It doesn’t simply mean using new tools or updating systems. Instead, it’s a complete change in the business operating model - from day-to-day operations to interacting with customers. And now, it’s happening faster than ever.
In fact, the acceleration of digital transformation is expected to continue gathering pace as we introduce new technologies, processes, and tools. For many businesses, especially since the Covid-19 pandemic, speeding up this process has become essential for survival and growth.
In this blog, we’ll learn all more about the acceleration of digital transformation, key trends, which technologies are moving the fastest, and how you can use it to your advantage.
What is the acceleration of digital transformation and why is it happening?
Digital acceleration has been happening for years, but recently, it’s become even more urgent for businesses to take stock of their digital transformation efforts. There are a few key reasons for this:
- The pandemic changed business operations overnight. While its effects may be weakening, we’ve seen several changes that just aren’t going away. Remote working, flexible hours and virtual meetings are now business as usual for many, originating in a time when companies needed to quickly adopt technology that supported working from anywhere.
- New tech advances, especially in areas like cloud computing, artificial intelligence (AI) and automation, have made it much easier for companies to adopt digital initiatives. These tools allow businesses to create digital strategies around streamlining operations, cutting costs and scaling.
- With innovation accelerating, businesses that are slow to adopt digital and business processes risk simply being left behind. On the other hand, companies that embrace change can innovate faster. Then, they can respond to market changes and offer a better service to their customers.
The three key trends affecting digital transformation
The speed of digital change is being dictated by several key trends. But three of them are perhaps the most impactful.
1. Cloud computing
Cloud computing is now crucial to how the digital world works. It gives companies the ability to store data, run applications, and collaborate without spending on expensive hardware or server rooms. It also provides massive flexibility. Businesses can scale operations up or down depending on demand to meet customer needs.
Some cutting-edge aspects of cloud transformation, such as serverless computing, are helping businesses move even faster. Using serverless, companies can build and launch new applications without worrying about the underlying infrastructure. This further reduces costs and helps speed up successful digital transformation.
2. AI and automation
Many businesses are now using tools like generative AI solutions to improve customer service and speed up repetitive tasks. The next era may make this even easier. AI-as-a-service (AIaaS) is making technology more accessible. No longer will companies need huge budgets or expert knowledge to start leveraging AI.
Automation is also playing a key role. In most cases, it frees up employees to focus on more valuable tasks, improving productivity, job satisfaction, and return on investment.
3. Remote and hybrid work
These two significant advances in technology coincided with huge (largely enforced) changes in business strategy and operating models. After all, the move to remote and hybrid workforces has been one of the most significant changes in recent years. We now expect the flexibility to work from home or almost any location.
But to make this work, businesses need reliable digital tools. Cloud-based tools provide an excellent and flexible basis for remote working, and they are essential as our need for even more scalable remote working solutions continues to rise.
What are the benefits of accelerated digital transformation?
Accelerating digital transformation can provide a competitive advantage for businesses ready to take advantage of it:
- Agility: By embracing digital transformation, companies become more responsive to market changes. Cloud platforms and automation put the foundations in place for businesses to quickly pivot, scale, and respond to changing customer needs. This keeps them ahead of competitors.
- Customer experience: The modern digital experience is completely different from a customer perspective. They expect fast, seamless, and personalised service. Now, businesses can deliver those interactions to build overall customer satisfaction. Eventually, this can create revenue growth as companies build stronger and more lasting relationships with their customers.
- Efficiency: Digital transformation helps businesses streamline across the board, from supply chains to everyday operations and automating workflows. For example, predictive data analytics can help companies spot issues before they impact service. Likewise, automation frees up staff time to focus on higher-value tasks.
- Cost savings: Moving to the cloud means companies need to spend less on their own physical infrastructure. They also require less expertise to manage and maintain it. Meanwhile, with solutions like hybrid cloud services and edge computing, businesses can maximise their cloud spend more than ever.
The challenges of accelerating digital transformation
While there are several clear benefits, accelerating digital transformation also comes with challenges:
- Security: As businesses move more processes and data into the cloud, cybersecurity risks increase. However, cloud-native security tools and partnering with experienced cybersecurity experts can help mitigate these risks.
- Resistance: Employees and stakeholders may resist new technologies and processes. This is why strong change management is so critical. Engaging teams early in the transformation process, communicating clearly and providing training can help make the change go as smoothly as possible.
- Budget: Of course, digital transformation requires investment. Businesses should consider their budget to prioritise key metrics that maximise current ROI while building long-term success.
- Expertise: Finally, companies do not always have the in-house expertise needed to roll out new digital capabilities. So, when considering new products or services, think about whether you’ll need to hire new talent or to work with an expert partner.
The future of digital transformation
The future of digital transformation may see many different advancements. But the following three are some of the most impactful right now.
Edge computing
As real-time applications become more widely used, edge computing is the tech that may bring it to digital maturity. Traditionally, all data travels back to a central server. But by processing data closer to where it's generated, edge computing reduces latency, improves decisions, and reduces data transfers. When combined with the expansion of 5G networks, this will help business leaders build even more responsive digital solutions.
Further AI advances
As AI becomes more sophisticated year after year, its practical applications in business will continue to grow. We’re now seeing how predictive analytics and autonomous systems can improve many workflows. But in future, AI and AI as a Service will continue to transform how companies operate, letting them build ever smarter and faster processes.
Additionally, agentic workflows will gain more prevalence. While traditionally, many businesses relied on workflows that consumed time and cost, agentic interfaces and workflows are designed to further improve efficiencies in automation. Essentially, agentic workflows apply AI agents to process automation, freeing up workers from inputting into automation workflows while ensuring tasks are executed dynamically.
Agentic workflows, also known as AI-agent-enabled processes, leverage the capabilities of AI agents to reason, solve problems, make decisions, and carry out actions. Unlike traditional AI applications in automated workflows that primarily focus on analysing data and guiding decision-making, AI agents are designed to actively execute tasks based on their insights, continuously adapting to dynamic situations and evolving needs.
Sustainability
Finally, sustainability pressures are becoming ever more critical. Businesses are under increasing scrutiny and are being required to balance their digital innovation with environmental responsibility. This includes optimising cloud operations. Any new tech needs to be energy-efficient and use as many green sources as possible. As sustainability becomes more regulated, it will become a fundamental requirement for any new services.
How Nasstar can help
The acceleration of digital transformation is a good thing for businesses that want to stay competitive in future markets. By embracing tools like cloud computing, AI and automation, companies can improve their processes and customer experiences, positioning themselves for sustained growth and success.
Are you looking to make the most of digital transformation? To make sure your project is successful, it’s important to work with a provider that ensures you have the right technology and processes in place. At Nasstar, our expert team will support your digital transformation journey from start to finish, no matter your goals.
Speak to a specialist to learn more about our digital transformation services.
Frequently asked questions (FAQs)
Why is IT important for organisations to accelerate digital transformation efforts?
Accelerating digital transformation is essential for organisations trying to stay competitive in their markets. Customer demands change. In response, businesses need to adopt innovative technologies to deliver better products and services.
By embracing these new digital tools and processes, organisations can improve their operational efficiency, workflows, and overall productivity. Faster digital adoption also allows businesses to respond more effectively to market opportunities and challenges. This gives them a competitive edge over slower-moving competition.
What are digital transformation pros and cons?
There are several important pros and cons of digital transformation, including:
Pros:
- Digital transformation automates processes. This helps businesses improve speed, reduce manual tasks, and increase productivity.
- New digital tools also allow for more personalised and seamless interactions with customers, helping businesses meet customer demands which grow with each passing year.
Cons:
- Implementing new digital technologies often requires a substantial investment. Depending on the services being used, this may include software, infrastructure, expertise and training.
- As we continue to store more data online, businesses face increased risks of cyber threats. It’s essential to invest in strong security measures and proper cloud infrastructure design to protect key systems.
How does digital transformation affect performance?
Digital transformation can significantly impact business performance by improving the entire operational efficiency range. By automating tasks and workflows, companies can complete work faster and more reliably.
At the same time, digital tools like machine learning give companies access to real-time, data-driven insights. This opens better decision-making across all levels of the organisation.
