By Sameer Danave, Senior Director Marketing, MSys Technologies
Digital Transformations will help firms achieve greater efficiency and effectiveness in 2023 and here’re the top trends that business ecosystems are likely to witness this year and ahead in the future.
Introduction
Digital transformation across the Globe helps businesses to stay competitive and offer superior customer experiences. No wonder, organisations belonging to different product categories and service domains are investing heavily in transforming their business digitally. Statista projects that by 2023, the total amount of money invested in digital transformation projects will exceed $1.6 trillion; going forward, this amount will quickly cross $3.4 trillion worldwide. Consisting of data, technology, people, and processes, here’re the top eight trends that will dominate the scenario of digital transformations in 2023:
1. Virtual Collaboration for Faster, Efficient Work
Thanks to the outbreak of the Covid-19 pandemic, companies across industries were induced to make a quick transition to digital technology. Working from Home further pushed the integration of technology with more companies coming forward and investing in virtual collaboration tools and technologies. The year 2023 will likely witness much more investment in designing, building, and implementing virtual collaboration environments to achieve the desired efficiency in remote work.
2. Pervasive Low-Code Platforms for Faster Deployment
Low code platforms: Offering the convenience of swift development and implementation of new software apps and programs, Low code platforms are quickly rising up the popularity ladder. The best part of these platforms is their ability to allow even people from non-technical backgrounds to create apps and solutions using the very intuitive drag-and-drop interface. No wonder, Gartner predicts that by 2026, 75% of the new apps will be developed using Low-code platforms while 80% of tools used in Low-code development will be employed by developers in the non-IT industry. Further, AI’s role will be crucial here as the new-age technology will boost the Low-code development sector to $187 billion.
3. Starting the development of Everything-as-a-Service (XaaS) Cloud Solutions
Taking the paradigm of SaaS (software as a service) to the next level, XaaS is expected to reach a market cap of $624.1 billion by 2027, up from $198.6 billion in 2021. The XaaS model allows companies to use the software on demand, which means they need not bear licensing fees and on-site equipment costs that are typically associated with SaaS. The enhanced flexibility, convenience, and cost-effectiveness are significant factors that are aiding the popularity of XaaS around the world. The year 2023 is likely to witness some new XaaS solutions coming to the fore while improvements in existing ones are also on the cards of many legacy companies operating in this space.
4. Innovating Business Models with AI and ML
Like the previous year, the year 2023 will also witness massive disruption in existing business models by both AI and ML. The application of both these new-age technologies is growing worldwide with AI alone likely to add an additional economic output of $13 trillion to the world’s economy by 2030. Further, the size of the AI market will grow at 20.1% CAGR to reach $1394.30 billion in 2029 from $387.45 billion in 2022.
5. Automating Tedious Tasks Through Robotic Process Automation (RPA)
By automating tedious and repetitive work, RPA enables organisations to achieve higher efficiency, execute decisions fast, and focus on elevating their core competencies. The year 2023 will likely witness more widespread use of RPA as a report by Forrester pegs the sector to reach a market cap of $12 billion by the end of the year.
6. The Quickening Transition to Cloud Computing in Order to Improve Business Efficiencies
A transition to Cloud Computing brings a host of benefits to the table including enhanced convenience, greater safety, and reduction in costs among others. The transition also makes it easy for firms to meet regulatory compliance and by delegating time and labor-intensive maintenance operations to the third party, firms can save a lot of their crucial time to focus on issues of strategic interests.
7. Growing Blockchain Investment for Safer Transactions and Quicker Data Flow
The application of blockchain technology to safeguard the flow of data through IoT devices is likely to witness a major jump in 2023. Blockchain comes with a number of distinctive competencies including its decentralized nature, immutability, and unimpeachable security which can prove enormously beneficial for safeguarding IoT devices. The AI-blockchain integration is also likely to flourish with IDC pegging AI spending at $57.6 billion in 2023.
8. Customer Data Platform Integration to Capture, Clean, and Unify Customer View
The capturing, collection, and unification of customer data through a variety of touchpoints can help organisations to make fast and relevant decision making. In 2023, more and more companies will integrate CDPs into their technology stack to make full use of their capabilities in day-to-day business operations. Statista Research Department reported that the CDP industry reached a revenue of $2 billion in 2022 and this year too, it is likely to increase by over 25%.
Conclusion
Digital transformations will take a different trajectory in 2023, and the trends mentioned above offer great insights into changes that businesses across industries are likely to witness this year and in upcoming years. By embracing the insights from these predictions early on, businesses will have a much better chance at staying ahead of the competition while improving internal operations simultaneously!