Digital transformation has been present over a decade. Since then, companies have started integrating digital technologies in all aspects of their working. Although it impacts all aspects of social living, the accent is on businesses because they are the ones who are driving the transformation.
The digital transformation itself has transformed a lot in the past decade. Therefore, different technologies get to be under the spotlight every year. We’ve picked the most trending ones:
1. Digital transformation is still a priority
No matter how “mainstream” it became, digital transformation is still going slow. In fact, only 10% of organizations worldwide refer to themselves as fully digital. Moreover, only 26% are ready to start their digital strategies, while 47% haven’t adopted digital transformation at all. All this data actually sounds strange, knowing how often we hear about digital transformation every day.
However, the spendings for digital transformation are growing. According to the Worldwide Semiannual Digital Transformation Spending Guide, global digital transformation will reach $1.18 trillion by the end of 2019, which is 18% more than in 2018. What is more, the International Data Corporation expects digital transformation spending to exceed $6 trillion over the next four years.
2. Chatbots are here to stay
Yes, chatbots were pretty irritating last year and we kind of didn’t like them. However, they aren’t going anywhere. Business Insider expects 80% of enterprises to use chatbots by 2020. What’s changed is that they are going to provide more human-like interaction, faster problem-solving, and more big data for companies.
Natural language processing (NLP) has seen many advancements in the past few years, which is crucial for the creation of more advanced and user-centered chatbots.
3. The impact of Artificial Intelligence is growing
Speaking of chatbots, AI will continue to power them in the following period. However, this is just a small impact this technology has on digital transformation. The number of machine learning platforms is growing and they have the ability to change entire industries.
Take the rise of the Industrial Internet of Things (IIoT), for example. AI-powered platforms enable the connection of all devices and machines in a manufacturing plant, providing data, reducing time, and cutting costs. This gives manufacturing industries a whole new perspective, where they get valuable data that allows them to focus on the improvement of product quality instead of more time-consuming tasks.
Although this sounds like there will be fewer jobs for people, AI will actually open many new positions.
AI has been widely accepted by consumers, through their use of virtual assistants like Siri and Alexa. However, AI will start taking up larger parts of their lives.
Many of their favourite brands have or will start using AI for more personalized communication. For instance, Uber uses AI chatbots to update users on their booking status, while Pizza Hut takes orders through Facebook Messenger.
4. UX will focus on storytelling
Thanks to the increasing number of alternatives, users have become pretty picky and demanding. Instead of thinking about what new products you could make, it would be better to improve existing ones first because they are always in danger. Another question is also to be changed. Instead of creating products that solve problems, companies should be focusing on creating memorable experiences. That’s the only way to gain competitive advantage and be different from the crowd.
Storytelling, a trend that keeps ruling, is an essential basis for UX. Hubspot states that a good story increases our neural activity, making it more likely for us to remember the story and what comes with it:
“Something surprising happens when information comes from a story rather than just simple facts: More of our brains light up. When we hear a story, the neural activity increases fivefold, as a switchboard has suddenly illuminated the city of our mind.”
UX designers will have to focus more on capturing the story right instead of just the design.
5. Data will never be outdated
All the tactics and tools companies are using in their business strategies should lead to one thing – data. If we are to keep improving our products and experiences, we need to know what to improve and how to improve it.
That’s why companies need to create processes that provide data in real-time. Data always needs to be fresh and updated because technology and its trends keep changing from year to year. Smart business decisions come after processing large amounts of data.
6. Digital platforms stay essential
Since companies need to improve their relationships with customers, they are constantly looking for ways to do it. Creating a digital platform is probably the best way to do it. Any tool that gets you closer to customers increases your competitive advantage because every company is now asking for user feedback.
A digital platform is basically a combination of tools included in the company’s digital strategy. You could have a social platform, advertising, subscription, knowledge, or many other types of platforms.
What is important is that a platform unites a set of tools that have different functions. Their combination should get the company closer to its customers.
The biggest benefit from digital platforms is that they generate a lot of data. Companies can use this data to precisely target potential users. More importantly, they can understand how their existing users behave and use this to improve their experience.
This way, they can improve customer retention rate and increase customer satisfaction.
Trends in digital transformation are constantly changing. Organizations need to be up-to-date all the time so they don’t get left behind the competition. Current trends are focusing on the business-as-a-platform model, enabling organizations to completely digitalize their operations.
Choosing the right technology and the right channels is crucial. However, this can’t be constant. Enterprises must have a flexible strategy that can be adapted to conditions that come along the way.
All the digital transformation efforts should revolve around one goal – improving customer experience.