What are the top digital transformation trends in 2020?

More companies will be involved in Digital Transformation

Reimagining business for the digital age would be the no.1 priority for businesses undergoing digital transformation in 2020.Majority of the decision makers are using a combination of new technologies to modernize their legacy processes and to identify and implement new business model innovation opportunities. These digital transformations initiatives must begin and end with improving the stakeholders experience.The stakeholders in this context includes employees, customers, partners and communities that companies serve.
As every company is involved or will get involved in digital transformation initiatives, some of the trends that we can look in 2020 are shared below.

Customer experience in digital transformation

  • Enterprises needs to focus on delivering connected and personalized experiences for their customers, employees and partners.In order to deliver personalized experiences, integrating data from multiple applications is imperative. Every large organizations have atleast around 900 applications on average which makes it difficult to provide personalized experiences.
  • Customers expect consistent journeys across multiple channels including messaging services and mobile service portals.A connected experience means removing friction in the customer journey and being accessible anywhere and anytime.

Data driven business

  • Data is the blood line for all organizations.Unlocking and analyzing data is the heart of the Digital transformation. Companies leverage data to improve customer experiences, streamline operations and launch new products and services.
  • Majority of the companies still operate as data silos.It is necessary to break these data silos in order to improve customer experience.Hence companies are taking initiatives and working on to eliminate data silos.

Artificial Intelligence and Machine Learning

  • Companies need to invest in AI capabilities to personalize customer service, reduce human bias and increase productivity. To leverage the benefits of AI, the data needs to be accurate and have high quality.
  • Machine learning, basic task automation and chatbots are the most common use cases of AI.In Financial services, AI is used for fraud detection and for loan approval automation process.In retail, AI is used for personalized offers and promotions. In Healthcare, AI is used for detecting diseases.
  • The first step to implement AI is to have the right data governance model.This will help address the data quality issues and ensure maximum value is created.

Cloud computing

  • Majority of the enterprises run on multi cloud environments.Managing multiple clouds is complicated specifically when it involves moving application workloads between cloud environments.API led application development and containerization can be two potential solutions to address this problem.
  • As many companies have multi cloud strategy, there are huge challenges associated with this including complexity, managing apps and costs because enterprises struggle to move application workloads between clouds.APIs can help unlock data and unique functionalities of applications residing in multiple cloud environments.

Business IT alignment

  • To be successful in Digital transformation, companies need to operate as a technology company. Companies need to leverage a combination of new and emerging technologies to improve stakeholder experience. They need to follow agile Methodology to be innovative.
  • As Companies are investing more in distributed and emerging technologies, it is very important that integration needs to span beyond IT and extend to businesses.

Network effects in digital transformation

  • Companies create network effects by building collaborative ecosystems of partners, customers and external stakeholders.
  • Digital ecosystems are on the rise as companies can incorporate new products and services into their customer experiences seamlessly. This is made possible through APIs which can help businesses co-create value with external stakeholders.

Build APIs to fuel business performance

  • APIs can help businesses improve productivity, revenue growth and foster innovation.Companies need to ensure these APIs can be reused to deliver full value.Companies having public/private APIs experience significant business outcomes.
  • Companies having a sophisticated API strategy deliver superior results, significant improvements in IT delivery speed, faster product launches and increase in sales.

Final Takeaway

To achieve digital transformation, firms need to deliver superior customer experiences. Besides, companies need to focus on having a data-driven culture, use AI and machine learning technologies in multi-cloud environments to leverage network effects within their ecosystems by partnering with IT and using the power of APIs.