According to the International Data Corporation (IDC) “Worldwide Digital Transformation Spending Guide”, global DX spending is expected to reach $3.4 trillion in 2026, with a five-year compound annual growth rate (CAGR) of 16.3%.
To be more specific, IDC stated that Discrete and Process Manufacturing industries would account for nearly 30% of global DX spending over the forecast period, with Robotic Manufacturing, Autonomic Operations, Self-Healing Assets, and Augmented Maintenance among the leading use cases. Professional Services and Retail are the next largest industries for DX spending, with Back-Office Support and Infrastructure being the most popular DX use case. With a five-year CAGR of 20.6%, the Securities and Investment Services industry will experience the fastest growth in DX spending, followed closely by Banking and Healthcare Providers with CAGRs of 19.4% and 19.3%, respectively.
Accordingly, as digital transformation continues to be the driving force for business success, it’s important to stay ahead of the curve and know what trends are coming in 2023. In this article, we will explore some of the top 7 digital transformation trends that organizations should look out for in 2023 so they can remain competitive and capitalize on these opportunities. From low-code development and cloud migration to virtual business and everything as a service (XaaS), these are surefire ways companies can use technology as an asset rather than a hindrance when it comes to achieving their goals.
Wider Utilization Of Low-Code Platforms
Low-code development platforms are becoming increasingly popular for creating web and mobile applications with minimal effort and cost. In 2023, the use of low-code platforms is expected to become more widespread as businesses seek to quickly develop customer experiences or launch new services. These tools enable developers to create efficient apps without having to write a single line of code, making them ideal for boosting productivity and meeting the needs of businesses operating in a fast-paced environment.
According to Gartner, by 2026, developers outside of formal IT departments will account for at least 80% of low-code development tool users, up from 60% in 2021.
Drive Towards Cloud Migration
As more companies move to the cloud, 2023 is set to be a year where organizations look to optimize their operations and drive cost savings through cloud migration strategies. This will involve transitioning from traditional on-premise computing to the cloud, allowing them to take advantage of its scalability and agility. It will also provide businesses with access to more advanced security solutions, such as data encryption and identity management.
By 2025, Gartner said that 51% of IT spending in the four categories (application software, infrastructure software, business process services, and system infrastructure) would have shifted from traditional to public cloud solutions, up from 41% in 2022.
Automation Of Business Processes
Automation has been a key digital transformation trend for years, and 2023 will likely see it become even more widely used. Automation technologies such as robotic process automation (RPA) and artificial intelligence (AI) can help businesses streamline their operations by automating mundane tasks that would otherwise need to be done manually. This can free up employees’ time to focus on more valuable work, ultimately helping them become more productive.
Gartner predicts that by 2024, organizations will have cut their process costs by 30%, thanks to hyper-automation. Apart from that, according to a Deloitte report, 53% of businesses have also already begun deploying robotic process automation (RPA).
Rise Of Virtual Businesses
The COVID-19 pandemic has caused businesses around the world to rethink their strategies and embrace digital transformation. As a result, virtual businesses are becoming increasingly popular in 2023 as organizations look to make their operations more efficient while still keeping costs low. Virtual businesses enable companies to optimize remote collaboration, automate processes, and create a customer experience that is both personalized and secure.
Virtual retailing is currently the most common form of virtual business. Retail e-commerce revenue in the United States was estimated with the figure of about $905 billion in 2022. According to Statista’s Digital Market Outlook, online shopping revenue in the United States will exceed $1.7 trillion by 2027.
Data-Centricity & Analytics
Data has become an increasingly important asset for businesses in the digital age. As a result, 2023 is still set to be another year where companies will look to leverage data and analytics to gain better insights into their customers and operations. As more companies adopt data-driven models, they will need to focus on collecting and processing data in a secure way that adheres to GDPR regulations.
AI and machine learning will also become increasingly important as businesses look to automate data-driven tasks and make more informed decisions. Gartner predicts that by the end of 2023, AI-enabled automation in data management will will reduce the need for IT specialists by 20%.
Everything As A Service (XaaS)
The use of Everything-as-a-Service (XaaS) models is becoming more and more popular as businesses look to reduce costs and increase agility. XaaS models provide access to cloud-based services on a pay-per-use basis, allowing organizations to only pay for what they need when they demand it. This can help businesses gain access to the latest technology without having to make costly upfront investments. XaaS is like the expansion of SaaS (Software-as-a-Service). Generally, the XaaS model enables access to a wide range of services from a single provider, including infrastructure, data storage, and processing power.
According to Allied Market Research, the market for everything-as-a-service in the global was valued at $474.9 billion in 2021, and is anticipated to increase to $2,631.1 billion by 2031, with a compound annual growth rate (CAGR) of 18.9% from 2022 to 2031.
Cybersecurity
The prevalence of cyber-attacks has risen over the last few years, and this year will be no different. As reported by AAG-IT, there are some notable statistics about the number of cybercrimes:
+ One in five internet users were impacted by the exposure of nearly 1 billion emails in a single year.
+ Businesses would incur average losses of $4.35 million from data breaches in 2022.
+ Globally, there were over 236.1 million ransomware assaults in the first half of 2022.
Thus, cybersecurity has become an essential element of any digital transformation strategy, as organizations need to protect their data and IT systems from potential threats. Businesses will have to focus on implementing security measures such as multi-factor authentication, encryption, and data loss prevention. Additionally, organizations should also have a plan in place for when an attack does occur and be aware of the potential implications of failing to comply with GDPR regulations.
Conclusion
Digital transformation is a key priority for businesses in 2023, as organizations strive to optimize operations and increase efficiency. This year will continue to bring an increased focus on cloud migration, data-centricity & analytics, everything-as-a-Service (XaaS) models, and cybersecurity, etc. all of which will be integral components of any digital transformation strategy. Businesses need to embrace these changes and make the necessary investments in order to keep up with the rapid pace of digital innovation. By staying aware of current trends and making informed decisions, businesses can ensure they are well-positioned for success in the digital age.
