To survive and prosper in the modern digital economy, firms must undergo a digital transformation. In order to keep up with the dynamic nature of the market and maintain their relevance, businesses of all stripes are adopting cutting-edge technology, data, and procedures. In this piece, we’ll take a look at the major movements influencing the digital revolution and the companies of tomorrow.
The widespread use of cloud computing is one factor propelling the digital revolution. Businesses may use the cloud to store data and run programs remotely, which has benefits in terms of cost savings and scalability. Businesses can’t survive and thrive in today’s volatile markets without this adaptability. MarketsandMarkets predicts that the global cloud computing market will expand from $272 billion in 2019 to $623.3 billion in 2027, a compound annual growth rate (CAGR) of 11%.
The growing significance of data and analytics is another force affecting the digital development. Data is plentiful now because to developments like big data and the Internet of Things (IoT), which provide opportunities for organizations. As a result, businesses are increasingly investing in analytics and AI to better understand this data and make choices based on it. IDC predicts that the worldwide market for big data and business analytics will increase from $189 billion in 2019 to $274 billion in 2023, a compound annual growth rate (CAGR) of 7.3%.
The shift toward focusing on the consumer is another important facet of the digital revolution. Customers have come to anticipate the freedom to do business with a company using any device and any method they see fit, thanks to the proliferation of mobile. Because of this, firms are adopting mobile-first strategies, chatbots, and virtual assistants to provide better customer support. By 2021, eMarketer predicts, worldwide expenditure on mobile advertising will have increased to $240.80 billion, or 72 percent of all digital advertising.
These days, privacy and safety online are major concerns as well. Companies are more susceptible to cyber attacks because of their growing reliance on digital technology. To combat this, businesses are using security measures like two-factor authentication and encryption to guard against data leaks. Global spending on cybersecurity is projected to increase from $170.21 billion in 2019 to $248.26 billion in 2024, a CAGR of 8.1%, according to research from MarketsandMarkets.
The third and last trend that is propelling digital development is automation. Robotic process automation (RPA) and intelligent process automation (IPA) are two examples of automation technology being utilized to streamline mundane activities. As a result, firms are able to save money and enhance accuracy while focusing on more strategic and value-added endeavors. MarketsandMarkets predicts that the worldwide RPA market will expand from $1.89 billion in 2019 to $3.97 billion in 2024, representing a compound annual growth rate (CAGR) of 17.1 percent.
In conclusion, the ongoing process of digital development is affecting the way firms function. All of these developments—from cloud computing to data analytics to customer-centricity to security and automation—are propelling digital transformation and determining the industries of the future. In today’s ever-changing digital environment, firms must constantly monitor trends and adjust their plans to remain competitive. More information: digital transformation trends 2023