Digital transformation is a natural need for businesses to adapt to changing industry trends and consumer needs. Therefore, it is unsurprising that transforming digitally has been the leading IT-related initiative for companies globally from 2020-2022. Moreover, global spending on digital transformation is expected to increase from $1.59 trillion U.S. in 2021 to $3.5 trillion by 2026 (Statista). 

There are many technical, educational and strategic aspects of the transition. In broad terms, however, defining digital transformation means defining the technologies the business needs to make itself more efficient and productive. 

IT Initiatives for A Digital Transformation 

In this article, we will focus on the IT side of the digital strategy. Here are 7 common tech initiatives: 

Cloud Services

Cloud extensions are the most common way companies digitally transform themselves (Statista). Cloud computing generally offers multiple benefits. It allows businesses to access their data from anywhere at any time, rent storage instead of buying it, and implement solutions remotely. According to the same survey, shifting things to the cloud is the fourth most common approach to digital transformation.

Data Analytics

Another core shift seen in recent years is the increase in the importance of data analytics. Data analytics involves translating customer behaviour into data points used in the future. Many companies gather data, but this data is useless unless refined according to the company’s needs.

Artificial intelligence (AI)

Businesses use artificial intelligence to improve customer experience, make business decisions, and generate more sales. The sophisticated AI algorithms can learn from success and failure to help organisations analyse data and identify patterns. 

According to a 2021 AI Business survey by PwC, 96% of respondents planned to use AI simulations that year. These simulations allow them to simultaneously model many scenarios without taking real-world risks. The PwC research also shows that 42% of business leaders are accelerating AI to reduce general hiring needs.

According to a 2022 survey, AI adopters are using it for service operations, strategy, and corporate finance. AI products are most common in the financial services industry and least common in manufacturing and marketing.

Many companies are also turning to cloud-based AI Services. These SAAS platforms are a convenient solution for any business that does not have the space or capital to install servers on-site.

Self-Serve Technologies

Digital self-service includes technologies such as customer support portals and chatbots. These technologies allow businesses to resolve customer issues quicker by giving them access to frequently asked questions and relevant information. 

McKinsey’s research suggests that digital transformations that involve using digital self-serve technology are twice as likely to succeed than those that do not use them.

Robotics

The use of robots to automate industrial processes has increased manifold in the last few years. Global industrial robot shipments are expected to increase from 384,000 in 2020 to about 518,000 by 2024.

The electronics and automotive industries are responsible for the bulk of new robot installations. Robots offer the manufacturing industry an economical and scalable solution for process automation.

Digital Experience

The need for remote work during the pandemic has highlighted the digital experience of employees and customers. Developing and deploying solutions that provide a smooth user experience can improve collaboration among teams and departments.   

Digital Assets

Digital assets include websites, mobile apps, and social pages. Many small and large retailers develop websites and apps as part of their digital transformation strategy.

The digital revolution has prompted many businesses to transform digitally. This transformation often involves multiple shifts in the IT strategy of the company. Businesses looking to make this shift should consider using a professional digital transformation consultancy.