10 most interesting digital transformation trends in 2022

According to a survey by IBM Technology Group, 96% of leaders of organizations and businesses believe that the Covid-19 pandemic will accelerate their digital transformation process by an average of 5.3 years. This shows that the digital transformation era has arrived, bringing with it many new technologies. Organizations and businesses must change and quickly apply advanced technologies to keep up with prominent digital transformation trends.

Digital transformation refers to the process of using digital technology to create new or modify existing business processes, culture, and customer experiences to meet the demands of the evolving market and business environment. It is time for organizations and businesses to revise their strategies and embrace changes that are likely to have a significant impact on the customer experience if they want to remain competitive in this rapidly changing environment.

The goal of digital transformation is to improve performance, create new revenue streams, improve customer experience, and drive growth. Survey data shows that in 2021, 56% of organizations and businesses globally plan to prioritize digital transformation.

10 most interesting digital transformation trends in 2022

1. Everything as a Service (XaaS: Everything as a Service)

XaaS is a business model for diversified solutions that combine hardware, software, and services. It is one of the important digital transformation trends and will continue to gain traction in 2022. XaaS is a business model where organizations and businesses provide their products and services as a service based on customer subscription. There are many types of services related to cloud computing and remote access, such as software as a service (SaaS), platform as a service (PaaS), infrastructure as a service (IaaS), communication as a service (CaaS), and network as a service (NaaS), etc.

Before the advent of XaaS and cloud computing, organizations and businesses often had to purchase and install licensed software packages to set up their networks. The XaaS model also provides organizations and businesses with extreme flexibility and scalability. For these reasons, XaaS will continue to be a popular choice for businesses of all sizes in the future.

2. 5G technology

5G technology promises to deliver high-speed, low-latency, and highly reliable connections, so this new technology will have a major impact on digital transformation in 2022. 5G allows organizations and businesses to eliminate physical connections, stream high-definition video content in real time, and provide consumers with an enhanced mobile broadband experience. In addition, 5G technology enables immersive entertainment experiences, such as cloud gaming and virtual reality (VR).

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Aiming to innovate for user experience, businesses and industries, 5G will revolutionize the capabilities and applications of high-speed mobile services in the future. Some of the priority areas for 5G application include healthcare, manufacturing, public transport, smart cities and buildings, agriculture, energy and utilities, multimedia and entertainment, self-driving cars, etc.

3. Artificial Intelligence (AI)

Another important digital transformation trend that we will see more of in 2022 is artificial intelligence. AI is a technology that enables machines, especially computer systems, to simulate human intellectual processes. The application of AI will bring many benefits to organizations and businesses such as multi-tasking; performing complex tasks; always being available 24/7 without interruption; saving time; avoiding human errors; using insights to predict customer preferences.

Currently, AI has been applied by many organizations and businesses around the world by incorporating AI into solutions and operational processes. Survey data from global strategy consulting firm McKinsey shows that 50% of organizations and businesses will apply AI to at least one of their business functions.

4. Total Experience (TE)

Total Experience is a business strategy that integrates employee experience, customer experience, user experience, and omnichannel experiences across multiple touchpoints to accelerate growth. The goal of total experience is to drive customer satisfaction, employee confidence, customer and employee loyalty and advocacy through comprehensive management of stakeholder experiences.

Total experience will continue to be a key driver of digital transformation trends in 2022 as we live in the age of the customer. Total customer experience is the combination of all customer and employee channels, including digital channels (such as websites and mobile apps) and physical channels (such as retail stores and customer care centers), into a single channel with a consistent experience.

To deliver a great overall experience, organizations and businesses need to have a deep understanding of their customers and their needs. Additionally, businesses need to use the latest technologies, such as AI and augmented reality (AR), to personalize their products and services.

The concepts of overall experience and customer experience are extremely important in the journey towards success of any organization or business.

5. Data Democratization

Data is becoming increasingly important for organizations and businesses in decision making. Data democratization is the process of making data accessible to all administrators/decision makers of organizations and businesses. It enables organizations and businesses to make better decisions by giving all employees access to data and also improves collaboration and communication by sharing data across departments.

While data democratization brings more benefits to individuals, organizations and businesses, it also has broader benefits for partners and society. Its goal is to enable people to collect and analyze data without external assistance. Therefore, this is expected to open up new opportunities and change the way organizations and businesses make decisions in the future.

6. Customer Data Platform (CDP)

A customer data platform (CDP) is packaged software that combines data from multiple tools to create a single, centralized customer database. In addition to providing organizations with a complete view of their customers, CDPs help organizations manage customer data more organized, analyze customer experiences more deeply, and improve customer privacy and data protection.

CDPs will continue to play a key role in digital transformation in 2022 as organizations increasingly focus on collecting, managing, and activating customer data.

7. Automation (Automation)

Automation is definitely one of the top digital transformation trends in 2022. Automation is the use of technology to make processes run automatically. Automating existing business processes with the help of technology will help improve productivity and business efficiency. Organizations and businesses need to adopt automation technologies such as robotic process automation (RPA) and process mining along with machine learning and other emerging technologies to increase the level of automation in organizations and businesses.

8. Internet of Things (IoT)

IoT has the potential to drive digital transformation in organizations and businesses, making it one of the most important digital transformation trends in 2022. IoT refers to the connection of physical devices to the Internet and between IoT devices to collect and exchange data. This data can be used to improve efficiency, create new business models, and provide better customer experiences.

Market research firm Gartner predicts that by 2025, IoT will be present in 95% of new product designs. The rise of these IoT devices is driven by falling costs, increased computing power, and falling sensor prices. As IoT devices become more affordable and easier to deploy, IoT technologies can be used as a key to organizations and businesses entering the digital transformation process.

9. Distributed Cloud

Distributed cloud will be an emerging digital transformation trend in 2022 as more and more organizations and businesses move to the cloud. Distributed cloud gives organizations and businesses the power to connect data and applications across multiple locations, enabling faster innovation and better resilience.

Distributed cloud is a public cloud computing service that allows us to run public cloud infrastructure in multiple locations - not just on the cloud provider's infrastructure but even in another cloud provider's data center or in a third-party data center or location center - and manage everything from a single control plane.

Distributed cloud is considered the next generation of cloud computing. With it, organizations and businesses will be able to take advantage of both the flexibility and scalability of public cloud with the security and control of private cloud.

10. Augmented Reality Cloud (AR Cloud)

AR Cloud is a term for technology that enables the delivery of user-centric, contextual digital content augmented through physical objects on devices such as phones, headsets, or head-mounted displays (HMDs).

Out of all the other trends, AR Cloud will easily become one of the most important aspects of digital transformation in the future. AR Cloud refers to the technology of digitally augmenting the real-world environment. The game Pokemon Go is a great example of augmented reality.

AR Cloud offers organizations and businesses the opportunity to improve communication and connectivity across their entire ecosystem. By blurring the lines between the physical and digital worlds, organizations and businesses can create new customer experiences and connect with employees in innovative ways. As a result, AR Cloud has met with much hype and is set to become a popular part of digital transformation.

In short, digital transformation is not a one-time event but a long journey that requires continuous innovation and development of organizations and businesses. Organizations and businesses need to break out of their comfort zone, reinvent themselves and compete in a world dominated by advanced technologies.

References

https://magenest.com/en/digital-transformation-trends/