- Digital transformation is the integration of computer-based technologies into an organisation’s products, processes, and strategies. In the digital wave of 2024, technological advances and economic volatility will come together to shape the course of digital transformation.
- Five trends in digital transformation will lead organisations to new heights: AI becomes a key transformation catalyst, cost-savings is always the primary goal, digital transformation is more streamlined, a platform to accelerate transformation will be built, and change management gains more respect.
Digital transformation is the integration of computer-based technologies into an organisation’s products, processes, and strategies. Organisations undergo digital transformation to better engage and serve their employees and customers in order to become more competitive.
In the digital wave of 2024, technological advances and economic volatility will come together to shape the course of digital transformation. Angelic Gibson, CIO of AvidXchange, said, “AI is fundamentally changing the digital transformation landscape by revolutionising the way businesses operate.” Against this backdrop, 5 trends in digital transformation will lead organisations to new heights.
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1. Artificial intelligence becomes a key transformation catalyst
In 2024, the trend of integrating AI technologies into digital transformation strategies appears increasingly unstoppable. This year, we will witness the potential of more generative AI, but the focus will be on the full-scale rollout of AI to the entire enterprise ecosystem, such as enterprises to improve efficiency, optimise the customer experience, and strengthen decision-making power.
Goldman Sachs, a U.S. investment banking and financial services firm, also predicts an economic supercycle led by AI and decarbonisation. However, this process of advancement may also lead to artificial intelligence and digital transformation programs designed to achieve the same goal of conflict.
2. Cost savings is always the primary goal
In the face of the complex and volatile economic situation, enterprises are gradually shifting their focus from external expansion to internal optimisation, and improving operational efficiency has become the primary goal of digital transformation. The cost reductions achieved by digital transformation can release the necessary funds for innovative activities, including a wider range of artificial intelligence applications.
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3. Digital transformation is more streamlined
Digital transformation programs will be broken down into smaller units, and agility becomes critical as it encourages small-scale rather than large-scale projects. This type of project is more flexible in the face of unforeseen events, such as the sudden emergence of competitors or dramatic fluctuations in the economic environment. Given the uncertainty of the market outlook and limited funds, managers prefer transformation programs that deliver quick results.
4. Build the platform to accelerate transformation
Cloud computing platforms have become the core of many digital transformation programs. 2027, or more than 70% of enterprises will adopt industry cloud platforms, compared with 15% in 2023. Some IT organisations are rallying around major SaaS vendors and their partner ecosystems, a strategy that offers the advantages of simplicity and reduced costs. But this approach also carries the risk of vendor lock-in, so organisations may need to find a balance between relying on a few vendors and over-investing in many.
5. Change management gains more respect
Digital transformation programs must incorporate change management. Sudden changes in the workplace will become more frequent as organisations apply artificial intelligence more broadly. Transformation isn’t just about emerging technologies, it’s also about changing workflows and business models. According to an AlixPartners survey covering more than 3,000 executives, 91 percent of CEOs expect to adjust their business models in the next year.
