Digital Transformation: Radically Reimagining Business In The Digital World
Amid the COVID-19 pandemic, digital technology has kept the world connected and running. With the social distancing restrictions in effect, majority businesses in various sectors have opted to work remotely, and people are now completely dependent on digital platforms for their needs. Moreover, emerging technologies likecloud computing, artificial intelligence, the Internet of Things (IoT), and blockchain have contributed largely to the expansion of the digital transformation market. According to Reports and Data, the Global Digital Transformation Market is forecast to grow at a CAGR of 20.96% from 2020 to 2027, rising from the value of USD 221.43 Billion in 2019 to USD 1102.32 Billion in 2027. Digital transformation is bringing about a new era of how companies are running and expanding their businesses to provide better customer service in the digital world. The digital transformation is majorly driven by the rising penetration of internet and smart devices, increasing advancements in technology, and initiatives taken to incorporate digital platforms for all services. Digital transformation has emerged as an eminent strategy for public and private organizations over time. Organizations and businesses all over the world have shifted their businesses onto a digital platform, thereby boosting the growth of the industry.
Digital transformation is the process of incorporating digital processes into existing processes to improve the model, structures, and business activities of an organization. Digital transformation is crucial for all businesses, from small to large enterprises in the modern world. It assists organizations in handling disruptions in the workplace and mitigating risks. Digitally transformed organizations are efficient in adapting to the technological evolution and dynamic changes occurring in the industry. Apart from improving the efficiency of the business processes, digital transformation also enables flexibility and agility in the organization and also allows them to turn their day-to-day operations cost-efficient. The rising competition to incorporate digital technology into the businesses to provide efficient solutions to customers to expand the reach is directly contributing to the expansion of the digital transformation market.
Digital transformation comprises a framework that includes elements like customer experience, operational agility, culture and leadership, workforce enablement, and digital technology integration. Digital technology, like cloud deployment, has become a significant aspect of accelerating the adoption of digital transformation. It enables faster prototyping and testing and provides security to the end-user organization. This has increased its adoption as a rapid rise in issues surrounding cybersecurity has been on the rise. Artificial intelligence and robotics are other key features of the digital transformation process that have accelerated the adoption and seamless incorporation of digital technology in sectors such as healthcare, BFSI, and others. In the ongoing COVID-19 pandemic, where everyone is confined to their homes, cloud computing has made entertainment and gaming more seamless than ever before. Additionally, blockchain can potentially fix supply chains through rapid but efficient processing and verification of transactions. This ability led the U.S. Homeland Security to recognize blockchain as an essential technology to fight COVID-19 and fix the supply chain disruption it caused.
One of the prominent examples of digital transformation in a large organization is the launch of Amazon Go stores, which are essentially cashier-less stores. These stores utilize computer vision, deep learning algorithms, and sensor fusion that work towards automating the purchase, checkout, and payment steps typically involved in a retail transaction. The Amazon Go app links the user to their Amazon account,allowing them to pay for the purchased items. Once they are done shopping, the customers can just walk out of the stores as the payment will directly be processed via their Amazon account. This provides an optimal experience to customers, reducing the time they spend in the checkout queues. Apart from the enhancement of the traditional process, digital transformation also incorporates and enables innovation and creativity.
Additionally, the emergence of 5G in a time when everyone needs a better network to be connected owing to the current crisis is expected to increase the demand and adoption of digital transformation globally. Many telecommunication companies are progressing towards their 5G goals. For instance, Verizon, a telecom provider, set up a virtual lab to test 5G deployments and launched the 5G coverage in all areas of San Diego, California. China is rapidly deploying 5G coverage. Most recently, Qualcomm, a multinational tech company, announced that 60% of the devices it sold during the quarter were 5G. Moreover, 5G coverage is being utilized in Chinese hospitals to monitor vital signs and is being used in other health applications.
A crucial element of digital transformation is technology, and if organizations want to evolve in the digital world, they must work towards improving their technological cognizance. Digital transformation is underway worldwide, but the pace of its adoption is not the same everywhere. It could be due to improper planning like a lack of budget and capital and lack of a digital strategy. While the COVID-19 pandemic has affected both professional and personal lives, it has paved the way for businesses to rapidly adopt digital processes to generate a stable remote work experience. With the increasing awareness about digital transformation being an asset to companies, organizations are competing to adopt digital transformation strategies to gain a robust footing and a significant global position in the market.
