Digital transformation is gaining momentum, and businesses across different industries are investing in tech capabilities to boost their bottom line. The shift to digital improves business efficiency, enhances customer satisfaction, and boosts innovation and operational agility. As a result, these technologies are improving people's lives and adding value across the entire value chain.
Whether you have implemented digital transformation initiatives or are somewhere along the transformation journey, there are some critical tech capabilities you need to consider. In the subsequent sections, we have discussed the six tech capabilities that power digital transformation.
- COVID-19 sparked a perfect digital storm, with companies of all sizes scrambling to take advantage of cloud services. Cloud computing allows you to rent rather than buy your own IT. Companies that embrace cloud computing do so, sourcing their compute, network, and storage from cloud service providers such as Microsoft Azure, Google Cloud, and IBM Cloud. Those wishing to move their legacy systems to the cloud can also do so with the help of cloud migration partners.
- One of the supreme features of cloud computing is that it allows businesses to develop, innovate, and support commercial IT solutions with the speed, scalability, and flexibility they need. A rule of thumb is to invest in the right technologies and talents to help build solid cloud capabilities. In addition, you can upskill your existing skills by training them on the basics of operating systems, virtualization, and networking.
- Artificial intelligence refers to a computer system's ability to simulate human cognitive functions like learning and problem-solving, while machine learning is an application of AI. By applying mathematical models, machine learning assists a computer in learning without being explicitly instructed. This allows a computer system or program to learn and improve on its own, based on its past experiences.
- Artificial intelligence and machine learning significantly benefit businesses in practically every area, and new possibilities are constantly emerging. Some of these top benefits include improved operational efficiency, increased accuracy, and enhanced productivity. According to IDC, the AI market will have surpassed $500 billion by 2024, with a five-year CAGR of 17.5 percent. As a result, AI/ML professionals, from big data developers and data analysts to data scientists and engineers, are also in high demand, and the trend is getting better.
- To build AI/ML skills in your organization, you should help your employees learn the basics of mathematics and work their way up to some coding languages such as Python, R, SQL, and many more. Investing in employee training and career development is often just one side of the equation. Hiring expert tech talents who are skilled and have a ton of experience in AI and ML fields is also crucial.
- Mobile App Development
- Mobile app creation is the art and science of creating software/apps that run on mobile devices and take advantage of the capabilities or hardware of those devices. Downloads of mobile applications have surged by 23.3 percent since the pandemic, and the total mobile application market is expected to reach $407.31 billion by 2026. As a result, the need for software development company is also at an all-time high due to this growth.
- Besides using mobile apps to serve clients, businesses also leverage these applications to enhance their Return on Investment (ROI). For instance, businesses use mobile applications to keep in touch with customers, boost user experience, and build their brand. There's practically no end to how much value you can get from mobile apps, from brand marketing to understanding more about your customer base.
- Businesses looking to build on this capability must have an in-house or an outsourced enterprise software development company as their partner team of mobile and software developers working to build and upgrade various business products. When hiring web/software developers, focus on building a diverse team. This will help boost creativity and innovation - both of which are necessary to develop exceptional products.
- Cybersecurity is safeguarding and recovering computer systems, networks, devices, and programs from cyberattacks or incidents. The danger of security breaches on systems and organizational networks increases as organizations develop their digital presence and shift to cloud and remote work. Organizations need robust cybersecurity defensive systems to combat ransomware, Distributed Denial of Service (DDoS) attacks, phishing attacks, and other dangers.
- Cybersecurity is key to safeguarding all data types against theft and loss in the digital transformation journey. Sensitive information such as personally identifiable information (PII), protected health information (PHI), proprietary information, etc., are always on the radar of digital attackers. Businesses that handle this type of data but fail to implement the necessary security measures always risk a data breach, physical break-in, ransomware attack, etc. To ensure successful digital transformation, you should prioritize cybersecurity as part of the enterprise-wide GRC strategy. This helps instill good business practices and effectively manages enterprise risk and compliance issues.
- Improving cybersecurity in your organization means being proactive and sticking to cybersecurity best practices. The first thing is to ensure you have enough cybersecurity talents who are well-equipped with the necessary technologies and are motivated and engaged in their roles. Investing in organization-wide cybersecurity training and awareness programs is essential to ensure employees understand cybersecurity risks and their role in curbing the problem.
- Blockchain Technology
- Blockchain technology is a distributed ledger that hosts decentralized data secured by cryptography and consensus. It first began as digital currency-related technology, but today, blockchain-based solutions are finding use cases in various industries, including finance, insurance, healthcare, real estate, banking, logistics, and more.
- Among the benefits that blockchain can add to your business include business transparency, enhanced system security, and reduced vendor overheads. This technology is also fast, stable, and efficient, especially when sharing data, making financial transactions, retrieving data, etc. You can adopt blockchain technology in your organization to power smart contracts, secure cloud storage, pay employees, run electronic voting, etc. Successfully deploying these use cases requires the right skills and partnerships with established blockchain companies.
- Data analytics is critical in today's business landscape as it helps organizations improve their performance. Companies can substantially cut costs by developing more efficient ways of doing business and storing significant amounts of data by incorporating data strategy into their business strategy.
- A data analyst's technical capabilities are required to report insights and analyze data. Data analytics techniques can help discover trends and metrics that might otherwise be lost in a sea of data. This data could then be used to improve a company's overall efficiency by optimizing procedures. Similarly, you can use data analytics to make better business decisions and assess customer patterns and satisfaction, enhancing the development of novel products and services. Data analytics and user data allow businesses to analyze the success of their strategies and tactics, such as using KPIs to inform business decisions and understand when to pivot.
- Building capabilities in data analytics is all about having the right technologies in place and the best talents to leverage these technologies. Besides hiring expert data analysts and scientists, you can also improve data literacy amongst existing employees by partnering with outside specialists such as consulting firms or universities.
Summary
Digital transformation success is more about choosing the right technologies and implementing them to enhance business processes and deliver value. These technologies bring a greater return on investment and keep your organization resilient in times of uncertainty. However, building tech capabilities is more than deploying new or innovative technologies. It's about understanding how each blends into your business strategies to boost processes and impact the bottom line. The list of tech capabilities above isn't exhaustive, but they are a great starting point to successful digital transformation.
