We have heard about it for years and even in Italy it has now become a necessity. Especially when the going gets tough due to external events, Digital Transformation for companies is a step that can no longer be postponed.
In Italy, the digital transformation is not yet at its full maturity. Confirmations come from the data of the report of the European Union on the DESI index (Digital Economy and Society Index).
However, last year, in 2022, there were important changes in some sectors where technology entered with greater force to improve the fortunes of the business sectors concerned, and where digital innovation is essential to improve the customer experience and market competitiveness.
What are the 2023 Digital Transformation trends? What evolutions should we expect? We see it in this article.
Digital Transformation, the trends of 2023
What evolutions to expect in 2023 and in the near future as regards Digital Transformation?
OpenAI GPT chat and Google Bard give us the measure of the steps to giant who is making Artificial Intelligence, driving force in digital transformation.
Artificial Intelligence and Big Data
During 2023, a greater evolution of AI applied to Big Data is expected, which helps SMEs and large enterprises to scale thanks to the power of technologies such as Machine Learning and Deep Learning through which machine learning will continue to evolve, improving data processing and predictive analytics capabilities.
Cloud Computing
Among the Digital Transformation trends, the evolution of Cloud Computing> continues, growing in popularity by providing companies with greater flexibility and scalability thanks to the possibility of increasing or decreasing IT resources according to needs. But it’s not just this.
Among the increasingly evident advantages of the Cloud:
- the reliability of services managed by third parties, expert IT teams
- cost savings thanks to the use of IT resources in the cloud that avoid the purchase and maintenance of hardware and software
- the ability to access cloud data and services from anywhere and at any time with an Internet connection
- security: cloud services are based on advanced security techniques to protect data and reduce the risk of loss
- flexibility and speed in the development and distribution of software and applications
- access to advanced technologies and features otherwise difficult to implement and manage in the company.
For further information, we refer you to the article in which we list all the advantages of cloud servers compared to classic hosting.
eCommerce
From the period of the pandemic until today and throughout 2023, we are witnessing the growing importance and growth of eCommerce.
The B2B and B2C digital store, the sale of products and services online have created new business opportunities. In fact, companies have understood how much impact an eCommerce can have in expanding the opportunities to reach more customers internationally, if not worldwide. Impossible feat with a physical store. And thus, increase sales.
The reduction of costs is the other determining factor for companies that have much less management costs between consumption, rent and personnel. An eCommerce, then, allows you to collect and analyze data on customers, sales and product effectiveness, thus providing valuable information to refine the marketing strategy.
The greater flexibility of eCommerce allows companies to manage orders, shipments, returns, etc., reducing waiting times in favor of better customer care and a shopping experience.
Another aspect to consider is the possibility of customizing products and services based on purchasing behavior. The e-commerce also work in synergy with the cloud to increase the performance and scalability of online business.
Internet of Things (IoT)
The growth of the Internet of Things is also expected with the adoption of IoT technologies and the diffusion of connected devices. Thanks to this technology, companies can satisfy some needs:
- Automate processes and operations in order to make activities more efficiently and reduce costs.
- Monitor the use of products, devices and infrastructure, collecting useful data to improve performance and efficiency.
- manage the use of energy by reducing waste and improving energy efficiency.
- Collect and analyze data in real time
- monitor and manage the security of products, devices and infrastructures, preventing accidents.
- Monitor and manage people’s health and quality of life, improving the prevention and management of diseases and disorders.
Cybersecurity
One of the most important aspects of the Digital Transformation is that IT security will become increasingly important, with greater attention to the protection of data and corporate systems. Especially for those companies that manage a large amount of data with sensitive information on customers, employees, business partners and intellectual property. Cybersecurity helps protect this data from unauthorized access, data theft and loss.
The reasons why cybersecurity will increasingly enter companies is also linked to these other aspects:
- Comply with privacy and security regulations, such as the GDPR or the law on the security and privacy of sensitive information. Cybersecurity helps companies comply with these regulations.
- Business Continuity: Cyber attacks can cause disruption and financial loss. Cybersecurity helps protect business systems and ensure business continuity.
- Avoid reputational damage: Information security breaches cause damage to the company’s reputation and customer trust. Cybersecurity helps safeguard the company’s reputation and ensure customer trust.
- Avoid System Recovery Costs: Cybersecurity breaches can cost companies a lot of money to recover systems, but also cost them in terms of lost customers.
Blockchain
Blockchain technology will continue to be used across more industries and applications, increasing the security and transparency of transactions. Companies can benefit from this technology for a variety of reasons:
- Security: The Blockchain uses cryptographic algorithms to ensure immunity to data modification and the authenticity of transactions.
- Transparency: Blockchain allows you to have complete visibility of all transactions, ensuring that all network users can access the same data.
- Decentralization: Blockchain is a distributed ledger that allows transactions to be made directly between users, without the need for centralized intermediaries.
- Speed: Blockchain transactions can occur almost instantaneously, reducing processing times and increasing the efficiency of operations.
- Reduced costs: Thanks to decentralization and the elimination of intermediaries, transactions on the Blockchain are generally less expensive than traditional methods.
Digital transformation, where to start
To embrace and fully exploit the benefits of digital transformation, companies must be ready to embrace a number of challenges and changes:
- Open your mind and eyes to welcome the new opportunities of digital transformation.
- Take a strategic approach and active employee engagement to identify needed changes and implement technology solutions.
- Invest time and resources in training your employees and adopting new technologies and processes.
Here are some key steps to putting digital transformation into practice:
- Defining a strategy: before taking any action it is important to define a clear strategy for the digital transformation: the objectives you want to achieve, the areas of the company that require changes and the timing of implementation.
- Engage employees: Digital transformation requires a cultural shift within the company, so it is important to involve employees at all stages of the process. This may include staff training, involvement in working groups and progress updates.
- Review processes: Once the strategy has been defined and the personnel involved, it is important to review business processes to identify ways in which digital technology can be used to improve efficiency and productivity .
- Identify Technology Solutions: After reviewing your business processes, you can identify the technology solutions that can help achieve your digital transformation goals. This may include software, hardware and cloud computing platforms.
- Implement the technological solutions: once the technological solutions have been identified, it is necessary to implement them and ensure that they can dialogue with the pre-existing infrastructures and that they are well integrated into business processes.
- Monitor and evaluate: it is also important to continuously monitor and evaluate the progress of the digital transformation to make sure that the objectives are achieved and that the technological solutions are really useful and are giving the expected results
The sectors most sensitive to Digital Transformation
Digital transformation is a process in which companies use digital technology to renew their business processes, improve efficiency, customer experience and competitiveness in the market. In other words, digital transformation requires companies to redefine the way they operate, from the way they create and distribute their products and services to their customer relationships.
For businesses, digital transformation is important to stay competitive in the marketplace in an age where technology is rapidly changing the way we work, shop and interact with each other. Digital transformation can help companies achieve greater efficiency, reduce costs, improve the quality of their products and services, and strengthen their customer relationships.
One of the sectors most interested in digital transformation is undoubtedly marketing . And how could it not be? Digital tools allow companies to create their own online presence, on all the various channels, from the corporate website to social networks, to reach and retain an increasingly large audience; to collect data and information on customers, on their purchasing journeys and behaviors, in order to build personalized experiences.
Healthcare
In this sector, digital innovation helps to improve the quality of healthcare through technologies such as telemedicine, artificial intelligence and connected medical devices. Steps forward have been made, for example, with the adoption of the Electronic Health Record (FSE) which rises to +12% compared to 2021. The computer system allows for the collection and safe storage a patient’s health information, such as clinical data, diagnostic tests, prescriptions and vaccinations.
The goal is to improve the quality of healthcare and reduce clinical errors, facilitating the sharing of information among healthcare professionals and ensuring more efficient management of patient healthcare information.
Manufacturing
Digital innovation can help improve efficiency and productivity by automating production processes to increase production, improve quality and reduce costs. In this sector it is also essential to work with Artificial Intelligence (AI) to optimize production processes, predict market needs, improve inventory management.
Similarly, the Internet of Things (IoT) with the use of sensors and networked devices can help monitor and control machines and production processes in real time. 3D Printing allows you to quickly produce prototypes and custom parts by reducing production costs and accelerating product development time.
Transportation
Digital transformation is also crucial in the transport sector thanks to Artificial Intelligence and IoT connected to vehicles, for traffic management and logistics, shipment tracking, goods tracking, punctual deliveries.
Through intelligent software we can reduce costs and save time by avoiding traffic, optimizing transport routes, predicting and preventing any delays, route changes, improving road safety .
Finance
Digital Transformation is also entering the financial sector to shuffle the cards to bring companies that have lost ground due to poorly evolved management back into the game.
The digital transformation in the financial sector brings into play technologies such as Artificial Intelligence for forecasting expenses and investments, process automation, Blockchain and analytics of data to improve risk management, prevent fraud, develop innovative and personalized products, offer more accessible and convenient financial services through digital channels such as apps and online platforms.
Education
Some examples of how Digital Transformation can help in education include:
- the use of online learning platforms
- artificial intelligence to adapt the educational content to the needs of the students
- the use of video conferencing and virtual collaboration tools to encourage active participation and interaction between students and teachers
- the creation of virtual learning environments and the ability to access learning resources from anywhere and at any time.
Furthermore, digital transformation in education can help promote cultural and linguistic diversity and make education more accessible to all.
Do you want to understand how to start a digital transformation process starting from your IT infrastructure? Contact us to find out how we can help you.
