ABSTRACT

Understanding of the
recent trends and the
evolution of digital
transformation in the
past 5 years.

21H117 - Rushil
Reuben Jacob
EVOLUTION OF DIGITAL
TRANSFORMATION IN THE PAST 5
YEARS
The world has never been the same since the advent of the internet and the various
technical advancements it sparked.

Technology has a huge impact on every aspect of our lives, including how we think, interact,
go about our daily lives, work, pass the time, and run our businesses. The period from 2017
to 2020 can be properly referred to be the decade that saw the integration of digital
technology into our personal and professional lives to a degree we may never have
anticipated. Digital technologies are essential to how we function in the modern world, from
being the tools and platforms we use to feeling like extensions of ourselves. The "hyper-
connected" nature of the globe is forcing us to live more and more of our lives online.

We have learned the value of agility over the previous five years of digital transformation as
organizations have tried to stay up with environmental, regulatory, and technical change. To
actively embrace digital transformation, organizations must stay up with technological
advancements, this is a continuous process. The benefits of digital transformation include
increased resiliency, easier integration of new technologies, more effective corporate
operations, lower costs, and the ability to keep up with an evolving political and social
environment.

Over the past five years, business sectors have incorporated digital technologies into their
operations more and more. Through a transformation of their business processes, they have
increased the delivery of value to customers in addition to changing their mode of
operations. Social media, artificial intelligence, cloud computing, and other technologies
have all had an impact on many aspects of business operations during the past few years,
including business culture, business structure, market, people, and money. New markets
have emerged because of changes in how firms are run, while other industries have
collapsed, and the corporate climate has become more competitive.

A few aspects which I would like to pay emphasis on are:

1. A focus on resiliency and sustainability:
Integrating sustainability into initiatives for digital transformation will become
increasingly important as it becomes more central to enterprise strategy. This is
about a complete transformation of business through digital technologies that make
better impact for society and build a purpose, not just about migrating to the cloud
to lower datacenter carbon footprint led enterprise

2. Future: AI - fueled enterprise automation

Workflow automation has been more quickly adopted in some areas of the company
than in others. Expect that to apply to the entire company. For instance, teams that
engage with customers, like sales and marketing, have generally used AI to connect
disparate data and develop intelligent processes that enable team members to work
more intelligently and productively.
Personnel and HR Teams can schedule interviews and update applicant profiles more
quickly and effectively, finances can update payment records automatically, and
customer success teams may be better prepared to respond quickly and effectively
to customer requests.

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 3. Managing the full data lifecycle
For the corporation to drive more sustainability-focused decisions and sustainability
reporting, the tech organization is essential in architecting and utilizing the data.
Data is the new currency which is evolving the market and a more lifecycle to take
care of this of utmost importance.

4. Building responsible AI
Having oversight that is separate from the AI project is crucial to getting AI ethics
right because it can avoid unintentional bias, limit it to the right use case, and design
for inclusiveness and comprehensiveness.
Early on, it needs to be planned to construct industrialized AI systems rather than
just proof of concepts. In a similar vein, it is crucial to incorporate ethics into
governance from the outset.

5. Machine learning maturation

Presently, the emphasis is on offering effective predictive analytics and simulations.
This technology is beginning to have the potential to increase efficiency by reducing
manual labor and provide extremely similar (if not superior) forecasts to those you
would get without it.

Examples of successful digital transformation:

From the below data, we can see on how long and what impact digital transformation has
made on the growth rate of companies.

Nike:

Sports footwear behemoth NIKE has begun concentrating on mobile devices. It makes use of
cutting-edge technology based on machine learning and recommendation algorithms.

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The business, among other things, developed a smartphone app that aids in selecting the
appropriate kind of shoe based on a leg scan. The application scans the feet and builds a
map of them using 13 different data points. Additionally, the program gives the business
access to crucial data that will help it develop future footwear initiatives that will be even
better.

The NIKE Plus program, which rewards loyalty program participants who are the most
active, is a significant undertaking for the firm. This solution has significantly increased sales.

Microsoft:

Microsoft, market leaders in software sales has thus far relied on the strength of the OEM
and BOX versions of the Windows operating system, as well as the commonly installed
Microsoft Office. The corporation chose not to only base its approach on Windows, instead
adapting to shifting customer needs.

First, Microsoft made itself more accessible to mobile devices by offering, for instance,
Office for iPad. Additionally, the business has made investments in cloud computing by
forming partnerships with services like Dropbox and expanding its OneDrive offering.
Amazon and RedHat, a provider of open-source software, are also partners of Microsoft.
More open APIs must be developed for programmers to have easier access to Microsoft
products.

AUDI:

Audi made the decision to embrace the digital age with its new offerings, becoming one of
the best instances of a digital transformation.

Under the name Audi City, the business debuted a cutting-edge showroom idea in 2012.
Micro-showrooms in city centers, where conventional showrooms with numerous exhibited
automobiles could not exist, introduce users to the whole catalogue of the brand's
automobile models.

These areas make it fun and convenient to browse the shops in the city center while looking
at and purchasing cars. Additionally, Audi City serves as a venue for exhibitions and seminars
that are held in the evenings, further enhancing the brand's positioning.

Using interactive screens where the car is viewable in full size, advanced car configuration is
feasible in stores. You may use your own tablets to see inside the automobile, watch it
move, and even hear the engine's actual sound.

Sales in Audi City, where only 4 cars are always on display, climbed by 60% compared to
regular dealerships because of these solutions.

From the various examples, we can see how across various industries digital transformations
have had a major impact on their growth and revenue, and all these companies already
being big players.

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Recent digital transformation trends:

1. Everything as a Service (XaaS) –

An ironic word for the growth of cloud services is XaaS. Businesses can save
costs and obtain precisely what they require for their unique business processes
prior to the availability of XaaS. Prior to the development of XaaS and cloud
computing, companies frequently had to buy and install authorized software
packages locally to build a network. Additionally, the XaaS model gives enterprises a
great deal of flexibility and scalability.

2. Total Experience –
As we live in the era of the customer, we believe that total experience will
continue to be a key driver of the trends in digital transformation in 2022. Total-
experience refers to the integration of all consumer and employee touchpoints into
a single, unified experience, including both digital and physical channels.
Businesses need to have a thorough awareness of their consumers' wants to
deliver a fantastic overall experience. Additionally, companies must personalize their
goods and services using cutting-edge technology like AI and AR.

3. Internet of Things –

One of the most significant developments in digital transformation for 2022 is

the Internet of Things, which can speed up digital transformation within a company.
The term "Internet of Things" describes how physical items are linked to the internet
and to one another so they can exchange and collect data. This information can be
used to increase productivity, develop fresh company ideas, and enhance consumer
experiences.
By 2025, 95% of all new product designs will use the Internet of Things,
according to Gartner. IoT device growth is fueled by lowering costs, rising processing
power, and dropping sensor prices. IoT technologies can be utilized as keys for
enterprises to undergo digital transformation as IoT devices become more accessible
and less expensive to deploy.

Various other trends such as metaverse, augmented reality, 5G networks, hybrid form of
working is slowing moving into the market.

Reference:
1. TOP 10 DIGITAL TRANSFORMATION TRENDS TO WATCH OUT IN 2022, Unnamed, 6
July 2022 https://magenest.com/en/digital-transformation-trends/
2. 7 Examples Of How Digital Transformation Impacted Business Performance, Blake
Morgan, 21 July 2019 https://www.forbes.com/sites/blakemorgan/2019/07/21/7-
examples-of-how-digital-transformation-impacted-business-performance/?
sh=504542ad51bb

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 3. Top 5 digital transformation trends in 2022, Isaac Sacolick, 4 March 2022
https://www.techtarget.com/searchcio/feature/Top-5-digital-transformation-trends-
of-2021