The technology landscape is constantly evolving and, staying ahead of the curve is crucial for leaders and businesses alike. As we approach 2024, several exciting tech trends promise to reshape industries and our daily lives. Tech leaders and companies must, however, carefully evaluate the impact these technologies may have and the several benefits they bring to the table.
Speaking of tech investments and the impact of new and emerging technologies, Bart Willemsen, Gartner VP Analyst said, “Technology disruptions and socioeconomic uncertainties require a willingness to act boldly and strategically enhance resilience rather than rely on ad hoc responses. IT leaders must ensure calculated risk and make reliable and durable investments to sustainably enable both internal and external value creation.”
In this blog, we will explore eight strategic tech trends and investments to watch out for in the coming year and beyond.
Democratized Generative AI
Democratized Generative AI aims to make Generative Artificial Intelligence technologies more accessible and user-friendly for a broad range of individuals and organizations. It will allow more people to benefit from the technology and contribute to its growth and development.
Democratization in this context means making this technology widely available and usable, breaking down barriers to entry that might have existed in the past. Enterprises can now access knowledge in a conversational style with rich semantic understanding through large language models.
Gartner predicts that by 2026, generative AI will significantly alter 70% of the design and development effort for new web applications and mobile apps.
For more understanding of Generative AI and Cybersecurity, please refer to our informative blog.
AI Trust, Risk And Security Management
AI is becoming increasingly accessible, and this has made it clear that AI Trust, Risk and Security Management (AI TRiSM) is critical. AI TRiSM offers various tools to help manage cybersecurity risks, including ModelOps, proactive data protection, AI-specific security, and risk controls for inputs and outputs to third-party models and applications.
According to Gartner, applying AI TRiSM controls by 2026 will help enterprises increase the accuracy of their decision-making by eliminating up to 80% of faulty and illegitimate information.
Artificial Intelligence Augmented Development
AI Augmented Development (AID) refers to the use of Artificial Intelligence (AI) and Machine Learning (ML) technologies to streamline and enhance the software development process. The primary objective of AID is to speed up software development while making it more efficient and accessible to a broader range of individuals, including those with limited programming experience.
Gartner predicts by 2027, 70% of professional developers will use AI-powered coding tools, up from less than 10% today.
The tools and platforms of AI Augmented Development are still in the process of evolution, and their impact on software development may vary depending upon the maturity of the AI technology being employed and specific use cases. Therefore, developers must recognize the potential benefits and limitations of AI in software development and select tools that align with their project goals and requirements.
Intelligent applications also referred to as smart or AI-powered applications, are software programs or systems that utilize artificial intelligence (AI) and machine learning (ML) technologies to improve their functionality and offer more advanced, data-driven, and automated features.
Gartner predicts by 2026, 30% of new applications will use AI to drive personalized adaptive user interfaces, up from less than 5% today.
Jim Hare, Gartner Distinguished VP Analyst, spoke about the key benefits of adopting intelligent applications and said, “Intelligent applications recommend or automate actions instead of just providing analysis, so they can drive improvements-including better personalization, more efficient use of resources, improved accuracy, increased automation, more finely grained responses, and decision support. Customers are increasingly demanding these types of intelligent outcomes.”
Continuous Threat Exposure Management (CTEM)
Enterprises can use Continuous Threat Exposure Management (CTEM) to assess the accessibility, exposure, and exploitability of their digital and physical assets systematically and consistently.
According to Gartner, by 2026, enterprises that prioritize their security investments based on a CTEM program will experience a two-thirds reduction in breaches.
CTEM assessments and remediations should align with business projects or threat vectors rather than infrastructure components to reveal vulnerabilities and unpatchable threats.
Machine customers, also known as custobots, are autonomous economic entities capable of independently engaging in negotiations and acquiring goods and services in return for payment. It is anticipated that by 2028, there will be 15 billion connected products with the capacity to act as customers, and this trend is expected to continue.
Gartner predicts that this surge will lead to trillions of dollars in revenue by 2030, surpassing the significance of the advent of digital commerce.
Strategic planning should involve exploring opportunities to support these algorithms and devices or developing new custobot entities.
Platform engineering is a multidisciplinary approach to designing, building, and maintaining the underlying technology platforms and infrastructure that support software applications, services, and systems. These platforms can range from cloud computing and server environments to application frameworks and development tools.
According to Gartner, by 2026, 80% of large software engineering organizations will establish platform engineering teams as internal providers of reusable services, components, and tools for application delivery.
Paul Delory, VP Analyst at Gartner, spoke about Platform engineering and said, “It has emerged in response to the increasing complexity of modern software architectures. Today, non-expert end users are often asked to operate an assembly of complicated arcane services. To help end users and reduce friction for the valuable work they do, forward-thinking companies have begun to build operating platforms that sit between the end user and the backing services on which they rely.”
Industry Cloud Platforms
Industry cloud platforms, or vertical cloud platforms, are specialized cloud computing platforms tailored to meet the unique needs and requirements of specific industries or business sectors.
By 2027, Gartner predicts that more than 70% of enterprises will use industry cloud platforms (ICPs) to accelerate their business initiatives, up from less than 15% in 2023.
Industry Cloud Platforms integrate SaaS, PaaS and IaaS services into a cohesive product offering to address industry-specific business needs. ICPs are created to cloud proposals specific to an industry and can be further customized based on organizational requirements.
For an in-depth understanding of Cloud Computing and Cloud migration strategies, please download our exclusive whitepaper resource.
The tech trends of 2024 promise to be both exciting and transformative. Embracing these trends can help IT leaders and businesses stay competitive and innovative in an ever-changing world. Whether it is the Democratized Generative AI, Industry Cloud Platforms, or any other trend, being aware of these developments will be crucial to navigating the tech landscape successfully in the coming year and beyond. So, stay informed, adapt, and be ready for the tech-driven future that awaits us in 2024.
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- Gartner Identifies Top 10 Strategic Technology Trends For 2024. BQ Prime
- Gartner Top 10 Strategic Technology Trends for 2024. Gartner
Digital transformation is not just a technological upgrade but a holistic rethinking of how a business operates, interacts with customers, and remains competitive in the digital age. It requires strategic planning, investment, and a commitment to ongoing adaptation and improvement.
A study by Gartner reveals that 91% of businesses are involved in digital initiatives, with 87% of senior business leaders saying digitalization must be a priority for all organizations. (1)
People can interpret the term digital transformation in many ways. It basically means bringing technological capabilities to a process or an entire organization for competitive advantage, improved customer experience and lower operational costs. Artificial intelligence, cloud computing, the Internet of Things (IoT), and data analytics are some technologies used when adopting digital transformation initiatives.
Digital transformation needs consistent long-term efforts to completely transform organizational operations, address improvement areas and upgrade tech capabilities.
It correlates largely with the terms digitization and digitalization:
The Gartner IT Glossary describes digitization as changing from analog to digital form, also known as digital enablement. In other words, digitization takes an analog operation and changes it to a digital format without any different-in-kind changes to the process itself.
Transforming all manual data into digital data to eliminate paperwork, conveniently store data, and reduce human errors is called digitization. Tasks such as scanning financial records and storing them as PDFs on a computer or cloud server are digitization.
The Gartner IT Glossary explains digitalization as using digital technologies to change a business model and provide new revenue and value-producing opportunities; it can be defined as moving to a digital business.
Digitalization means automating business operations to enhance efficiency and profitability. For instance, incorporating intelligent process automation to improve tracking, communication, and version control of creative projects is an example of digitalization. It involves a fundamental re-evaluation and restructuring of how you conduct your business, which includes digitization and digitalization.
Expanding on the role of automation in digitalization, Georg Tacke, CEO and Annette Ehrhardt, Global Head of Communications and Marketing Senior Director at Simon-Kutcher & Partners, believe “Digitalization increases process efficiency and enhances data transparency along with giving your top line a boost. If a company operates an online platform, then the company may already be 80 percent digitalized. It gives way for increased efficiency and customer value by remaining 20 per cent of the way.”
HOW IS DIGITAL TRANSFORMATION DIFFERENT FROM DIGITALIZATION?
Digitalization and digital transformation are two different concepts. An organization can carry out digitalization projects that involve automating processes and using digital tools.
However, digital transformation is not a project to be undertaken in isolation. It is a customer-focused strategic plan that requires an organization-wide change and the implementation of digital technologies.
Digital transformation comprises several digitalization initiatives, but leaders and company executives are under the false impression that digital transformation only involves digitalization. It is a grave strategic mistake on their part.
Digital transformation is a complex process that changes how an organization operates. It involves developing a change mindset and making transformation a core competency as the enterprise becomes customer-driven end-to-end. This agility is essential for ongoing digitalization initiatives but should not be confused with them.
Each stage of the process, from digitization to digitalization and digital transformation, is necessary but insufficient for the next level of the rewiring process. Understanding the distinction between these terms is crucial for organizations that want to embrace digital transformation and thrive in the digital age.
Now that we have clearly defined each of these definitions. Let us look at some of the capabilities we must tap into for a successful digital transformation:
- Strategy Development – A well-defined strategy is the first step to enhance overall business value. Specific areas for transformation must be looked into by companies, namely customer experience, processes, or functions that generate significant value for the business. Organizations must adopt a roadmap-driven strategy outlining the solutions and resources needed to deliver change to specific domains.
- Expertise – A knowledgeable and expert team makes the digital transformation process a worthwhile investment for your organization. Hiring and retaining digital talent is crucial. Employees within the organization must possess the skills and knowledge to leverage digital technologies. Training and upskilling programs can help these bridge skill gaps. The collaborative approach from digital talent and business professionals gives way to a successful digital transformation journey.
To learn more about Digital Transformation best practices and strategies, download our exclusive Case Study resource for detailed insights.
- IT Infrastructure and Integration -A robust IT infrastructure that supports the integration of new digital tools and technologies is essential. Legacy systems may need to be updated or replaced to ensure compatibility with modern digital solutions.
- Data Analytics -Data is of primary importance in the digital transformation journey. The ability to collect, analyze, and derive insights from data allows organizations to make informed decisions, personalize customer experiences, and identify growth opportunities.
- Change Management– Successful Digital transformation often requires a significant cultural shift within an organization. Change management strategies, templates and methodologies help employees adapt to new working conditions and embrace necessary technologies.
For insights on Change Management Approaches, please download our Change Management Strategy resource for improved implementation.
- Scalability and Flexibility – Digital transformation should be scalable to accommodate growth and adaptable to newer technologies. Scalable solutions ensure that the organization can grow without significant operational disruptions.
ROLE OF AI IN DIGITAL TRANSFORMATION
The role of Artificial Intelligence, especially Generative AI (Artificial Intelligence) is significant in the digital transformation process. A clear understanding of specific business requirements and goals is a prerequisite to derive maximum benefits from these technologies.
With the influx of new technology trends, it is easy to get sidetracked. We must focus on the potential value derived from these technologies to meet specific organizational requirements.
To leverage Generative AI capabilities, organizations require essential components for digital transformation. They need a well-defined strategy, expertise, and a responsive and scalable operating model. Generative AI also requires constant re-evaluation of roadmaps and prioritized solutions for updated models to support business objectives.
HOW TO START YOUR DIGITAL TRANSFORMATION JOURNEY
To embark on a digital transformation journey, here are a few factors to keep in mind-
- Clearly Defined Goals – It is necessary to clearly define your digital transformation goals and objectives and establish what you have set out to achieve in your organization. This vision will guide your efforts and provide a sense of direction.
- Assess Your Current Tech -A thorough evaluation of your current technology stack, processes, and culture are crucial steps in the digital transformation journey. Identify areas of improvement and opportunities for digital integration within your organization.
- Build A Collaborative Team- Digital transformation requires collaboration across all departments within the organization. A dedicated team with representatives from IT, marketing, operations, and other specific domains are essential for the overall digital success of the organization.
- Invest in Technology -Choosing the right digital tools and technologies that align with your goals is crucial. Organizations must ensure they are scalable and adaptable to their future needs.
- Measure and Update -Organizations must establish key performance indicators (KPIs) to track progress. Constantly assess your digital transformation efforts and adjust your strategy as needed.
DETERMINING THE EFFECTIVENESS OF DIGITAL TRANSFORMATION
After undergoing the process of Digital Transformation, it is necessary to assess if the transformation is adding value to your organization.
Here are three key performance indicators to determine its effectiveness:
- Financial Benefits -Digital Transformation services address one or more operational domains that can help generate financial value for the organization.
- Team Effectiveness -Digital transformations often take longer than expected due to a shortage of staff, outdated work methodologies, or a lack of critical capabilities such as efficient product management and user-experience design.
- Change Initiatives – It is crucial to have performance metrics in place for measuring the progress of building new capabilities and ensuring the health of the transformation is consistent. Specific evaluation metrics can be whether the team members are collaborating as planned, whether people are dedicatedly following the plan, whether they are meeting goals, and whether team members are adjusting to new tools, technologies and services built within the organization. An effective change management initiative involves focusing on achieving an optimal outcome rather than striving to achieve a perfect result.
Digital transformation is no longer a choice but a prerequisite for businesses that want to thrive in the digital age. By embracing this transformation, you can better meet customer expectations, gain a competitive advantage, and achieve operational excellence.
Start by defining your vision, assessing your current state, and building a dedicated team. By incorporating the right strategy and commitment, your organization can reinvent itself for the digital future.
Are you ready to embark on your digital transformation journey?
At InovarTech, we believe in the 3i principle: Inspire – Ideate – Innovate. Listen to our story on how we can handhold you in your Digital Transformation journey till benefit realization.
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For detailed insights on Inovar Tech’s Automation initiatives, best practices, and strategies, please refer to this informational YouTube Video on Revolutionizing Business Efficiency: Process Automation Case Study.
- Where and How to Target Your Digital Business Transformation
- Gartner Information Technology Glossary.