5 Drivers of Digital Transformation in 2020

Digital transformation uses digital technologies to create new or modifies the existing business process, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation.

All digital business transformations must begin and end with enhancing the stakeholder experience in mind. Company stakeholders are employees, customers, partners, and the communities that it serves. As per MuleSoft's Connectivity Benchmark survey, almost every CIO is actively involved in digital transformation projects.

99% of IT decision-makers are tasked with using new technologies to modernise legacy processes, and recognise and implement new business model innovation opportunities. You must be wondering how these IT leaders scope transformational projects, what business drivers are behind their investment thesis, and what the near-term and long-term business benefits of digital transformation are.

Here is a summary of the top 5 digital transformation trends that will shape 2021.

1. 5G will Go Mainstream

We have heard about the benefits of 5G for a few years. Still, it wasn't until remote work, videoconferencing, and digital collaboration became significant parts of our lives this year that needed reliable connectivity. Thus more bandwidth became a real and concrete benefit that we could all wrap our heads around. Our reliance on smartphones, tablets, and other devices, including an ever-growing number of internet of things (IoT) sensors, highlights the need for a multi-lane superhighway that telecommunication companies already knew we would need. Businesses cannot afford to be disconnected today, and 5G installation has become an essential part of the solution. As we collectively keep working and managing school from our homes, the value of 5G will increasingly become mainstream in 2021.

2. Cybersecurity Gets a Jolt

With the pandemic and increased digitization, cybersecurity has become relevant. Hackers are exploiting the coronavirus pandemic to expand their series of attacks against businesses globally. A 238% surge in cyber-attacks on banks and a 600% rise on cloud servers were observed from January to April 2020 alone. With fewer employees working onsite on the same secure network, it is evident that companies shore up their networks and upgrade their cybersecurity strategies, and expand them to home networks and mobile work-from-home devices.

Artificial intelligence (AI) and machine learning (ML) will be crucial for this trend as we move forward in attempted nefarious activities that require more sophisticated tools and algorithms to fish out. For example, Microsoft has poured resources into security in active directory, software, and cloud.

3. Privacy and confidential Computing Gains Momentum

Another approach to sustain cybersecurity, specifically when addressing communication and data privacy is confidential computing. The idea of confidential computing is to encrypt the entire computing process, not just the data, building additional security layers over sensitive information. Google, Microsoft, and Alibaba are developing new protocols and best practices through the Confidential Computing Consortium. The tech is still in a relative infancy state, but confidential computing slide is expected to be seen in 2021.

4. Work From Home Outlasts COVID-19

Employees have been yelling for increased work flexibility for a long time, and an organisation deciding to allow remote work at scale was usually radical enough to warrant a headline. In 2020, all went out the window when working from home suddenly became the only viable option for many companies, especially in areas with strict coronavirus lockdowns. Although economies slowly reopening and employees are finally allowed to return to work, companies will continue to be tasked with protecting employees from possible outbreak resurgences. Big tech companies like Google and Facebook have already extended work from home policies through 2020 and or for parts of 2021. Even smaller companies are keeping this newfound flexibility as an operational option.

5. Device From Factors Become Popular Again

The flip phone is making a comeback. With a new focus on being always connected, customers want lighter, smaller, more connected than before, and versatile devices. Instead of carrying several devices, users are increasingly interested in hybrid devices like the Microsoft Surface Duo and the Samsung Galaxy fold and unfold depending on their requirements. With the return of folding smartphones in 2021, these will provide the same high quality and connectivity as non-folding phones. Apart from fitting more snugly in a pocket, the idea is to allow phones from factors to unfold into small tablets when a user needs a big screen. The user can fold back into a smaller form for storage or primary phone use. 2021 is expected to see many folding and unfolding devices challenging the flat screen status quo.

The COVID-19 pandemic has changed both the trajectory and the velocity of digital transformation and will likely continue doing so in 2021. The trend lines and new priorities facing organisations of all sizes observed in 2020 will inform the focus, decisions, and technology investment. This will drive the list of digital transformation strategies defining 2021 and the recovery from the coronavirus pandemic.