Learn about the emerging trends influencing digital transformation in 2024, and prepare to adapt to a changing world with sustainable digital transformation support from SaaSCom.
Digital transformation was once considered by many to be little more than a “buzzword”, a term many companies referred to when they wanted to demonstrate a commitment to evolution and growth. However, the reality is that digital transformation is an ongoing, and dynamic initiative.
It isn’t just the introduction of innovations like advanced AI and cloud-based services that drive changes in digital transformation initiatives. Wider concepts, such as evolving regulatory standards, changing consumer preferences, and economic uncertainty are driving companies to adjust their digital transformation strategies too.
Studies show that by 2026, companies will have spent around $3.4 trillion on their digital transformation initiatives, and the investment won’t stop there. The challenge is in determining how to adapt your digital transformation strategies to ensure the highest return on your investment.
The Digital Transformation Landscape in 2024
Before we dive into the top digital transformation trends 2024 will bring, it’s worth taking a closer look at the evolving landscape, and how it might influence “DX” decisions.
Digital transformation has the power to enhance the operations and performance of virtually any business – but only when its implemented correctly. Around 85% of companies undergoing digital transformation strategies have reported increased operational efficiency. However, at the same time, up to 70% of all digital transformation initiatives fail to deliver results.
The challenges of cost-effective digital transformation are likely to have a significant impact on initiatives in 2024. Economic uncertainty and supply chain issues are pushing companies to focus more heavily on digital strategies that can increase revenue generation and reduce costs. However, this could also mean companies overlook other critical areas.
De-prioritizing things like cloud investment, security, and even ESG initiatives (or climate action) could have a significant impact on a company’s bottom line. For instance, failure to invest in cybersecurity places companies at risk of significant losses. This is particularly true when you consider that cybercriminals become more active during periods of economic hardship.
Ignoring cloud technology means companies miss opportunities to expand their workforce, improve resiliency, and even reduce operational costs. Failure to invest in climate action and ESG initiatives could be the riskiest issue of all. Increasingly, the benefits of strong sustainability strategies are becoming more evident in business environments.
Studies show 85% of customers are making more “green” purchasing decisions, and global consumers will also pay more for a product that mitigates environmental risks. ESG policies and sustainable efforts aren’t just key to protecting the planet, they’re crucial in retaining business profitability.
9 Digital Transformation Trends for 2024
On a basic level, digital transformation isn’t just a term, it’s a comprehensive shift in mindset, allowing companies to reimagine, improve, and optimize their business processes and leverage new technologies. Digital transformation initiatives can support business in achieving various goals, from improved sustainability to reduced operating costs. So how will digital transformation evolve in 2024?
Let’s examine the key trends.
1. Rising Connectivity and the Internet of Things
By the end of 2024, experts predict more than 24.9 billion devices will be connected to the internet. These tools will generate real-time data about crucial assets and devices, helping businesses to operate more efficiently. While demand for IoT has been rising for a number of years, the increasing accessibility of new tools for connectivity, such as 5G and edge computing will increase adoption.
Additionally, IoT solutions will play a crucial role in the strategies businesses use to collect and leverage data for a range of operational goals. IoT tools can even assist organizations in collecting information that improves sustainability, by tracking energy use and other conditions.
The key to success will be in aligning IoT strategies with other efforts for reducing energy consumption, preserving security, and optimizing efficiency.
2. Everything as a Service
The cloud has been a major digital transformation trend for a number of years now. For years, companies have been shifting processes to the cloud to help reduce costs and improve efficiency. By 2025, Gartner predicts more than half of enterprise IT spending will take place in the cloud.
Rising interest in the cloud has led to an influx of new service providers offering different forms of “as a service” offering through cloud connections. Today, we not only have unified communications as a service, and contact centers as a service. There are also “as a service” solutions for metaverse environments, meeting rooms, desktops, and more.
These solutions offer a range of benefits, from greater efficiency, to improved scalability and accessibility in the world of remote and hybrid work. However, companies investing in the cloud will need to think carefully about how there data centers are used, and whether they align with their wider ESG strategies, and cost-saving initiatives.
3. Evolving Artificial Intelligence
Artificial intelligence, like cloud computing, is one of the digital transformation trends that has shaped the landscape for several years now. By 2030, the market is expected to be worth around $1,345.2 billion, thanks in large part to the evolution of more advanced generative AI tools and LLM solutions.
Used correctly, AI and machine learning technologies can lead to various benefits for business leaders, including enhanced productivity, reduced repetitive tasks in the workplace, and even improved customer experiences. However, AI has it’s challenges too. Any company investing in AI for digital transformation should be aware of the risks and security threats caused by generative AI, and the environmental impact of increasingly powerful models.
According to studies, the e-waste produced by AI technology causes significant environmental issues. In the years ahead, there will be a growing demand to develop AI that’s not only safer for human use, but better for the environment too.
4. Comprehensive Cybersecurity
One of the biggest threats of digital transformation has always been the presence of malicious actors in a digital world. Many digital transformation initiatives involve the implementation of tools and technologies that allow users to collect, store, and use more valuable information.
The more information companies collect, more risk they encounter. More than 5 billion digital records were breached in 2023 alone. Today’s criminals are also using more sophisticated methods to breach databases, from AI-powered phishing strategies, to deepfake technology.
In 2024, companies will need to ensure they’re focusing on not just upgrading their technology, but ensuring that technology remains secure against potential threats. This could mean implementing more advanced security and privacy tools to automatically track and search for threats. It could also involve rethinking security initiatives to adhere to the new challenges introduced by things like generative AI bots and assistants.
Maintaining high security standards will be essential to not only delivering excellent experiences to customers, but maintaining their trust in the digital world.
5. Advances in Customer Experience
As mentioned above, for most companies, digital transformation strategies serve as an opportunity to leverage technology to increase revenue. One of the best ways to ensure ongoing profitability in the modern world, is to focus on customer experience.
However, in 2024, creating an exceptional customer experience will require more than just an investment in omnichannel strategies, and exceptional employee training. Leaders like Zendesk have found that “immersive experiences”, which feel fluid, dynamic, and human have delivered positive ROI to more than 77% of business leaders.
This means companies will need to invest in new strategies to create more streamlined and connected experiences for their customers, regardless of whether they’re leveraging AI bots, video conferencing tools, or even extended reality for remote support.
Additionally, companies will need to adapt to the changing expectations of their target audience. Consumers now want companies to share their values, which increases the importance of ESG initiatives in implementing powerful strategies that improve customer satisfaction and loyalty.
6. Increased In-House Development
The uncertain economic climate, combined with a significant shortage of experts with digital skills, is prompting companies to spend less money outsourcing their technology needs to other experts. Increasingly, companies are relying on working with partners like UCaaS and CCaaS companies that empower them to develop their own solutions and tools.
Countless innovators have begun producing solutions that empower the “citizen developer” to play a stronger role in business environments. Low-code and no-code tools are an excellent example of this, giving businesses the power to create automated workflows, applications, and platforms with simple drag-and-drop tools and interfaces.
Some companies are even building comprehensive in-house design tools for generative AI bots, like Microsoft with its new Copilot Studio service. This will pave the way for more rapid innovation, and prototyping in the business landscape in years to come.
7. Hyper Automation
For years, companies and business leaders have predicted that hyper automation would begin to take over the business landscape. However, it seems likely that this concept will become one of the major digital transformation trends of 2024, now that we all have access to more advanced tools.
Automation is quickly becoming a table-stakes feature of many of the resources companies already use today. Unified communications platforms, contact center tools, and even security systems come with automation capabilities that can be customized to suit different business needs.
There’s even the potential for leaders investing in sustainable technology to deliver automation features that can help companies to reduce their environmental impact. For instance, the Cisco Webex Control Hub allows organizations to automate things like switching off signage outside of your office.
8. Extended Reality and the Metaverse
The growing hype around generative AI meant conversations about the metaverse began to die down in 2023. However, in 2024, it’s likely that interest in these technologies will continue to increase, as more innovators enter the marketplace, from Apple, to Varjo and beyond.
Extended reality holds a variety of opportunities for businesses looking to achieve various digital transformation goals, from improved sustainability, to operational efficiency. For instance, these devices allow customers and companies to connect without travel, reducing carbon emissions. They also ensure employees can stay productive and collaborate with colleagues wherever they are.
While the uptake of this technology, and the rise of the metaverse is still in its early stages, there are clear benefits to embracing the power of extended reality. The key to success, at least for those interested in the benefits of ESG, will be choosing technologies that can consume minimal energy, and are built with eco-friendly materials.
9. Rising Focus on Sustainability
Finally, and perhaps most importantly, 2024 will be the year when companies begin to truly differentiate their digital transformation strategies with a focus on sustainability. The climate crisis is nothing new, but it’s something that’s beginning to attract the attention of more companies, investors, and customers worldwide.
The world’s digital carbon footprint accounts for around 4% of all greenhouse emissions (similar to the aviation industry). This means companies need to start considering the environmental impact of their technology, and what they can do to optimize sustainability.
The process will be more complex than it seems. It goes beyond simply installing energy-efficient lightbulbs, or using automated tools to track energy usage. Business leaders will need a comprehensive approach to ensuring their offsetting their carbon emissions.
This will be crucial to not just protecting the world of tomorrow, but ensuring businesses can thrive in a difficult economic climate. Research shows 58% of corporations see a positive increase in their financial performance, when they implement ESG initiatives.
Additionally, as new regulations are announced to help protect the planet, focusing on sustainability will become crucial to avoiding both fines and reputational damage.
The Digital Transformation Trends Worth Watching
Much has changed in the last few years. While some of the digital transformation trends mentioned above have been evident for companies for some time now, the priorities of businesses are shifting. Companies are no longer simply investing in digital transformation to increase profits and reduce costs. They’re looking for ways to protect themselves from an unpredictable economy, changing consumer preferences, and new sustainability standards.
When you’re considering which digital transformation trends to focus on in 2024, and beyond, it’s important to ensure you’re working with a vendor or partner that helps you reach your goals. Here at SaaSCom, we can plant thousands of trees on your behalf, off-setting 20 tonnes of CO2 from your digital transformation strategy.
If you’re keen to evolve in a way that protects your business, consumers, and the planet, then reach out to the SaaSCom team today.
