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Top Digital Transformation Trends to Expect in 2021

November 13, 2020

With the New Year approaching, it is quite evident that the effects of the pandemic are going to linger on and move into 2021 with us. This means that the digital transformation that COVID-19 accelerated this year would keep up the momentum and expedite in the coming year too, transforming the digital infrastructure worldwide and making the business industry highly challenging to survive in.

To help you understand the needs of the coming year and adopt new strategies timely, let’s take a look at some of the digital transformation trends to expect in 2021.

5G to the Rescue

Although it was always in the pipeline, a spike in remote workers has intensified the need to cultivate the benefits of 5G. It caters to uninterrupted internet connectivity, and increased bandwidth and therefore promotes work efficiency with the aid of ultra-fast infrastructure. Daniel Newman, Principal Analyst and Founding Partner at CMO Network says that businesses cannot risk being offline, which is why the need for 5G has augmented substantially. He further adds that working and learning remotely are two things that are here to stay and for that reason, 5G is expected to steal the spotlight by becoming largely mainstream in 2021.

Read more: The promise of advanced connectivity by 5G

Customer Data Platforms Rising

Substandard and poor data handling can lead to increased costs and deficient results. IBM estimated this cost to be a whopping US$3trn per year for the US businesses. For this reason, organizations have prioritized addressing fragmented data problems on an urgent basis for scaling down costs and increasing work output. This is where Customer Data Platforms (CDP) come into play where they collect, organize and tag data, making it accessible and easy to use for various purposes. Leading companies like Microsoft are investing heavily in introducing strong CDPs.

Hybrid Cloud Incoming

As opposed to previous practices, businesses are increasingly shifting towards a hybrid cloud infrastructure as it strikes the right balance for all custom needs making it an ideal solution. Following Microsoft, Google, and IBM, now OEMs like HPE and Dell are also investing in and building tools that endorse connectivity between on-premise data centres and the cloud. It meets the customer at their current location, and addresses the problems of extreme data growth, all while keeping in view privacy and security. Although it was already on the cards anyway, the pandemic has further emphasized the need for having an adaptable cloud structure to undergo any disruptions and uncertainties.

Cyber Security Upgrade

According to Newman, hackers exploited the coronavirus pandemic to attack businesses worldwide. While a 238% hike in attacks was seen in the banking sector, a 600% surge was observed on cloud servers. This makes it crucial for software and cloud makers to amplify their efforts in making their products and services secure.

Custom Shopping Experience Reshaped

The past two years have been challenging for business owners who widely agree that their customer acquisition costs have increased greatly. This gives birth to the idea of ‘headless tech’, where businesses segregate their front-end presentation from back-end data in hopes of creating a custom shopping experience. 2021 is the optimum time for businesses to maximize their ROI while focusing on customer development and retention. Forming a streamlined process in terms of warehouses, storefronts and online services, and adopting custom shopping experiences can do wonders for the post-COVID industry.

Work from Home Extended

Work flexibility has been clamoured for by the workers for a long time now but hardly any company adopted a remote work strategy. However, that changed drastically when COVID-19 made remote work a necessity if a business wanted to survive. As the lockdown eases, companies have still been careful in calling employees onsite due to risks of the outbreak resurgence. Tech lords like Google and Facebook have already elongated their remote work calendars throughout or partly for 2021. Forrester predicts that remote work will rise to 300% of pre-COVID levels. A huge contributor in this regard is smart home technologies such as Zoom, Webex and Microsoft Teams. Although this year put many companies at risk of failing, it managed to prove that work is still possible despite physical distance and can improve productivity while lowering operational costs too.

The business world is expected to undergo much-needed digital transformations and change into its best, most efficient and rewarding self. If you are a business looking to up your game and stay current with these top digital transformation trends, get in touch with our experts.