The digital world is changing at a rapid pace and keeping on top of how it is evolving and how it affects your business can be a lot to manage. In this blog we have put together a digital transformation roadmap to guide you through the future and what you can expect to see in the next decade.
What is digital transformation?
Digital transformation is the integration of digital technology into all areas of a business, including its operations and delivery of services to customers.
Ultimately, it’s about a cultural change in how people use technology. It affects how we do things in our everyday lives, from writing a shopping list to keeping an employee’s data – it affects us all.
So how will digital transformation affect your business? Businesses need to make sure they are prepared for the impacts that digital change will have on their operating models including upskilling the workforce, preparing for future costs and modifying business processes.
Digital disruption forces businesses to challenge the status quo of how they are currently operating, pushing them to get comfortable with innovation and doing things differently.
Our digital transformation roadmap provides an insight into how companies can alter business models transforming their strategy, to prepare them for the future.
In our report Tides of Disruption, we identify five forces of digital disruption that will affect us in the next decade:
1) 5G, including the Internet of Things
2) Artificial intelligence
Exploring these five digital disruptors, our report analyses data from the World Economic Forum and Economist Intelligence Unit with contributions from the London School of Economics. The report aims to predict the timeline of digital transformation, as well as identify which countries are ahead or behind a wave of digital readiness and the industries paving the way forward.
Here we identify key time stamps of digital disruption to explore what digital transformation will look like in the next few years.
Top trends shaping digital transformation in 2022
The upcoming year will see AI penetrate our everyday lives with emerging technologies working their way into more households in the form of smart speakers.
The increase in connected homes will see voice shopping grow to a $3.5 billion industry and the global intelligent virtual assistant market is predicted to hit $4.2 billion.
There will also be an emphasis on blockchain, with more spending in this area expected. Businesses will need to base strategies and decisions on AI-led analytics to compete with large investors in Big Data.
What will happen in 2023 – 2027?
In 2023, automation is predicted to take the spotlight, which may result in widespread automation of retail distribution hubs as developments in robotics increase.
The urban transport sector in Scandinavia and some parts of the US and Singapore will also be transformed by autonomy with an expected launch of fully-automated ride hailing apps.
Within this period, education and health and care industries are likely to begin to catch up with the motor and retail industries, as they unlock efficiencies through IoT and autonomous technologies.
By 2024/2025, 5G is likely to become the primary target of investment by mobile networks globally. 5G will increase capacity and create greater opportunity for growth of IoT devices and connectivity.
Within this time, the blockchain market is also expected to reach $16.3 billion. Estonia, a long leader in e-citizenship, will be paving the way using the technology in governance.
During this period, we are likely to see the dawn of quantum computing. Business will begin to invest in quantum computing solutions but need to be aware of severe cyberattacks as they become highly vulnerable.
The future of digital transformation: 2030 onwards
By 2030, blockchain could offer $3 trillion value add on globally. The increase in cyber dependency will require significant improvements to business security – the use of blockchain will become much broader, touching everything from passwords to ID badges.
It will take time for autonomous vehicles to penetrate the market as consumers wait for costs to come down. But the autonomous vehicle industry will continue to grow and by 2030 it is expected to be worth $87 billion.
It is predicted that only self-driving cars will be available for purchase in the US. Also in the automation industry, drones could add £42 billion to the UK economy by 2030. Full automation, called level 5, the ability for a car to act as a human in a non-controlled environment, will take over 10 years.
The 6th generation of mobile communication is likely to take shape in more economically developed countries.
Quantum computing will continue to take shape as a force of digital disruption. By 2030, companies may already be budgeting for this in their digital business models.
What does a digital transformation roadmap look like for your business?
As a starting point to develop your digital transformation efforts, you may be required to walk away from long-standing business processes that your company’s operations have relied on for years. You will need to become more agile in your ability to respond to change, customers and rivals.
Building a digital transformation roadmap for your business will be based on your specific challenges and demands of your business. But ultimately all businesses should be aware of common themes before embarking on the road to digital transformation, including:
· Customer expectations
· Flexibility of your operations
· Leadership and culture
· Your current digital capabilities
Businesses must remember that where there is disruption there is opportunity. Every time the picture changes there will be a chance for businesses to consolidate their strength or improve their position.
Download our white paper, ‘Tides of Disruption: How to navigate business transformation’ to see a high-level roadmap for digital change in the next decade, and what you need to create a successful digital transformation roadmap for your business.
The white paper looks at:
- The forces driving digital disruption
- How digital disruption will impact the coming decade
- Next generation business operating models and industries
- Which jurisdictions are ahead, just keeping up or behind when it comes to digital transformation
- The technologies that will make a mark on the world post-2030
If you require further assistance with developing a digital roadmap for your business, contact our global Tech team.
About the author(s)
Gowling WLG is an international law firm operating across an array of different sectors and services. Our LoupedIn blog aims to give readers industry insight, technical knowledge and thoughtful observations on the legal landscape and beyond.