Digital transformation technologies are the tools and solutions that enable organizations to adopt and implement digital capabilities to create new or modify existing products, services, and operations. They aim to increase value, innovation, customer experience, and efficiency in the digital age. According to Statista, the global spending on digital transformation is expected to reach a staggering 3.4 trillion U.S. dollars by 2026, up from 1.6 trillion U.S. dollars in 2023.
But how do you choose the best ones for your business? What are the criteria for evaluating them? And what are the best examples of digital transformation technologies in 2023? In this blog post, we will answer these questions and help you navigate the digital landscape.
Overview
What are the best digital transformation technologies in 2024?
Based on these criteria, we have selected five of the best digital transformation technologies that are expected to dominate the market in 2024. These are:
Artificial Intelligence (AI)
AI is the ability of machines to perform tasks that are typically associated with human intelligence, such as learning and problem-solving. AI applications include advanced web search engines (e.g., Google Search), recommendation systems (used by YouTube, Amazon, and Netflix), understanding human speech (such as Siri and Alexa), self-driving cars (e.g., Waymo), generative or creative tools (ChatGPT and AI art), and competing at the highest level in strategic games (such as chess and Go).
AI is relevant for businesses because it can help them automate processes, optimize decisions, personalize experiences, and generate insights. AI is impactful for businesses because it can help them increase efficiency, accuracy, innovation, and customer satisfaction. AI is feasible for businesses because it is becoming more accessible, affordable, and user-friendly thanks to cloud computing, open-source platforms, and low-code or no-code tools.
One of the leading companies that leverages AI to deliver personalized and engaging customer experiences is SmartOSC. SmartOSC is a global e-commerce agency that provides end-to-end solutions for online retailers. SmartOSC uses AI to analyze customer behavior, preferences, and feedback across multiple channels. Based on these insights, SmartOSCcreates tailored content, offers, and recommendations that increase conversions, retention, and loyalty.
Cloud Computing
Cloud computing is the on-demand availability of computing resources (such as storage and infrastructure), as services over the internet. It eliminates the need for individuals and businesses to self-manage physical resources themselves, and only pay for what they use. The main cloud computing service models include infrastructure as a service (IaaS), platform as a service (PaaS), software as a service (SaaS), function as a service (FaaS), backend as a service (BaaS), database as a service (DBaaS), desktop as a service (DaaS), mobile backend as a service (MBaaS), serverless computing , etc…
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Cloud computing services is relevant for businesses because it can help them access scalable, flexible, and reliable IT services without investing in costly hardware or software. Cloud computing is impactful for businesses because it can help them reduce IT costs, improve agility and time-to-value, and enhance security and compliance. Cloud computing is feasible for businesses because it is widely available, easy to use, and compatible with various applications and devices.
Internet of Things (IoT)
IoT describes devices with sensors, processing ability, software and other technologies that connect and exchange data with other devices and systems over the Internet or other communications networks. The Internet of things encompasses electronics, communication and computer science engineering. IoT devices can range from simple “smart home” devices like smart thermostats, to wearables like smartwatches and RFID-enabled clothing, to complex industrial machinery and transportation systems.
IoT is relevant for businesses because it can help them monitor, manage, and automate their operations more efficiently and with more control. IoT is impactful for businesses because it can help them improve productivity, quality, safety, and sustainability. IoT is feasible for businesses because it is becoming more affordable, standardized, and interoperable thanks to advances in wireless technologies, cloud computing, and AI.
Augmented Reality (AR) and Virtual Reality (VR)
AR and VR are reality technologies that either enhance or replace a real-life environment with a simulated one. AR devices, such as the Microsoft HoloLens or the Google Glass, are transparent, letting you see everything in front of you as if you are wearing a pair of clear glasses. The technology is designed for free movement while projecting images over whatever you look at. VR devices, such as the Meta Quest 2 or the Valve Index, are opaque, blocking out your surroundings when you wear them. The technology is designed for immersive experiences that transport you to a virtual world.
AR and VR are relevant for businesses because they can help them create new ways of interacting with customers, employees, and partners. AR and VR are impactful for businesses because they can help them enhance customer engagement, employee training, product development, and marketing. AR and VR are feasible for businesses because they are becoming more accessible, affordable, and user-friendly thanks to advances in hardware, software, and content.
Blockchain
Blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree). Blockchain enables peer-to-peer transactions without intermediaries or central authorities. Blockchain can be used for various applications such as cryptocurrencies (e.g., Bitcoin), smart contracts (e.g., Ethereum), supply chain management (e.g., IBM Food Trust), digital identity (e.g., Civic), voting systems (e.g., Voatz), etc.
Blockchain is relevant for businesses because it can help them create transparent, trustworthy, and efficient transactions with customers, suppliers, and partners. Blockchain is impactful for businesses because it can help them reduce transaction costs, eliminate frauds and errors, increase security and privacy, and enable new business models. Blockchain is feasible for businesses because it is becoming more mature, scalable, and interoperable thanks to innovations in consensus mechanisms , network architectures , protocols , etc.
What are the criteria for evaluating digital transformation technologies?
Before you invest in any digital transformation technologies, you need to consider three main factors: relevance, impact, and feasibility.
Relevance
Relevance refers to how well a digital transformation solutions aligns with your business goals, needs, and challenges. You need to ask yourself:
- How does this technology support your vision and mission?
- How does this technology address your pain points and opportunities?
- How does this technology fit into your existing processes and systems?
- How does this technology match your industry standards and customer expectations?
Relevant digital transformation technologies should provide clear benefits and value propositions for your business. It should also be compatible and interoperable with your current infrastructure and environment.
=> Watch more: Main Areas of The Digital Transformation Process
Feasibility
Feasibility refers to how easy or difficult it is to implement and maintain digital transformation technologies. You need to ask yourself:
- How much time, money, and resources do you need to invest in this technology?
- How much technical expertise and support do you need to use this technology?
- How much risk and uncertainty do you face with this technology?
- How much change management and training do you need to adopt this technology?
A feasible digital transformation technologies should be within your budget and capabilities. It should also be reliable, secure, and compliant with relevant regulations and standards.
Impact
Impact refers to how much a digital transformation technology can improve your business performance, outcomes, and competitive advantage. You need to ask yourself:
- How does this technology enhance your efficiency and productivity?
- How does this technology improve your quality and innovation?
- How does this technology increase your customer satisfaction and loyalty?
- How does this technology differentiate you from your competitors?
An impactful digital transformation technologies should deliver measurable results and return on investment. It should also be scalable and adaptable to changing market conditions and customer demands.
=> Watch more: The definition of digital business transformation you need to know in 2023
Conclusion
Digital transformation technologies can help you create new or modify existing products, services, and operations in the digital age. However, you need to evaluate their relevance, impact, and feasibility for your business. Some of the best ones in 2024 are AI, cloud computing, IoT, AR and VR, and blockchain. These technologies can help you automate, optimize, personalize, innovate, and secure your e-commerce business.
If you want to implement these technologies for your e-commerce business, contact SmartOSC today. SmartOSC is a global e-commerce agency that provides end-to-end digital transformation services using the latest technologies. Contact us today to find out your best digital transformation.
Source: https://www.smartosc.com/