The digital transformation market continues to soar: businesses must adapt or fall behind.

Published: June 19, 2023

min read

With customers’ expectations shifting with the evolution of new technologies, a digital-first approach has become undeniably critical for businesses to survive in this competitive market.

The COVID-19 pandemic, in particular, has left a lasting mark on the digital transformation market. Businesses were urged to speed up their digital initiatives and take on cutting-edge innovations as a result of the crisis.

As businesses looked to ensure uninterrupted operations and serve shifting consumer behaviours, the need for digital transformation solutions exploded.

In simple words, the digital transformation involves the modification of business models, operations, and processes to meet changing business and market requirements.

According to a recent SNS Insider report, the digital transformation valuation for 2022 is around USD 596 billion. It also forecasts that the market will reach USD 2738 billion by 2030.

The key companies named in the report are Microsoft, Adobe, Salesforce, and so on.

The war between Russia and Ukraine has had an extensive effect on the digital transformation market. While jeopardising supply chains and expenditure patterns, it has also raised questions about cybersecurity and prompted shifts in digital policies. It has, however, created novel possibilities for greater demand, partnership, and inventiveness.

According to the report, North America represents a dominant force in the digital transformation market when it comes to the region leading this revolutionary shift.

What do the report's results imply for businesses?

Digital transformation is the way of the future, and there is no doubt about that.

And the SNS Insider report result reiterates that.

While many organisations have embarked on a digital transformation as a consequence of the market shift, it should be clearly noted that it is not a one-time fix. Continuous adaptation to a constantly changing digital environment is critical for businesses to tap into new opportunities and align with ever-changing customers’ expectations.

And here are a few compelling reasons why we believe the widespread adoption of digital tools and technologies is critical for businesses:

Customers expect quick responses from businesses in today’s fast-paced world. As they have multiple options on their hands, they will easily move on to others if the brand’s digital experience is not personalized and convenient for them. Thus, by only embracing upcoming technologies, businesses will be able to understand customer behaviour precisely and deliver personalized experiences so as to stand out in a crowd and attract their target audiences.
Leveraging emerging technologies such as generative artificial intelligence (AI), virtual reality, augmented reality, block chain, etc. will pave the way for businesses to create unique value propositions and explore new revenue streams. If businesses fail to embrace these new technologies, they will indeed risk stagnation, being overshadowed by competitors, and missing out on many new growth opportunities.
Businesses will be able to accumulate vast amounts of data that can be used to gain valuable insights by embracing new tools and technologies. This way, they can gain a deeper knowledge of their customers, determine market trends, forecast potential demand for the future, and make better-informed choices to boost growth and profitability.
As digitalization grows, so does the potential for cyber threats and data hacking. Thus, businesses that aren't ready for digital transformation may have insufficient safety precautions in place. Which, in turn, makes them more susceptible to cyberattacks. This can result in substantial monetary losses, reputational harm, and legal ramifications.

In a nutshell, the report emphasises the importance of proactive adaptation of digital transformation for businesses to remain competitive and relevant in this ever-changing digital landscape. However, it is also important to note that even though digital transformation brings numerous benefits, careful planning and a strategic approach are necessary to reap the most of this transformation.

Author

Jasmine Jackson

Jasmine is a social media maven with a talent for building engaged communities. She's a natural storyteller and has a way of making complex ideas accessible to everyone. In her spare time, she enjoys reading, and exploring new cuisines.