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Top 10 Trends For Digital

Transformation In 2017

Daniel Newman ,
CONTRIBUTOR

I research, analyze and discuss all things Digital Transformation

Opinions expressed by Forbes Contributors are their own.


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Digital transformation reshapes every aspect of a business. As


digital technology continues to evolve, I believe that successful
digital transformation will require careful collaboration, thoughtful
planning, and the inclusion of every department.
During recent years, weve seen shifts in how traditional leadership
roles operate, as silos break down and the scopes of various roles
widen and change. Digital transformation has morphed from a
trend to a central component of modern business strategy.
Here are the top 10 trends I expect to see in 2017:
1. Adaptability is more vital to success than
ever: Change is going to happen whether you pursue it or notyou
only need to look at how the role of cloud computing in
2016 has evolved to understand. Modern enterprises succeed when
they adapt to industry and marketplace shifts and incorporate new
technology into company culture and regular operations. However,
digital transformation isnt only about technology, its about
bringing together the power of technology with a culture that
embraces the change that it can lead for the organization.

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2. Growing importance of the user experience: The


customer experience (including employees) is the ultimate goal of
any digital transformation. Customers are more cautious than ever;
theyll turn away from brands that dont align with their values and
needs. A top-notch user experience is a fantastic way to keep
customers involved and engaged with your brand. This is a
comprehensive process. Anywhere and everywhere customers can
interact with your business, the experience must be consistent and
positive. For example, entrepreneurs can use analytics to discover
where customers are coming from (whether its a social media
platform, a blog, or somewhere else) and streamline the interaction
in those high-traffic areas. Every touch point matters, and those
leading the transformation should constantly be asking how are we
removing friction and enhancing the experience for every customer
regardless of where they are in the journey.
3. Innovation must happen rapidly: Proactive
innovation is one of the best ways to stay competitive in an
evolving marketplace. New technology needs to be
assessed, tested, analyzed, and judged more quickly than
ever. Businesses can no longer afford to waste time and
resources implementing new tools that offer no real
value. This means a Fail fast, to succeed faster, mentality. Some
projects will work straight away, others will have significant
learning curves. The faster your organization can go from idea to
implementation the more it can embrace opportunities to transform
and even disrupt markets and internal business models. Weve
already talked about adaptability, but that plays a major role here as
well. If a company has an adaptive culture where new tech can be
easily integratedor is at least encouragedthat enterprise is set up
for long-term success.
4. Embrace the remote workforce: Young professionals
prefer flexibility to compensation. Mobile technology and
bandwidth proliferation allow businesses to connect with
(and retain) top talent anywhere in the world. Contract and
freelance employees appreciate the ability to work from
home or while sitting on the beach. Companies benefit
from having the ability to hire the most talented employees
available in any time zone. As businesses digital
transformations continue to support telecommute
capabilities, I expect that well see exciting new
developments and opportunities for remote operations.
5. The advent of augmented reality (AR) and virtual
reality (VR): The booming success of the Pokmon GO AR
app is a wakeup call to any business that hasnt evaluated
the potential of AR and VR. These technologies were once
limited to the gaming realm, but theyre now easier to
implement than ever before. The mainstream shift toward
AR and VR provides new ways to connect with customers
and offer unique, memorable interactions. The popularity of
AR and VR also open up the gates for workplace gamification. I
predict that by next year gamification will go from a footnote to a
core business strategy. We are currently researching this and
anticipate there will be a strong roadmap for incorporating gaming
into the workplace along with VR and AR for improved employee
engagement, retention and customer experience.
6. Application program interfaces (API): Digital
transformation inherently espouses shadow IT and the need for
agility. New tools and technologies need more than one avenue for
viabilityotherwise, their value quickly drops. APIs are a secret
weapon for embracing true digital transformation. eBay and PayPal
are two companies that have relied significantly on these
technologies, and its enabled them manage an incredibly high
volume of transactions. As companies seek to tie together more and
more best of breed technologies, APIs will play a big part in making
this possible. Instead of being forced to marry a platform, the API
will open doors for multiple platforms to tie together in an
ecosystem that is fast and flexible. Certain software and technology
companies may resist this change as it means sharing the pie, but
for companies looking to deploy the technology that creates the best
user experience, it is often required to source from multiple
vendors.
7. Big data and analytics: The importance of big data in the
business world cant be overstated. We know that theres a dizzying
amount of valuable data in the world, but few companies are using
it to maximum effect. Analytics drive business by showing how your
customers think, what they want, and how the market views your
brand. In the age of Digital Transformation, almost everything can
be measured. In the coming year this will be a cornerstone of how
businesses operate. Every important decision can and should be
supported by the application of data and analytics.
8. Digital transformation is driven by the Internet of
Things (IoT). Speaking of how invaluable big data is to
marketers, the IoT offers immeasurable insight into customers
mind. Its also changing how daily life operates by helping create
more efficient cities and leaner enterprises. Businesses and
customers alike will continue to benefit from the IoT. With
an estimated 50 billion IoT Sensors by 2020 and more than
200 billion Things on the Internet by 2030, it is no question that
IoT will be not only transformative, but disruptive to business
models.
9. Smart machines and artificial intelligence (AI) are
taking off in a big way. Our relationships to technology
continue to evolve. Soon machines will be able to learn and adapt to
their environments. AI has long been considered the realm of
science fiction, but as technology improves, AI becomes a reality.
While advanced learning machines may replace low-skill jobs, AIs
will be able to work collaboratively with human professionals to
solve intensely complex problems. AI stands to become one of the
most disruptive forces in the IT world.
10. Destroying silos. The role of the CIO has changed
dramatically over the past decade. With rise to new roles like the
Chief Digital Officer and the Chief Customer Officer, we are seeing a
rise in the important of digital transformation happening NOW, and
the importance of it happening not just in the technology of a
company, but across the entire organization. Traditional solutions
are more multidimensional and technology CANNOT be used as a
crutch. A focus on breaking down silos, will give innovation more
room to flourish and collaboration becomes easier.
I believe that these new trends and technologies will be at the core
of digital transformation efforts in 2017 and many will continue far
beyond the next year. There is no question that digital
transformation is no longer an option as the need to build an
organization that can change both its technology and its culture
rapidly will be core to not only surviving in the time of business
disruption, but building a business model that is agile, adaptable
and designed to thrive long into the future where change is the only
constant.

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