Driving Digital Transformation:

Five Critical Trends for 2022

Second to the global pandemic, digital transformation is arguably the biggest business story of this decade. In fact, companies have accelerated digital transformation efforts in response to the pandemic. Deloitte has reported that 77% of CEOs stated that the COVID-19 pandemic has accelerated their digital transformation plans. Meanwhile, the share of digital or digitally enabled products in their company portfolios has accelerated by seven years, according to a Mckinsey Global Survey of executives.

Investments in digital transformation are rising at more than 3X the rate of overall IT spend and by 2025, 3 out of 4 business leaders will leverage digital platforms to adapt to new markets and industries. This acceleration of digital transformation is taking place across organizations, with faster and broader adoption of data and predictive analytics, strengthening cybersecurity, collaborative work platforms, cognitive automation and AI, application and infrastructure platforms, digital reality, digital supply networks, smart factories, and e-commerce.

Within the scope of digital transformation, there are 5 critical trends that will emerge or continue in 2022 and influence the advancement of business operations in a post-pandemic environment.

  1. Hyperautomation Across the Enterprise.
    Widespread automation is increasingly seen as the fastest path to greater growth, scalability, digitalization, operational excellence, and reduced costs. Hyperautomation is a business-driven approach to identify, vet, and automate as many business and IT processes as possible, and is often mentioned as the next step beyond traditional automation.Simply put, hyperautomation is a mix of technologies that carry out the complete transformation of business processes under a single, unified, and intelligent system; using technologies such as artificial intelligence (AI), machine learning, robotic process automation (RPA), business process management (BPM), etc. to automate tasks that were previously performed by humans.The market for hyperautomation is expected to reach $46.4 billion by 2031, rising at a Compound Annual Growth Rate (CAGR) of 21.7% between 2021 and 2031.
  2. Cybersecurity Transformation and Zero Trust.
    Zero Trust has become one of cybersecurity’s most prevalent trends, using a strategic approach to cybersecurity that secures an enterprise by eliminating implicit trust and continuously validating every stage of a digital interaction. Given that cloud-first zero trust platforms are achievable without high costs or complex implementations, and driven by President Biden’s executive order mandating zero trust architectures for all governmental entities, the adoption of zero trust is accelerating in 2022.In fact, 83% of security and risk professionals say zero trust is an essential strategy for their organizations, and 80% plan to implement zero trust in 2022. And Gartner predicts spending on zero trust network access (ZTNA) solutions will grow from $820 million this year to $1.674 billion in 2025.The focus on zero trust will drive greater demand for endpoint security visibility and control, Identity and Access Management (IAM) effectiveness, hybrid could integrations, and automating patch management to name a few.
  3. Edge Computing.
    Edge computing generally refers to any computing that happens on the edge of a network vs. in a centralized server. As part of a greater trend of distributed, multicloud infrastructures, edge computing allows for compute power to be nearer the people who produce or consume the data. For example, smartphones, smartwatches, laptops, and smart appliances are all examples of edge computing.With the list of edge computing devices continuing to expand every year, more and more enterprises are adopting and investing in edge computing. In fact, according to the IDC, the edge computing market will be worth about $250.6 billion in 2024. They also predict that the workforce impacts of COVID-19 will be responsible for 80% of edge computing investment over the next few years, with more than 90% of new organizational operating procedures being deployed on an edge computing network in 2024 (that’s compared to less than 20% today).Advantages of edge computing are numerous, including faster processing speeds, reduced network loads, lower costs, and better reliability, among many others.
  4. Low-Code Tools & Hybrid Workplaces.
    An already growing trend fueled by the global pandemic, workplace digitalization has been evolving at an incredible rate with no signs of slowing down. Gartner estimates that the use of collaboration platforms alone surged 44% between 2019 and 2021 while McKinsey estimates that more than 20% of the global workforce could work most of the time away from the office without any impact on productivity.This movement has created a greater demand for low-code or no code solutions as a part of the larger drive toward hyperautomation. Low-code or no code solutions allow for the creation of apps and automation of business processes by non-technical staff, leaving professional developers to focus on key functions.With the DevOps skills shortage projected to continue, the need for no code or low-code solutions has heightened. In fact, only 39.6% of candidates for DevOps job openings fully meet employers’ requirements. Infrastructure-as-Code low-code and even no-code platforms make it possible and easier for enterprises without cloud-savvy DevOps engineers to migrate to the cloud and drive innovation and productivity.
  5. Multi-Cloud and Hybrid Cloud Architectures.
    Gartner predicts global spending on cloud services is expected to reach over $482 billion in 2022, up from $313 billion in 2020. The COVID-19 pandemic, among other things, has created a push towards the adoption of multi-cloud or hybrid cloud architecture to reduce business continuity risks and to find easier ways to manage the modern workplace model.Companies such as, Microsoft, Amazon, and IBM are expanding the availability of hybrid models that offer a best-of-both-worlds approach – putting data that needs to be quickly and frequently accessed on public AWS or Azure servers while more sensitive or mission-critical data is stored on private servers where access can be monitored and processed using proprietary applications. In addition, as organizations get more savvy and invested in cloud computing, many are finding themselves in a multi-cloud environment using a number of services from several different suppliers.A recent report finds 92% of enterprises have a multi-cloud strategy while 80% have a hybrid cloud strategy. Also, by 2025, Gartner estimates that over 95% of new digital workloads will be deployed on cloud-native platforms, up from 30% in 2021.

Future of Digital Transformation.

While the pandemic has caused an acute acceleration of digital transformation, the benefits have proven to be worthwhile, furthering many enterprises’ long-term digital initiatives. Digital enablers such as, AI, machine learning, digital analytics, and process automation are core to creating more agile and user-friendly business processes.

Although digital transformation efforts will ultimately aim to reduce costs, Gartner predicts worldwide IT spending to reach over $4 trillion by the end of 2022. As an outcome-driven service and solutions partner, D2M can help your business drive digital transformation, improve your systems, and establish a meaningful digital presence through cost-effective, scalable solutions. Contact us today.