The strategic importance of digitalization is growing rapidly in today’s global competitive environment. To ensure balanced development, the company needs to broaden its business by integrating new ideas based on digital technologies, specifically advanced mobile, social, cloud, analytical, and communication technologies that increase business opportunities in information processes. So now, let’s find out the key digital transformation trends in 2024.
What Is Digital Transformation?
For the record, digital transformation refers to implementing digital technologies in companies, organizations, and public institutions. The group of digital technologies includes cloud computing, big data and analytics, mobility/social media, cybersecurity, artificial intelligence, and others. However, this issue focuses not only on the technologies transforming the modern world. It also examines their implementation, goals, limitations, and, of course, potential benefits.
The adaptation of digitalization is the subject of research by many government institutions, research agencies, and companies themselves, which understand that it is a race in which the winner is the one who can undergo this transformation most efficiently.
In the following parts of the article, I will tell you a bit about the most important digital transformation trends in 2024.
Organizing Data For AI
Over the past year, many managers have been catching up on implementing artificial intelligence in their organizations and trying to stay up to date with the development of this technology. Enterprises are already considering how artificial intelligence will complement their overarching development goals. However, the truth is that you need to start with data management. Artificial intelligence is only as good as the data it uses.
So, in 2024, data acquisition, integration, and accuracy will lead digital transformation trends. We should understand “accuracy” not only as substantive accuracy but also as data availability, security, and ethical use. The data that allows for precise prediction and forecasting will have the greatest value. For this, it will be necessary to implement tools using AI. A significant trend will also be the study of IT workload and architecture in terms of performance, especially in the context of the growing global “chip war.”
New Job: Chief AI Officer (CAIO)
There is no doubt that artificial intelligence must be included in the basic business strategy of every organization. However, to achieve this, companies will hire AI developers and managers with a wide range of technical and soft skills. Therefore, a critical step in most cases will be appointing a Chief AI Officer (CAIO).
What Does a Chief AI Officer Do?
The key role of such a specialist will be to supervise the organization’s entire AI strategy and align it with business goals. For example, this person will determine where AI can be integrated into existing processes. He must also recognize opportunities for running new businesses using artificial intelligence. Such a person should also equip employees with the necessary skills and tools to stay on track for digital transformation trends and needs in 2024 and beyond. The CAIO will also be responsible for issues in areas such as AI compliance, AI regulation, and AI’s ethical use.
Chief Technology Officer and Chief Artificial Intelligence Officer: The Difference
Some of you readers may ask: what exactly is the difference between a CAIO and a Chief Technology Officer (CTO)? Does the CAIO report to the CTO? The difference lies primarily in the axis of interests and scope of responsibility.
The CTO oversees the organization’s overall technology strategy, while the chief artificial intelligence officer specializes strictly in artificial intelligence and machine learning technologies. Both roles are essential to leveraging technology, but the CTO oversees a broader range of technologies and the CAIO is more specialized.
What Skills Does an AI Officer Must Have?
Earning a CAIO position will require a unique combination of technical knowledge with a head full of digital transformation ideas. However, equally important are soft skills, including communication, decision-making, creativity, and leadership. This person must understand today’s AI landscape and anticipate what will emerge in the near and distant future. Moreover, the CAIO must deal with complex issues of buyer privacy and the social impact of artificial intelligence.
Of course, finding an AI officer may not be accessible yet, but it’s worth considering as an investment. Significantly since, as most studies predict, artificial intelligence will increase the value of the global economy by billions, if not trillions of dollars.
Digital Transformation Trends in 2024: Edge-Computing
With the rise of cloud computing and the Internet of Things, companies are starting to learn more about edge computing. It differs from the traditional model of data processing and analysis in a centralized data center (cloud or at the company’s premises) because data is processed, well, at the “edge” of the network.
As reported by MarketsandMarkets, the global edge computing market worth is expected to reach $111.3 billion by 2028 (source). Despite this, it is still an unknown and untested concept for many companies. This should slowly change in 2024.
The idea of edge computing is based on a serial connection of two worlds: physical and digital. The goal is to ensure better performance and data security, real-time analysis, and increased profitability. Edge computing helps digital transformation 4.0 reach the next stage with intelligent solutions and process improvements.
Digital Transformation Trends in 2024: Predictive Analytics
Another key development in the digital transformation trends is predictive analytics, a type of advanced analytics. A report by The Insight Partners projects that the predictive analytics market will reach USD 38,038.83 million by 2028, or a compound annual growth rate of 20.4% between 2022 and 2028 (source). Following that, businesses will employ predictive analytics to look for patterns in their data, enabling them to identify opportunities and risks.
This type of advanced analytics is frequently related to big data and data science. To forecast future events, predictive analytics makes use of statistical modeling, data mining methods, historical data, and machine learning. That’s not all, though; prescriptive analytics can also benefit from the insights gathered via predictive analytics.
Hybrid Storage Solution: Balancing on-premises and cloud processing
In 2024, one of the key digital transformation trends will be the strategic use of hybrid cloud architecture to enhance data lake operations. This trend sees companies actively combining the strengths of on-premises infrastructure with the flexibility of cloud services. While cloud computing offers internet-based services such as software, servers, and storage on a pay-as-you-go basis, on-premises solutions involve software installed locally on company servers.
Hybrid cloud computing involves the integration of various technologies and services from multiple providers, including hardware, applications, and other resources. These are delivered to businesses as needed from diverse global locations. Such a configuration gives businesses more options for distributing information and increased adaptability.
This approach will revolutionize the way businesses manage workloads and data. By leveraging cloud and on-premises models, organizations can achieve greater cost-effectiveness and reduce their reliance on internal computing resources. This balanced use of cloud and on-premises solutions is pivotal in the digital transformation ideas of 2024.
Digital Transformation Trends in 2024: IT Upgrading
It may sound cliché, but the transformation towards innovation is sometimes worth starting simply by “sorting out your field.” Thus, updating and improving the IT infrastructure, agile software, and systems within an organization will be crucial in digital transformation trends for several key reasons:
- Enhancing efficiency and productivity – streamlining processes, automating routine tasks, and reducing errors, allowing employees to focus on more strategic activities.
- Enhanced security and compliance – with current standards, protecting against cyber threats.
- Scalable IT for business growth – modern IT systems can adapt and grow with the business, accommodating changes without hefty additional investments
- Technological competitive edge – enables the business to adopt new technologies faster than competitors, thus improving services and products.
- Long-term cost efficiency – to lower maintenance needs and increase energy efficiency.
- Improved data management and analytics – thanks to enhanced analytics and reporting.
- Superior customer experience and satisfaction – providing faster, more secure, personalized services fosters greater customer satisfaction and loyalty.
These factors collectively underscore the importance of IT upgrades in driving business success in today’s digital era.
The Increasing Importance of AR/VR
As for 2024, Augmented Reality (AR) and Virtual Reality (VR) technologies will be gaining prominence due to their increased affordability. As these technologies have advanced, the cost of AR and VR equipment and development has significantly reduced, making them accessible to many businesses and consumers. Additionally, AR and VR will transform e-commerce and retail, revolutionizing shopping experiences with virtual try-ons and home previews and enhancing customer engagement and satisfaction. Moreover, In the case of immersive technologies (AR and virtual reality, VR), there will be a need to create models that consider consumer motivations, experience, and knowledge.
In education and training, AR and VR will be increasingly used to improve the learning process by offering interactive experiences and simulations. Moreover, the gaming industry will increasingly adopt AR and VR to provide more immersive experiences.
Digital Transformation Trends for 2024: A Summary
In 2024, key digital transformation ideas include organizing AI data, and highlighting the need for accurate, secure, and ethically used data. We will also see the emerging role of the Chief AI Officer (CAIO) is crucial for aligning AI with business goals, requiring a mix of technical and soft skills. For this, you can use AI Consulting services.
Edge computing is also rising, enhancing data processing and security at the network’s edge. Companies will also invest in predictive analytics, which is becoming vital for businesses to forecast future trends. Following the digital transformation trends in 2024, we cannot fail to mention the hybrid cloud architecture, combining on-premises and cloud solutions for efficient data management. Upgrading IT infrastructure is essential for efficiency, security, and scalability. Finally, AR/VR technologies are gaining importance in retail, education, and gaming, offering more immersive experiences and customer engagement. These trends underscore the evolving nature of digitalization in 2024.