Eight trends driving the industry's future digital transformation

In today's fast-moving digital age, industry change is advancing at an unprecedented pace. The Fifth Revolution, or Industry 5.0, not only enhances competitiveness through digitization and technology, but also emphasizes the need to promote sustainability and highlight social and individual well-being. These figures show that the industry is increasingly changing. Here are eight of the most important trends for future digital transformation in the industry:
Eight trends driving the industry's future digital transformation

1. Investment in digital transformation continues to grow

Global investment in digital transformation will increase significantly. The financial services industry, including banking, insurance, securities and investment, will be the industry with the most investment in digital transformation. This trend reflects the financial services industry's high reliance on digital technologies and the urgent need for innovation. At the same time, robot manufacturing in various industries such as industrial and energy or manufacturing will still receive huge investment. With the continuous progress of automation and intelligent technology, the application of robots in production and manufacturing will be more extensive, bringing higher efficiency and productivity to the industry.

2. Significant opportunities in the Internet of Things (IoT)

McKinsey expects the number of iot connected devices to grow to 43 billion in 2023, almost triple the number in 2018. This growth boom is largely due to the lower cost of sensor technology. The adoption of iot technologies will present tremendous opportunities for the industry to facilitate production processes by improving visibility into shop floor and field operations, as well as manufacturing supply chains and remote and outsourced operations. Iot devices are able to collect and transmit data in real time, enabling enterprises to better monitor and manage production processes, optimize resource allocation, and improve production efficiency and quality. In addition, the Internet of Things also has new capabilities, networks and systems are being built, exchange data, and become more intelligent and autonomous. This will pave the way for smart cities, smart homes, smart logistics and smart energy supply, and promote the intelligent development of society.

3. Talent is the key to digital transformation

The most important factor in digital transformation is not technology, but people. The problem, however, is that not enough people have the skills and mindset to take advantage of digital capabilities. According to a Gartner survey, 64 percent of managers believe their employees are not meeting the skill needs of the future. Skills shortages will be one of the major barriers to digital transformation for large organizations. To overcome this, many businesses have encouraged the use of training systems so that the entire organization is prepared for any digital challenge. Enterprises need to increase the cultivation and introduction of talents, establish a sound talent training system, and enhance employees' digital skills and innovation ability to meet the needs of digital transformation.

4. Artificial Intelligence and machine Learning are reshaping manufacturing

The application of artificial intelligence and machine learning in manufacturing will completely change the face of the industry. According to a recent report by Accenture, AI technology will increase manufacturing productivity by 40% by 2035. However, there is currently a huge gap between ambition and execution: 92% of manufacturing executives believe that "smart factory" digital technologies will enable them to increase productivity and enable employees to work smarter, but only 12% of manufacturers are currently making significant use of AI. This shows that although AI technology has great potential, it still faces many challenges in practical applications. Those that have embraced digital transformation will have a competitive advantage in their markets and will be better able to respond to market changes, improve production efficiency and product quality, and reduce costs.

5. The rise of XaaS (Everything is a Service)

XaaS (Everything as a Service) will become an important trend in the future digital transformation of enterprises. Businesses will increasingly turn to third-party cloud applications and services to do the work for them, rather than upskilling existing employees or hiring from a dwindling workforce. The XaaS approach promises to improve financial efficiency, increase productivity, enhance cybersecurity, and increase agility and flexibility without the burden of building and managing on-premises solutions. By adopting the XaaS model, enterprises can quickly access the technologies and services they need, reduce the costs and risks of digital transformation, and accelerate business innovation and development.

6. The accelerated application of 5G technology

5G (fifth generation wireless networks) has been the focus of industry attention for years, but the full capabilities of this new cellular standard are still several years away. However, once 5G is fully deployed, it will have a huge impact on the digital transformation industry. 5G technology has the characteristics of high speed, low latency and large capacity, and can support the connection and data transmission of a large number of devices. This will drive the rapid development of smart cities, smart cars, smart manufacturing, and iot intensive technologies, all of which are crying out for 5G and its capabilities. The accelerated application of 5G will bring unprecedented data transmission capabilities to the industry and promote the in-depth development of digital transformation.

7. Artificial Intelligence fills the IT skill gap

According to a survey of 600 HR executives, 40% of employers believe AI will help fill the next skills gap. Currently, AI performs some of the typical duties of tech-savvy humans, such as data analysis and automating processes. These advancements will allow companies to hire fewer developers who can focus on the future and strategic challenges instead of getting bogged down in endless coding. The application of artificial intelligence technology will provide enterprises with more efficient solutions, improve work efficiency and innovation ability, and alleviate the problem of IT skills shortage.

8. The importance of cybersecurity and data privacy

Privacy is critical for all businesses looking to take advantage of digital transformation. With the widespread adoption of iot and 5G devices, the amount of data will explode, and the risk of data breaches will increase with it. Businesses large and small must work hard to avoid falling foul of regulations in this regard. As a result, cybersecurity will become a key competitive advantage. Companies need to strengthen cybersecurity measures to protect customer data and confidential corporate information. At the same time, companies also need to communicate their security and privacy policies to customers to enhance their trust in the company. Only when data security and privacy are ensured can enterprises better advance digital transformation and achieve sustainable development.

In short, digital transformation is an inevitable trend in the development of the industry. Companies need to keep up with these trends and actively invest in digital transformation to enhance their competitiveness and innovation capabilities to meet future market challenges.