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COVID-19 has changed the way we live. While most businesses suffered in 2020 due to the pandemic, they slowly began to embrace digitalization to tide over the crisis. As a result, the digital transformation of businesses started accelerating by the end of 2020.

What’s in store in 2021? Let us take a look at the key trends driving digital transformation this year.

Technology, especially digital, saved us from a lot of hardships last year amidst the COVID-19 global healthcare crisis. Digital technologies enabled businesses to run even though in limited capacities. It helped governments and the public sector organizations to provide necessary services to the citizens. By the end of 2021, expect digital transformation to play a much bigger role as companies reopen and restart their operations.

At Gemini Consulting & Services, we specialize in offering digital transformation strategy and technology implementation services to businesses. We help our clients in identifying digital transformation opportunities and handhold them through the implementation. Contact us to know how we can accelerate your digital transformation.

Here are 5 key trends that will drive digital transformation in the future.

  1. Modernization of Businesses: Organizations across industries and of all sizes are under increasing pressure to digitalize their operations. MuleSoft’s Connectivity and benchmark report reveals that IT projects are likely to grow by 40%. Estimates also suggest that 92% of businesses are currently planning or undertaking digital transformation initiatives. Modernizing legacy systems, automating business processes and migrating applications to the cloud, are some of the key business goals that organizations want to achieve with their digital transformation programs.
  2. Digital Experience: The pandemic has compelled even small businesses to adopt digital technologies in their day-to-day operations. It has also brought in many new customers to the digital economy. People who were previously shopping offline had no option but to buy groceries, medicines and other items online. Now, as businesses go for full-scale digital transformation, customer experience would be the key differentiator. Expect increased adoption of conversational apps, AI-driven chatbots and other engagement tools in the business.
  3. Rise of Contactless Commerce: It was a compulsion to stop the spread of the virus. But it has become the new normal. Here, we are not just talking about online business but also brick and mortar businesses going contactless. Automatic doors, self-billing, digital payments and curbside pickups can transform the way business is done in 2021. Before the pandemic, contactless commerce didn’t fully resonate with consumers. While some retailers adopted it and younger customers showed interest in using it, its mainstream adoption was not as expected. In 2021, expect contactless commerce to go mainstream.
  4. Growth of AI & ML: As businesses digitalize, they will be collecting more data and adopting Artificial Intelligence (AI) and Machine Learning (ML) deeply to harness their data and drive automation and innovation. A recent IDC survey confirms the growing adoption of AI worldwide. According to the survey, over 25% of all AI initiatives are in production and more than 1/3rd of them is in advanced stages. And businesses will increase their AI spending this year. In 2021, expect businesses to move beyond adopting AI as a technology to AI as a strategy. AI will become the core for many businesses, and you will see new business models built around it.
  5. Cybersecurity Concerns: The rapid acceleration in the digital transformation of businesses will put cybersecurity as a key concern. Digital businesses have always been susceptible to cyber-attacks. In 2020, we have witnessed cyber-attacks on Zoom, Twitter, MGM Resorts, Mariott etc. With 43% of cyberattacks directed at small businesses, we will see increased adoption of smart cybersecurity solutions. Expect AI and ML-driven security solutions powered with predictive capabilities to get popular this year.

When it comes to digital transformation in 2021, the possibilities are endless. Businesses will continue to adopt digital technologies in 2021 and we may see full-scale adoption in many sectors. With the lessons learned from 2020, expect to be pleasantly surprised in 2021, as organizations innovate to disrupt and try to regain their lost market space and cater to the new needs of the customers post-COVID.