Digital Transformation Goals for Companies in the US in 2023
Learn about the key digital transformation goals that companies in the US should strive for in 2023 to remain relevant and competitive. Discover how cloud computing, artificial intelligence, cybersecurity, customer experience, and sustainability can help businesses achieve long-term success.
- Spending on digital transformation (DX) is expected to increase to 3.4 trillion U.S. dollars by 2026 globally, driven by the COVID-19 pandemic, customer demand, and competition.
- Companies in the US should focus on adopting cloud computing, implementing AI and ML technologies, enhancing cybersecurity, improving customer experience, and embracing sustainability to achieve their digital transformation goals.
- Cloud computing has the potential to generate more than $1 trillion in 2023 for US Fortune 500 companies, and by 2025, net additions to revenue are expected to be the most tangible form of return gained from AI.
“We define a firm undergoing a digitally enabled business transformation as having two simultaneous goals: (1) using digital technologies and practices to speed up and wring out costs by standardizing and automating processes; reusing data, processes, and technology; and identifying areas where productivity can be increased. (2) At the same time, these firms are using digital technologies and practices to innovate, creating new offers and services, identifying new ways to engage customers, and developing new business models and revenue streams.”
--- Stephanie Woerner, Principal Research Scientist and Director, MIT CISR
Spending on digital transformation (DX) is expected to increase to 3.4 trillion U.S. dollars by 2026 on a global scale.
Spending on digital transformation technologies and services worldwide from 2017 to 2026 (in trillion U.S. dollars)
Factors contributing to this growth include the COVID-19 pandemic, which has accelerated digital transformation efforts in organizations worldwide since 2020, as well as customer demand and competition.
Implementing technology enables organizations to be more flexible in adapting to evolving markets, fosters innovation, and enhances resilience.
As we approach the end of the first Quarter of 2023, I see many organizations increase their agility to reach their digital transformation goals this year.
There are several digital transformation goals that companies in the US should strive for to stay relevant and competitive.
1. Adopt Cloud Computing
Cloud computing has become an essential tool for businesses of all sizes.
It allows companies to access and manage their data and applications from anywhere in the world. This provides businesses with greater flexibility and scalability, enabling them to quickly adapt to changing market conditions.
A McKinsey article cites large enterprises aspire to have roughly 60% of their environment in the cloud by 2025.
Cloud computing has the potential to generate more than $1 trillion in 2023 for US Fortune 500 companies.
Companies must not limit the use of cloud computing for IT savings, digital risk reduction, and operational cost savings. In fact, stretch the use of cloud computing to drive advanced analytics, automation growth, and improve time to market.
To achieve success in the cloud, it is crucial to adopt a product-oriented and agile operating model. Additionally, investing in FinOps capabilities is essential to effectively manage and monitor cloud costs
2. Implement Artificial Intelligence and Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) have already transformed many industries, and their potential for growth is significant.
The U.S. is ranked as the country with the highest readiness to implement AI in the public sector, with an average score of 85.48 out of 100, scoring particularly high in the categories of AI vision and AI governance and ethics.
The country has remarkable investment appeal, particularly when it comes to artificial intelligence (AI), as it hosts the highest number of AI startups receiving funding deals.
Companies in the US should focus on implementing AI and ML technologies to automate repetitive tasks, improve decision-making processes, and enhance customer experience.
In 2023, companies should invest in AI and ML technologies to stay ahead of the curve and improve their competitiveness.
MIT Technology Insights surveyed a wide group of CxOs and found that over three-quarters (78%) of the executives say that scaling AI and machine learning use cases to create business value is their top priority for enterprise data strategy over the next three years.
By 2025, net additions to revenue are expected to be the most tangible form of return gained from AI— another sign of companies’ growing ambitions for its role in their businesses.
3. Enhance Cybersecurity
Cybersecurity threats are on the rise, and companies must take measures to protect themselves and their customers. It is one area that has significant room for improvement.
Companies should prioritize enhancing their cybersecurity measures to protect their data and their customers' data.
This includes investing in advanced cybersecurity tools and technologies, conducting regular security assessments, and implementing employee training programs to ensure that all staff members are aware of the risks and can take appropriate action.
4. Improve Customer Experience
The customer experience has become a critical factor in today's business environment. After all, customers crave experience. Period.
In the past, technology has been used to simplify processes for consumers, such as with recommendation engines and online customer service portals.
However, in 2023, the focus has shifted towards immersion and interactivity in the metaverse, which is the next level of the internet where consumers can interact with brands and fellow consumers through immersive technology.
This includes virtual dressing rooms and AR technology for trying on clothes. These trends will impact both online and offline retail, as the trend towards experience becomes increasingly important for brands.
Companies like Adobe and Adweek have gone so far as to appoint Chief Experience Officers to ensure that customer experience becomes a foundational element of business strategy.
Focus on improving your customer experience by leveraging digital tools and technologies. Invest in chatbots, mobile apps, and personalized marketing campaigns to provide a seamless customer experience across all channels.
5. Embrace Sustainability
The climate crisis is becoming a greater challenge than the Covid pandemic, leading investors and consumers to prioritize businesses with strong environmental and social credentials.
In 2023, companies must make their ESG processes central to their strategy by measuring their impact on society and the environment, increasing transparency, reporting, and accountability, and creating clear plans with solid action steps to reduce negative impacts.
These plans should extend beyond the company to cover the entire supply chain, including the ESG credentials of suppliers.
For example, the environmental impact of cloud service providers and data centers should not be overlooked. The focus on conscious consumers and sustainability is expected to continue to drive buying trends.
In conclusion, digital transformation is vital for companies to remain competitive and relevant in today's fast-paced business environment.
By focusing on adopting cloud computing, implementing AI and ML technologies, enhancing cybersecurity, improving customer experience, and embracing sustainability, companies in the US can achieve their digital transformation goals in 2023.
It is crucial to take these measures to speed up and reduce costs by standardizing and automating processes while innovating and developing new business models and revenue streams.
UniAspect Digital can help companies achieve these goals by providing expert advice and services to ensure a successful digital transformation. Contact UniAspect Digital today to start your digital transformation journey and achieve long-term success.