We recently conducted research with 545 CIOs and technology decision makers, where over 75% claimed that their businesses are digitally mature and on an accelerated path to transformation. Invariably, technology transformation will continue to be a key priority for businesses in 2023. However, identifying the key driving technologies that will attract maximum investments is something that businesses must understand. Put simply, commitment and efforts towards the required technologies may result in efficacious gains, while wrong technologies can lead to a detrimental impact. Based on insights from our research Vision 2023: Digital Acceleration Insights for Asia Pacific, we have identified 5 key technologies that will impact transformation this year and can be a part of your strategic focus.
Chief Executive OfficerStrategINK
According to 74% of our respondents, cloud computing has a great potential to accelerate their digital transformation journey. There are several reasons guiding this sentiment and accelerated adoption, including:
- 64% respondents believe that cloud adoption is being accompanied by high levels of cost optimization
- 54% CXOs and leaders see increased security as a major benefit that cloud adoption is expected to bring along
Key trends for future outlook:
Cloud computing in 2023 will be accompanied by some key trends like:
- Increase in adoption of multi-cloud to enable businesses to mitigate risk, have capabilities to optimize workload and leverage different cloud providers with an aligned increase in investments towards hybrid cloud infrastructure for increased flexibility and security.
- Anticipated rise of edge computing over traditional centralized cloud computing models
- Stress on cloud resilience and security
- Focus on understanding the ROI of cloud adoption vis-a-vis the anticipated cost savings
For 73% of the CIOs and decision makers in our research, cybersecurity is an important technology lever for 2023. Invariably, the rise in digital adoption has made enterprise infrastructure and other business aspects vulnerable to more sophisticated and complicated threats. From a threat perspective, the top three vulnerabilities include:
- People’s side threats is the top most security concern (61%)
- Ransomware or the threat of losing access to or being locked out of their sensitive information (54%)
- External vendors, suppliers, partners, (50%)
What is worrying is the economic impact of the same. Research shows that cybercrime costs make up a value worth 1% of the Global GDP and cybercrimes will cost $10.5 trillion annually by 2025.
The top ways to navigate through cybersecurity challenges include a focus on:
- Network security to protect everything accessible within a network from malware, malicious access or unauthorized use
- Endpoint security, especially with the rise of hybrid work
- Importance of educating and creating awareness among stakeholders about security threats and mitigation strategies
Practices like zero trust framework, least privilege, tiered authorization, etc. need to be adopted with a focus on cyber hygiene.
54% CIOs believe that the adoption of mobile applications will have a major impact on how businesses transform and thrive in the digital age. The major reason behind the same is that nearly 90% of mobile internet time is spent in apps.
On the one hand, businesses can leverage mobile applications to take their offerings directly in the hands of the customers, gaining more screen time and attention. On the other hand, traversing the mobile application technology can help businesses gauge and collect important customer data. This can enable them to customize their offerings. Furthermore, mobile applications continue to be a major force for workflow optimization and can help businesses don a digital face, bringing together the advances of AI, IoT, 5G, etc.
Artificial intelligence/ Machine learning
For 50% of CIOs and technology leaders, artificial intelligence and machine learning is rapidly enabling businesses to accelerate transformation. However, to make effective use of AI/ML advances, businesses need to focus their energy on capturing data and processing it effectively. Invariably, data will continue to play a pivotal role here. An impact of AI/ML will be visible across industries to analyze large data sets and comprehend complex relationships to power the next generation of consumer experiences.
Here’s a quick snapshot of the AI/ML landscape:
- 9 in 10 organizations back AI to give them a competitive edge over rivals
- Almost 100 million will be working in the AI space by 2025
- Around 4 in 5 companies deem AI to be a top priority in their business strategy
- AI is expected to improve employee productivity by 40%
It is evident that AI/ML will continue to be a key driving force for technology transformation for 2023 as a top priority, owing to its impact on competitive edge, employee productivity, among others
To conclude, it is clear that 2023 will mark the adoption and continued implementation of the aforementioned technology levers. Identifying which technology levers align with the business priorities and objectives will enable CIOs to identify the right adoption strategy and guide digital transformation efforts.
To know more about how to navigate your digital transformation efforts, check out our latest research report here.