MuleSoft’s “Connectivity Benchmark” survey results revealed that 97% of IT decision-makers are actively involved in their organizations’ digital transformation initiatives. The research also highlighted the most significant digital transformation trends for 2020 and beyond, which are expected to create both impact and benefits.
According to MuleSoft’s Connectivity Benchmark survey, all digital business transformation must start and end with a focus on improving stakeholder experiences, including employees, customers, partners, and the communities served. Almost all CIOs are taking an active role in driving digital transformation projects.
97% of IT decision-makers have been tasked with leveraging a combination of new technologies to modernize outdated processes and identify opportunities for new business model innovation. How do these IT leaders define the scope of transformation? What business drivers underlie their investments? What are the short-term and long-term business benefits of digital transformation?
Seven trend experts predicted 2020 trends using insights from over 850 global IT leaders, 9,000 consumers, and findings from partner organizations. The research also provided case studies highlighting how top global CIOs are either initiating or already engaged in these trends.
Here is a summary of the top 7 digital transformation trends for 2020:
1. Connect Consumer Experiences
Organizations must address challenges that increase pressure on IT to provide personalized, interconnected experiences for consumers, including customers, partners, employees, and developers.
The average organization uses 900 applications, making it difficult to deliver connected experiences. Consumers expect seamless, multi-channel journeys, including messaging and mobile service portals. Omni-channel customers spend 10% more than single-channel customers. Connected experiences remove friction from the customer journey and are accessible anytime, anywhere. 74% of consumers believe organizations should understand their expectations and needs.
2. Data-Driven Business
Unlocking and analyzing data is central to digital transformation. Organizations use their data to enhance customer experiences, optimize operations, and launch new products and services faster.
83% of IT decision-makers reported that siloed data creates business challenges. Research shows that breaking down data silos positively correlates with better organizational performance. 68% of top-performing organizations are actively eliminating silos and sharing insights.
Organizations use data to improve customer service, operations, and innovation speed. Removing friction and optimizing resource flows directly impacts how effectively an organization leverages data to strengthen itself proactively.
3. Artificial Intelligence and Machine Learning
Organizations are increasing AI investments to accelerate and optimize customer service, reduce human bias, and boost productivity. The value of AI and machine learning depends on the quality and context of input data.
AI adoption is projected to grow 95%, and AI has proven effective in delivering personalized customer experiences, reducing human bias, and automating processes.
Common AI applications include machine learning, basic automation, and virtual agents/chatbots. By 2020, 25% of customer service tasks will be handled by virtual assistants. Other AI use cases include surgical robots, warehouse pick-and-place robots, drones, fraud detection, investment services, and automated credit approvals. In retail, AI personalizes offers and promotions, with 53% of consumers willing to let retailers track their behavior in exchange for personalized offers.
To maximize AI and ML benefits, organizations should start with data governance and consider five key questions:
1. What are your top five most valuable datasets?
2. How is value being created from them?
3. Do you have APIs?
4. What is the quality of your data?
5. Who contributes to and tracks the data?
4. Multi-Cloud Processing
Most organizations operate in multi-cloud environments, which are complex, particularly when migrating application workloads between clouds. API-driven and containerized applications are solutions for these challenges.
84% of organizations with over 1,000 employees use multi-cloud. Key challenges include complexity, application management, and cost control. APIs unlock unique functions and data from applications across clouds. Research projects a 165% growth over 18 months for organizations leveraging integrated applications in multi-cloud environments. Containers provide a standardized software unit for reliable deployment across environments.
5. Collaborate with IT to Accelerate Business
Organizations are positioning IT as a core driver of business value to fully leverage technology.
IT faces greater pressure to deliver more systems faster. Everyone must operate like a technology company, leveraging both new and emerging technologies to enhance stakeholder experiences. This requires IT to be agile, fast, and innovative.
As organizations invest in distributed and emerging technologies, the top technology investments in 2019 reflect this trend. Nearly 92% of businesses reported that integration must go beyond IT. Only 36% of IT decision-makers could complete all requested projects in 2019, and 7 out of 10 IT departments continued their initiatives.
6. Co-Create Value with External Stakeholders
Leading businesses are building monopolies through ecosystems of partners, customers, and external stakeholders. Research shows digital ecosystems are rising, allowing organizations to seamlessly integrate new products and services into customer experiences. Examples include open-source platforms and integrations with Apple, Mastercard, and Plaid. Open APIs are crucial for creating shared value with external stakeholders.
7. Optimize Business with APIs
Organizations leveraging APIs experience increased productivity, revenue growth, and innovation opportunities. 91% of organizations with public and/or private APIs report significant business outcomes. APIs enable faster, smarter innovation.
Research indicates that more complex API strategies yield greater business results. Some organizations have doubled business speed by reusing APIs. Customer case studies highlight improvements in IT delivery speed, product launches, and sales growth via effective API management and optimization techniques.
