Digital transformation is a term we hear a lot, especially due to the impact of Covid-19 on businesses and how they operate.
But what actually is digital transformation?
Digital transformation essentially means "the realignment of, or new investment in, technology, business models, and processes to drive new value for customers and employees." - Brian Solis's definition.
Focusing on digital transformation is key to 'future-proofing' your business. Investing in digital transformation ensures greater protection for your systems, increased productivity and efficiency, greater profitability, and increased customer satisfaction.
For almost all types of businesses, IoT has become crucial in assisting the adoption of digital transformation.
The Internet of Things (IoT) refers to a system of interrelated, internet-connected objects that are able to collect and transfer data over a wireless network without human intervention. The personal or business possibilities are endless.
A recent survey conducted by Omdia found that IoT deployments have matured signficantly within organisations, with around 73% saying they were already in full deployment, or at least in the trial stages.
The number of IoT projects is also rising with more than a third of businesses deploying around at least 5 IoT projects.
According to the same survey conducted by Omdia, the money spent on technology is also up. Due to these investments in technology, almost half of the businesses surveyed said they were already seeing improvements in efficiency and productivity.
Energy efficiency has also been significantly improved since the increased adoption of IoT and focus on digital transformation.
However, it's no secret that the largest barrier holding businesses back from investing in IoT and digital transformation is the security fears.
But this concern can be managed by providing the correct training to all employers and employees, so they can prevent security breaches and are prepared to react accordingly if one were to happen. Also, investing in the best security software alongside the adoption of IoT and digital transformation is key.
Josh Builta, Director of Research, Internet of Things and Artificial Intelligence at Omdia, said:
"Over the next year as more enterprises see first-hand the direct correlation between IoT deployment and business efficiencies we expect IoT deployments to continue to accelerate. However, it is up to the vendors to communicate how they are managing and alleviating concerns around privacy and data protection. Once these vendors manage to demonstrate this fully, we expect IoT deployments within enterprises will grow exponentially over the next few years."