Essential Digital Transformation Trends Across Industries

Digital transformation is a comprehensive process of integrating digital technology into all aspects of a business. It's more than just a technological upgrade; it's a cultural change that requires organizations to challenge the status quo and experiment continually.

Digitization is essential for businesses because it helps them stay competitive in an increasingly digital world by adopting new technologies. It also increases a business's ability to adapt to market changes and evolving customer needs.

At Binariks, we help businesses embrace digital transformation technologies by creating personalized solutions that best reflect your enterprise's needs. In this article, we review the top 5 digital transformation trends and even more specific trends for industries like healthcare, finance, and insurance.

Digital transformation stats

The digital transformation market is expected to grow 19.1% from $521.5 billion in 2021 to $127.5 billion in 2026 (Source ). While these digital transformation tendencies are very impressive, what digital transformation does to the business sectors is even more impressive.

• Data-driven companies are 23 times more likely to acquire customers (Source ).
• Companies with digital-first strategies are 64% more likely to achieve their business goals than their competitors (Source ).
• Artificial intelligence can amplify business productivity by 40%, provided that users can effectively interface with the necessary technology​ (Source ).
• The top industries that need digital industries that need digital transformation are financial services (93%) and healthcare (92%) (Source ).
• However, the failure rates of digital transformation initiatives vary between 70% and 95%, with an average value of 87.5%​​. This high failure rate underlines the complexity and challenges associated with digital transformation projects (Source ).

Digital transformation in different industries

While many digital transformation technologies transcend industries, there are also many very precise industry-specific trends in digital transformation to watch out for:

Healthcare

Digital transformation in the healthcare industry aims for better patient outcomes through improved monitoring and diagnostics.

• The expansion of telehealth platforms: Telehealth branches out from general consultations to more specialized care, including mental health therapy , chronic disease management , and post-surgery follow-ups. Telehealth is also being integrated with existing healthcare systems and is being incorporated into legislation.

• Applications of AI and ML in diagnosis and treatment: AI algorithms are used to analyze complex medical data to create more personal treatment plans. AI and ML improve diagnostic accuracy, especially when scanning in areas like radiology and dermatology.
• Increased use of wearable devices: Wearables such as smartwatches, fitness trackers, and specialized medical devices provide continuous health monitoring. This data is increasingly being integrated with telehealth platforms for real-time healthcare monitoring.
• Blockchain for healthcare : Blockchain offers a newer, secure, and decentralized way to store and exchange health data, which is more secure than traditional methods.

Financial services

Digital transformation in the finance industry is dedicated to increasing security and convenience.

• Neobanks and digital-only banking: Digital-only banks offering enhanced customer experiences and innovative banking solutions. People choose them more based on how convenient and hassle-free the experience is.
• Advanced cybersecurity measures: There is an increasing focus on cybersecurity with AI-enhanced systems to combat sophisticated financial cyber threats. Biometric validation , like fingerprint and facial recognition, has become mainstream in online banking apps.
• Blockchain beyond cryptocurrency: In 2024, we will see wider use of blockchain for cross-border transactions, smart contracts , and fraud reduction.
• Personalized financial services: AI and big data are being used to provide customers with more personalized financial advice and products with minimal human intervention.

Insurance

Digital transformation in the insurance industry is about minimizing risks and streamlining processes.

• AI for risk assessment and pricing: 2024 will see more sophisticated AI models for personalized insurance pricing and risk assessment. This also means predictive modeling - advanced models predict future claims based on historical data.
• IoT and telematics in insurance: In 2024, we will see broader use of IoT data, especially in auto and health insurance, for personalized policy pricing and risk mitigation. For example, in auto insurance, telematics devices track driving behavior, allowing insurers to tailor premiums to actual usage and risk. In health insurance, wearable devices provide data that can lead to personalized health plans and preventative care incentives.
• Automated claims processing: In 2024, we will see more enhanced AI-driven systems for faster and more accurate claim processing . These systems can also assess damage and report incidents.

Automotive

Digital transformation in the automotive industry reflects the development of the same trends that have been with us this decade: autonomous driving and electric vehicles.

• Connected cars: 2024 will see the integration of IoT for enhanced vehicle connectivity and smart features. Cars also have smart navigation systems integrating real-time traffic data and weather updates.
• Autonomous driving: The development of self-driving vehicle technology will go way further than what it is now. These include improvements in sensor technology and machine learning algorithms.
• Electric vehicles (EVs): Advancements in EV technologies and infrastructure will reach new heights in 2024.
• Digital showrooms: Virtual reality and augmented reality experiences for car showcasing and virtual test drives are also emerging trends in the automotive industry.

Digital transformation trends you should know

There are plenty of trends in digital transformation by industry, but we decided to focus on the most consistent trends that are here to stay for a long time and are also evolving rapidly.

1. AI and ML

AI and ML are expected to remain the primary digital transformation trends for 2024. In 2023, generative AI models such as OpenAI ChatGPT and Google Bard with Gemini Pro became increasingly popular. However, generative AI , which assists in automating tasks and boosting productivity, is just one of many aspects businesses should expect from the AI/ML trend in 2024.

AI and ML also offer predictive analytics and data analysis. What is more, they are also helpful for identifying the clients' preferences. In the coming years, we will also see growth in chatbots for customer service as more businesses will take advantage of this particular trend. These customer-service-related AI and ML technologies are known to increase customer satisfaction.

What's next in store for AI and ML in digital transformation? New trends around the corner include:

• Automated machine learning;
• Multimodal learning ;
• Models capable of addressing multiple objectives;
• Bias removal in machine learning.

2. IoT implementation

IoT connects everyday devices to the internet, allowing for data collection and analysis. It can lead to improved efficiency and innovation in product and service offerings. IoT is embraced across a myriad of different industries. IoT means home improvement devices, such as thermostats, smart lights, and home security systems for individual users.

In healthcare, IoT encompasses a vast market of remote monitoring devices. In agriculture, IoT devices include precision farming equipment and livestock monitoring devices. Industries and manufacturing use many transformative IoT devices, such as smart sensors and inventory management devices. IoT is now a core component of reducing downtime and delivering innovations across industries.

3. Enhancement of cybersecurity protection

With so many new technologies being implemented in 2024, cybersecurity is as hot of a topic as ever. As digital operations increase, so do concerns about data breaches. Companies will focus heavily on advanced cybersecurity measures, adopting technologies like blockchain for secure transactions and adhering to strict data protection regulations. ​What to look forward to in 2024?

With the expansion of IoT devices, there will be a greater emphasis on user education about IoT security. Blockchain technology might also increase to decentralize and secure IoT networks, making them less vulnerable to attacks targeting centralized systems​.

The continuation of remote work trends necessitates a heightened focus on securing remote access to work environments. Solutions like Splashtop are emerging to provide robust remote access solutions that cater to the security needs of this evolving work model.

Cybersecurity in 2024 is not without problems. Phishing attacks are evolving in sophistication, necessitating robust authentication systems to enhance security. Multi-factor authentication (MFA) systems are becoming vital to defending against these more advanced attacks.​ The Zero Trust security model is becoming more mainstream. Operating on the "never trust, always verify" principle, this model requires rigorous identity verification and strict access controls.

4. Cloud technology

The shift to cloud computing continues, with edge computing gaining traction. Edge computing is another digitalization trend known to process data closer to where it's generated. In 2024, cloud services will continue being the most sure way to scale the operations of a business.

Cloud computing reduces the need for expensive hardware and infrastructure investments. MSMEs can use cloud services on a pay-as-you-go basis, which minimizes upfront costs and facilitates financial flexibility. This allows them to allocate resources more efficiently and invest in other areas crucial for sustainability.

Cloud also means faster development and deployment cycles, and more companies are embracing the cloud.

5. 5G technology

The current generation of wireless technology, 5G, is crucial for the digital transformation of industries in 2024. By 2025, 5G networks are expected to cover one-third of the world's population.

So, the rollout of 5G will significantly enhance connectivity, allowing for faster data transfer and enabling more robust IoT deployments, particularly in areas like autonomous vehicles and smart cities. Augmented reality also heavily relies on 5G to function.

5G is a backbone that allows other digital transformation trends to flourish. Some trends that rely on 5G technology are remote patient monitoring , intelligent infrastructure management, IoT integration, and many more.

Challenges digital transformation technologies may face

• Many companies have technically outdated legacy systems that they still support, which makes digital innovation difficult.
• About 3/4 of all companies find digital transformation difficult to implement (Source ). The reasons include difficulties with talent acquisition, high costs of implementation, and security/ privacy concerns. Cybersecurity measures that need to be established to support digitization are expensive.
• Interoperability also poses a challenge as digital transformation technology has to be integrated with all different technologies within an organization's ecosystem.
• Moreover, it is hard to prove ROI on digital transformation technologies. There are significant challenges in demonstrating the impact that trends in digital transformation have on revenue and customer satisfaction because the metrics to track the impact are not developed enough. In fact, 29 % of companies state that ROI from digital innovation ideas is hard to come by (Source ).

At Binariks, we have vast experience in addressing various pitfalls of digital business transformation, including integration with legacy systems and interoperability issues .

Our experience

Binariks has years of experience dealing with digital transformation technologies in healthcare , finance , insurance, and other industries. Our specialists can assist your company with the following services:

• Strategic planning and creating a landscape for digital transformation
• Implementation of new technologies and integrating them with existing ones
• Data management and analytics
• Cybersecurity concerns
• Supporting hybrid and remote working environments
• Assisting with scalability challenges

Take, for instance, our recent case study , where we partnered with a healthcare technology corporation that provides long-term support services for individuals.

Our team of experts at Binariks modernized legacy systems, ensured compliance with state-specific requirements, optimized maintenance costs, and enhanced system scalability. These solutions and improvements streamlined internal control and positioned the client for scalable expansion of services into new states.

And this is just one example of our adaptable and successful approach to digital transformation! You can trust us to guide your organization through its unique digital transformation journey with expertise gained from various successful projects .

In conclusion

Digital transformation technologies in 2024 are set to continue evolving, impacting various business aspects. Businesses are likely to increasingly integrate advanced technologies like AI, machine learning, IoT, and 5G into their operations.

Moreover, organizations will continue leveraging big data and analytics to gain insights into customer behavior and market trends. Enhancing the customer experience remains a key driver of digital transformation.

Businesses will aim to provide more seamless, personalized interactions across various digital channels. There will be a greater emphasis on the collaboration between humans and AI/machine learning systems. In summary, digital transformation in 2024 is expected to be a dynamic and ongoing process driven by technological advancements and changing market dynamics.