Digital still key to transforming at pace in 2024

Following the explosive development of artificial intelligence, cloud computing and the Internet of Things in 2023, the acceleration of digital change in 2024 promises to bring further opportunities for businesses great and small. As the appetite for smarter tools, greater efficiency and a more tailored user experience grows in 2024, Entec Si CEO Eman Al-Hillawi explains that businesses will need to stay abreast of the latest digital trends if they are to keep up with the competition.

By 2027, investments in digital transformation are estimated to reach nearly $3.9 trillion (£3 trillion) worldwide with the Europe, Middle East, and Africa (EMEA) region expected to deliver 26.8% of global digital transformation spending this year. Many organisations have been laying the groundwork for advanced digital change over the last couple of years.

PwC’s 26th Annual CEO survey revealed that 86% of UK CEOs invested in automating processes and systems by January 2023, with a further 77% investing in AI and cloud solutions. Demand for improved data visibility, resource management, and collaborative working has driven the migration of more businesses to cloud environments, in full or partial replacement of legacy systems. Businesses need and want greater efficiency to streamline everyday operations and to strengthen stakeholder relationships by providing slicker services – outcomes that cloud computing continues to facilitate.

The past year also bore witness to the increased application of the IoT. Where tracking technologies have optimised supply chain management, wearable MedTech has provided greater insight into patient health through biosensor technology that monitors and shares individual data. Leveraging IoT devices has brought organisations a number of internal benefits too. Workers have more immediate access to the data they need, without needing to travel to its source, speeding up activities as a result.

It follows that the digital transformation trends of 2024 will further cement the business world’s presence in the online sphere. More businesses are expected to make use of multiple cloud networks run by different providers, known as a multi-cloud strategy. Others are forecast to operate hybrid cloud environments – the combined use of a private cloud and other storage infrastructure to run business applications. Operating a multi-cloud strategy can increase business flexibility, support hybrid working and improve data protection by providing optional places to store information. With cyber security threats expected to remain prevalent throughout 2024, choosing the right cloud computing strategy could make all the difference.

Online security can be enhanced by harnessing the power of generative AI too – another digital change trend on the cards for the year ahead. AI models can be trained on cyber-attack patterns and use this to alert workforces when real threats are imminent. Given the growing application of AI in cyber-attacks themselves, such as AI-generated phishing emails, implementing AI-powered software is an important consideration for businesses looking to ramp up their digital security.

Generative AI will equally be used to drive business change. AI will increasingly be used for content generation, automated reporting and risk analytics in support of everything from project delivery to resource management. One study showed that a generative AI-based virtual assistant improved productivity among novice and low-skilled workers by 34%; instead of usurping jobs, AI tools are far more likely to support employee performance as part of a wider digital transformation piece.

Internet of Things

Advancements in the IoT and extended reality (XR) technologies could bring further opportunities for businesses this year too. XR technologies are being implemented to fine tune services, particularly in the industrial space where such tools are used to create virtual replicas of assembly lines and products to identify areas for improvement. In turn, such applications of XR technologies can help businesses to develop stronger relationships with their target audience; research has revealed that 38% of XR applications are already being used to engage customers.

The fast-moving rate of digital innovation will undoubtedly make 2024 an exciting year for businesses. However, it is important that businesses consider the digital change that will bring their people and customers the greatest benefits. Decision-makers should gauge what challenges the workforce faces and endeavour to collect feedback and ideas to inform change for good. Where possible, any digital transformation should be prefaced by trialing out the new solutions first. Setting aside a portion of the budget for contingency purposes will enable businesses to test whether new technologies will streamline operations, improve productivity or allow for innovation.

Adopting this iterative approach to the investment and rolling out of digital change will fundamentally facilitate better integration further down the line. Whilst it can be tempting to engage with the abundance of new technologies emerging in 2024, taking change one step at a time will improve workforce adoption and allow for adaptations to be made along the way. 

The digital transformation trends of the new year are ripe for the picking – it’s down to businesses to choose the right ones for them.

Eman Al-Hillawi is the chief executive officer of business change consultancy Entec Si.