Since the 1990s, the horizons of the Internet have expanded significantly. Besides, the use of digitization has increased rapidly. Digitization is the process of converting analog data into a digital form using an analog-to-digital converter (ADC) such as an image scanner or digital voice recorder.
On the other hand, digitization uses many digital technologies to transform the business model, build new revenue sources, and explore new ways to create business value. Digitization is taking traditional business beyond digitization and transforming it into a digital business ecosystem. It involves leveraging information technology (IT) to transform the assessment process, re-engineer and reimagine the way you do business in the digital age. Digitization also helps an organization collect data, analyze trends, and make better business decisions.
However, digital transformation (DX) is much broader than the digitization and digitization of existing processes. DX is an enterprise’s adoption of digital technology with shared goals, including improving efficiency, value, or innovation. Examines how products, processes, and organizations can be transformed using the latest digital technologies. In a clear sense, DX is a business transformation powered by digitization.
Digital transformation also brings a cultural shift in the business organization and changes customer experiences in rapidly evolving customer behavior patterns and market conditions. It also overhauls an organization’s traditional sales, marketing, and customer service operations. DX begins with how an entrepreneur thinks about and deals with customers. According to Research and Markets, the digital transformation market is expected to grow from approximately $520 billion in 2021 to nearly $1.25 trillion by 2026, at a compound annual growth rate (CAGR) of 19.1%.
Read also: Top 6 trends shaping digital transformation in 2022
3 major technological innovations affecting DX
One way or another, the COVID-19 pandemic has accelerated the pace at which companies around the world are adopting digital transformation. The pandemic has proven that the virtual world is much safer with unlimited growth potential to do all the work under the sun. Today, organizations of all shapes and sizes are embracing DX to future-proof their businesses and help them be resilient and resilient, setting them on a sustainable growth path.
As the global business world transitions to the virtual world, the three critical technologies that influence the advancement and improvement of digital business transformation are blockchain, metaverse, and non-fungible tokens (NFTs).
Traditionally, companies rely on centrally managed databases for digital bookkeeping. However, distributed ledger technology (DLT), more commonly known as blockchain technology, is a public digital ledger system that is openly shared between different users. This open ledger system creates a tamper-proof record (block) of users’ transactions, and each block is time-stamped and associated with the previous block.
This blockchain, or blockchain, can only be updated by consensus among users in the system. In addition, each record in the blockchain contains a unique cryptographic hash that helps keep track of that specific block and others in the chain. As a result, the recorded data cannot be modified or erased, turning the blockchain into an ideal system for bookkeeping and auditing.
A blockchain system contains a transparent, authentic and verifiable record of every transaction between users in the system. Therefore, the technology is well suited for the deployment of security policies and identity access management in the enterprise.
Since the introduction of Bitcoin, the financial services industry has jumped on the blockchain bandwagon. Statista estimated the market size of blockchain solutions for banks and financial institutions at $0.28 billion in 2018. But over the subsequent years, the implementation of blockchain technology in the financial sector has seen a rapid rise and is expected to exceed $20 billion in 2026.
Soon, other industries such as health care followed suit. For example, IBM Watson Health and the US Food and Drug Administration are harnessing the potential of blockchain technology to secure the exchange of patient data, including sensitive electronic medical records (EMR), clinical trials, and data collected from Internet of Things (IoT) devices.
Read also: Potential Use Cases of Blockchain Technology for Cybersecurity
Among all the latest disruptive technologies, blockchain technology has tremendous potential that companies can take advantage of in their growth. Non-fungible tokens are the latest development in blockchain technology based on smart contracts. Furthermore, NFTs come with powerful business applications, automating many manual jobs and providing scalability to various businesses.
Simply put, NFT is a crypto asset based on the Ethereum blockchain. Each NFT is a digital image of an asset, like a digital passport, with unique metadata and identification codes that distinguish one from the other. That is why they are called non-fungible tokens, which cannot be exchanged or traded for similar assets. It is also extensible, meaning that users can combine one NFT with another to create a third NFT, which is a unique asset with its own metadata and identification code.
Businesses of any type, shape and size can use NFT to achieve a higher level of document security, paperless document management, and identity protection. It can also enable a smoother and more efficient digital transformation of business. For example, Fortune magazine reports that NFTs are stirring up the music industry these days. By offering originality and exclusivity, NFTs are also revolutionizing the field of digital fashion.
The concept of the metaverse isn’t new, at least in the tech world. However, it has captured the popular imagination since Facebook CEO Mark Zuckerberg renamed his parent company Meta on October 28, 2021. The rebranding maneuver reflects Zuckerberg’s commitment and critical interest in the metaverse concept.
On November 2, 2021, Softbank Group’s Vision 2 invested $93 million in Sandbox, a metaverse gaming platform. On the same day, Microsoft announced the launch of Mesh for Microsoft Teams, an online meeting platform where you can submit your digital avatar.
All these recent developments in the world of technology are signs that something greater is brewing on the other side of the world. Indeed, we are witnessing the dawn of a new virtual world called the metaverse. In simpler terms, it is an extension of existing digital applications and systems with an immersive user experience in the real world.
The metaverse heralds life in a parallel digital universe – an opportunity to use immersive digital tools to experience life in a virtual world. In a decentralized digital world like the metaverse, people have more control over their assets and the freedom to follow their own rules and create their own world.
Read also: Metaverse: Catching the next internet-like wave
Endless job opportunities with digital transformation
Digital transformation, of course, opens the door towards a new business world filled with endless opportunities. It helps the organization to effectively promote its products and services to a wider audience. By utilizing disruptive technologies such as the metaverse, blockchain, and NFTs, any organization can break out of the 2D e-commerce space and explore virtual yet real life-like 3D worlds for unlimited business growth.
DX allows interactive business-to-business (B2B) communication in the virtual space and allows business owners to conduct negotiations, paperwork, product inspection and conclude deals in a transparent manner. In addition, they can also influence customers using highly interactive and realistic marketing tactics.
read the following: 5 barriers to digital transformation and how to overcome them