An update from Silicon Valley.
Digitization is still a buzzword across industries. It’s no wonder, consistent technological progress offers companies a myriad of opportunities and enables new and innovative business models. At the same time, customer needs are changing at a rapid pace. Companies now face the challenge of innovating at high speed to stay in business successfully. In order to do so recognizing and identifying digitization trends early on is crucial. Ideally, your company not only understands digital change, but also drives it.
Thanks to our position in the heart of Silicon Valley, we have our ear to the ground in regard to the latest trends and developments in digitization. In our search, the following digitization trends have made it to the top of the list:
1. Hyper-Automation
A concept trend ubiquitous in our quest to identify the most crucial digitization trends is hyper-automation. Digitizing processes, improving connectivity, and applying artificial intelligence (AI) has catapulted us into an age where automation is omnipresent. Hyper-automation means automated execution of processes by machines with the help of software and automation tools. The primary catalyst for the increased use of automation technologies in the process context is robotic process automation (RPA). RPA, in short, enables the use of software robots that mimic the human approach to routine tasks and, thus, carry out processes automatically. Hyper-automation refers to such automation technologies and all connected aspects which need consideration when implementing automation projects. According to their use and evaluation, hyper-automation considers all elements needed to replicate the human approach to performing tasks from understanding the various automation technologies to their suitability, linkage, and interaction with each other.
2. Multi-Experience
Another one of our digitization trends that is which attracting attention is the field of multi-experience. Already, the familiar so-called user experience is changing. For example, the increased use of text and language-based control elements, conversational user interfaces (CUI), is altering the way users interact with the digital world. On the other hand, Technologies such as virtual and augmented reality influence the way we perceive the digital world. The dynamic perception and interaction of the digital world will lead to a multi-sensory and multimodal experience.
The possibility to communicate with the user via different human senses creates a richer environment for the targeted transmission of information.
Brian Burke, Vice President, Gartner
Brian Burke, Vice President of Research at the American research and consulting company Gartner describes this development as a shift from technology-educated people to people-educated technologies.
3. Democratization of Expertise
With the ongoing digitization, a bias towards the democratization of knowledge and expertise has risen. This development has expanded access to technologies across diciplines in application development and data analysis. Both the increase in use of artificial intelligence and the low-code and no-code environments have resulted in non-specialists in technology having unprecedented access to a previously exclusive knowledge field. This digitalization trend is often referred to as citizen access and stands for the benefit of technology products without extensive and costly training. Furthermore, this trend allows for technologies to obtain a much more vast, diverse audience.
4. Human Enhancement
Human enhancement refers to the use of technology to improve human cognitive and physical abilities. Physical enhancement can change the inherent physical capabilities of humans. Common examples already in common use are prostheses and organ transplants. Human enhancement, however, goes further by actively integrating technology into the human body. Everyday examples might include a pacemaker or wearable devices such as smartwatches. Cognitive improvements, on the other hand, can be achieved both through the use of drugs or medication and through the use of devices with access to information. The latter can be achieved, for example, by using applications on traditional computer systems and the emerging “multi-experience” interface in intelligent spaces. The field of human enhancement will continue to develop, making life easier for people and improving the quality of life.
5. Data Protection
In the past, data protection commissioners have voted against digitization projects, as the demand for data protection and conscious handling of sensitive data was not fully satisfied by many software operators. While data protection has always been a top priority in Germany, Silicon Valley previously held a different stance on the topic. However, our research has unearthed an interesting development: Consumers are becoming increasingly aware of the value their personal data has and are therefore demanding more data protection and control. Companies are now faced with tackling the challenge of securing and managing personal data more seriously to meet customer needs. Additionally, stricter laws are being introduced at a political level to regulate the use of data. The European Union’s General Data Protection Regulation (GDPR), which came into effect in 2018, was one of many steps to protect individual users’ data and rights.
6. Distributed Cloud and Edge Computing
An innovative digitization trend in Silicon Valley is distributed cloud and edge computing. Unlike traditional cloud computing, which is in a distributed cloud, the processing, storage, and networking is outsourced to so-called micro-clouds, outside a centralized cloud. One example of this edge computing, in which decentralized data processing takes place at the edge of a network – the so-called edge – i.e., where devices and users produce and consume data and information. These edge access points include mobile phone masts and routers. Increasing data traffic and processing should thus be kept local to reduce latencies and benefit from the cloud’s advantages. This digitization trend represents a significant change from the centralized model of most cloud services and will lead to a new era in cloud computing.
7. Autonomous Things
Autonomous things are another significant digitization trend. They are physical devices that use AI to automate functions previously performed by humans. The best-known forms are robots, drones, and autonomous vehicles. The use of AI enables automation that goes beyond rigid programming models and allows things to interact naturally with their environment as well as humans. The improvement of technological performance, regulation, and growing social acceptance has allowed autonomous things to operate in open public space. Autonomous things can also become collaborative autonomous things which, as the name indicates, are devices that work together with other intelligent things and communicate with each other. They can act either independently from humans or with human input. This phenomenon is referred to as the Internet of Things (IoT).
8. Blockchain in Practice
In the period of only a few years, block chain applications have increasingly found their way into individual business applications. This digitization trend has the potential to transform industries by creating trust and transparency. In addition, block-chain applications enable transactions to be realized across business ecosystems while reducing costs and shortening processing times. As a result, this digitization trend offers positive cash flow effects. Asset tracking in particular, is used in many areas, for example in the tracing of food through supply chains, which makes it easier to identify the origin of contamination, or the tracking of individual parts to make it easier to coordinate product recalls. In addition, illegal trade with counterfeit goods is made considerably more difficult. Another area in which blockchain applications show considerable potential is identity management. Smart contracts can be used to trigger actions automatically when an event occurs. For example, a goods receipt can trigger the release of payment for these goods. So far, the digitization trend “block chain” is not yet fully developed for many business contexts due to technical problems including poor scalability and interoperability. Despite these challenges, companies should begin to identify their own areas of use for block chain applications and closely monitor future developments because of the considerable potential.
9. Cognitive Cyber Security
The ongoing digitization of all areas of life brings with it an increased security risk. New technologies, their rapid spread, and the ever more sophisticated networking of different systems are creating new points of attack for cyber-crime. Therefore, it is crucial that cyber security is consistently upgrading in turn with other technologies. Defending computers, servers, mobile devices, networks and data against malicious attacks is not only an unstoppable trend towards digitization, but a requirement for the progression of digitalization. Also, in the field of security AI can be used sensibly: So-called cognitive security combines artificial and human intelligence and contributes to improving security by, for example, proactively detecting and anticipating threats. With every interaction, cognitive AI learns to recognize dangers and provides security analysts with information on the basis of which informed decisions can be made.
Curious about what digitization trends can progress your company to the next level? We are happy to advise you! Fill out the following form and a team member will contact you.
