What are the key digital transformation trends for 2024, and what should we anticipate for 2025? Discover which trends to follow to increase your company's profits.
A QUICK SUMMARY – FOR THE BUSY ONES
TABLE OF CONTENTS
This article dives into the most influential digital transformation trends for 2025, with a special focus on specific industries like insurance, banking, healthcare, and education. Whether you're looking to integrate AI-driven solutions, enhance customer experiences, or streamline operations, you'll find actionable insights tailored to your sector's unique challenges.
With a track record of helping several clients modernize legacy systems, we bring a wealth of experience and expertise. Our State of Software Modernization Report and detailed industry research offer an unparalleled perspective on what works and what doesn't. We understand the intricacies of digital transformation and are here to guide you every step of the way.
As you read on, you'll discover how these trends can transform your business landscape and set you on the path to success. Let’s dive into the future of digital transformation and explore the opportunities that await.
When it comes to digital transformation, there are several general tips to consider. However, the specific advice can vary depending on the industry. What are the current trends in digital transformation and how can they be effectively adopted in different industries?
AIOps refers to the use of artificial intelligence and machine learning to automate and enhance IT operations, allowing for faster data processing and improved decision-making. It combines big data, analytics, and AI to streamline IT management and solve complex issues quickly.
AIOps can be used to automate routine IT tasks such as network monitoring, anomaly detection, and incident response, allowing IT teams to focus on more strategic initiatives. Companies can also utilize AIOps to predict potential system failures and preemptively address issues before they impact operations.
Gartner predicts that "by 2023, 40% of DevOps teams will augment application and infrastructure monitoring tools with AIOps platform capabilities"
Benefit: The main benefit of AIOps is improved operational efficiency, as it reduces manual effort and accelerates problem resolution.
Examples:
IBM and Splunk have integrated AIOps into their platforms to enhance IT operations and provide intelligent insights. IBM's Watson AIOps leverages machine learning to identify, diagnose, and resolve IT incidents automatically. Splunk uses AI to monitor and analyze IT operations, providing actionable insights that help organizations improve performance and reliability.
Environmental sustainability in digital transformation refers to the integration of eco-friendly practices and technologies into business operations to reduce environmental impact. This trend emphasizes the importance of adopting sustainable solutions that help conserve resources and promote ecological balance.
Businesses can leverage digital tools to optimize energy consumption, reduce waste, and improve resource efficiency, such as using IoT devices for smart energy management. Companies can also implement sustainable practices in their supply chain, utilizing AI and big data to analyze and minimize their carbon footprint.
According to a report from Accenture, "Technology, innovation, and human ingenuity will be key to achieving the goals of the Paris Agreement and creating a more sustainable future for all".
Examples:
Google and Microsoft have both committed to sustainability, with Google aiming for carbon-free energy by 2030 and Microsoft planning to be carbon negative by 2030. Google employs AI to optimize energy usage in its data centers, reducing energy consumption by up to 40%. Microsoft has implemented an internal carbon tax to hold its business groups accountable for their environmental impact.
Automation in digital transformation refers to the use of technology to perform tasks without human intervention, increasing efficiency and reducing the potential for human error. It encompasses everything from robotic process automation (RPA) to advanced AI-driven automation.
Automation can streamline business processes such as data entry, customer service, and supply chain management, allowing companies to reduce operational costs and improve service quality. Organizations can also automate repetitive tasks, freeing employees to focus on more strategic and value-added activities.
McKinsey reports that "60% of all occupations have at least 30% of activities that are technically automatable".
Benefit: The primary benefit of automation is enhanced productivity and efficiency, as it reduces manual workload and accelerates business processes.
Examples:
UiPath and Blue Prism are leaders in automation, providing RPA solutions that automate routine tasks and enhance operational efficiency. UiPath's automation platform helps businesses automate repetitive tasks, freeing employees to focus on higher-value work. Blue Prism offers digital workers that execute processes across various business functions, driving efficiency and innovation.
As cyber threats become more sophisticated, cybersecurity has become a critical component of digital transformation strategies. Cybersecurity measures can be implemented to protect sensitive data, prevent unauthorized access, and detect and respond to cyber threats in real-time. Organizations can also use cybersecurity frameworks to assess vulnerabilities and develop strategies to mitigate risks.
Examples:
Palo Alto Networks and CrowdStrike are leading cybersecurity companies providing solutions to protect against advanced cyber threats. Palo Alto Networks offers next-generation firewalls and cloud-based security solutions that protect organizations from cyber threats. CrowdStrike's Falcon platform uses AI and machine learning to detect and respond to cyber threats in real-time, providing comprehensive protection for businesses.
Businesses can use cloud computing to store and analyze large volumes of data, host applications, and collaborate remotely with distributed teams. Companies can also leverage cloud platforms to build and deploy scalable applications without the need for on-premises infrastructure.
Benefit: The primary benefit of cloud computing is its scalability and flexibility, enabling organizations to adapt quickly to changing business needs.
Examples:
Deutsche Bank: Deutsche Bank leveraged Google Cloud's infrastructure to modernize its legacy systems, reducing reliance on outdated technology and improving operational efficiency. The bank used cloud computing to streamline its IT operations, enabling faster deployment of applications and more agile response to changing business needs. By utilizing Google Cloud's advanced data analytics tools, Deutsche Bank was able to analyze large volumes of data more effectively, gaining valuable insights into customer behavior and market trends.
Edge computing involves processing data closer to the source, such as IoT devices, instead of relying on centralized data centers. This approach reduces latency and improves data processing speed by minimizing the distance data must travel. Edge computing can be employed in industries like manufacturing and healthcare to process data in real-time, enabling faster decision-making and enhancing operational efficiency. It can also be used to support autonomous vehicles by processing sensor data locally, allowing for immediate responses to changing conditions. According to Forrester, "Edge computing will complement the cloud, reducing latency and delivering richer experiences".
Examples:
Amazon and Cisco have implemented edge computing solutions to improve data processing and enhance user experiences. Amazon's AWS Greengrass extends cloud capabilities to local devices, allowing for real-time data processing at the edge. Cisco's Edge Intelligence platform helps businesses process and analyze data closer to where it is generated, improving efficiency and reducing latency.
Now, let's take a closer look at the specific industries.
Once a conservative sector, the insurance industry is now undergoing significant digital transformation. With unique expectations concerning consumer demands, data processing, and privacy, the industry is adapting rapidly. Here are some of the most prominent insurance digital transformation trends:
Another way to enhance customer experience is by offering self-service tools, such as mobile apps and chatbots. These tools allow customers to purchase insurance products without the need to speak directly with an agent or customer service representative, providing a more convenient and preferred option for many. According to Gartner, 62% of millennials and 75% of Gen-Z customers prefer self-service over contacting support. Also, according to Forrester, 73% of consumers appreciate brands that value customers’ time.
According to McKinsey, 71% of consumers expect personalized interactions with companies. Thus, high personalization is one of the top insurance digital transformation trends. By leveraging data analytics and machine learning, insurers can customize digital offerings to meet individual preferences, enhancing customer satisfaction and speeding up the purchasing process.
Given the insurance industry's heavy reliance on data, new methods of processing it have become essential. Traditionally, customer surveys were the primary means of data collection. Today, modern tools enable the collection of data from a broader range of sources automatically, including social media, website behavior, purchased products, preferences, and more.
Since the insurance industry depends heavily on data, developing effective risk management tools and procedures is crucial. Modern technologies such as IoT provide real-time data, while AI algorithms and predictive analytics help forecast future events, including the likelihood of customer accidents or data leakages.
Another industry undergoing significant transformation is healthcare. Modern tools are now serving patients, medical students, doctors, and other healthcare professionals, including administrative staff. Here are some of the major healthcare digital transformation trends:
VR and AR are increasingly being utilized in healthcare, with applications including:
Such a wide adoption possibilities make these technologies the most prominent healthcare digital transformation trends. AR and VR market in healthcare is projected to reach 41.18 million USD by 2030, representing a 39.16% increase compared to 2022.
The development of wearable medical devices offers significant opportunities to enhance overall healthcare. These devices collect real-time, detailed data on patients' conditions, including heart rate, breathing patterns, and sweat levels. They can transmit this data directly to hospitals, enabling more accurate diagnoses and better preventive measures.
Although it might not be immediately apparent, blockchain is playing an increasingly significant role in healthcare. Recent reports suggest that the global blockchain healthcare market was estimated at 7.04 billion USD in 2023 and is expected to grow at a CAGR of 63.3% between 2024-2030. Many pharmaceutical and healthcare organizations are already investing heavily in this technology, committing millions to leverage its potential for improving data security and transparency.
Since patient data is highly sensitive, ensuring data security is a top priority in healthcare. In Europe and DACH countries, there are strict GDPR regulations to follow and comply with. New security tools help meet these requirements, as well as protect digital information from unauthorized access and cyber threats.
Digital transformation in the education industry has been gaining momentum as institutions seek to enhance learning experiences, improve accessibility, and streamline administrative processes.
Big data refers to the vast volumes of structured and unstructured data generated by educational institutions, students, educators, and other stakeholders. This data comes from various sources, including student records, Learning Management Systems, online learning platforms, IoT devices (data from connected devices used in smart classrooms, such as sensors and interactive whiteboards).
Big data and analytics can be used for personalized learning and predictive analysis. By analyzing individual student data, educators can create personalized learning paths that cater to each student's strengths, weaknesses, and learning preferences. This leads to more effective and engaging learning experiences. Also, institutions can use data analytics to predict enrollment patterns, helping them plan resources and allocate budgets more effectively.
The Internet of Things (IoT) is transforming the education industry by creating smart learning environments that enhance the educational experience for students, teachers, and administrators. Interactive whiteboards, smart projectors, and connected tablets enhance collaboration and engagement during lessons, IoT-powered VR and AR tools create immersive learning experiences, such as virtual field trips and 3D visualizations of complex subjects.
Gamification and interactive learning are revolutionizing the education industry by making learning more engaging, motivating, and effective.
Gamified systems can adapt to individual student levels, providing challenges that match their abilities and promoting personalized learning paths. Interactive technologies allow for personalized learning experiences tailored to individual needs and preferences. Mixed reality will create more immersive and interactive learning experiences, blurring the lines between the physical and digital worlds.
Classcraft turns the classroom into an RPG where students work in teams, complete quests, and earn points for positive behavior and academic achievements.
AR and VR create immersive learning experiences, such as virtual field trips and 3D visualizations of complex subjects, making learning more engaging and memorable.
MR provides students with immersive learning experiences that engage multiple senses, leading to better retention and understanding. Students can explore historical sites, natural wonders, and distant planets without leaving the classroom, providing experiences that were previously inaccessible. Complex concepts in subjects like biology, chemistry, and physics can be visualized in 3D, helping students grasp abstract ideas more easily. MR enables students to experiment with engineering designs and systems, testing their ideas in a realistic virtual setting.
The final industry we’ll focus on is banking, where the adoption of digital tools is rapidly expanding. Let’s explore some of the most promising solutions.
The range of digital payment options is continually growing. Mobile wallets, card payments, cryptocurrencies, and peer-to-peer payment platforms are becoming increasingly popular, offering more sophisticated and intuitive solutions. Additionally, online bill payment solutions are widely adopted.
Personalization, driven by AI and modern technologies, is becoming one of the top digital transformation trends in banking. These tools analyze customer behavior and use predictive analytics to satisfy customers and enhance return on investment. This includes providing tailored financial advice, personalized product recommendations, targeted offers, and customer support across various digital channels and platforms.
Real-time analytics tools are enhancing the prevention of fraudulent activities and strongly support the adoption of digital transformation trends in banking. Advanced cybersecurity measures now include predictive models, biometric authentication, and secure phone conversations. Banks are also leveraging AI and machine learning to detect and prevent fraud, conduct effective anti-money laundering (AML) processes, and perform know-your-customer (KYC) regulatory checks.
Customers value a variety of contact methods with their banks, extending beyond traditional phone calls and standard digital tools. Options such as mobile apps, messaging, notifications, chatbots, social media platforms, and voice messages are now in use. Banking companies must then adapt to diverse communication channels, however, while also maintaining human interactions to build trust in their services.
Bank-as-a-Service (BaaS) offers a new way to access banking services, allowing businesses to integrate financial tools into their non-financial platforms and products. BaaS provides seamless financial functionality and valuable insights into customer preferences, enabling a more tailored experience.
Open banking involves creating APIs that enable banks to share data with third-party providers, facilitating easier and more secure payments and transactions. This approach blurs the lines between banking and non-financial companies and fuels the market with solutions supporting the banking industry.
To learn more about trends in digital transformation and see how they work in practice, explore digital transformation examples that we have successfully completed.
What are the top tips we can share as industry experts in digital transformation? Based on our successful projects, here are our recommendations to help you achieve faster and better results while maintaining control over budget and project scope.
The first piece of advice for implementing trends in digital transformation is to consider outsourcing. The processes involved are complex and require not only advanced knowledge of technology implementation but also expertise in integrating these technologies for maximum efficiency. To find the right technology partner to assist you, check our recommended list here.
Digital transformation relies heavily on automation, as it's a crucial step toward achieving efficiency and accelerating processes. Implementing Robotic Process Automation (RPA) solutions is key for handling numerous documents and processes with minimal human involvement, thereby reducing errors.
However, successful automation goes beyond merely implementing technology. It involves analyzing, mapping, and redesigning the processes that need to be automated. This requires both technological expertise and a deep understanding of process-oriented strategies.
Leveraging AI and ML for data analytics is essential and will continue to be so in the upcoming years. These technologies enable the processing of vast amounts of data, identify patterns, and guide strategic decision-making. By capturing and analyzing comprehensive data, businesses can significantly enhance their value and improve strategic planning across various industries.
Now it's time to learn how to implement these trends into your digital transformation strategy or seek for some help. As an experienced digital transformation outsourcing partner working with DACH countries, Western Europe, and North America, we can help you maximize the benefits of digital transformation trends. Sound interesting? Tell us more about you needs.
Our promise
Every year, Brainhub helps 750,000+ founders, leaders and software engineers make smart tech decisions. We earn that trust by openly sharing our insights based on practical software engineering experience.
Authors
Software development enthusiast with 7 years of professional experience in the tech industry. Experienced in outsourcing market analysis, with a special focus on nearshoring. In the meantime, our expert in explaining tech, business, and digital topics in an accessible way. Writer and translator after hours.
With over 12 years of professional experience in the tech industry. Technology passionate, geek, and the co-founder of Brainhub. Combines his tech expertise with business knowledge.
Software development enthusiast with 7 years of professional experience in the tech industry. Experienced in outsourcing market analysis, with a special focus on nearshoring. In the meantime, our expert in explaining tech, business, and digital topics in an accessible way. Writer and translator after hours.
With over 12 years of professional experience in the tech industry. Technology passionate, geek, and the co-founder of Brainhub. Combines his tech expertise with business knowledge.
Read next
Popular this month
previous article in this collection
It's the first one.
