Digital transformation reshapes every aspect of business and successful transformation requires collaboration, planning, and inclusion across departments. New technologies like cloud computing, APIs, big data, IoT, AR/VR, and AI are driving transformation and changing roles and business models. To succeed, companies must embrace change, prioritize adaptability and innovation, provide excellent customer experiences, and break down silos between departments. Digital transformation is no longer optional but critical to remaining competitive in a rapidly changing business environment.

1. Digital transformation reshapes
every aspect of a business. As
digital technology continues to
evolve, I believe that successful
digital transformation will require
careful collaboration, thoughtful
planning, and the inclusion of every
department.
During recent years, we’ve seen
shifts in how traditional leadership
roles operate, as silos break down
and the scopes of various roles
widen and change. Digital
transformation has morphed from a
trend to a central component of
modern business strategy.
Here are the top 10 trends I
expect to see in 2017.
Digital
Transformation
in 2017
Daniel Newman
Principal Analyst, Futurum Research

2. Change is going to happen whether you
pursue it or not—you only need to look at
how the role of cloud computing in 2016
has evolved to understand. Modern
enterprises succeed when they adapt to
industry and marketplace shifts and
incorporate new technology into company
culture and regular operations. However,
digital transformation isn’t only about
technology, it’s about bringing together the
power of technology with a culture that
embraces the change that it can lead for
the organization.
1. Adaptability is more vital to success than
ever

3. The customer experience (including
employees) is the ultimate goal of any
digital transformation. Customers are
more cautious than ever; they’ll turn
away from brands that don’t align with
their values and needs. A top-notch user
experience is a fantastic way to keep
customers involved and engaged with
your brand. This is a comprehensive
process. Anywhere and everywhere
customers can interact with your
business, the experience must be
consistent and positive. For example,
entrepreneurs can use analytics to
discover where customers are coming
from (whether it’s a social media
platform, a blog, or somewhere else) and
streamline the interaction in those high-
traffic areas. Every touch point matters,
and those leading the transformation
should constantly be asking how are we
removing friction and enhancing the
experience for every customer
regardless of where they are in the
journey.
Growing importance
of the user
experience
2.

4. Proactive innovation is one of the best
ways to stay competitive in an evolving
marketplace. New technology needs to be
assessed, tested, analyzed, and judged
more quickly than ever. Businesses can no
longer afford to waste time and resources
implementing new tools that offer no real
value. This means a “Fail fast, to succeed
faster,” mentality. Some projects will work
straight away, others will have significant
learning curves. The faster your
organization can go from idea to
implementation the more it can embrace
opportunities to transform and even disrupt
markets and internal business
models. We’ve already talked about
adaptability, but that plays a major role
here as well. If a company has an adaptive
culture where new tech can be easily
integrated—or is at least encouraged—that
enterprise is set up for long-term success.
Innovation must
happen rapidly
3.

5. Young professionals prefer
flexibility to compensation.
Mobile technology and
bandwidth proliferation allow
businesses to connect with (and
retain) top talent anywhere in
the world. Contract and
freelance employees appreciate
the ability to work from home or
while sitting on the beach.
Companies benefit from having
the ability to hire the most
talented employees available in
any time zone. As
businesses’ digital
transformations continue to
support telecommute
capabilities, I expect that we’ll
see exciting new developments
and opportunities for remote
operations.
Embrace the remote
workforce
4.

6. The booming success of the Pokémon
GO AR app is a wakeup call to any
business that hasn’t evaluated the
potential of AR and VR. These
technologies were once limited to the
gaming realm, but they’re now easier to
implement than ever before. The
mainstream shift toward AR and VR
provides new ways to connect with
customers and offer unique, memorable
interactions. The popularity of AR and
VR also open up the gates for workplace
gamification. I predict that by next year
gamification will go from a footnote to a
core business strategy. We are currently
researching this and anticipate there will
be a strong roadmap for incorporating
gaming into the workplace along with
VR and AR for improved employee
engagement, retention and customer
experience.
5. The advent of augmented reality (AR) and virtual reality
(VR)

7. Digital transformation inherently
espouses shadow IT and the need for
agility. New tools and technologies need
more than one avenue for viability—
otherwise, their value quickly drops.
APIs are a secret weapon for embracing
true digital transformation. eBay and
PayPal are two companies that have
relied significantly on these
technologies, and it’s enabled them
manage an incredibly high volume of
transactions. As companies seek to tie
together more and more best of breed
technologies, APIs will play a big part in
making this possible. Instead of being
forced to marry a platform, the API will
open doors for multiple platforms to tie
together in an ecosystem that is fast
and flexible. Certain software and
technology companies may resist this
change as it means sharing the pie, but
for companies looking to deploy the
technology that creates the best user
experience, it is often required to source
from multiple vendors.
Application program
interfaces (API)
6.

8. The importance of big data in
the business world can’t be
overstated. We know that
there’s a dizzying amount of
valuable data in the world,
but few companies are using
it to maximum effect.
Analytics drive business by
showing how your customers
think, what they want, and
how the market views your
brand. In the age of Digital
Transformation, almost
everything can be measured.
In the coming year this will
be a cornerstone of how
businesses operate. Every
important decision can and
should be supported by the
application of data and
analytics.
7. Big data and analytics

9. Speaking of how invaluable big
data is to marketers, the IoT offers
immeasurable insight into
customer’s mind. It’s also changing
how daily life operates by helping
create more efficient cities and
leaner enterprises. Businesses
and customers alike will continue
to benefit from the IoT. With
an estimated 50 billion IoT
Sensors by 2020 and more than
200 billion “Things” on the Internet
by 2030, it is no question that IoT
will be not only transformative, but
disruptive to business models.
8. Digital transformation is driven by the Internet of Things
(IoT)

10. Our relationships to technology continue to
evolve. Soon machines will be able to learn
and adapt to their environments. AI has long
been considered the realm of science fiction,
but as technology improves, AI becomes a
reality. While advanced learning machines
may replace low-skill jobs, AIs will be able to
work collaboratively with human
professionals to solve intensely complex
problems. AI stands to become one of the
most disruptive forces in the IT world.
Smart machines and artificial
intelligence (AI) are taking off in a big
way
9.

11. The role of the CIO has changed
dramatically over the past decade. With
rise to new roles like the Chief Digital
Officer and the Chief Customer Officer, we
are seeing a rise in the important of digital
transformation happening NOW, and the
importance of it happening not just in the
technology of a company, but across the
entire organization. Tradition solutions are
more multidimensional and technology
CANNOT be used as a crutch. A focus on
breaking down silos, will give innovation
more room to flourish and collaboration
becomes easier.
10. Destroying silos

12. I believe that these new trends and
technologies will be at the core of
digital transformation efforts in 2017
and many will continue far beyond
the next year. There is no question
that digital transformation is no longer
an option as the need to build an
organization that can change both its
technology and its culture rapidly will
be core to not only surviving in the
time of business disruption, but
building a business model that is
agile, adaptable and designed to
thrive long into the future where
change is the only constant.
Conclusion
Daniel Newman
Principal Analyst, Futurum Research
@FuturumXYZ
@Danielnewmanuv
www.Futurum.xyz