The necessity for digital transformation has become evident to organizations and company owners in less than a year due to the coronavirus outbreak.Even while digital transformation has been a top goal since before COVID, businesses are now rushing to make the shift as they improve agility, speed, and data-driven decision making.

The pandemic created new expectations and obstacles for businesses to survive and grow in this increasingly digital era, as evidenced by record-breaking jobless rates and millions of closed firms. In order to address a variety of obstacles, including preserving customer connections, promoting staff communication, and controlling cybersecurity concerns in a remote working environment, businesses have had to undergo extensive learning and implement significant modifications to their business models. However, the epidemic has been easier to manage and stay ahead of the curve for entrepreneurs who have been able to adequately prepare their businesses and ride the tide of digital transformation.

More than 80% of managers and staff in a BCG study of over 5,000 claimed that digital was assisting them in navigating the economic downturn brought on by the epidemic.

The following major themes will influence the growth potential for digital transformation in 2026 and beyond, according to our own research and the opinions of investors and entrepreneurs in the digital ecosystem:

Spending more on IT infrastructure is a result of remote work

Many business models were completely upended by the abrupt changes brought about by the pandemic, and traditional IT approaches were unable to adapt to changes in the market in a timely manner. People all throughout the world become virtual workers almost immediately after the outbreak. This led to the necessity for businesses to update their IT infrastructure. Investment in digital tools, services, and infrastructure to facilitate data and remote work has increased as a result of this shift. According to a Gartner prediction, global IT investment is expected to reach $3.9 trillion in 2021, up 6.2% from 2020. The need for cloud modernization has also increased due to the pandemic-driven remote working environment, prompting businesses to increase their investments in the field and set up systems that will enable them to transition to cloud-centric infrastructure and apps twice as quickly as they did before the pandemic.

Adoption of AI and IoT leaves supply chain management with white space.

The supply chain sector is quickly adopting new technology since intelligence, speed, and efficiency are now the most important criteria. Since historical data loses its relevance and dependability in extraordinary circumstances, COVID-19 has highlighted the vulnerability of conventional supply chain management systems. Fortunately, new technologies like AI and IoT are better positioned to assist in overcoming these obstacles. The way delivery and fulfillment businesses operate is being altered by AI and IoT, which assist automate a lot of repetitive chores and free up time for more strategic and significant business initiatives. The game is rapidly shifting as multinational logistics firms increase their investments in AI and IoT solutions to better handle massive data sets, run their businesses, and provide more effective customer service to clients around the world. According to Allied Market Research, the global supply chain management market is expected to develop at a compound annual growth rate (CAGR) of 11.2% from 2020 to 2027, from its 2019 valuation of $15.85 billion to $37.41 billion. Businesses are also adopting technologies like cloud-based supply systems for transportation management as a result of the increased complexity and additional expenses. Businesses are also adopting technologies like cloud-based supply systems for transportation management as a result of the increased complexity and additional expenses.

Design and consulting for digital experiences to expand more quickly

The effects of the coronavirus pandemic have permanently changed how people behave, and businesses have had to adapt to stay ahead of the curve. Almost all firms have been forced to restructure their client-facing strategies since the once excellent customer experiences are no longer sufficient. 74% of customers are somewhat or very inclined to make a purchase from a business based only on their experience, independent of the goods or price, says a survey by Forbes Insight and Arm Treasure Data. These days, businesses are investing in digital experience design firms and reconsidering their business and operating structures. Marketsandmarkets estimates that the worldwide digital transformation market will reach $1009.8 billion by 2025, up from $469.8 billion in 2020, driven by the pandemic's increased use of cloud services and the growing usage of mobile devices and apps.

Mobile apps that are interactive and captivating are reinventing the digital experience

Because of the pandemic's greater reliance on cellphones, there are now more options for IT companies to provide consumers mobile apps for a variety of purposes. Mobile apps are used for communication and video conferencing by people who work from home. Students attend online classes using mobile apps. People play games and consume more entertainment on streaming services. These smartphone applications have been assisting users in avoiding tactile interactions as people have been attempting to keep their distance from one another and refrain from going outside during the pandemic. Orders for meals, groceries, vegetables, medications, and a variety of other goods that can be securely deposited at the door are placed using on-demand smartphone apps. By 2026, users are expected to download 139 billion mobile apps from the Google Play Store alone, according to Statista. Even after the pandemic threat has subsided, the development of mobile applications is still increasing at an accelerated rate. Apps with capabilities that let firms leverage technology like cloud computing are also being added by mobile app development companies. Cloud-based mobile applications are renowned for their responsiveness and the fact that they don't require permanent storage on users' devices, typically taking up little to no space on their devices.

Growth leaps for analytics services and streaming video platforms

Following the pandemic-related lockdowns, streaming services for games and videos saw a surge in new users. There haven't been many options for entertainment because most movie theaters, shopping centers, and parks are closed, and people are scared to go outside. Video streaming has grown in popularity, both in terms of users and time spent on the platforms, as people always look for ways to amuse themselves in the comfort of their own homes. In 2026, the Video Streaming (SVoD) segment is expected to generate $98.37 billion in sales. By growing on the cloud, streaming companies are also enhancing their video quality and bandwidth. Grand View Research estimates that the global streaming analytics market will expand at a compound annual growth rate (CAGR) of 28.9% between 2019 and 2025, from its 2018 valuation of $6.32 billion.

The importance of cloud security and cyber deception technologies is growing

Although companies have acted quickly to allow workers to move their operations to the cloud, they have also had to address a number of security issues related to this practice. The need for enterprises to identify and address advanced risks that have already compromised the network is growing as a result of the increased hazards of cyberattacks, particularly during the pandemic. Due to the pandemic, the need for security, which was already strong due to the cloud's quick adoption, is now growing much more. Additionally, this is encouraging the use of deception technology. The goal of deception technology is to stop a hacker who has successfully gained access to a network from causing any serious harm. The server will record and track the attack vectors used during the interaction if an intruder sets off a decoy. According to a survey by Mordor intelligence, the deception technology market was valued at $1335.5 million in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 13.3% from 2021 to 2026, reaching $2814.16 million.

The incredibly fast pace of technical innovation is not a hindrance in the modern world. By purchasing or investing in specialized technology areas to open up growth potential, businesses have been swiftly obtaining access to the advanced technologies required to increase revenues and capacities. While mid-sized Digital Transformation and IT Services companies have built on pillars like access to investments, large global markets, and marquee clients, emerging Digital Tech and Software companies have an advantage in building technology at the pace needed to sustain innovation today. Businesses are benefiting from new growth if they can effectively reach and exploit this innovation, especially through new alliances and investments.

Organizations that have undergone digital transformation now have a competitive advantage over others in terms of revenue growth and profits; going forward, organizations will need to accelerate their digital transformation if they want to experience sustained growth and have a long-lasting competitive advantage.