As we approach the halfway stage of Q4 and before I start to contemplate digging the Christmas lights out of the loft, I thought I would pen down my Top 5 digital transformation predictions for 2025. This is based on my own market research and hundreds of conversations with clients throughout the past 12 months regarding their future plans. So here goes, let me know if I have missed anything:
AI-Driven Personalization and Predictive Analytics: AI will deepen customer personalization,we’ve seen this alot with our retail clients and in marketing and brand, where it will analyze user data to provide tailored recommendations. Predictive analytics will jump forward, enabling companies to forecast market trends and consumer preferences more accurately.
Hyperautomation: This could be both good and bad news for end users. Executed poorly, automation and do more harm than good but there can be no doubt that companies are accelerating the adoption of hyperautomation, leveraging AI and robotic process automation (RPA) to streamline processes across various departments. This trend will increase efficiency and cut costs, especially in our sweet spot areas like supply chain, finance, and HR.
5G and IoT Expansion: The widespread rollout of 5G will fuel innovation and support a surge in IoT applications. Real-time data processing will become more feasible, particularly benefitting sectors like healthcare, manufacturing, and logistics, where fast data transfers and instant analysis can drive efficiency and enhance decision-making.
Digital Sustainability: Environmental sustainability is now a core part of digital transformation strategies. Many of the clients I am speaking with are integrating energy-efficient technologies, optimizing supply chains with IoT for waste reduction, and adopting “green IT” practices to align with sustainability goals. This includes investing in energy-efficient data centers and choosing vendors committed to environmentally responsible practices.
SAP Skills Shortage and Cloud Migration: With SAP migrations to S/4HANA underway before the 2027 ECC deadline, the UK faces a shortage in SAP skills. Clients are finding recruitment very tough and salaries are way outstripping expectations, in response I think we’ll see more clients investing in reskilling and training initiatives to bridge the gap and help make cloud transitions smoother and more cost efficient.
Remember to shout out if you think I’ve missed any, this is not an exhaustive list but the 5 that jumped out at me. I look forward to reading yours over a glass of gluhwein and a mince pie :)
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