In the next 5 years: the rapid spread of cloud computing and the rise of automation

In the wake of COVID-19, companies around the world have been forced to quickly adopt and adapt to new technologies in order to survive. The pandemic has accelerated automation to unprecedented levels around the world, permanently cementing digital transformation as a core business function across industries. In 2023, expect the widespread migration of automated systems to deepen as remote working, e-commerce, social media and the need for digital propositions steadily increase.

Coupled with Gen Z’s unparalleled online participation and expanding digital democracy, 2023 will see a deviation in the way automation is applied. The industry will likely shift its focus from urgently addressing business continuity and employee health issues to continuously delivering superior consumer experiences through flexible and resilient tools. As more organizations become better able to deal with disruption and have essential support infrastructure in place, automation will be driven as managing complex digital systems with maximum efficiency is critical to ensuring competitive advantage.

The Rakuten SixthSense CIO Challenge survey also highlighted that 77% of IT leaders believe the adoption of new software solutions is a priority for future success. On the positive side, businesses are preparing to enjoy better financial stability despite stalled global economic growth and an ongoing recession. This signals a significant increase in investment in automation as companies have more resources to beat the competition through technological superiority and efficiency.

At the core of digital business transformation is the adoption of dynamic, cloud-based automation that leverages real-time data input to provide instant solutions and flexibility to different companies. Therefore, 2023 is expected to drive the need for cloud automation deployment and scalability at a cost-effective pace. Although the industry's financial situation is gradually improving, uncertainty continues as the global economy slowly recovers from the pandemic.

Companies, especially SMBs, are spending cautiously but at the same time need fast and intuitive tools; to cater to these markets, cloud automation may become more economical. Therefore, 2023 shows that new B2B products will spring up as cost-friendly cloud solutions that solve bugs, speed to market, and efficiently utilize resources become a market demand, which will stimulate outbound innovation.

In particular, contemporary organizations are expected to leverage digital brand personas to engage in meaningful conversations with stakeholders who require ongoing services. Subsequently, virtual intelligent assistants have become increasingly normative for companies, suggesting that cognitive automation will increase as different industries strive to harmonize competing practices.

While intelligent automation will continue to be primarily targeted at customers, in 2023 it will play a larger role in the employee experience. Organizations are increasingly turning to virtual assistants for internal process management and quick problem resolution, with AI bots becoming a popular time-saving and cost-effective mechanism. Furthermore, with global unemployment and the number of people voluntarily quitting their jobs due to mental health issues set to rise in 2023, automation will be crucial for companies looking to predict and manage staff shortages.

While many workers worry that their jobs will be fully automated next year, 2023 is more likely to establish new ways of working that enhance human strengths rather than replace them.

Notably, automation will shine due to its ability to provide agility in increasingly volatile market conditions. Facing energy constraints, political instability and changing regulations, the manufacturing and transportation industries are bracing for global supply chain disruptions; these industries are expected to lead the largest investments in automation.

Focused on warehouse operations, automation is needed to develop quality scanners and sensors, intuitive technology for seamless data management, and digital solutions to address employee attrition. However, 2023 is a challenging era as cybersecurity and data privacy become increasingly vulnerable to attacks that threaten to shut down entire supply chains. Partnering with third-party cloud providers on critical systems significantly increases risk, leaving organizations without strong and streamlined security standards vulnerable to a high risk of data loss or misuse and network compromise.

While automation has the ability to dramatically impact socioeconomics, the technology’s huge potential to contribute to development and productivity is expected to be squandered by 2023. While several lucrative (and blue ocean) opportunities are available in large industries such as consumer goods and retail, customer centricity will take precedence over social applications when developing or using innovations.

However, as stakeholders increasingly advocate for purposeful technology and the trillion-dollar value potential in the social economy, companies are now increasingly recognizing the use of automation to address community needs. Over the coming year, industry is expected to make the necessary incremental structural changes to realign processes and automate society.

As a new chapter beckons, 2023 promises new challenges, but it remains an exciting time for automation as it becomes the key to international growth, profitability and sustainability. Main driving force.

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