When considering technology and its evolution, it would be amiss to view it with a one-point perspective. Technology today has its applications across sectors. From hard assets of the automotive and manufacturing sectors to virtual landscapes of edtech, e-commerce, and more, the digital frontier is only expanding.
External circumstances may not be entirely under business leaders’ control, but technological investments certainly are – and evidently, they did not hesitate to invest in digital transformation solutions in 2023. Notably, 89% of large companies globally have a digital transformation plan underway, a huge improvement from a couple of years ago.
While 2023 had its setbacks with the economic headwinds, on the flip side, emerging technologies such as AI had a bright spotlight. Not only did it transcend its capabilities, but it also propelled several businesses forward. For instance, Mercedes-Benz became the first automotive brand to integrate generative AI into its products and solutions. These changes don’t happen overnight, and with the rate at which technology is evolving, every new innovation that takes shape today only sets the tone for all that is to come.
Here are some ways digital innovation technologies are set to create waves of change in 2024.
Driving innovation- automotive industry
The automotive industry has gone through massive shifts since the pandemic. Consumer preferences shifting towards sustainable mobility have influenced the industry to create innovative solutions. In 2024, the sector will look into personalizing technologies, creating unique driving experiences, and constructing designs that will become the norm for the future.
Car manufacturers and customers have struggled to make incremental year-to-year model upgrades. However, digital transformation technologies are poised to present capabilities to make significant changes faster than ever. Even the fact that electric vehicles have made their mark on tough markets like India proves that we are witnessing the future of mobility.
Industry 5.0- manufacturing
In India alone, industry 4.0 technologies constituted 40% of manufacturing spending in 2023. It has become almost a norm, so much so that manufacturing companies have already started looking ahead. The confluence of AI, augmented reality, the metaverse, and other emerging technologies have advanced digital twin and predictive maintenance technologies—and manufacturers are taking notice. Several global OEMs have either already employed these technologies or are looking into investing in them in 2024.
At this rate, industry 5.0 is not a pipe dream. It could take as little as half the time it took for manufacturers to invest in Industry 4.0 to transition into Industry 5.0. A key reason behind this is that Industry 4.0 laid the foundation for any additional digital innovations to be made. But apart from that, manufacturers have also started making strategic collaborative investments and working with digital transformation solution providers, making their journey seamless and efficient.
Bringing it home: e-commerce and EdTech
E-commerce businesses have been leveraging data analytics to provide personalized shopping experiences to their customers for a while now. And virtual and augmented reality advancements have only influenced their digital innovation trajectory. 2024 could be the year that large-scale e-commerce players start dabbling into AR/VR technologies, bringing their products and services a step closer to their customers.
Similarly, students can bring their classes home as EdTech companies offer virtual classrooms that extend beyond a simple video call. This enhances the learning experience and makes classes more interactive and personalized. On another note, this could also aid students with disabilities, enabling them to take classes conveniently without missing out on group activities and interpersonal communications. The future of learning is exciting, and the EdTech sector has only started to grow.
Sustaining the future- green technologies
Sustainability isn’t a buzzword; it’s a commitment. Consumers value associating with sustainable brands, and there is no way around it today. For instance, more than half of the Gen-Z population in China aims to buy fewer fast-fashion clothing items in 2024. This is a huge shift, considering that much of global fast fashion originates in China. Green technologies are set to take center stage in 2024, influencing sustainable practices across industries.
Also, the discourse about AI’s impact on the environment has inspired businesses to look into alternative energy sources. Initiatives are underway towards the adoption of nuclear energy to power data centers. Companies are pouring in significant resources to pivot towards a greener approach.
Making it last
While there is a lot in store for 2024, it is important to understand that these innovations will soon become non-negotiable. And that is not only because of competition; it’s about staying adaptive and resilient in an era where agility is paramount. The strategic guide derived from understanding these trends is the key to unlocking opportunities, mitigating risks, and harnessing technology’s transformative potential. The year ahead isn’t just about witnessing change and actively shaping the future.
Dr. Mukesh Gandhi is the Founder & CEO of Creative Synergies Group.
Image Source: Freepik