8 Digital Transformation Goals for 2025

The future is already here.

Technologies like generative AI, the Internet of Things (IoT), and robotic process automation (RPA) have equipped businesses with everything they need to completely change the way they function. 

But, technology moves faster than it can be adopted. 

Most businesses are still playing catchup as they integrate the latest technologies in their processes all the while trying to improve efficiency, increase profitability, engage employees, and retain customers. Achieving complete digital transformation to use the latest technology can only be accomplished by setting realistic goals and following a structured approach to achieve them.

What is digital transformation?

Digital transformation is the full-scale adoption of digital technology across a business. It completely changes how the business works and adds value for customers. 

The concept of digital transformation goes beyond using new technologies – it involves changing how a business and its activities, processes, skills, and models function. Look at the two major drives for digital transformation we have seen in the space of just four years. In 2020, the pandemic pushed every company to go remote. Companies quickly turned to digital tools and processes to meet new customer needs. Remote work, digital communication, and online sales became standard, and everyone adopted online communication and collaboration tools to survive.

Now, as AI technology continues to grow, companies face a new transformation. AI is changing how industries work by automating daily processes and tasks. As this second major drive for digital transformation gains momentum, companies must adapt again, reshaping their business models and processes to use AI smartly and ethically.

But, should the ultimate goal of digital transformation be to adopt new technologies such as online collaboration tools and AI?

What should be your digital transformation goals?

Your digital transformation goals should never be to adopt a certain technology. Technology is a means to an end – the end being improved business outcomes. Some of the business outcomes you can focus on include:

• Enhanced customer experience through AI chatbots
• Operational efficiency through robotic process automation (RPA)
• Improved decision-making through AI-powered data analysis and business intelligence tools
• Employee empowerment through learning management systems and mentoring platforms
• Cybersecurity and compliance through advanced threat detection systems and compliance management software
• Agility and innovation through cloud-based platforms and collaborative innovation tools

In all six of the above examples, the ultimate goal of digital transformation is a business outcome such as operational efficiency, and there’s specific technology such as RPA that will facilitate it. You can also write that goal as ‘Implement RPA within the next six months to achieve a 25% improvement in operational efficiency’. This way, you will have a SMART digital transformation goal for the whole team.

8 digital transformation goals for 2025

Based on market trends and publicly available technology, we believe the following 8 goals will prove to be beneficial for you in 2025 and beyond.

1. Improve process efficiency and effectiveness

In 2025, organizations will have to make their processes more efficient to survive. That’s because streamlined operations lead to better products and services and higher profits. And it’s not just beneficial for the leadership. 86% of workers believe that automation makes them more efficient and productive.

Here's what you can do to achieve process efficiency:

• Audit your processes to find where they lag. Then, automate with the help of bots where it'll help the most.
• Train your team to use new tech such as IBMs Robotic Process Automation and SAP Build Process Automation. 
• Keep an eye on your processes and improve them as needed. This way, you'll work not just more efficiently, but also more effectively.

2. Enhance customer experience

An exceptional customer experience is crucial in building lasting relationships and driving business growth. By focusing on this area, you can significantly enhance customer loyalty and market presence. Companies that focus on customer experience can see up to a 10-15% increase in revenue and a 20% increase in customer satisfaction.

To enhance digital customer experience:

• Implement a CRM system, such as CRMs by vcita, Salesforce or Zoho, to track and analyze customer interactions. 
• Next, integrate AI to tailor services and offers, providing a personalized experience.
• Lastly, adopt omni-channel communication strategies to ensure consistent and effective customer interactions across all platforms. 

3. Increase agility

The business world changes fast. To keep up, companies must quickly adapt to new trends and market demands. Companies that navigate change quickly have a competitive edge. Such companies are usually called agile companies (not to be confused with companies that use Agile methodology).

Agile companies are quick to react to market shifts. They are customer-centric and their structure often varies from the usual top-down hierarchy. For example, Spotify uses a structure known as ‘Squads, Tribes, Chapters, and Guilds’. In response to the growing trend of podcasts, the music streaming company was able to quickly develop and integrate new podcast-related features into their platform. This rapid adaptation was partly due to the autonomy and cross-functional nature of their squads.

Here's what companies should do to increase agility:

• Adopt cloud services for easy access to data and tools. Microsoft SharePoint is a good place to start.
• Use AI to analyze market trends and customer feedback in real time.
• Choose project management software that supports flexible workflows. Trello and Asana are both good options.

4. Reduce costs and increase revenue

Reducing costs while increasing revenue is more important than ever for businesses. In an era of economic fluctuations and increased competition, efficient cost management paired with revenue growth is key to sustainability. 

Walmart is a good example of a company that focused on cost efficiency to boost its margins. They had to do it because of increased competition from e-commerce platforms. To reduce costs, Walmart implemented advanced data analytics for inventory management, increased the use of robotics in its warehouses, and invested in renewable energy sources and energy-saving equipment. They also implemented e-commerce measures such as ‘buy online, pick up in store' (BOPIS). As a result, their sales are up by 7.6%.

To achieve cost efficiency:

• Start by automating routine tasks to save on labor costs. This could be done through RPA as well as warehouse robotics.
• Use data analytics to uncover untapped market segments or improve product offerings. Use Sisense or Microsoft Power BI for this.

5. Upskill and reskill employees

The rapid evolution of AI and other technologies is making many commonly used skills redundant. 59% of companies globally are upskilling employees due to this shift in technology.

For this goal, mentoring software, learning management systems, and virtual reality (VR) training are key. These technologies offer flexible, interactive learning experiences.

Here's the plan: 

• First, identify skill gaps in your workforce. 
• Then, use LMSs for accessible, varied training programs. Use 360Learning or a similar tool. 
• Consider VR for hands-on experience in a safe, virtual environment. 17% of companies are planning to use it and 21% are already using it.
• Pair less experienced employees with senior members of the team and implement structured mentorship programs so both parties can learn from each other.

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6. Encourage collaboration

Teamwork and collaboration lead to innovation and efficiency. Companies with strong collaborative cultures are flexible and more creative.

Think of Adobe. The company uses its own suite of tools, particularly Adobe Creative Cloud, to facilitate collaboration among its creative teams. Adobe uses virtual collaboration spaces to allow its teams to brainstorm, share ideas, and work on projects in an interactive environment. They host virtual events, workshops, and training sessions to keep teams connected and foster a sense of community. That’s why Adobe continues to innovate and release new product updates and features.

Here's how you can do it too:

• Implement collaborative software for easy team communication and project management. Microsoft Teams is a good option for this, because you can enhance it with other apps that are more specific to your use case.
• Use cloud services and virtual meetings for sharing resources and information.

7. Improve data security and compliance

Cyber threats are evolving, and regulations are tightening. The amount of data breaches in 2023 surpassed those in 2022 with a good three months left before the end of the year. That just goes to show that data breaches are becoming more frequent every passing year. 

Data breaches pose major risks to business integrity and customer trust, so it should be one of your top priorities to improve data security and compliance in 2025. Here's what you can do to protect data and ensure compliance:

• First, encrypt sensitive data, in transit and at rest, to safeguard it from breaches. 
• Next, explore blockchain for secure, transparent transactions. 
• Use AI-driven tools for real-time threat detection and compliance monitoring. SolarWinds and SumoLogic are both good options but you may need to train your own AI.
• Use data governance tools to manage your organizational data throughout its lifecycle. Atlan is a good platform for this.
• Enroll all your employees in cybersecurity and data literacy courses. Start with courses by EC-Council and Pluralsight.

8. Prioritize sustainability and environmental responsibility

Consumers, employees, and regulations are pushing for green practices. 78% of customers prefer a sustainable lifestyle (and sustainable products). 77% of younger and 80% of older employees view their employer as responsible for acting climate-friendly. This trend isn't just good for the planet, it's good for business.

To enhance sustainability:

• Use IoT to monitor and manage energy use. Siemens offers products that can help in monitoring your energy usage.
• Apply AI to optimize resource allocation and minimize waste. 
• Implement blockchain for transparent, sustainable supply chains.

Achieve digital transformation goals with Together for Microsoft Teams

As we approach 2025, technologies like AI, IoT, and RPA are reshaping the business landscape, driving efficiency, and giving birth to innovative new products, services, and processes. Navigating this digital revolution requires more than just technology, it demands a calculated approach where you get the best out of new technology and integrations. 

Here, Together for Microsoft Teams will be your ally.

Together for MS Teams helps you get your mentorship program off the ground by reducing the friction caused due to too many workplace tools. Together’s mentoring software is embedded right in the MS Teams environment so mentors and mentees can dive straight into their mentoring sessions without switching apps or opening yet another tab on their browser. 

By being present in the MS Teams app, Together’s mentoring software makes it easy for participants to book mentorship sessions, receive notifications, and act on those notifications directly in Teams. 

Take the first step towards successful digital transformation. Try Together for Teams now and experience a synergy that drives success. Sign up for a demo today.