The history of digital transformation is layered and has determined business processes for years. From automated technologies to AI-driven data insights, business leaders must understand the past, present, and future of digital transformation.

While cloud computing and low code/no code were top of mind last year, there are new developments as we head into 2023. Here are five key trends that will play a large role in the progression of digital transformation and its impact on the enterprise.

1. Bake security into everything

As businesses increase their reliance on SaaS platforms and widen their existing tech stacks, it’s essential to consider the security risks. The rapid increase in cloud for business processes opens the possibility of cybersecurity threats and disruptions. It is no longer a matter of whether malware attempts and cyberattacks threaten a company but when.

[ Also read Digital transformation: 6 lessons for CIOs. ]

Although innovation brings solutions that benefit enterprises, cybersecurity threats have become more pervasive and more advanced. Companies must develop strategic cybersecurity practices that protect business data, employee data, and customer-sensitive information.

2. Embrace open source technology

The growing impact of open source technology – software that can be modified, viewed, and used by anyone – has benefited businesses. Yet to truly take advantage of the possibilities, company leaders must understand the intricacies of open source and why it creates more efficient workflows at an enterprise level.

Open source enhances collaboration, enables customization, and fosters innovation. Just as low-code/no-code technology enables business users to perform IT tasks without relying on developer skill sets, open source will be the next step toward the democratization of technology.

3. Create personalized customer experiences

The customer experience has evolved significantly over the past 12 months. It’s moved beyond automated customer support messages and menu options to become a truly valuable and innovative experience in which questions are answered, and information is easily accessible.

Leveraging digital transformation to create innovative solutions and drive customer experiences is essential to providing personalization at scale. As digital experiences’ use cases expand across the enterprise, businesses must also tap into the technology to build advanced and effective customer experiences.

By providing personalized experiences, businesses can stand out in an increasingly crowded marketplace. Using data and analytics, companies can create customer and employee experiences that transcend automated chatbots and tap into individuals’ needs, behaviors, and values.

4. Enhance employee experiences

Employee well-being and corporate culture are being spotlighted more than ever. Not a day goes by without a Tweet or LinkedIn post extolling the virtues of environments that encourage high-performing teams. As employees navigate a return to the office or hybrid work arrangements, companies must create optimal employee experiences.

IT leaders and managers must provide tools that prevent fatigue and ensure positive, innovative employee experiences. SaaS platforms can help businesses achieve this at scale while maintaining efficient workflows and avoiding bottlenecks. Many platforms, such as Slack and Monday.com, are designed to enhance employee experiences, engagement, and overall productivity.

Additionally, tech company leaders must help their organizations grow during unprecedented economic and geopolitical challenges. Sustainable growth can only be achieved when employees feel valued, have opportunities for training and upskilling, and are offered paths that match their career goals.

5. Bring spend efficiency to SaaS

As businesses utilize a growing number of SaaS platforms, company leaders must evaluate how they manage the gradual accumulation of apps in their tech stack. Without SaaS management processes, companies can be blindsided by auto-renewals, unused licenses, and a greater risk of shadow IT.

SaaS platforms are essential to business productivity and growth, but businesses must increase their visibility into how these programs are utilized. As businesses navigate a recessionary environment, spend efficiency will be critical.

[ Discover how priorities are changing. Get the Harvard Business Review Analytic Services report: Maintaining momentum on digital transformation. ]