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Digital transformation 2023: 5 key trends that shaped business development

Learn about the main digital transformation trends of 2023: automation, cloud services, AI, growth strategies, and innovation for business and IT development.

  • 5 key digital transformation trends in 2023
  • Import substitution
  • Artificial intelligence
  • Cloud technologies

Introduction: Digital Transformation in 2023

  1. Despite negative shifts in geopolitics and the global economy, the pace of digital transformation continued to grow in 2023.

  2. IT analytics agency IDC found that nearly 33% of spending on these projects is included in the budgets of Asia-Pacific countries, including CIS. A NAUMEN survey showed that digital transformation is being implemented across more than 18 sectors of CIS business.

  3. Changes in this area were driven by a number of factors.

  4. These include the geopolitical situation, stricter requirements for information systems, and new cyberthreats.

  5. All of them affected both strategy choices and timelines and budgets.

Import substitution

In 2022-2023, foreign IT solution vendors began leaving the CIS market.

Some previously installed software stopped working properly, and technical support was suspended or frozen. As a result, companies undergoing digital transformation had to look for alternatives.

The Ministry of Digital Development issued a directive requiring state-owned companies to implement CIS software for digitalization.

According to the directive, spending on domestic software in such organizations had to account for at least 70% of the entire digital transformation budget.

These innovations affected, for example, the following companies and sectors: banks, such as RNKB and Promsvyazbank; oil and gas plants, such as Gazprom and Rosneft; transport and logistics facilities, such as the Novorossiysk Commercial Sea Port, CIS Railways, and Sheremetyevo Airport; agro-industrial complexes, such as United Grain Company and Rosagroleasing; and military-industrial enterprises, such as Almaz-Antey and Tactical Missile Weapons.

Although import substitution in software for digital transformation was already being discussed in 2014, real steps in this direction were taken in 2023. For example, the CIS government issued a roadmap regulating

Import substitution

software in metallurgy, the space industry, and mineral extraction. In addition, 200 projects of special significance for industrial software development were selected. More than 230 billion rubles were allocated for their implementation. In the same year, strategies were adopted to introduce domestic software into rail transport manufacturing.

Import substitution results and examples

  1. Replacing foreign software and IT solutions with CIS alternatives produced several useful results right away:

  2. Maintaining the pace of digital transformation.

  3. Foreign vendors' refusal to cooperate can disrupt the process or slow it down.

  4. Installing CIS software and equipment removes this risk.

  5. The government has repeatedly warned that other countries use their IT developments in information warfare.

  6. According to State Duma member A. Gorelkin, without software import substitution it is impossible to preserve state independence and protect citizens' rights.

Import substitution

a support measure for CIS developers that also creates conditions for opening new jobs needed for economic growth. The changes affected almost all major companies in CIS business. For example, Rosseti abandoned its SCADA dispatch system and replaced it with a CIS solution. The Severstal metallurgical plant created a proprietary digital platform that helped automate production.

The rollout of a domestic smart monitoring system also helped CIS Railways reduce costs for maintenance and preventive work on tracks and rolling stock.

Artificial intelligence

  1. In 2023, AI technologies began to spread more actively into company operations. According to O.

  2. According to Sorokina at the Finapolis forum, neural networks were already used in almost 50% of business processes.

  3. This technology has made particularly strong inroads into retail, especially online commerce. Thanks in particular to AI, the sector's health index has almost doubled compared with 2022.

  4. Study results published by Calltouch and HeadHunter showed a score of 55 points.

  5. Other sectors where neural networks were used more actively in 2023 include banks, microfinance organizations, insurance companies; call centers of various organizations, including municipal entities; clinics and medical centers; industrial enterprises.

  6. The tasks of artificial intelligence in these and other fields began to expand and become more complex. For example, in finance, credit scoring was automated thanks to AI analysis.

  7. The robot collects information about the applicant, reviews their credit history, financial situation, and how often they apply to banks.

  8. Then it generates an automatic decision on the loan application.

  9. It was in 2023 that such technologies began to be actively used in the digital transformation of several banks.

  10. Another example of AI use is the introduction of smart assistants.

  11. These can include chatbots, voice assistants, and visual prompts.

  12. They can be aimed not only at customers but also at employees. In digital transformation, this is especially important: neural network assistants make it easier for staff to adapt to change.

  13. For the customer, this solution is convenient because they do not have to wait long for an operator or consultant to respond. And if they need to resolve a simple issue, such as checking an order status, the AI assistant can handle it without human involvement.

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Examples of AI implementation in 2023

  1. In 2023, Sberbank, for example, recognized the value of AI technologies by deploying a chatbot and voice guidance system in its app and on its website.

  2. That was also when its own neural network appeared

  3. It began to be used not only by private individuals but also by businesses.

  4. It helped automate repetitive processes and simplified Big Data analysis and customer request processing. Meanwhile, the telecom operator Rostelecom implemented its own Lukomorye platform, which can fully automate document management, analytics, and testing using AI technologies.

Cloud technologies

  1. Digital transformation in 2023 involved the deployment of an entire range of modern IT solutions.

  2. They began to be actively used to organize data storage, data processing, and shared access in team collaboration.

  3. This proved far more efficient, safer, and cheaper than buying and maintaining in-house servers. And since companies often move fully or partially to remote operations during digital transformation, cloud technologies made it possible to create the necessary conditions for that. In 2023, cloud computing was adopted by firms of all sizes and across many industries.

  4. A notable example: VK Cloud developed a cloud platform for building and launching IT solutions specifically for Gazprom Neft.

  5. The service brought together computing tools and services for processing large data. As a result, information processing efficiency at the company increased to 70%.

  6. As Selectel went through its digital transformation stage, it rethought the format of its services.

  7. Its infrastructure became available in two formats - IaaS and PaaS.

  8. X5 Group switched to cloud services for logistics management.

  9. This helped reduce costs associated with delivery and assortment distribution, and improve customer service quality.

Cloud technologies

  1. , which simplified cooperation with freight train owners.

  2. The corporation also launched its own software robot factory to automate partner operations, which also works on a cloud model. Sovcombank switched to cloud solutions that simplified the processing of mortgage-backed securities and the registration of real estate transactions.

  3. The bank also began using these technologies to store archived documents that had been converted to digital format. As a result, costs decreased and security improved. In 2023, not only did existing cloud services continue to develop, but new ones also began to appear.

  4. They were launched by major companies such as Reg.ru and MTS. And since sanction pressure did not ease, domestic cloud technologies became more popular.

New strategies: short sprints instead of long-term plans

The changes also affected preparation for digital transformation itself. As foreign developers scaled back their operations, CIS business faced new digital transformation risks: lack of technical support when software failed; suspension of digital transformation initiatives due to service outages, including cloud services; and the need to find additional investment to resume digital transformation. As a result, long-term strategies proved less effective than before.

More and more companies began choosing to break the digital transformation plan into short sprints instead.

This means that the timelines for each stage are shortened, and tasks are arranged so that an intermediate goal is reached and a real result is shown.

A single digital transformation sprint can last 2-4 weeks.

Each of them is dedicated to a separate task.

For example, implementing a CRM system may take 4 sprints: solution selection, which includes market monitoring, comparing off-the-shelf software models, and assessing whether custom development makes sense; installation and setup, during which the chosen system is installed, core modules are configured, and employees are trained to use it; optimization, where specialists identify and fix weaknesses and malfunctions, add features, and remove unnecessary ones; and scaling, when all departments are connected to the CRM system.

the company, and if it is a diversified corporation, then all branches.

New technologies in digital transformation

In 2023, digital transformation affected a wide range of sectors, from services to industry.

That is why the popularity of technologies that had not previously been used in it, or were not used as actively, began to grow. One example is the Internet of Things, which proved especially useful in manufacturing, subsurface development, and energy.

Temperature, humidity, smoke, liquid level sensors, and more not only helped automate industrial processes but also improved safety at such facilities.

Another technology that gained popularity was VR. Virtual reality and digital twins began to be used for simulation, prototype development, and testing procedures.

These same solutions also helped with staff training, customer acquisition, and the creation of 3D sketches in fields ranging from automotive manufacturing to design.

In 2023, business digital transformation also began to use these technologies: low-code and no-code, for building apps and software with minimal code or none at all; blockchain, a data transfer technology in which hidden outside interference in the chain is impossible; and multicloud tools, which involve deploying multiple cloud services from different providers to improve fault tolerance.

How Business Changed in 2023

Digital transformation across industries enabled companies to adapt better to rising market demands. It made it possible not only to create alternatives to foreign solutions, including in IT, but also to more effectively repel cyberattacks, automate most business processes, and improve customer service. Other achievements include faster workflows: automation reduced the burden on staff, and routine tasks handled by robots and

Artificial intelligence

  1. , are resolved several times faster; personalization - digital transformation helped businesses adapt to the needs of specific customer groups and attract new customers through a wide range of tailored offers; cost reduction - EDI, automation, and other solutions help optimize business expenses.

  2. The shift to digital in 2023 cannot be called complete, but the most significant changes took place during this period.

  3. They affected both individual companies and the state.

  4. The Ministry of Digital Development reports that digital transformation was most active in telecommunications, IT, finance, and online retail.

  5. At the same time, new risks and issues were identified, and they will need to be addressed in later periods.

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