As we move further into 2023, it’s clear that many industries are heading into turbulent times. The fallout from his global Covid-19 pandemic is affecting companies struggling to overcome ongoing supply chain disruptions and worker shortages. A recession is predicted in many parts of the world, and the war in Ukraine is creating unprecedented problems for energy and food production. It is not surprising that “permacrisis” (meaning long-term instability and instability) was chosen. word of the year 2022 From the Collins English Dictionary.
To combat this, a priority for many organizations when it comes to digital transformation is to switch from traditional goals such as driving profits, revenue, or growth to building resilient businesses. A resilient enterprise is a A company that is strategically prepared.
With that in mind, here’s an overview of some of the ways forward-thinking companies are focusing their digital transformation initiatives to overcome today’s most pressing challenges. Threats such as cyberattacks, supply chain disruptions, environmental and social disruptions, and workforce disruptions affect every business in different ways. Developing new flexible and agile ways of working is essential for the survival of companies.
Technology disrupts business as it creates new solutions to old problems using new tools, methods, applications, or capabilities. Case in point: video streaming wiped out the decades-old multi-billion dollar video rental market for Netflix and similar businesses almost overnight; and disrupted the tourism industry, and how ride-sharing apps like Uber upended business. A model for taxi companies around the world.
To build resilience against these threats, companies must ensure they fully understand the new technology landscape relevant to their market. And don’t simply ignore them and leave them for rivals and startup competitors to go up against them. These include Artificial Intelligence (AI), Internet of Things (IoT), Virtual and Augmented Reality (VR/AR), and Blockchain. If you’re running a business, understanding that all of this can disrupt your digital business model is essential and a great starting point when considering how to incorporate resilience into your digital transformation strategy.
In the past, cybersecurity was often an afterthought. It was probably put into the system and managed by the IT department after the core business functions were established.the world is facing Explosion of speed and severity In the case of cyberattacks, it is clear that this is no longer the case.
Cybersecurity is an issue that needs to be addressed at every level of an organization, from the board of directors to the shop floor, which should be implemented as a core element of your digital strategy. Employees should be educated on the importance of security he skills, from finding phishing and ransomware attacks to using passwords and his 2FA safely. These simple steps are essential to thwarting most attack attempts that take the form of social engineering. The more devices a company connects to a network, the more potential attack vectors there are for attackers trying to gain access to the system, so regular auditing of all equipment in the company is essential.
Secure supply chain
Since the COVID-19 pandemic, the delicate nature of the global supply chains that keep businesses running and customers supplied has eased sharply. Besides, it reveals how dramatic political turmoil (think Britain’s Brexit and the war in Ukraine) can sever the vital links that keep businesses supplied and running. became. Another threat is the global recession and its impact on business. If a critical supplier goes bankrupt or goes out of control, it can have serious repercussions for other organizations that depend on it for parts, products, or services.
Building resilience here requires taking steps to move away from the “just-in-time” model adopted by most of the industry in order to streamline operations and minimize costs. This may mean holding more inventory at the cost of additional costs. Some organizations may even rethink their policies of offshoring and outsourcing elements of their operations to ensure that they have as much of their infrastructure under their direct control as possible.
There are tech options to help with all of this. This includes AI and machine learning-powered solutions that manage inventory, analyze supply chains to uncover inefficiencies, and identify weak spots in the chain. Blockchain solutions are also emerging in many industries with the aim of creating a more secure and resilient record of transactions involving multiple companies. Examining all of these opportunities is critical for organizations wanting to ensure their digital transformation strategy is aligned with resilience.
Many companies and organizations understand the importance of moving towards sustainability goals such as net zero carbon emissions and generally reducing the impact of their operations on the environment. This could take the form of reduced pollution, or reduced energy and water usage. Because the world is facing a severe crisis of supply for both.
It is therefore clear that developing and achieving environmental goals is a central part of transforming your digital strategy. This may include assessing the impact of initiatives such as cloud migration versus maintaining on-premises infrastructure in the context of how it impacts your organization’s emissions and energy usage. Technologies such as AI, data analytics, and blockchain solutions also offer new ways to monitor sustainability issues and aid decision-making. Larger organizations are also beginning to examine the impact of their products and services on the “downstream” environment, that is, the impact created by their customers and users. Technology and digital transformation can be used to get a complete picture of all these elements of environmental governance. Doing so should be an important part of your 2023 digital transformation strategy.
Overcoming skill crisis
World Economic Forum and Predict With half of all employees needing to be reskilled by 2025, many organizations face a future where they lack access to the skills they need to benefit from new technologies. Additionally, missing critical functions such as cybersecurity leads to other threats to resilience simply because it is difficult to build the skilled workforce needed to operate it.
Digital strategies that can help here include investing in innovation in the areas of employee training and upskilling. When it comes to closing the critical skills gaps needed to build resilient organizations, identify it within the existing workforce rather than competing for a dwindling pool of costly external talent. is more cost-effective and quicker to prove. This could include leveraging online learning resources and immersive technologies such as VR/AR to create hands-on learning opportunities. there is. Organizations can partner with schools and higher education institutions to understand what programs are producing the types of graduates they need, and provide feedback on curricula to ensure students develop skills that are truly useful in the job market. You can also check that you graduated by wearing a .