Over the last year and a half, numerous organizations have been forced to carry out business transformations that would have otherwise taken years to complete. But now that they've emerged from crisis mode, what kinds of problems are being created by this lightning-fast digital transformation? What new or accelerated hazards populate the enterprise risk management matrix's "urgent/critical" quadrant?
A Digital Reliance
We now work and live in a state of perpetual digital reliance. We cannot perform our job obligations or carry out the essential functions of daily living unless we operate inside a system of systems. We "fire up" a plethora of programs on a minute-by-minute basis, and those applications rely on other applications and a cloud infrastructure to function.
Considering Cyber Security Risks
This widespread reliance throughout the digital spectrum provides fertile ground for malicious actors attempting to destabilize information technology infrastructures. Cyber security dangers are expanding, as indicated by broad attacks on firms such as Microsoft and the growing number of ransomware cases. Additionally, we've expanded the risk to a myriad of networks, ranging from homes and coffee shops to any number of "work from anywhere" sites. This compels boards, top management, auditors, and governments to pay much closer attention and develop countermeasures to mitigate risks. We are all perpetually engaged in "goalkeeping." Given all of this, along with the increased reliance on supply chain applications and orchestration systems, cyber threats should now be at the top of every supply chain leader's priority list.
Don't Forget Instability
Second, all of this instability and disruption also provides commercial opportunities. With cloud services' costs declining and the tools for developing applications becoming more accessible, new firms can swiftly attract and monetize consumers. Disruptive competition is pervasive. Simply look at the quantity of "unicorns" popping up worldwide.
While a variety of factors influences valuations, one thing is certain: investors recognize the return potential of these disruptive entities. This indicates that "incumbency" is transient. Regardless of its age or scale, each organization will suffer severe competitive disruption. This means that supply chain leaders will need to devote significantly more attention to innovation support, adding another stress point to an already overburdened execution agenda.
Embracing Digital Transformation the Right Way
Even with these risks and disruptions, one thing has become clear: no matter the speed at which it occurs, digital transformation is unavoidable for those enterprises that wish to remain competitive in their fields. The solution is not to forgo adopting the technologies and solutions made available. Instead, organizations must execute discernment when deciding which investments they should move forward with. Executives must opt for platforms that prioritize security and reliability and expanded capabilities that create a "one-stop-shop" in which organizations can operate; this will undoubtedly sidestep some of these concerns while providing the support needed to get ahead of the curve.
Are you ready to embark on a digital transformation with an integrated supply management platform? If so, LevaData is here to help. Our AI-powered solutions are proven to help mitigate risks and reduce costs, all while analyzing your procurement objectives alongside real-time market activity to generate predictions and customized recommendations. Get in touch with us today to learn more about what we can do for you.
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