Businesses across the globe are undertaking digital transformations. According to Statista, almost 75% of global organizations placed digital transformation as their top IT priority last year. Digital transformations involve using technologies such as AI to allow businesses to optimize customer service channels, free up employees to work on executive tasks, and help operations run more efficiently.
But the path to success is not always straightforward. Businesses must grapple with cybersecurity threats, regulations, and the challenges of updating legacy systems. Fortunately, there are clear solutions to these problems through skilling programs.
As technology evolves to improve businesses’ security, so do the capabilities available to hackers. For example, WormGPT is a hacking tool that enables cyberattacks to take place simply by manipulating the Large Language Model used in ChatGPT.
These evolutions pose a significant risk to businesses. The UK government’s cyber security breaches survey in 2023 found that 59% of medium-sized businesses and 69% of large companies recalled cybersecurity breaches or attacks.
The Impact of Cyber Breaches
Cyber breaches can significantly impact both long-term and short-term prospects for businesses. They can be expensive, cause reputational damage, and – depending on a business’ sector – can attract scrutiny from regulators. National cybersecurity regulations vary, depending on the country.
One example is the Network and Infrastructure Security Directive (NIS2), used throughout EU member states. Like most regulations, this is rooted in risk management; it requires relevant businesses to have preventative cybersecurity measures in place and report any cybersecurity breaches. Businesses must rectify any shortcomings in their cybersecurity processes or face sanctions.
Arguably, the reputational damage that these breaches cause is more harmful to business. These events generally receive significant amounts of negative press coverage, which impacts both current and potential clients. The 2022 Thales Consumer Digital Trust Index: A Consumer Confidential in Data Security Report found that 21% of customers worldwide stopped using a company that had suffered a data breach. A real-life example is Facebook’s share price dropping by 7% – a not-insignificant $43 billion – in the wake of the Cambridge Analytica data breach.
Companies using cloud modernization technology are seeing revenue increase at twice the rate of companies using outdated systems, and they are expecting consistent revenue growth of 15% or higher.
Despite the clear benefits, only a third of global managers are using generative AI (based on a study by McKinsey), and according to PwC UK, only 16% of businesses have fully adopted the cloud throughout their internal infrastructure. There is a chasm between the potential results businesses could be seeing and the reality for most companies who are afraid or unwilling to renovate their outdated tech systems or concerned about the costs to do so.
Companies must adapt as customers and employees are desperate for change. New technology can revolutionize the customer experience. AI has the ability to rocket self-service channel use by 2 to 3 times while 80% of customers expect bots and AI to improve experiences. Employees express a similar will for change – 94% of product management employees would move to a competitor bank with improved technology, and 92% would switch to a bank with stronger transformation goals.
Meeting Digital Transformation Goals
Understandably, some businesses have concerns about implementing change – for example, 70% of digital transformations in the banking sector surpass their original budget. Additionally, new technologies can be associated with cybersecurity fears. Knowing how to implement digital transformations effectively and meet budgets is important.
Skilling programs are a sustainable and cost-effective way of transforming your workforce and internal systems to be at the frontier of the digital economy. Programs can be tailored to businesses’ digital roadmap and personalized to build on employees’ skill sets. Once implemented, the learning process is continuous, so employees are constantly updated with new technologies. This is vital when – as detailed by Forbes’ IT Skills Gap Report 2023 – 93% of businesses believe an IT skills gap exists.
At Elev8, we understand the importance of digital transformations and are committed to helping businesses overcome the challenges of implementing cutting-edge technologies. Our focus on continuous digital skilling and employee development is designed to nurture and grow top technology talent, enabling organizations to scale quickly and adapt to evolving technology and consumer needs. Stay ahead of the digital transformation by speaking to our team today.