The Digital Revolution starts in the head!

 

Digitalization in business means much more than just the introduction of new technologies or business models. In the meantime, many companies have come to the conclusion that digitization not only means the implementation of new processes and the use of state-of-the-art technologies but also requires strategic thinking models.

 

The success of digitization poses many challenges for many companies. The digital transformation of individual processes and areas in order to survive and compete in a digital competition with other companies is often the digital alternative to inactivity and postponing. One thing should be clear to everyone: inactivity and be postponing is not an option. However, the mistake should not be made to regard digitization as just a new technological approach. It is more promising to understand digitization as a cultural change and to transport it to all employees in order to enable a holistic implementation.

 

According to a recent study by McKinsey, the services of digital transformation have yet to become fully mainstream. On average, industries are less than 40% digitized, despite the deep penetration of these technologies in media, retail, and high tech, healthcare. Results show that some companies have now drawn their conclusions from their first digital failures. The biggest mistake that has emerged is the lack of cultural change in companies. Added to this are the frequently existing silo structures and inadequate digital strategies or even a lack of understanding by employees for digital trends. At the beginning of their digitization strategy, many companies ask the questions: ‘What does digitization mean for our business?’, ‘How digital is our company already?’, ‘What potential exists for our industry?’, ‘What will the ROI of these digital revolution’?

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Businesses need to define what digital maturity they already have and how much existing staff can handle and implement the challenges they’ll face. The best employees to successfully realize a digital transformation are not necessarily the most technically skilled IT people. It is important that those involved in strategic planning, in addition to a mature digital competence, also have the will and a corresponding perseverance to identify with the relevant issues, to drive them forward and persist even on dry spells and not give up immediately. Also, we must not ignore the outstanding role of CEO in driving the digital-transformation process. The process needs to start from the top. Companies need to change structures. The only one who can do it is the CEO. He/She needs to embrace the topic and make it a priority. He/She needs to consistently communicate to the organization, act decisively, empower people who help drive the transformation and also sideline people who are in the way. Very important point is that there is no return ticket, and this is what a CEO needs to radiate.

 

If appropriate, companies should designate a strategic digital team from different areas. The appointment of such a team should also involve neutral, non-industry ‘digital talents’. These bring an extraordinary and new – mostly external – perspective for the company and can significantly contribute to the success of digitization.

 

The most successful teams see the transformation that digitization requires as an opportunity and a challenge. They enjoy developing new things for internal and external customers and are driven by their affinity to new and especially digital topics. It’s clear the impact of these revolutions will bring profound changes in many areas, including the localization of production, impacts on global trade, the nature of the workforce of the future, and the distribution of wealth. While the good news is that these changes will play out over years and decades, the bad news is that they require deep and fundamental changes in companies. While some of the projects are certainly overestimated in the short term, the long-term impact has most certainly been underestimated.

 

For a successful digital implementation in companies is not necessary to assign these tasks from the very top level and to put themselves on hold. Rather, it is necessary to ‘digitize’ the corporate culture, so that the implementation can be supported by the entire workforce. Digitization should not be transferred purely to specialist areas but should be thought through from the very top, planned and, above all, exemplified. Also, to successfully navigate a path through the array of strategic challenges and options, companies must separate hype from reality and come to grips with how technological change affects companies. Only then can they consider what must be done and how to go about it.

Cybersecurity and Digital Businesses Transformation

In a special report on digital business transformation and cybersecurity, Gartner affirms that as organizations migrate their business to digital, a lack of directly-held infrastructure and services outside of IT’s management can ought to be self-addressed by cybersecurity. “Gartner predicts by 2020, 60% of Digital Businesses will suffer major service failures due to the inability of IT Security Teams to Manage DigitalRisk

As Digital Transformation initiatives gain pace across the world, the threat of cyber-attack grows in tandem. Further risks stem from the evolving business and regulatory requirements and technology trends that are posing new cybersecurity challenges and endangering the success of digital programs.

 

We all know today’s business depends on technology and digital systems are now lifeblood of an organization. With that being said, Paul Proctor, vice president and distinguished analyst at Gartner, affirms that “Cybersecurity is an important part of digital-business with its new challenges in an open digital-world“.

Organizations leaders must realize that it’s time for a fundamental rethink of how cybersecurity is positioned and understood within their organizations and which innovation they must do to survive digital risks.

 

Let’s have a look on 5 key areas of focus, identified by Gartner, to address successfully cybersecurity in digital business:

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Hard to admit, but the perfect protection is not feasible. Gartner states that 60% of cyber security budgets in the companies will be dedicated to the early detection of threats in 2020. This is less than 30% in 2016. “Organizations need to detect and respond to malicious behavior and incidents, because even the best preventive controls may not prevent all incidents, “says Gartner.

 

  1. Improve the leadership and governance : Improving leadership, getting governance right, making security a board-level priority, measuring leading indicators to catch problems while they are still small, is more important than the development of tools and skills when it comes to cybersecurity and technology risk in digital business. Governance, data infrastructure, decision making, prioritization, budget allocation, awareness, budget allocation, reporting, transparency and accountability are key features to protect and run any business.
  2. Adapt to evolving threats: In today’s connected, information-heavy world, organizations across all sectors are facing not simply escalating risk, but the near-certainty that they will suffer an information security breach. IT department must overcome the challenge to prevent all threats and risk management. Gartner predicts that companies will spent 60% of cyber security budgets to early detect threats in 2020 instead of waiting for the last minute. Only a sharp focus on business structure, culture and risks will let you better safeguard the data essential to your organization’s survival and success and prevent all nightmares.
  3. Alignment of cybersecurity at the speed of digital business: Organizations that adopt digital go at a faster pace than traditional companies. So the same logic must go for security systems, with that being said, the traditional security system will stop working in the new era of digital innovation. Organizations must invest in their security system in order to innovate them to avoid all obstacles. Companies are increasingly reliant on digital data to drive their growth. The “bad guys” have recognized this, have fortified their techniques and are enjoying significant success; while the “good guys” are still trying to fight a modern war! Having a well-defined security program can help management make an informed choice about how to invest in security. All organizations able to successfully establish an ecosystem that protect and grow business will remain competitive.
  4. Explore the new era of cybersecurity: Before it was perhaps easier to protect data because they resided exclusively in the data center. New technologies are now overflowing data outside via the cloud and mobile etc. For example, in 2018, 25% of company’s data will come directly from IOT (=from mobile to the cloud), and by circumventing enterprise security controls. Organizations must now respond to the issues of cybersecurity and risks of technologies and assets that they no longer own or control.
  5. People and Process – Cultural Change: As companies support productivity through the rapid integration of bring your own device (BYOD), cloud computing and other aspects of total mobility, there is a corresponding increase in the risk to which the information located on or accessed via these channels is exposed. With the acceleration of digital business and the power technology gives individuals, it is now critical to address behavior change and engagement from employees to customers. Internal threats to information security run from the inadvertent (simple user error, loss of mobile devices) to the malicious (internal fraud, data theft). Cybersecurity must meet the needs of people through the process of change. People-centric security gives each person in an organization increasing autonomy in how he or she uses information and devices — and what level of security adopted when he or she uses it. The individual then has a certain set of rights in using technology and is linked to the group in the entire enterprise. The individual must also recognize that if things go wrong, it will have an impact on the team, group and business.

 

Sources: Special report – Cybersecurity at the Speed of Digital Business

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