3. The key challenges of IT modernization
This is truly the year of customer centricity. According to Forrester, high-growth companies are two-and-a-half times more likely to focus on solving customer problems than their competitors.
As such, business leaders are becoming familiar with the potential difficulties associated with these trends. The tech age we exist in not only presents challenges in keeping up with rapidly advancing technologies, but it also demands we cater for the ever-evolving wants and needs of a modern workforce.
The app explosion
With the use of so many apps, businesses could face a serious threat when it comes to IT protocols and business information security. As the inventory of apps and software grows, so does the call for organizations to better manage shadow IT for modernization to be effective. That includes gaining an understanding of your teams and customers. How do they prefer to communicate? How and when do they like to work? These answers will help increase user adoption rates and deliver services that meet the needs of your customers.
A new wave of disruptors
Big data, the Internet of Things, and artificial intelligence (AI) are disrupting the market across all industry sectors. Cisco Chairman John Chambers once said, “At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies.” This statement continues to hold true, and that level of sophistication, when it comes to technology, is able to create new business models that some companies simply can’t keep up with.
In light of this fact, business leaders must remain aware of and prepare for upcoming disruptors that have the potential to challenge their market position. Even with a modernization strategy underway, it’s imperative to stay updated with the latest innovations, regulations, and industry news. Even with a modernization strategy underway, it’s imperative to stay updated with the latest innovations, regulations, and industry news.
Data security regulations
The constantly changing landscape of data security regulations continues to put obstacles in the path of IT modernization. Organizations ill-equipped for Sarbanes-Oxley (SOX), HIPAA, and the California Consumer Privacy Act (CCPA)—with many more states to follow—could find themselves in serious trouble. Gone are the days when you could simply gather data and use it, meaning companies need to up their compliance game, and the IT department is key to making this happen.
Cyber-attack sophistication
Cyber attacks are sophisticated enough to handle even the most modern of systems. From the LinkedIn to Accenture, no company or industry was safe, and companies of all sizes were—and still are—at risk. McKinsey & Company reported that costs related to cybercrime will reach $10.5 TRILLION per year and $101.5 billion will be spent on cybersecurity services providers in 2025. IT modernization strategies should therefore include preparation for potential breaches, including any new technology being considered, with IT security protocols that are quickly adaptable and constantly evolving.
Lack of compliance could result in fines into the millions, potentially costing a business their ability to operate. Ensuring your security strategy is updated and in line with applicable regulations should be top of your agenda before embarking on any modernization journey.