By Nor Izmawati Mostapar, Vice President of e-Learning & Corporate Communication
Changes in the industry is greatly attributed by the changing consumer demographics and consumer preferences coupled with technological advancements. This has inevitably shifted traditional business models. As digital transformation continues to accelerate, industries will also continue to be disrupted in more ways than one.
Disruptions due to digital transformation will create significant changes in the ways organizations do business – from workforce, product lines to supply chains. What remains traditional amongst the disruptive changes is the presence of risk in new opportunities.
Types of Risks to be Considered
Transformations are complex and the types of risk are important to consider depending on the business model, the stakeholders, the complexity of the operations and the type of technology deployed. Some of the specific risk areas include:
- Technology Risks
Technology risks influence both systems and processes and can be related to obsolete technology or the scalability of technology deployed.
- Cyber Risks
The ever-present spectre of unauthorized intrusion is one of the key concerns of all organizations. Monitoring, app security and even network architecture can influence this type of risk.
- Strategic Risks
Strategic risks are closely linked to brand, reputation and customer experience. The deployment of technology can automate functions that were previously “high touch” and can impact a customer’s perception of a company.
- Third-Party Risks
Many companies operate with tight integration with vendors and suppliers, especially in areas such as supply chain. This integration relies on vendor access to key internal systems.
All can be mitigated and controlled by a transformation plan with strict governance and one that lays out the path, captures the metrics to measure the success and one that stays on mission throughout the buildout of the digital infrastructure.
” Risk is difficult to manage, but with careful consideration, planning and buy in, managers and decision makers can navigate a digital transformation successfully. With it, comes new opportunities and an enhanced competitive advantage.”