The business benefits of digital transformation are many. But as your organization increases its level of digitization, it's naive to think that the challenges don't increase in line with the benefits. Identity and Access Management is the key to getting through the difficulties unscathed.
There are many benefits to digital transformation - financial gain, operational optimization, product transformation, customer engagement - but it is necessary to be aware of the problems and pitfalls that almost always arise when implementing transformation. Here are four areas that typically challenge organizations.
Explosion in the number of applications
The foundation of a digital business is, of course, a strong IT infrastructure and a well-developed IT environment. But the more digital the organization becomes, the more applications each employee needs. At least, that must be the reasoning.
In reality, the number of applications often ends up exceeding the needs of the business. Either the company has simply implemented too many applications compared to what is needed - or the individual employees have access to far more than they need.
This can be due to a number of reasons. Old applications may not be phased out as new ones are phased in, and with a significant increase in the number of Cloud SaaS solutions being purchased directly by business departments - simply because it has become so easy - rather than IT, organizations can easily find themselves in the midst of a tangle of unnecessary, overlapping and invisible applications.
In a report on the application landscape, Capgemini estimates that 34 percent of CIOs believe they have more applications than the business needs. As many as 14 percent believe that they have significantly more applications than they need.
It is a concrete challenge for the business. Because it is a serious threat to the IT department's procedures and the security of the organization. The more the company's application and software landscape expands, the harder it becomes to control. With extensive shadow IT, the risk of successful hacker attacks increases significantly. According to the report State of Attack Surface Management 2022, nearly 7 in 10 organizations have been compromised by shadow IT in the past year.
In a nutshell: Technology and software are the foundation of successful digital transformation, as they make the business agile and make it easier to scale as needed. However, it is crucial to use your digital tools wisely so that they do not end up slowing down your business rather than making it more efficient.
Increased regulatory pressure
Since the implementation of GDPR in May 2018, businesses around the world have faced increasing regulatory pressure regarding data collection, storage, and processing. However, it is important to note that in addition to GDPR, organizations also need to consider the Network and Information Systems Directive 2 (NIS2).
NIS2 aims to improve cybersecurity measures across the EU and covers a wider range of organizations than the previous version. The directive imposes obligations on operators of essential services and digital service providers, requiring them to implement appropriate cybersecurity measures and report major security incidents to the relevant authorities.
For organizations that heavily rely on digital infrastructure, the storage and protection of data have become even more complex. Compliance with both GDPR and NIS2 is crucial to avoid significant regulatory fines and reputational damage. This places a considerable organizational and financial burden on businesses that do not have the necessary systems and work processes in place to meet these compliance challenges effectively.
Changes in the workforce
As organizations undergo digital transformation, it naturally affects employees - the company's workforce. Their work becomes more mobile, more digital, and more overlapping with their private lives and personal digital devices.
This places high demands on internal IT systems when employees expect to be able to access applications and relevant data anytime, anywhere. Also, in terms of security. The same challenge applies to BYOD (Bring Your Own Device), which is a current issue in many workplaces.
The COVID-19 pandemic has further accelerated the changes in the workforce brought about by digital transformation. The widespread adoption of remote work and social distancing measures have forced organizations to quickly adapt their operations to ensure business continuity.
With employees working from home or remote locations, organizations have faced increased challenges in providing seamless access to applications and data. The reliance on personal devices and home networks has introduced additional security risks, as employees may not have the same level of protection as in-office environments. This has necessitated the implementation of robust remote access solutions and enhanced security measures to safeguard sensitive information.
Moreover, the shift towards remote work has highlighted the importance of effective collaboration and communication tools. Organizations have had to invest in technologies and platforms that facilitate remote collaboration. Ensuring smooth collaboration in a remote work setting has become a critical technological requirement for organizations undergoing digital transformation.
Security challenges are on the rise
You would think that cybercriminals had already reached the peak of sophisticated and inventive attacks. However, the truth is that their ingenuity and capabilities are evolving alongside security systems. The more digital an organization is, the more vulnerable its vast amount of data is to hackers.
Security firm Infoblox conducted a survey of 1,000 IT managers in the US, UK and Germany and concluded that 35 percent of the participating companies see a staggering 5,000 personal devices connected to their networks on a daily basis. This practice makes the organization an easy target for both phishing and malware attacks.
Scandinavia has been hit hard by ransomware and CEO fraud attacks, and there is no sign of them slowing down. According to PWC's Cybercrime Survey 2017, 74 percent of respondents are more concerned about the cyber threat now than they were in the past. 64 percent have suffered a cyber attack themselves in the past 12 months, and as many as 37 percent of those attacked not only lost money in the attack - their brand was damaged, they lost customers and/or they lost access to business-critical systems for extended periods.
Medium-sized companies in the crosshairs
Not only large multinational corporations have something to fear. A report by security company Malwarebytes and analyst firm Osterman Research shows that medium-sized companies with between 500 and 999 employees are particularly targeted by cybercriminals.
Among the survey's participating companies, 73 percent report that they have been hit by a security threat in the past 12 months, and that the majority of attacks were triggered by phishing, resulting in adware and spyware. On average, an attack costs a company a crippling DKK 1,895,585. This amount covers, among other things, the cost of replacing software, man-hours, re-establishing systems, legal costs, etc.
When embarking on the digital transformation of your organization, you need to rethink your security strategy and preparedness to meet unpredictable challenges as they arise.
Identity and Access Management is key
Identity and Access Management is crucial to the success of digital transformation. Precisely because it is the key to overcoming the challenges described above.
SIVIS Group
