Operating a business in today’s digital world brings more threats than ever. Globalization and the internet have increased profitability, but have also brought more risks.
For the technology sector, the threats are even more evident. This article will explore four major threats tech companies are facing in 2022.
Cyber attacks are targeting everyone, and the tech sector certainly isn’t the exception. Tech companies need to have strong security measures in place to protect their data from threat actors.
For starters, every business should have strong antivirus software, firewalls, and encryption in place. Using strong passwords is also a must, and a business password manager like this one can be of great use.
Another source of risk comes from third-party vendors. Tech companies collaborate with plenty of those for everyday operations.
Large amounts of sensitive data is shared with those vendors, increasing the risk of a data breach. Businesses must limit the amount of data they provide to these vendors and choose them very carefully with cybersecurity in mind.
Tech isn’t the only sector affected by the global chip shortage, but it’s where the shortage is most noticeable. Due to a series of events, from the pandemic to trade wars and unfortunate natural events, the demand for semiconductor chips far outweighs the production.
The end of this crisis is nowhere in sight, and tech companies have to look for more creative ways to adjust their supply chains. But, with Taiwan’s TSMC accounting for 53 percent of global semiconductor production, it’s hard to see where the new supply can come from.
To address this issue, governments and companies worldwide have started investing heavily in building chip production technology. But significant results can take years, if not decades, to come to fruition. In the meantime, shortages will remain a substantial threat for tech companies.
Disruptive innovation stands for innovation that creates a new market and demand. It replaces an older market with an improved product or service.
It’s hard to see innovation as a threat, but for some tech companies, it certainly is. New tech trends are emerging every day. Companies that don’t adapt to new tech trends will be left behind.
For the tech sector, periodical changes in the business model are imminent. Companies operating on old business models have to find a way to change and reinvent themselves. Otherwise, they risk being overrun by emerging start-ups growing at record speeds.
Highly-skilled workers in tech are in high demand. Companies that aren’t providing a complete set of benefits, including a 100 percent remote-working opportunity, run the risk of being overlooked by candidates who have plenty of other options.
With record growth, tech companies are hiring massively to meet demand. Finding talented individuals is hard enough, but keeping them can be just as challenging. Like changes in business models, companies have to adapt to global work-environment changes.
Candidates are also looking at company culture and values when making decisions. Investing in social and environmental causes can attract more talent. Solid and up-to-date governance practices are also critical.
Cybersecurity Threats are Growing
Tech companies are in a vulnerable position in 2022. Disruptive innovation can make their business model outdated at any time. Chip shortages are slowing production, and cybersecurity threats are growing.
Being aware of these threats and taking decisive action against them is critical for the company’s present and future.