Monday, October 2, 2023

4 Biggest Innovation Threats CIOs Need to be Aware of

By Nikhil Sonawane - April 12, 2023 5 Mins Read

4 Biggest Innovation Threats CIOs Need to be Aware of

The IT landscape continuously evolves, with new technologies entering the market to streamline operations. Despite the immense benefits of innovations, it also imposes some inherent threats that hinder adoption.

CIOs of all business sizes and types need to be aware of all the threats to which embracing innovation exposes their businesses. Understanding the threats will allow business leaders to implement a strategic plan to overcome bottlenecks and embrace innovation throughout their processes. CIOS must make the right technology investments based on their business needs and pain points.

Following are a few threats that CIOs in 2023 must be aware of while embracing innovation in their business processes

Less Funding and Resources

Businesses need sufficient funding and resources to embrace innovation successfully in their operations. However, most organizations lack funds or resources that hinder their ability to adopt innovation. Organizations need to focus on increasing their investments to implement better tools in their IT infrastructure and hire skilled resources to accomplish their tasks.

Modern businesses continue the ‘prototype’ approach with limited funding or no staff. Irrespective of who leads the change management, efficient resourcing and funding is essential because limited fund allocation is a common factor that hinders the adoption of new technologies in the IT infrastructure.

Also Read: Unleashing Future-Ready ERP Systems  

Lack of Time

Change management throughout the organization is challenging because it depends on multiple factors. The workforce today already has too much to accomplish, and adding change to the workflow will increase the workload on the resources. Large enterprises have all resources assigned to accomplish a particular task. Hence there is a tremendous possibility that various communication gaps and operational siloes will hinder innovation adoption before the estimated time.

Moreover, the implementation of change throughout the operations needs time and focus. Once the decision-makers embark on the journey to embrace innovation in their operations should not just get on the bandwagon to earn money. Business leaders must have strategic planning with sufficient time allotted to each implementation stage to ensure success. Organizations must understand that embracing change throughout their operations might take years.

Fewer Adoption Rates

Adopting change can be an expensive process that businesses have to incur. Low adoption rates throughout the organization will make the transformation efforts and investments in vain. Usually, any workforce is scared to adapt to the latest technology in their IT infrastructure, citing it as a threat to their job.

Another significant reason for employee resistance is a lack of belief in the approach. Business leaders can design effective change management strategies that keep the entire workforce in the loop. Interacting transparently with employees about why the change is required and how innovation will impact daily operations is essential. Organizations with more employee resistance might fail with time.

While a few business leaders are scared to adopt new technology in their IT infrastructure out of fear of past failures or poor performance. A few businesses can accomplish complete digital transformation in one department but can’t replicate the same model in other departments. Such operational siloes throughout the organization will not ensure success and achieve the desired results. Business leaders might have different scattered localized change management processes that cannot offer desired outputs to embrace innovation successfully.

Enterprises need to consider a phased implementation approach that transforms their operations. With a phased implementation approach, business or process owners can handle bottlenecks in real-time.

Increasing Cybersecurity and Data Privacy Risk

Even though embracing the latest technologies in the IT infrastructure will offer businesses immense benefits, it might expose them to various sophisticated threats and risks.

One of the most significant threats that hinder technology adoption is the cybersecurity risks associated with it. Cybercriminals today are on the prowl to compromise the victim’s systems. They move laterally in the network and accomplish their malicious goals. Embracing new technology increases the business network’s attack surface area, making it easier for malicious actors to infiltrate the network.

Moreover, as global regulatory bodies are strengthening their laws to protect the customers right to privacy, it has made data a gold mine for cybercriminals. Today, business leaders need to be aware of the threats and risks implementing new technologies will expose to the business network. It is also essential to have an effective defense mechanism that secures organizations from various threats and risks. One major concern business leaders face while embracing innovation in their tech stack and operational flows is the security risks associated with it.

Also Read: Uber sells a USD 400 million stake in the super app Careem

The Surge in the Transformation Demands

There is a surge in the workload on the IT teams that are driving concern amongst the IT decision-makers. Earlier, only HR and sales departments were a top priority in embracing innovation in their process to improve operational efficiency.

However, other departments today demand innovation in their operations to enhance their capabilities. There is a tremendous amount of change that the market has witnessed since the start of the pandemic. Many businesses could not adapt to the sudden changes that organizations underwent due to digital transformation during the pandemic.

Various tools, technologies, and processes adapted during the pandemic have become obsolete. One crucial aspect that business leaders need to consider while adopting enterprise-wide change is that there will be transformational demands, but they must focus on the pivotal ones.

The top priority CIOs must address in the coming months is to seize innovation opportunities that drive scalability and efficiency to business operations. The biggest challenge for CIOs is that they have various innovation threats that they have to deal with while implementing new technologies in their IT infrastructure. To make the right technology investments, CIOs should have a strategic implementation and change management approach to embrace innovation successfully.

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Nikhil Sonawane

Nikhil Sonawane is a Tech Journalist with OnDot Media. He has 4+ years of technical expertise in drafting content strategies for Blockchain, Supply Chain Management, Artificial Intelligence, and IoT. His Commitment to ongoing learning and improvement helps him to deliver thought-provoking insights and analysis on complex technologies and tools that are revolutionizing modern enterprises. He brings his eye for editorial detail and keen sense of language skills to every article he writes. If he is not working, he will be found on treks, walking in forests, or swimming in the ocean.

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