Cut the slack with digital investments

During the last Great Recession in 2008, technology finance saw a huge boost. But this time, many CEOs believe that it is the technology itself that will be crucial in helping companies transform and increase revenue. Companies operating in the Nordic countries have an advantage here thanks to their welcoming attitude towards new technology. For example, thanks to this, Sweden, Denmark, Norway and Finland managed to hold on to the top ten in IMD’s global digital competitiveness rating.

digital staff, digital nativesIt will be the difference between companies that are actively thriving in the coming months and those that are struggling to survive. According to the latest Hays Global Skills Index, Sweden is among the most stressed labor markets, with the talent mismatch index as high as possible out of 10.

However, better use of technology can mitigate skills shortages, as errors can be detected and corrected more quickly and with greater automation, without extensive and staff-intensive efforts. By applying and using more advanced technology, companies are also shifting the focus of their employees to highly skilled services.

And as an added benefit, it meets the high expectations of a tech-savvy client base and ensures flexible working. It is especially important to prevent unplanned downtime, which in itself can pose far-reaching reputational risks, especially in these times of economic uncertainty. A robust IT control system that minimizes downtime and ensures that processes stay up and running can no longer be considered an optional ‘user friendly’ tool.

Another important reason to keep systems running constantly is the complex cyber threats which have become the biggest risk to businesses in a short time. It would be a grave mistake to cut investments in preemptive technology and hope for the best — in these times of intense geopolitical antagonism, companies need to understand exactly where their vulnerabilities lie and act accordingly, as the cost of a cyber attack can be fatal to a company that doesn’t act quickly.

As IT facilities continue to grow in complexity, an equally sophisticated monitoring tool is now essential if companies are to achieve the holistic view of the systems required to meet customer requirements. Time and again, the consequences of inadequate monitoring are not taken seriously until it is too late.

At a time when profit margins are shrinking rapidly, companies are looking for effective ways to save costs. However, investments in effective monitoring tools are needed to be able to save in the long term. If companies cannot prioritize flexibility, they will eventually not be able to afford to operate at all.

Effective options already exist for companies to improve operations while saving costs. The advent of cloud IT has brought an important step forward and, as is typical in the Nordic countries, the technology has been rapidly and widely adopted. Sweden, Finland and Denmark are ranked among the top four (with Norway in an honorable ninth place) in a recent index by MIT Technology Review that measures how well the country’s technology enhances the availability of cloud services. However, the UK, which is considered to be a strong use of cloud technology, didn’t even make the top ten.