It is a fact that the business environment in 2022 is one that is characterized by risks and challenges. Currently, the economic landscape poses numerous issues for a range of organizations regardless of their size or the sector in which they operate in. Inflation is rising in many countries around the world, which has both positive and negative impacts on businesses. Generally, firms that sell or produce essential goods cope better in times of high inflation, but non-essential goods tend to fare less well. In addition, the war in Ukraine has seen the cost of several staple goods rise along with energy costs. Combine this with an emerging cost of living crisis that has a direct impact on the spending power of consumers, and the business landscape becomes complex and challenging. This article explains four key challenges to business in 2022 that are relevant for a wide range of industries.
1. Cybersecurity
Cybersecurity issues present ongoing challenges and risks to any business that operates with an IT infrastructure and collects data. It is recognized that cybercrime via malware attacks, denials of service, and ransomware can cripple the effective functioning of an organization. There is a significant financial cost that comes with a successful cyber attack. Recent estimates suggest that a successful cyber attack can cost an average of $200K which can be financially crippling for small and medium-sized firms. In addition, the loss of reputation and negative PR that comes from a successful attack can damage an organization’s reputation and shrink its customer base. Today most medium and large-sized companies have a dedicated team of IT security experts who monitor network activity and secure points of access so that they are better defended against intrusion. With the rise of cloud computing, many organizations are looking to secure their cloud systems. One way to do this effectively is to use Sonrai cloud security posture management to monitor cloud-based systems and take action when threats are identified.
2. Sustainable credentials
Today’s consumers and clients are fully aware of the emerging threats to the planet that are posed by climate change, global warming, and increasing levels of pollution. Extreme weather patterns are becoming more common, and the need to operate in an environmentally sustainable manner that goes above simple slogans is becoming increasingly important for all businesses. Consumers want to make purchases from organizations that can demonstrate sound environmental credentials and will avoid trading with those that do not. Businesses must take all available measures to reduce their carbon footprints, increase recycling of waste materials, and minimize their energy usage. Having a comprehensive strategy to operate in an environmentally responsible way is now a key facet of modern business.
3. Data science
There is an increasing need for businesses to do far more with the data they produce and collect. In the past, data analysis was simply a case of analyzing simple spreadsheets or databases to draw out basic trends or patterns in customer behavior. Today businesses must leverage the power of their data and information far more effectively to gain actionable insights that can shape the direction and strategy of their organization. By harnessing the power of big data and using sophisticated analytics applications that can analyze multiple data sources, valuable information can be produced. Without access to such insights, a business is at risk of stagnation, making poor decisions, and being left behind by their competitors who harness the power of data more effectively.
4. The need for strong leadership
In the highly competitive global marketplace, all businesses need strong leadership to direct the organization on a path to success. Strong and effective leaders can help an organization navigate the challenging business environment and can also serve to inspire and motivate employees throughout the company. It is recognized that effective leadership is a vital facet of the overall success of any organization. Leaders can also demonstrate best practice by being highly visible to the wider workforce and acting as role models and mentors. Effective leaders can help embed a positive working culture at all levels of an organization which results in increased productivity and a more efficient and successful company.
To sum up
Businesses of all sizes must take all available steps to reduce the risk of cybercrime by having effective IT security strategies and employing a team of specialists who can improve and secure their IT infrastructure. They must also be able to demonstrate that they operate in an environmentally responsible fashion to secure the ongoing trade from a customer base that is increasingly environmentally aware. Companies must fully leverage the benefits of sophisticated data analysis techniques to gain meaningful insights that can help inform future plans. Finally, a key part of the success of any business is having strong leaders present. Without strong leadership, a business will not operate at the highest levels of effectiveness and will struggle to remain competitive.
