With the end of 2022 drawing closer, companies are forging the path of identifying unprecedented challenges as well as the unbridled opportunities brought about by technology that awaits them in 2023. The global pandemic altered the course of the technological market, thus accelerating demand for digital innovation and challenging major manufacturing facilities.
Ambitious objectives such as growing revenues and accelerating digital business demand action are still unclear. And technology is crucial to success. However, for businesses to set their action plan for 2023, it is equally important to be aware of the strategic technology challenges that lie ahead. This list clarifies which challenges will be the most relevant and how businesses can prepare to capture their value to drive strategies.
Business leaders and technologists can study the potential impact of these technology challenges on their specific operational strategies and framework, such as revenue growth, maximizing value from data, or building their brand. These challenges can pose a risk or opportunity for the organization. It will help them create a technology roadmap in order to drive impact to fulfill their strategic ambitions.
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Top Technology Challenges in 2023
As we now usher in 2023, businesses are preparing themselves to brace for the unique set of challenges that lies ahead. These key tech challenges will enable industries to distinguish the companies equipped to tackle, survive, and thrive.
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Supply Chain Crisis
The Covid-19 pandemic altered the course of innovation for businesses and is still posing a huge challenge to global supply chains. The bottlenecks, delays, as well as disruptions created due to the global pandemic have forced manufacturers and tech companies worldwide to face a constant struggle to source the required parts and supplies. One of the most critical challenges that await businesses in 2023 is the unprecedented shortage of semiconductors (chips). This will result in production delays across a swath of enterprises.
Early in the global pandemic, chip manufacturers were able to barely respond to the changes in demand, specifically the dip in demand from automotive manufacturers along with the rise in demand for consumer electronics. These demand fluctuations transitioned their production facilities and compelled them to reflect on the shifts.
Now with the demand for automotive chips resurging, semiconductor manufacturers are struggling to meet the market request due to supply chain shortages, restrictions, and capacity issues. While solutions are in progress, implementation is expected to be much slower than anticipated. Top corporations, including Texas Instruments, Samsung, Intel, and TSMC, are now constructing semiconductor fabrication plants in the U.S. to meet the rising demands. However, production is expected to begin in 2024 or 2025.
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Advanced Security Threat
With more and more businesses becoming digital, cyber-attacks are also on the rise. As they are inherently accumulating more data, they are attracting cyber criminals who are on the lookout to steal or hold data for ransom.
In addition to these cyber threats, the emergence of quantum computing is also rendering the existing security systems obsolete.
Read more: Tech-Related Ethical Concerns Businesses Should Address in 2022
Quantum computing assists in speeding up prime number factorization, thereby making cryptography attacks more efficient. Organizations holding sensitive digital data are now investing in cybersecurity solutions to address the quantum computing threat through effective risk management plans. They are utilizing quantum computing to reduce cyber risk.
A recent survey highlighted that resilience and improving critical IT infrastructure are considered to be the top priorities of IT leaders. Due to this reason, they are now prioritizing cloud deployments as well as investments in security technologies. For smooth movement of information between physical and virtual locations within an organization, they are investing heavily in designing a strong hybrid cloud base that will be supported by multi-cloud technologies.
Distributed cloud systems, cloud access security brokers, and cloud enterprise resource planning are now emerging as the top cloud deployment phases. By placing resilience at the core of operational strategies, organizations are attracting new opportunities to overcome the existing data and security challenges.
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Growing Concern over Talent Shortage
The rise in the pace of technological innovation is creating an urgent requirement for new talent that can help in building as well as maintaining emerging digital technologies.
A recent Gartner survey highlighted that IT executives are now citing the lack of talent as one of the biggest roadblocks to the adoption of emerging technologies within their organizations. The talent shortage is finding a place in other significant organizational crises, including tech implementation, cost, as well as cyber security risks.
In the face of this talent shortage, organizations are now embracing new and innovative internal training programs like boot camps for coding along with training universities. These additions will enable them to hire and train prospects as well as internal workers expecting career growth.
Read more: Global Business Trends Outlook 2023
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Accelerated Innovation in Technological Space
The spike in digital transformation and innovation during the global pandemic exhibited zero signs of slowing down. However, this rate of technological innovation is presenting yet another significant challenge for businesses. Digital technologies like cloud, edge computing, machine learning (ML), metaverse, web3, non-fungible tokens (NFTs), Internet of Things (IoT), and more are advancing at an astounding speed that is hard to keep up with. For companies to maintain their competitive edge, it is vital to stay at the forefront of these technological innovations. Otherwise, they will find themselves in the digital dust of their competition.
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The Rise in Demand for Integration of Sustainable Technology
Sustainability is transitioning at a rapid pace from the exception to its rule. With consumer expectations for sustainable products on the rise, sustainability is becoming a must-have for organizations in all aspects of their operations. In 2023, consumers, business customers, and investors will witness a rise in the demand for sustainable technology along with transparency in operations.
With more companies' re-platforming their existing operations to the cloud, the environmental impact, as well as the energy usage, is predicted to move out of sight. In 2023, businesses will no longer be able to hide their negative environmental impact in the cloud. Companies must now explore new avenues to integrate clean and sustainable technology within their operations at all levels, especially in areas that demand high resource usage, like data centers and blockchains.
Accelerating Investments in Technological Innovations
Despite the existing technological challenges in operations, IT leaders are witnessing a rise in the adoption of emerging technologies to drive innovation within organizations. The evolution of economies and markets is also attributed to the growing demand for tech innovations.
Across all technology domains, organizations are planning to increase the use of emerging technology investment. Industry leaders are also witnessing a reduction in deployment timelines as deployment technologies are expected to be adopted in the coming months. This implies that organizations are feeling prepared to accept the upcoming challenges as well as they are willing to deploy new technologies that help in accelerating growth directly. These challenges as set to influence technology investment decisions within the organization. In 2023, businesses will drive the trend of upending the previous models of management and working along with preparing themselves for a new approach.
Read more: The Age of Digital Transformation: Top AI and ML 2022 Trends
Final Thoughts
The explosive growth, as well as the rapidly changing landscape of technology across industries, is presenting significant challenges to businesses.
Companies are striving to survive this new and challenging market landscape by proactively addressing and preparing themselves for the above challenges. By monitoring the existing crises, industries are gearing up to face future challenges and opportunities. However, for them to stay a step ahead of the competition, businesses will have to think outside the box.
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