Every company wants to be an industry leader, but each will face various challenges that can hold it back.
While some obstacles are unique to a company, others are due to shifting technologies, geopolitical issues, or unforeseen events that affect organizations of all sizes in every sector.
While you cannot foresee every hurdle that will come your organization’s way, you can identify potential issues and the best solutions to protect your growing business.
Read the following guide to the most significant threats in modern business and the practical actions you can take to stop them.
AI-Assisted Cyberattacks
Artificial intelligence (AI) is becoming a double-edged sword for modern businesses. While it can speed up productivity across various areas of the company, cybercriminals across the world are also using the technology to execute more powerful and effective cyberattacks.
Common examples of AI-assisted attacks include:
- Deepfake fraud – the use of AI-generated voices and appearances to mimic CEOs via Zoom.
- Autonomous attacks – scan and execute internal vulnerabilities at incredible speed.
- Spear phishing – the creation of well-phrased phishing emails.
Businesses would be foolish to overlook cybersecurity, as it is fundamental to their operations, data security, and legal compliance.
Many outstanding services are available to protect your business from cyberattacks. For instance, Red Canary provides security operations (SecOps) to monitor, detect, and respond to various cybersecurity threats on your network, endpoints, cloud, applications, and more.
Employee Skill Gaps
As stated, AI is becoming a blessing and a curse. While it is reducing recruitment needs and increasing productivity, it is also increasing skill gaps across the business.
While the tools are proving valuable to many modern businesses, many employees may not know how to use the software. As it can take time for staff members to learn about the technology or hire the appropriate employees to use it, it can lead to lengthy project delays and lost revenue.
If you are concerned about an AI skills gap in your business, encourage your team to take 15 minutes out of their day to practice using one or more AI tools. It will boost their understanding and confidence when using the technology.
Business Interruption
Major weather and health events can cause unwanted business interruptions that could slow a company down. The pandemic is a perfect example of how companies of all sizes and industries can suddenly experience operational issues, shifting consumer demands, and financial hardship. Extreme weather conditions, such as floods or hurricanes, can even cause physical damage to manufacturing hubs, data centers, logistics centres, or retail stores.
For this reason, businesses must identify ways to quickly bounce back from unforeseen events. For example, introducing a paper-based method of recording sales should a digital method fail, or turning to a backup supplier when necessary.
Trade Troubles
Global trade is becoming more unpredictable due to geopolitical volatility between the United States, China, and Europe. Many companies in various industries, from retail to construction, are facing a sudden increase in duties, additional tariffs, and export restrictions.
Cargo delays, expensive freight costs, and production timeline changes can also lead to unnecessary delays, expenses, and waste. For businesses to avoid trade issues, companies must avoid relying on a single country or work with businesses in friendlier or geographically closer nations.
Supply Chain Disruptions
Geopolitical conflicts aren’t just causing tariff issues; they can also lead to extensive supply chain problems that slow a business down or grind it to a complete halt. Nowadays, you must learn about your suppliers’ suppliers to avoid obstacles.
For instance, a regional instability can lead to supply chain disruptions, as a nation may lose access to specific raw materials, metals, or other products. If so, it can lead to supplier delays that could impact your operations and revenue.
Mental Health Consequences
According to the World Health Organization, $1 trillion is lost each year globally due to employees experiencing various mental health disorders, including stress, depression, anxiety, and burnout. It also stated that 12 billion workdays are lost worldwide to help employees overcome the conditions.
For businesses to protect their employees, increase productivity, and reduce employee turnover, they must spot the early signs of mental health deterioration. It will allow managers to adjust an employee’s working conditions to support their mental health and lower their stress levels.
Technology Advancements
Technology is evolving at a rapid pace, quickly causing existing products and solutions to become outdated. Ignoring technological advancements will only allow more forward-thinking competitors to gain an advantage in an industry.
For a company to remain or become an industry leader, it must monitor and introduce new and exciting technologies. It will allow the business to compete with its rivals, meet or exceed consumer expectations, and boost its profitability and growth.
Management Misalignment
As modern businesses are facing various changes and challenges, from AI to trade issues, it is essential that members of management are on the same page. Yet, many CEOs and senior teams are often misaligned on the company’s goals or fail to convey the company’s vision or priorities to their employees.
Mixed messaging cannot only cause confusion, but it can also lead to low morale, slower productivity, and a higher turnover.
Prevent misalignment by hosting a monthly strategy meeting for senior leaders and asking them to write down the top three priorities for the next few weeks. Next, write all the priorities on the board to identify if leaders are aligned. If not, you must reach a consensus on the top three priorities for the business.
Once the leaders understand the business’s priorities, they can filter the message down to their employees. Some companies may find it helpful to host a five-minute huddle at the start of the working day to ensure everyone understands the company’s goals and what they must do to achieve them.
As you can see, businesses of every size and across all industries are facing many tough challenges, which could impact their operations, productivity, revenue, and reputation. Yet, many solutions are available to help them avoid potential issues throughout the years.
