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Digital transformation being held back by cost worries

(Image credit: Image Credit: Chombosan / Shutterstock)

European, as well as North American decision makers, have a positive outlook on digital transformation and what it can do to their competitiveness, especially compared to their Asian and Middle Eastern counterparts. They’ve also seen greater benefits, including new sources of revenue.

However, the perceived high cost of innovation, lack of skills, as well as the threat of cyber-attacks are being perceived as huge barriers for digital transformation.

This is according to The Cycle of Progress’, a new study by Tata Communications. It says that businesses take kindly towards digital transformation, namely IoT, predictive analytics and AI. At the same time, predictive analytics, IoT and blockchain are most widely adopted.

When it comes to the problems that arise from digital transformation, we’re looking at the usual triumvirate of spiralling costs, security and privacy. The report also states that business don’t feel prepared for the impact of digital innovation, mostly because they lack appropriate skills. They’re also saying their employees are lacking the understanding about new technologies being implemented.

“Businesses’ technology requirements are growing in complexity in today’s digital economy: they need not only new platforms and systems on which to build new innovative services seamlessly and securely, but also an organisation-wide shift in mindset. In this landscape, there needs be a culture of constant learning and agility to accelerate digital transformation across the business,” said Srinivasan CR, Chief Digital Officer at Tata Communications.

Image Credit: Chombosan / Shutterstock