Caribbean organisations are in varying stages of digital transformation, and are eager to realise the benefits of going digital. However, there are also risks that ought to be considered.

 

Buzz words, such as ‘going digital’ and ‘digital transformation’ are all the rage these days, and to a considerable degree, the pandemic drove home the need for organisations to leverage technology in their operations. It is thus safe to say that as of 2020, the world, and the way we do business – for better or worse – have changed irrevocably.

However, it is also fair to say that many organisations, from micro to enterprise, were unprepared for the changes precipitated by COVID-19. The interventions that would have been made to allow staff to work remotely, for example, or to facilitate online payments, in many instances, would likely to have been rushed and implemented under the premise of being a stop gap ‘until the pandemic is over, and we can go back to normal’. However, 18 months in, it is fair to say that whatever we are currently doing and experiencing is the new normal.

In this new normal, and noting that many organisations are in varying stages of digital transformation, there have been reports about exponential increases in cybercrime and other incidents. We thus thought it opportune to examine whether the benefits of going digital outweigh the risks by discussing a few areas that readily come to mind.

 

Benefit:  Operating efficiencies

A distinct benefit of organisations going digital is the more streamlined and seamless processes that can be realised, which not only may be more efficient in terms of time and paperwork, but also tend to be welcomed by internal and external clients. Documents that needed to be signed in duplicate and triplicate and taken in person to each signatory for approval, may all be done electronically. Additionally, in situations where having an audit trail is important, the appropriate systems can be implemented that are difficult to circumvent.

Moreover, and perhaps more importantly, the digital transformation process forces organisations to undergo intensive self-examination and analysis to understand, among other things, what are their core functions, how the pieces of the organisation fit together, what are the steps in key processes, and what synergies can be leveraged across the organisation. That exercise is invaluable in not only facilitating the digitisation of the operations, but also initiating the change in culture that is a crucial component of the transformation process.

 

Benefit:  Data mining potential

Almost independent of their field of expertise, organisations have the potential to generate data, but some organisations will generate considerably more than others. In environments that are primarily paper-based, it can be difficult to manipulate and analyse data that is generated. When data is in a digital format, it becomes considerably easier to mine and analyse, which is becoming increasingly important in our data-centric world.

Having said this, it is important to emphasise that in the absence of data, many organisations are relying on anecdotal information, and statistics generated and analysed in environments far removed from their own. In mining and analysing their own data, and/or data generated within their own market, organisations are positioning themselves to better manage risk, and to make more informed decisions.

 

Risk: Security

In being more digital, organisations open themselves to being hacked. Moreover, due to the sophistication of hackers, systems and networks may have been breached and have not yet been detected by organisations. Hence, as was discussed in our latest podcast episode, with David Gittens of the Barbados Chapter of the Information Systems Security Association (ISSA), considering the types of threats that exist, there are organisations, and perhaps areas of specific organisations, that really cannot afford to go digital.

In the Caribbean, and from all accounts, it appears that organisations are more aware that they are vulnerable to cyber-attacks, and that it might only be a matter of time before they experience an incident. However, the challenge lies in the extent to which organisations are prepared to invest in security, through among other things, accessing the relevant advice and expertise, and implementing robust protocols. For many organisations, factors such as cost and not fully appreciating the magnitude of the situation, are at the root of their inaction  on this issue, but invariably, it leaves them more exposed than they might realise.

 

Risk:  Utilities reliability

Unless organisations are intentional, the odds are that they are relying on the public electric grid to power their operations. As it relates to securing telecoms and internet service, one or more of the local telcos may be providing the required services. However, this being the Caribbean, outages do occur, and many organisations have no back up or contingency arrangements. It therefore means in being digital, and if either the electricity or the internet goes, the organisation would be challenged to function.

Currently, the region is in the hurricane season, and we have had two storms so far, Elsa and Grace, that caused the loss of telecoms and electricity services in countries that were affected by these systems. In the aftermath of Elsa, for example, parts of Barbados were without service for a week, and even now, a month later, there seem to be complaints that the internet service is not as stable as it had been before the storm.

 

Final thoughts

In summary, it may not be easy to say whether the benefits of going digital outweigh the vulnerabilities organisations, especially Caribbean organisations, are likely to experience. To some degree, organisations can reduce their exposure to the risks by being intentional and investing in solutions to mitigate their occurrence or impact. However, relative to the size of the organisation, those investments can potentially be substantial, and may need to be ongoing, which may make them unpalatable to some. Having said this, the world is becoming more digital, and so organisations may have no choice but to continue their transformation efforts, cognisant of their vulnerabilities, and the risks to which they might be exposed.

 

 

Image credit: Gerd Altmann (Pixabay)