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“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” -Evolutionary Theory, Charles Darwin

When Microsoft CEO Satya Nadella took the stage in Seattle at the last Ignite Conference, the theme was “Do More with Less.” He talked about the importance of companies remaining agile and resilient. These skills are essential for success moving forward.

There are five challenges that will follow us into 2023. They are the following:

1. Staff Shortages

2. Supply Chain Issues

3. Economic Downturns

4. Energy Crisis

5. Cyber Attacks

1. Staff Shortages

About seven months ago, Microsoft published a study showing that 43% of the workforce is contemplating leaving their jobs in 2023 because they’re simply burned out. The following statistics represent 31,000 people across 31 different countries over two years between February 2020 to February 2022.

• Increase of Weekly Teams Meetings by 252%
• 6 Billion more Emails Sent
• 32% Increase in online Chatting
• Increase in After-Hours Work by 28%

The pandemic lockdown took its toll on all of us in one way or another. Half of every adult reported symptoms of anxiety or depression. For many, the days were full of staying alive and healthy and keeping our family safe. A study by Ernst & Young showed that 54% of workers left previous employment because their supervisors weren’t empathetic to their struggles. These same managers didn’t care about anything that happened in their personal lives. Experts are now attributing much of the Great Resignation as a by-product of this “business-as-usual” mentality.

Many business leaders are listening more closely to what employees want and need from a job with their company. A recent Gallup poll found that 61% of employees wish for a more outstanding work-life balance and a better sense of personal well-being. A recent Harvard Business Journal article found that 40% of US employees would look for another job if ordered to return to the office full-time. Many have quit without having a replacement job waiting.

The Great Compromise

The question of hybrid work has yet to be decided, far from it. As companies determine how they can be most attractive to the best candidates, many are flexible with their work environments. The most popular long-term strategy seems to be a compromise, a variation of the hybrid work model. Either two days at home, three days in the office, or three days at home and two days in the office.

Hewlett-Packard is a good indicator of what the future enterprise office might be. HP is a huge multinational enterprise company with approximately 60,400 employees. The company wants to hire the best candidates and keep them as long as possible. HP did an internal investigation and found that almost two-thirds of all the employees wanted to spend only 20% or less working at the office. Alan May, HP’s Chief People Officer, said, “We know that when team members feel they have a balance, they are more productive and more likely to build a career at HPE.”

People who work at HPE choose when and if they want to come into the office. The setting at the office now reflects smaller spaces designed for close collaboration and socializing. Gone are the large conference-style rooms. People in the office will still sit on a Zoom call or a Microsoft Teams meeting.

2. Supply Chain Issues

Supply chain issues started during the global shutdown that followed in the wake of Covid-19. Putin’s war in Ukraine has made supply chain problems worse. A recent article in HBR asks,“How Exposed Is Your Supply Chain to Climate Risks?”

The article points out how major climate threats confront supply chains everywhere. Companies must take a proactive stance on anticipating weather-related problems and how to respond to them. The article also pointed out that most companies are not prepared to handle the crisis if it should occur. There are no business continuity plans and no alternative sites identified as replacements. Becoming more resilient goes beyond ensuring short-term operational continuity during crises. Supply chain resilience comes down to your ability to work around supply chain disruptions with whatever existing capabilities you have in-house. Work to build protective measures into existing supply chains to better deal with shortages and rising logistical costs. You can also improve your company’s resilience by not counting on commodities with wildly escalating market prices.

Leverage digital technology to solve issues and problems before they happen. You already know supply chain problems will continue into 2023. Machine learning and big data tools can help identify the main problem areas and help source alternatives. Custom cloud services and solutions can accelerate innovation and value across supply chain networks.

Our blog from earlier this year explored how digital manufacturing can be a game changer. Digital manufacturing is the application of cloud computing systems to manufacture services, supply chains, data collection, warehousing, and processes. Digital manufacturing technologies link systems and processes across the production environment to create an integrated approach to manufacturing. This strategy encompasses everything from design and development to producing and servicing the final products. Traditional factories were analog environments where everything was built by hand and have become Smart Factories.

The window of opportunity is open but will only remain for a while. Remember, things move fast, and the stakes couldn’t be higher for manufacturing to get innovation right. Writing about transforming businesses through technology and innovation, Ethan Karp is the President and CEO of a non-profit manufacturing consulting group called Magnet. In his Forbes article, 4 Reasons 2022 Can Be A Game Changer for American Manufacturing, Karp recognizes the opportunity for American manufacturing.

Supply chain disruptions, like a cancerous cell, have significantly contributed to the following two challenges, the economic downturn and the energy crisis

3. Economic Downturns

Supply chain constraints have done their share of stunting economic growth. Supply chain disruptions lead to things that weaken a country’s economy. Things like shortages of critical goods, price inflation, factory closures, and unloaded shipping containers. Economic experts cast gloomy predictions for 2023. The forecast calls for ongoing inflation, higher interest rates, and depressed economic growth. As counterintuitive as it might sound to invest money while the global economy becomes increasingly unpredictable, companies should bolster their position by adopting digital technologies. Embracing digital technology to optimize processes and improve efficiencies on multiple levels enables organizations to be lean, more resilient, and adaptable.

Digital technology solutions can optimize your workflow by significantly improving productivity, streamlining, and advancing processes to benefit your entire team and your customers. Relevant data can be accessed in real-time by those who need it when they need it. The boost in efficiency will save precious while creating a more fluid workflow between departments. Employees perform better and accomplish more in less time.

Take a Clue from Recent History

During the Recession of 2007-2009, the companies that prioritized early cost restrictions, starting with implementing emerging digital technologies, were able to increase profitability and, in some cases, continue growing. Having business-critical data in a cloud computing environment provides a reliable and secure infrastructure. Cloud applications ensure business continuity and increase the ability to pivot.

4. Energy Crisis

Cyclic demands for energy combined with slow supply recovery after the pandemic contributes to an unpredictable global energy situation. As uncertainty and volatility in the energy market continue to mount, Europe faces complete depletion of natural gases by the Spring of 2023. The European energy crisis will restrain industrial production and push Germany deeper into a recession as we move into 2023. Using digital technologies, utility companies can use the enormous amount of data from distributed energy resources in situational intelligence.

Doing More with Less

Digital twins are available to allow utilities to detect current problems and wasteful energy drains, prevent escalations, predict future situations and optimize the flow of electricity. Digital twin models can be used to solve the demand for more electricity with less carbon output and a more affordable cost. Leveraging data, analytics, and software solutions, digital technology can help global energy companies meet the challenge of providing reliable power and strengthening the future of energy.

5. Cyber Attacks

If you travel to Northern California, there’s a roadhouse biker bar called the Alpine Inn, a few miles from Stanford University. Just inside, there is a plaque that reads:

BEGINNING OF THE INTERNET AGE

On August 27, 1976, scientists from SRI International celebrated the successful completion of tests by sending an electronic message from a computer set up at a picnic table behind the Alpine Inn. The message was sent via a radio network to SRI and through a second network, the ARPANET, to Boston. This event marked the beginning of the Internet Age.

None of the scientist present that day had any security concerns about what they were building. They were trying to get the thing to work. What they made would soon become the digital backbone for our modern banking, commerce, infrastructure, health care, energy, and weapons systems. There was no consideration given to the idea that this would become an interconnected system one day.

In her foreboding book, THIS IS HOW THEY TELL ME THE WORLD ENDS, Nicole Perlroth tracked down one of the men at the picnic table on August 27, 1976. His name is Dave Retz, and he shares an ominous foreshadowing of things to come.

Two years before they pulled up to Zott’s (now the Alpine Inn), air-traffic controllers at San Francisco airport started complaining that beams of “unknown origin” were interfering with their radars. As it turned out, SRI’s radio frequencies had infiltrated the airport’s traffic control. But even then, the idea this invention might one day threaten to bring down airplanes, disrupt water supplies, or rig an election hardly fazed the men and women building its basic blocks. Some four decades later, in 2020, San Francisco International Airport officials had just discovered that the same stealth Russian hackers probing our nuclear plants, grid, and states had hijacked an internet portal used by airport travelers and employees.

I asked Retz what, if anything, he would take back. His reply was immediate and unequivocal. “Everything can be intercepted,” he told me. “Everything can be captured. People have no way of verifying the integrity of these systems. We weren’t thinking about this back then. But the fact is,” he added ruefully, “everything is vulnerable.”

Cyber-attacks threaten more than business-critical data. When you consider Frost & Sullivan’s reporting on accelerated growth over the next eight years, you realize the enormity of the challenges ahead. The research firm projects that the earth will have a complex network of 200 billion devices, averaging 20 connected devices for every human being on the planet. As IoT-connected devices become more sophisticated in their capabilities, vulnerabilities to attack will rise too.

Cybercriminals continually poke and prod for vulnerabilities and broader attack surfaces.

In an article for CSO Online, Apurva Venkat writes, “There is a significant shift underway from on-premises to cloud-based services. Crucial elements of many business processes are on the cloud now, easing file sharing and workforce collaboration. We continue to see increasing efforts by adversaries to target cloud-based assets.”

She quotes Nick Lowe, director for Falcon OverWatch [CrowdStrike’s managed threat hunting service that provides deep and continuous human analysis, 24/7, to identify novel attacker tradecraft designed to evade standard security technologies] at CrowdStrike, “So now, more than ever, it’s critical for organizations to deploy that mix of technology-based controls and human-led hunting to be best positioned to combat these evolving cloud threats.”

By next year, Gartner predicts, 60% of enterprises will phase out most of their VPNs for Zero Trust Network Access (ZTNA) which provides secure remote access to business-critical data based on clearly defined access control policies. As we pointed out in an earlier blog, robust and holistic cybersecurity protocols must be considered a cost of doing business. Security is vital at all times, particularly during the economic upheaval.

Conclusion

Just as the critical challenges are interconnected with each other, so are the tools we’ll use to ease some of these challenges. Artificial Intelligence (AI) and other digital technologies continue to impact our business and personal lives, and they will continue to do so. In many cases, we need to be fully aware of how much AI influences what we do at work or what we purchase online. We’ve grown accustomed to having things suggested to us. Ready-to-use technologies are increasingly becoming available to us via the cloud.

Boundaries separating transformational digital technology tools are blurring together. As we move into 2023, AI, the Internet of Things, virtual and augmented reality, and cloud computing will move in tangent. The availability of one will mean the availability of another. All forms of hybrid working environments, business decisions, and automation of routine tasks will continue to converge in ways that will enhance each other. Consider how modern smartphones make many applications available to us from one device.

Investment in technology will position your company for stronger resilience and out-term growth, especially during periods of volatility and uncertainty.

No industry is off the hook.

Modernizing your company’s IT environment has never been more critical for future survival. No industry is off the hook regarding the need to transform digitally. Modernization is necessary to keep pace with your competitors. Legacy systems could suddenly break down or no longer be serviceable. There are several urgent reasons for you to modernize your IT infrastructure.

Modernization delivers fantastic benefits to a company, including:

·      Better User Experience

·      Improved Efficiencies

·      Enhanced Operational Visibility

·      Great Accountability

Modernizing your IT infrastructure also increases your company’s resiliency and scalability and provides a solid foundation for digital transformation.

Customers today expect a fast, seamless digital experience from banking to retail, transportation to hospitality. A seamless cross-channel experience is expected by today’s customers, regardless of their demographic. One example: Over 50% of U.S. Adults, 18+ now do banking on their mobile devices, according to a recent Prosper Insights & Analytics survey. That includes a surprisingly high 42% of the Boomer segment.

For financial institutions, it’s become table stakes. But other industries have some catching up to do. Finding the sweet spot for integrating new technology can be a challenge. Implementing new technology can be an adjustment for employees to learn and use productively. IronOrbit has the tools and strategy to help get your company on the golden path to modernization.

IT is no longer a Back-End Role.

Modernization is about technology, and it’s also about cultivating a new mindset regarding how the business operates and how it can deliver unique value propositions to its customers. An example of an outdated attitude is to think of the CIO as being restricted to all things IT. A modern approach would include the CIO to drive recovery and future growth.

Most business leaders believe IT plays a significant role in supporting business outcomes. Seventy percent of C-level executives still view IT as confined to saving money, keeping the lights on, and ensuring an internet connection.

Modernizing means unifying business and technology to future-proof organizations, including scalability and agility, and developing growth strategies.

A recent IDG survey of 200 IT leaders revealed positive modernization results, even before the completion of the process. The report found that although one in four organizations completed less than one-quarter of their initial IT modernization goals, all achieved improved quality of service, better customer satisfaction, cost savings, increases in uptime, and the creation of new streams of revenue.

The Digital Mindset

A mindset is a way of thinking and orienting to the world that shapes how we perceive, feel, and act. Having a digital mindset means conditioning ourselves to see how connectivity, data, algorithms, and AI create new possibilities for delivering value. Business leaders who cultivate a digital attitude can position their organization for optimal success and resiliency.

Finding the Sweet Spot

Developing new ways of thinking and new ways of working takes time.

Here are three good places to start:

1.  Assess the readiness of your IT for future business and growth priorities.
2. Review the business strategy based on tech-driven outcomes.
3. Align a technology strategy to achieve business impact and enablement.

The last thing you want to do is skip steps. Take the time needed to assess where your IT infrastructure is now and how it impacts your business to where you want it to be a few years from now.

IronOrbit can help you decide which workloads should migrate to a cloud environment. Additionally, we offer

·      Minimize disruption as your organization transitions to new technology

·      Availability 24/7 365 Days a Year

·      Automated Operations and Self-Service options

·      Full Back up and Disaster Recovery Availability

·      Over 30 years of Business Technology Experience

IT modernization is challenging because it involves change management. Modernizing is also an ongoing process because technology constantly evolves at an ever-accelerating rate. The engineers and IT innovators at IronOrbit pride themselves on staying ahead of the curve and continuously developing improvements and better ways to contribute to the success of our clients.

Reasons Why Remote Work Benefits Employees & Companies

Remote work benefits employees and companies is the resiliency of having the technology in place to mobilize workforces overnight. The remote work environment is here to stay. It is true; we were all sent home to work remotely under duress. Employees and companies discovered unexpected benefits from a work-from-home (WFH) environment. Remote work has its pros and cons, but mostly, people like being able to work remotely.

16% of Companies Worldwide are 100% Remote in 2022

41% of US Workers are Fully Remote.

2022 is almost over, and companies are still trying to decide whether to continue having a remote workforce, head back to the office, or devise a solution combining the two. Employees and many job seekers want the flexibility to work from home.

85% of IT Leaders Who Have Deployed Remote Desktops in Their Firms Would Recommend It  

(Source: The State of Remote Work in 2021)

80% of US Workers Would Reject a Job Offer That Didn’t Include a Flexible Work Environment

(PR Newswire Study 2021)

As the CEO of the research firm Ladders says,

“This change in a working arrangement is impossible to overhype. As big as it is, it’s even bigger than people think.”

Gartner reports that remote work is a cornerstone of the post-pandemic future of work. A Gallup poll from the beginning of the year showed that half of the remote-capable employees prefer a hybrid work environment. The popularity of the flexible work phenomenon is as beneficial for the company as it is for employees. There’s a more extensive selection of qualified candidates for the growing digital economy opportunities. Having the technological capacity for a productive virtual environment could help define who gets to work in a digital economy and which companies will thrive.

Benefits to Companies Offering Flexible Work Environments

• Reduction of Operating Costs
• No Need for Physical Expansion
• Increase of Productivity
• Multi-region infrastructure Drives Better Collaboration
• Access to Global Talent Pool
• Higher Employee Retention

No Overhead

Employee mobility is part of the digital economy. In the digital era, a modern IT infrastructure means having to untether workforces from having to work in a specific location. Desktop-as-a-Service (DaaS) is a cloud-based technology that enables work to happen from anywhere on any device. Working from anywhere on any device eliminates the costs of leasing office space, buying furniture, paying for utilities, and other overhead expenses. The elimination of overhead costs is significant. By allowing remote work, IBM eliminated 58 million square feet of office space and saved $50 million in real estate expenses. The cost savings are significant for small businesses as well. The JCA insurance agency no longer pays for a 4,000-square-foot office and the overhead that goes with that. Watch Video. Being a remote employer helps JCA’s bottom line.

Increases in Focus and Engagement Produces Higher Productivity

The experiment on mass WFH orders showed that people got more work done. They no longer had to commute and didn’t have the distractions of working in an office environment. Many studies show that remote work leads to increased productivity and better performance. Hiring new employees is an expensive process for companies. The average expense is around $4,000 and usually takes weeks, sometimes months, to fill. A recent Stanford University study showed a 13% increase in productivity; workers took fewer breaks, were more satisfied with their jobs, and reduced attrition rates by half.

The disadvantages of not setting up the capabilities to work remotely cut deeper than being less attractive to job seekers or losing existing employees who want more flexibility. Establishing a remote-ready IT infrastructure means leadership is being proactive; they’re at once forward-leaning and remembering the lessons of the pandemic.

The Virtual Workspace

A recent Gartner study predicts that 70% of Infrastructure and Operations (I&O) leaders deploying DaaS will exceed their budgets due to a lack of proactive cost management. The configuration of each virtual machine impacts the amount of money spent on DaaS. IronOrbit prevents clients from spending on services they don’t need by having multiple options for its INFINITY Workspaces. There is an INFINITY Workspaces solution to fit each use case. For example, power workers need more run more GPU-enabled applications like Autodesk’s Revit. Process workers need basic applications such as Microsoft Office.

Aside from the obvious benefits to an organization workforce mobility can bring, having the IT infrastructure to shift from office to home at a moment’s notice fortifies a company from future volatility and unexpected disruptions. Having a cloud-based IT environment makes a company more resilient. Cloud computing has become a proactive measure that safeguards business continuity. Companies can scale up or down quickly, and the process is effortless. Sharing information becomes more efficient when you combine cloud technology and managed services. Things like product development and decision-making happen faster. Connectivity boost productivity because your workforce, including your IT department, can focus on more value-to-the-customer tasks.

Technology There When You Need It

When the pandemic lockdown occurred, businesses on the cloud could adapt to the new remote working norms quicker and more efficiently than those that weren’t.

Be Prepared for the Unexpected

Leveraging IronOrbit’s technology allows companies to provision desktops quickly. A workspace can become accessible to users from anywhere while maintaining the required security protections to meet the highest compliance standards.

It was the day the lockdown began in Washington.

One of our clients, Mark Gallant of the Truss Company View Case Study, sat in an emergency meeting. Everybody was under a great deal of stress, except for him. Company leaders asked, “How are our employees going to work? How can we continue to serve our customers?” Mark smiled because he knew they already had a ready-made solution to the problem. Months prior, they had moved to IronOrbit’s cloud environment. Now, they had to have everyone grab their computers, go home, and log on.

Your company might be one of those organizations still making decisions on the question of your work environment. Whether it’s back to the office, completely remote, or a combination of the two, one thing is clear. Business continuity in the digital economy demands a flexible and elastic IT environment. One that moves when you move. The longer you wait to migrate to the cloud, the more you risk losing your competitive advantage.

IronOrbit can ensure your company has the resiliency it needs to future-proof against almost any scenario.