Curing the Achilles Heel of Digital Transformation

Curing the Achilles Heel of Digital Transformation

Capital Markets CIO Outlook | Friday, August 31, 2018

The key finding of the newly released Monitoring Report - DIGITAL Economy Baden-Württemberg, Germany, which has been compiled by the Centre for European Economic Research (ZEW), Mannheim, Germany, in cooperation with Kantar TNS on behalf of the Ministry of Economic Affairs, Labour and Housing in Baden-Württemberg result in the following. The digitization of the economy, cybersecurity for organizations and center as threats from intentional manipulation of IT infrastructure and data by outsiders increases.

Today’s Digital Economy with increasing exchange of data and digital networking currently taking place in many firms is making IT systems vulnerable to attack. Cybersecurity is, therefore, the Achilles heel of digital transformation. Cybersecurity is of particular value to financial and insurance service providers, considering the fact that these companies process highly sensitive personal data.

Companies with a digital infrastructure such as computer networks are vulnerable to cyberattacks, that is, targeted attacks on their digital infrastructure from outside. These attacks can paralyze computer networks or destroy customer and employee data.

The outsider threat to IT infrastructure, followed closely by increasingly complex IT systems, often makes it difficult to identify potential security flaws and fix vulnerabilities in the system as soon as they appear. Companies perceive them as the most significant risks associated with cybersecurity.

The increasing awareness of cybersecurity risks has led many companies to take action. Some are already spending more than five percent of their IT budget on cybersecurity, password-protected systems, encrypted data and email communication, cybersecurity training for the management staff and employees. These measures have been undertaken or implemented by organizations to safeguard firms against cybersecurity threats.

With evolving technologies, an organization’s security framework must evolve at an equal pace to ensure seamless digital transformation. A majority of firms in Baden-Württemberg would like to see more involvement from the state government to promote research into cybersecurity and would welcome state financial support for cybersecurity training initiatives.

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