digital transformation risks

All About Digital Transformation Risks

What are the digital transformation risks? What is it all about? To know more about that, you should read this article until the end.

Digital Transformation Risks

Data Management Risk

The first is data management risk. It refers to whether the enterprise can securely collect, store, process, and transfer data. Also, analyze, or share data when they are dealing with digital transformation. Data risks not only mean that the data may be leaked. But also that the data may be hacked or even stolen when they are being managed by enterprises.

For example, let’s assume that an enterprise wants to use big data to improve its products or services. However, their data management risk is high. Which it means that the enterprise needs to improve its data security before it can do digital transformation. 


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Information Security Risk

The Second is an information security risk. It refers to whether the enterprise can ensure the safety of their data when they are dealing with digital transformation. Information security risk not only refers to whether the enterprise can protect its information from criminal activities. But also refers to whether the enterprise can ensure that their information is not hacked. Or even stolen when they are being managed by enterprises. 

For example, let’s assume that an enterprise wants to use big data to improve its products or services. However, their information security risk is high. It means that the enterprise needs to improve its information security before it can do digital transformation.

People Risk

It refers to whether an enterprise’s employees have the right skill set. And also an attitude for them to deal with digital transformation. If an enterprise has a high risk, this usually means that they need to train. And also educate their employees about digital transformation. 

Process Risk 

It refers to whether an enterprise’s workflow and the process will be adjusted or changed for them to deal with digital transformation. If an enterprise has a high process risk, this usually means that they need to improve and adjust their business processes for them to deal with digital transformation. 

Financial Risk

It refers to whether an enterprise will be able to afford or pay for digital transformation initiatives and projects. If an enterprise has a high financial risk, this usually means that it will need more money to complete and execute all of these digital transformation initiatives. And projects within their organization along with other departments such as marketing and sales teams.

The marketing team should put some effort into social media marketing strategy making it more interactive, attractive, and engaging so that more people will take interest in it and share what we post on social media platforms like Facebook and Twitter. The sales department should also put some effort into creating new products or services so we don’t get bored clients who love our products or services.

Infrastructure Risk 

It refers to whether an enterprise has enough technology, skill set, and/or financial resources for them to deal with digital transformation. If an enterprise has a high infrastructure risk, this usually means that they will need more technology, skills, and/or financial resources for them to execute and complete all of these digital transformation initiatives and projects within their organization along with other departments such as marketing and sales teams.

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