75% of Businesses Preparing to Digitalize
Approximately 75 percent of all businesses are preparing to digitalize; only 30 percent will be successful, says CISCO.
Perth resident, Gary Hale who advises companies around the world on cyber security for CISCO, predicted that less than a third of businesses will succeed in digital transformation.
“Around the world, approximately 75 percent of all businesses are preparing to digitalize; only 30 percent will be successful,” he said during his presentation at 2017 AOG.
The Director of Cyber Security and Innovation at CISCO's Security and Trust office used the rapid growth of ride-sharing service Uber as an example of businesses failing to understand the need to digitalize.
"Who would have thought that in Perth, thousands of kilometres away from the nearest capital city, that the taxi industry would be affected by a disruptive digital innovation such as Uber? But in reality, Perth is a mere 32 milliseconds away from anyone in the digital arena meaning that suddenly a $300,000 taxi license doesn’t seem like such a good idea.”
He stressed that as companies undergo their digital transformation, the importance of cyber security also increases.
“If you think about your organisation as a Formula 1 car, then cybersecurity is the brakes. How fast can you drive if your car doesn't have brakes? Our ability to operate with agility and enable innovation is dependent on our understanding of cybersecurity.”
A recent CISCO study that surveyed over a thousand executives globally backs this observation up, explaining that a lack of a robust cybersecurity strategy can impact a company’s innovation and growth.
- 71 percent said that concerns over cybersecurity are hindering innovation in their organisations.
- Nearly 40 percent halted mission-critical initiatives due to cybersecurity issues.
- 69 percent indicated that their organisations were reluctant to innovate in areas such as digital products and services because of the perceived cybersecurity risks.
- And according to Hale “if you have no digital transformation strategy and no cybersecurity strategy, then you won't be in business, at least on the global market for much longer.”
The Australian economy loses 1% of its annual GDP to cybersecurity breaches, with risks expected to increase in the future.
In the Oil & Gas arena, cyber security threats such as STUXNET, DUQU and Flame have the potential to cause plant sabotage, production interruption or even terrorism to operating facilities.
"A small cut on your finger won’t cause any loss in productivity in a human body, however, if you imagine that cybersecurity is your immune system, then that same small cut has the potential to stop your heart.
The question is how to raise the resilience of cybersecurity without slowing productivity?”
CISCO is hoping that the newly created $30 million CISCO Internet of Everything Innovation Centre (CIIC) established at Curtin University with foundation partners Woodside Energy and Curtin University will help to provide an answer to that question.
"The mission of the Centre is to create a state-of-the-art connected community in Western Australia focused on leveraging cloud, analytics and cyber security."
Friday 3rd March 2017