The New Digital Landscape: Managing Risk And Building Resilience.

Digital transformation hit full speed in 2020, as organisations and individuals adapted to new ways of living and working in the wake of the COVID-19 pandemic.
 

Trends already underway, such as remote and cloud-based working, were accelerated, and the adoption of new technologies, such as artificial intelligence (AI), the internet of things (IoT), blockchain and beyond, started to gain ground. Both early and late adopters were swept along by the demands of a more virtual world. Like never before, technology demonstrated its power to connect, drive operational efficiency and enable differentiation. And amid such rapid change, an agile approach to compliance and risk management has become vital for survival. 
 

At Clyde & Co, our technology, cyber and data specialists have seen first-hand that rapid digital change has brought new risks and liabilities, ranging from a rise in cyber attacks to data privacy concerns, people and employment issues, and the need to balance innovation with compliance.
 

In this report, we assess some of the major digital trends that our team saw come to the fore during the pandemic, the risks and opportunities that these trends introduced, and how businesses can use these transformational times to their advantage to ensure that they emerge stronger and more resilient than ever in a post-crisis world.
 

Download the full report
 

Key stats

 

• During the pandemic, companies accelerated the digitisation of their customer and supply-chain interactions, and their internal operations by 3 to 4 years 

• Three-quarters (77%) of enterprise decision-makers said that COVID-19 increased their budget for digital transformation

• There was a 66% spike in e-commerce sales at the height of lockdown 

• The pandemic has accelerated the shift away from physical stores to digital shopping by roughly 5 years

• More than one-in-four UK cyber attacks in 2020 was related to criminals exploiting COVID-19 

• Over 300 fines were handed out under GDPR in 2020, a 260% increase on 2018

• €50m is the largest fine to date under GDPR, levied  on Google for misusing customer data

• Cloud spending rose 37% to $29bn during the first quarter of 2020 

 

The pandemic was an eye-opener to business leaders and employees regarding the urgency of digital transformation, forcing them to be nimbler and more flexible in how they operate. There has been a sea change in management attitude, driving organisations to assess old models, processes and ways of doing things, to identify ways to adapt and improve. Organisations have become more resilient, and the challenge now is to embed these changes, rather than reverting straight back to the old way of doing things

Dino Wilkinson, Partner, Clyde & Co

 

A rapid response

The COVID-19 crisis showed organisations what they are truly capable of in terms of innovation and speed of delivery when all stakeholders pull together and work towards a shared goal.

 

It proved a catalyst for digital transformation, with increased adoption of cloud networks, video conferencing, and remote security controls, to provide increased flexibility and enable the transition to a decentralised workforce.
 

At an operational level, many organisations have seen their usual strategies and business models become outdated, as customer behaviours have evolved, and digital-first companies have come to the fore.

 

Greater migration to online platforms has, in turn, encouraged the introduction of cutting-edge innovations and the adoption of new technologies including AI, IoT and blockchain. Cloud technologies, AI and machine learning have introduced an array of opportunities for organisations to understand more about their business operations and to identify, understand, track and target customers.

 

Clients are increasingly moving towards cloud-based solutions and looking to do new and exciting things with data – to gain a competitive advantage, understand more about their target market, drive efficiencies and as an essential part of their business operations. And these trends have been accelerated by the situation that we find ourselves in.
 

Tom Tippett, Legal Director, Clyde & Co
 

Rapid digitisation on such a wide scale inevitably involves teething problems, as new often unexpected risks and liabilities come to light.
 

New technologies and more virtual ways of working mean that organisations must face up to a whole new set of cyber, data, regulatory and legal challenges.
 

Digital transformation also gives rise to a range of people and HR issues, including the introduction of new ways of working, the demand for new skills, and complex change management.
 

You can bring in tech, skills and capabilities but there must be collaboration. It is all very well for a government to collect data and put it in the cloud, but you need to know how to use the data. That involves collaboration between government departments, suppliers, and end-users. Without collaboration, you cannot utilise the data in your possession. It’s the same with businesses. I can take orders online but it’s no use if I don’t have enough delivery support
 

Mun Yeow, Partner, Clyde & Co
 

A digital future
 

The challenges of 2020 led to a wave of new ideas, solutions and initiatives that brought digital agility and thinking forward by a number of years.

 

Now is the time to learn the lessons of this phase of rapid digitisation, ensure that this agile mentality is retained and that the speed of progress and innovation continues.
 

Click here to download the full report.
 

For further information, please contact:

 

Joyce Chan, Partner, Clyde & Co

joyce.chan@clydeco.com