Whether you’re one of the 1.5 million new start-ups in the UK looking to become the next big blue-chip or an established company, there’s always the potential for something to go awry.
One industry that’s facing unprecedented challenges is the tech industry. With so many technological advancements, companies are struggling to keep up with the ever-changing landscape.
But what should you be worried about as a business in tech? We’ve broken down the biggest threats to the tech industry below.
- Cybersecurity
One of the biggest challenges for tech companies is cybersecurity. The pace of advancement in security is matched only by the advancement in threats, and it’s perhaps no surprise that 32% of businesses in the UK have experienced a cyberattack in the last 12 months.
From ransomware to malware, social engineering or even employees accidentally compromising sensitive company data whilst working from home (or from a café!), businesses must be ahead of the game when it comes to their cybersecurity.
As cybersecurity poses a real risk to organisations of all sizes, many businesses take out manufacturing insurance, which these days commonly includes provisions for cases of cyberattacks.
- Chip shortages
And we’re not talking about those made from potato! Silicon chips are used virtually everywhere. Whether you’ve just bought a new car, watch, fridge or phone, chances are that they contain a chip.
In the last few years, though, chips have become harder to come by. Stemming from Covid-19 and remote working, the need for laptops, phones and computers increased, and demand has rushed ahead of supply.
Although the chip shortage is set to improve throughout 2023, the situation still poses a very real problem for tech businesses.
- Technological advancements
Normally, innovation is seen as a positive but, for some tech companies, too much change too soon can leave them treading water, trying to keep up.
With exciting new developments in AI, automation and 5G, tech companies must innovate, change and reinvent to prevent stagnation. All of which is far easier said than done.
- Talent management
Talent management is all about keeping the staff that you have.
In 2022, huge numbers of employees decided to quit their jobs, seeking something more fulfilling or lucrative – and this trend hasn’t reversed changed in 2023.
With tech employees in demand, retaining staff who excel is imperative for businesses. Only those organisations that provide employees with a positive company culture, generous remuneration packages and valuable company benefits will be able to be confident of keeping the people who make things tick.
Final thoughts…
Although it’s an exciting time for tech businesses, there are also many challenges on the horizon. However, by being aware of the imminent threats to your business, you can take action, get ahead and thrive.
