Happy 2024 to all of our readers!

There was a time when I couldn't wait for the new year and see the next wave of technology and innovation from CES. But these technology shows don’t seem to be a crystal ball for the future lately. The thing is, the speed of innovation is brutal. Companies feel the pressure to get their newest products to market fast and aren’t holding off on big reveals for CES (or similar events) anymore. Everyone seems to be looking for the next new shiny thing, but not every new thing is an innovation. 

Change is also accelerating in the business world. In Signal Boost, I explore the concept of ‘reinvention ecosystem’ as a new approach to talent engagement in today’s era of business reinvention.

Cybersecurity incidents seem to be daily headlines these days. In this month’s Transmitter Martin Fix, Technology Director at Star, offers his perspectives on how to navigate cybersecurity in the age of AI.

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Kim Soerensen,

Editor-in-Chief

Rethinking the talent challenge in business reinvention

The last few years have been challenging - we’ve experienced economic volatility, technology shifts, geopolitical turmoil, unprecedented climate change, and increasing social divides and inequality. If you feel like there’s been a lot of change, you’re right. The level of disruption has been rapidly climbing since 2017, and 88% of C-suite executives expect a higher rate of business change in 2024. This period of turbulence has naturally led to increased levels of uncertainty. Since 2020, business and consumer confidence have fluctuated significantly, breaking a decade-long trend of relative stability. 

This change and instability have spurred an increased sense of urgency for business reinvention - 45% of CEOs believe their company will not be viable in a decade if it stays on its current path. This might seem exaggerated, but with corporate longevity in long-term decline, business leaders have good reasons to be concerned.

So what’s holding companies back from taking their companies on a journey of reinvention? Talent is consistently highlighted as a top challenge by business leaders - poor talent access, lacking employee engagement, and waning labor productivity. While I won’t go as far as to say that talent isn’t important, I do believe it’s time for companies to rethink the challenge of access talent to access value creation. Enter the concept of a ‘reinvention ecosystem’.

Imagine a network of diverse talent and expertise like an orchestra, where each group contributes to the overall performance. The in-house team sets the foundational tune, while partners (technology vendors, consultants) add their unique flair. Business allies (strategic alliances, startups) and contractors jump in to create new crescendos when the performance calls for it. Leading this ensemble is the conductor – led by the company's endgame – who attentively guides, makes slight adjustments if someone's off-key, and ensures everyone's in harmony. Though each plays a different part with their respective instrument, they are all performing the same song, beautifully orchestrated to give the audience the best performance. 

A business example could be an automotive company that needs to create new revenue streams. They could bring together a small in-house team, a few freelancers, a strategic alliance partner, and a service design agency, to tackle this opportunity. It’s orchestrated by the company itself, placed at the center of the ecosystem, steering the strengths of each group towards the same goal. 

The ‘reinvention ecosystem’ enables companies to remain focused on their core legacy business while simultaneously venturing into multiple experiments with transformative potential, ensuring both agility and stability in how resources are allocated. 

Is this easy to implement? Absolutely not. But there’s no easy fix for companies that need to rethink their business in order to put it on a more viable course.

We may not see ‘reinvention ecosystems’ materialize in the exact form I imagine. My hope is that companies at least begin to fully embrace the idea that the convergence of diverse ideas and talent, when orchestrated within one ecosystem, can unlock amazing results. 

Navigating cybersecurity in the age of AI

Earlier this month, the SEC’s X (formerly known as Twitter) account got hacked in a scheme to manipulate the cryptocurrency market. This incident underscores the evolving landscape of cybersecurity threats and the critical need for leaders to implement robust business contingency plans. 

A study by IBM in 2023 highlighted the implications of cybersecurity oversights, revealing that the average cost of a data breach stood at approximately $4.35 million. Given these high stakes, it’s clear that understanding and investing in effective cybersecurity strategies is important. Such measures not only protect an organization’s operations and reputation but also have significant financial implications.

Understanding cybersecurity (hint: It’s not the same as QA)

Cybersecurity, often confused with quality assurance (QA), serves a distinct purpose. While QA ensures software performs as expected, cybersecurity safeguards against unauthorized data manipulation and interception. 

“Cybersecurity is actually 90% about human behavior and 10% about technology,” said Martin Fix, Technology Director at Star. This perspective shifts the focus from purely technological solutions to a more holistic approach, encompassing human elements in safeguarding digital assets. “Despite the criticality of cybersecurity, many brands remain hesitant to invest due to misconceptions about application security and the additional costs involved,” Martin added.

Encryption at rest and Protection at rest

The idea of 'Encryption at Rest' and 'Protection at Rest' becomes crucial here. This means ensuring data is secure both when stored ('at rest') and during transmission ('in transit').

Integrating robust encryption and protection protocols during the development process is essential. It helps in preempting security breaches and ensures compliance with data protection regulations, which is increasingly important in today's data-driven business environment. The proactive approach to these security measures will not only safeguard the technical infrastructure but also reinforce the company’s reputation as a trustworthy and secure handler of sensitive data.

The AI challenge in cybersecurity

AI also poses a significant cybersecurity threat. Its capability to rapidly test and exploit vulnerabilities far exceeds that of human hackers, making AI-based attacks more efficient and effective. This threat extends beyond technical assaults to include sophisticated social engineering tactics, such as convincing phishing emails that are increasingly difficult to distinguish from human communications.

What’s next
To address these challenges in today’s fast-moving digital economy, here are some practical steps Martin recommends to CTO and technology leaders:

• Train your people: Upskilling your people to ensure they are up to date with cybersecurity-related regulations and technologies. Regular training sessions and understanding of the latest threats can significantly reduce human error.
• Prioritize cybersecurity: Embed cybersecurity considerations into the initial design phase of your digital solutions. Make it an integral part of your development process, not an afterthought.
• Implement multi-factor authentication: This simple yet effective measure adds an extra layer of security, making it harder for unauthorized users to gain access.
• Conduct regular audits and penetration testing: Regularly assess your systems for vulnerabilities. Independent penetration tests can help identify weaknesses that internal teams might overlook.
• Prepare for a response plan: This includes not just technical responses but also communication strategies approved by your board and senior executives. Share these with stakeholders in advance so you can respond promptly and maintain trust with your end-users.
• Stay informed and agile: The cybersecurity landscape is constantly evolving, especially with the advent of AI. Stay informed about the latest trends and be prepared to adapt your strategies accordingly.

Cybersecurity is not just a technical issue but a strategic imperative that requires foresight, planning, and ongoing vigilance. As tech leaders, you have the responsibility to embed cybersecurity into your business planning and infrastructure. By also fostering a culture of security awareness, you can significantly mitigate risks and protect your organizations in this dynamic digital age.

Technology highlights of this month