Businesses are facing bigger technology problems than ever before. With the rapid pace of innovation and an increasingly competitive marketplace, it’s more important than ever to stay on top of the latest trends and technology.
However, as businesses become more reliant on technology, they also become more vulnerable to problems that come with it. This is especially true in 2023 when it is expected to see a number of major disruptions that will have far-reaching effects on businesses, big or small.
What Tech Challenges Will Most Concern Businesses in 2023?
Due to how fast technology is developing, there are numerous challenges that businesses will face in 2023. However, these are 5 major ones that stand out and will be especially important to consider in the coming year.
1. Data Security
Data security is a major concern for businesses in any industry, but it is particularly important for financial and accounting firms—which often handle sensitive financial information. Especially with the growing globalization and digitization of businesses, this raises awareness for issues like cyber threats and big data security.
Increasing Cyber Threats
The rise of cyber threats, such as ransomware attacks and marketing fraud, poses a significant risk to businesses of all sizes. These types of attacks can compromise the security of a business’s data, leading to the theft or loss of sensitive information. In addition, the increasing sophistication of cyber criminals means that businesses need to take greater precautions to protect their data.
To help address this problem, financial and accounting firms should consider adopting data security solutions that can help protect critical information. These can include practices such as endpoint protection software, file encryption software, and password management systems that enforce strong password policies to prevent unauthorized access to sensitive data.
Data Backup & Recovery Issues
The massive amounts of data being generated and stored by businesses are another concern. As the volume of data increases, it becomes more difficult to manage and protect it, especially if the business lacks the necessary infrastructure and data recovery processes.
This results in an increasing need for businesses to implement effective data management practices, such as data governance and data privacy. Particularly in the accounting and finance sector, the risks posed by data breaches have become more critical, making it crucial to have in place a written information security plan and an adequate information security management system.
2. Regulatory Compliance
Regulatory compliance is an ongoing concern for businesses in all industries, and it is likely to continue to be a technology problem in the coming year.
Financial and accounting firms in particular may face challenges in this area due to the complex and constantly evolving nature of financial regulations such as FINRA, SOC and SEC. A couple of major areas of concern include maintaining compliance systems and securing financial processes that involve sensitive data.
Maintaining Compliance Systems
A major challenge for these industries will be to continually update and maintain compliance systems, including training, tools/technology, and reporting processes, in order to meet new regulations. This is especially important as the financial sector continues to become more heavily regulated and the risk of non-compliance increases.
Not to mention, if you plan on partnering with an IT for accounting provider to manage your tax data, be sure to verify if they have a certification of your industry’s standard of data compliance. This is especially important due to how IT companies do not need any kind of accreditation to start their business, so keep this in mind when deciding to work with one.
Securing Financial Processes
Another technology-related challenge for financial and accounting firms will be the need to securely store, process, and transmit sensitive financial data in compliance with regulations such as the Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection Regulation (GDPR).
Ensuring that data is protected against unauthorized access or breach through solutions like smart contracts and encryption will be critical in order to maintain compliance and protect the business and its customers.
3. IoT Integration
Integrating the Internet of Things (IoT) into a business can be a complex technical problem, especially for financial and accounting industries that may have strict security and data regulations to adhere to. Here are some challenges that businesses in these industries may face when integrating IoT technology.
Ensuring that all the various IoT devices being used within a business are compatible with each other and with existing systems can be a challenge. This can be especially true if the business is already using a variety of different IoT devices from different vendors.
In addition, some IoT devices may be designed to work only with certain types of software or operating systems, which means that businesses will need to ensure that their existing IT infrastructure can support these devices before integrating them into their operations. Having a Managed IT Services provider as your IT partner can ensure all these operations are completed and up-to-date for you, as well as being available 24/7 for IT Support to give you peace of mind.
As IoT technology becomes more prevalent and is used to connect more devices and systems, there is a greater risk that hackers could exploit security vulnerabilities. This could result in dealing with issues like unencrypted data, poorly configured security settings, and malware infection.
In the accounting and financial field, this could lead to a greater risk of cyberattacks due to the sensitive data that is transmitted and stored in these systems.
As a result, companies will need to ensure that their IoT devices are secure and that they have adequate security measures in place before deploying them.
4. Machine Learning and Artificial Intelligence (AI)
While ML and AI have the potential to bring significant benefits to the financial and accounting industries, there are also a great number of technology challenges that businesses will need to overcome in order to successfully implement and utilize these technologies.
Data Quality and Availability
First, there is the issue of data quality and availability. In order for ML and AI systems to work effectively, they require large amounts of high-quality data. If a business’s data is incomplete, incorrect, or poorly structured, it can negatively impact the performance of these systems. Additionally, if a business does not have access to sufficient data, it may be difficult or impossible to implement ML and AI solutions.
Integration and Compatibility
Another is the issue of compatibility and integration of new e-commerce technologies. ML and AI systems often require integration with a business’s existing systems and processes, which can be a complex and time-consuming task. Additionally, there may be compatibility issues between different systems, which can further complicate matters. This can be remedied, however, through adopting a DevOps solution provider that can create implementations customized to your system’s needs.
Lack of Expertise
In addition, there may be a shortage of people with the necessary skills and expertise to fully exploit the potential of machine learning. This is especially true in the case of businesses that are just starting to use ML. The lack of expertise can make it difficult to develop and implement a successful AI or ML solution, which can slow down the process.
5. Sustainable Practices and Alternatives
Sustainability has become an increasingly important practice in recent years, and this trend is likely to continue in the future. As a result, businesses will need to consider how their systems affect the environment and whether they can develop sustainable alternatives that are just as effective.
Especially as consumers become more aware of environmental issues and demand for sustainable products increases, businesses will need to find ways to minimize their environmental footprint while still providing products and services that people want and need. This may result in businesses dealing with challenges like adopting new technologies, increasing their scope of operations, and managing sustainability efforts.
Adoption of New Technology
Sustainable practices and alternatives can pose a technological challenge for businesses if they require the adoption of new technologies and their integration into existing systems. This can be a difficult process, especially for large companies that have complex infrastructures, and it can take much time and resources to implement unless you have a dedicated cloud solutions provider taking care of it for you.
Monitoring Sustainability Efforts
In addition to new technology, businesses may also need to implement new systems and processes to track and measure the sustainability of their operations. This can involve the use of specialized software and tools to monitor energy and resource use, as well as the development of new reporting and disclosure standards to provide transparency on a company’s sustainability performance.
For example, a financial or accounting firm may need to invest in new software or hardware to track and report on their carbon emissions or to automate sustainable business processes. This may also require a commitment from management to support sustainability efforts throughout the organization.
Face These Challenges Head-On
Technology is moving faster than ever and it will only continue to do so in 2023 and beyond. The pace of change means that organizations can no longer afford to wait for the perfect solution. Instead, they must be willing to adapt and evolve their technology strategies in order to stay competitive and relevant.
And while there may be numerous technological challenges that businesses will face in the coming year, these five are likely to be among the most significant. If businesses want to stay in front of these challenges and use technology to their advantage, they should take a proactive approach to each of them. And if you’re a financial, accounting or wealth management firm looking for an IT solution that can implement them for you and help you succeed, contact us today for a Free Consultation!