How to prevail when technology fails - Flipbook - Page 5
Executive summary | 5
The transformative power of technology has made it integral
to many businesses’ growth plans: 61% of our surveyed
businesses say the development and/or deployment of
technology is a core part of their growth strategy.
That’s because technology delivers tremendous
benefits. Internet of Things technology installed into
manufacturing lines can help predict when a key
piece of equipment might falter. Cloud computing
enables businesses to rapidly scale their online
platforms. And artificial intelligence can automate
the processing of hundreds of thousands of rulesbased tasks. This is just a fraction of the ways in
which technology can unleash huge benefits.
But technology fails. It may malfunction or not
perform to spec, or it could have unintended
consequences such as increased cybersecurity
vulnerabilities. In addition, the joint ventures
and acquisitions designed to accelerate tech’s
development and commercialization can also
break down.
Failing technology does not just affect the business
that developed or deployed it; it can also impact
customers, employees and even wider society.
Algorithms in analytics technology that were
developed based on unrepresentative data sets
might be discriminatory. And the technology that
underpins encrypted messaging, cryptocurrencies
and social media platforms can erode transparency,
traceability and accountability if they are not
governed effectively. Then there are the potential
ethical issues associated with technology addiction
and the spread of misinformation.
When technology goes wrong, it does not just cause
significant operational, financial and reputational
damage – it can also lead to a regulatory
investigation or litigation, compounding the initial
cost, and reputational damage.
Businesses have always had to grapple with these
risks. But in today’s volatile environment, their
need to deploy technology quickly is increasing the
likelihood of failure. At the same time, changes in
regulation, such as tightening data privacy laws or
developments that make it easier to bring collective
litigation, increase the potential for disputes
to follow.
To maximize the benefits of technology, businesses
must carefully consider how to mitigate the risks.
Based on our work with clients, we have established
four principles for mitigating technology risk.
Fig 1 The majority of businesses say the development and/or deployment of technology is a
core part of their growth strategy “to a significant extent”
To a significant extent
To a minor extent
61%
Not at all
36%
Q. To what extent is the development and/or deployment of technology a core part of your company’s growth strategy?
Base: 550 Note: Percentages do not total 100% due to rounding.
2%