5 Tech Challenges for 2023

As 2022 approaches, businesses must carve a path in a market of unprecedented challenges and limitless opportunities presented by technology.

The Covid-19 pandemic has changed the technology market landscape, accelerating the need for digital innovation and challenging even the most advanced manufacturing facilities.

2023 presents a unique set of challenges for companies. Addressing these five key technology challenges will differentiate companies that survive and thrive from those that are swept away.

1. Supply chain challenges

The Covid-19 pandemic continues to challenge global supply chains with bottlenecks, delays and disruptions; manufacturers and technology companies around the world face an ongoing struggle to source essential parts and supplies.

One of the toughest challenges is the unprecedented shortage of semiconductors (chips) and the resulting delays in production across a range of industries.

In the early days of the pandemic, chipmakers responded to changes in demand (especially reduced demand from automakers and increased demand for consumer electronics) and transformed their production facilities to reflect those changes.

As demand for automotive chips has picked up, semiconductor makers have struggled to meet demand due to capacity issues and supply chain shortages and constraints.

Solutions are underway, but implementation will be slow: Texas Instruments, Samsung, Intel, and TSMC are building new semiconductor fabs in the U.S. that will start production in 2024/2025.

2. Increased security threats

Cyberattacks are on the rise, and as more businesses go digital, they inherently accumulate more data — which in turn is attractive to cybercriminals looking to steal data or hold it for ransom.

In addition to these risks, the advent of quantum computing could render existing security systems obsolete.

Quantum computing speeds up prime factorization, making attacks on cryptography more effective.

Any organization holding sensitive digital data must invest in cybersecurity solutions that address the threat of quantum computing, whether through a risk management program or leveraging quantum computing to mitigate risk.

3. Accelerating the pace of technological innovation

The peak of digital transformation during the pandemic shows no signs of slowing down, and this pace of technological innovation presents another challenge.

Cloud, edge computing, machine learning, metaverse, web3, non-fungible tokens (NFTs), robotics, Internet of Things (IoT), 5G and other technologies are all evolving at a breakneck pace that is hard to keep up with.

To maintain a competitive advantage, companies need to be at the forefront of technological innovation, otherwise they will be left in the “digital dust” of competition.

4. Talent shortage

The accelerating pace of technological innovation has created a need for talent who can build and maintain emerging digital technologies.

In this Gartner survey, IT executives ranked lack of talent as the biggest barrier to adopting emerging technologies, ahead of implementation, cost and security risks.

Faced with this shortage of qualified talent, companies are adopting new and innovative in-house training programs, such as coding bootcamps and training “universities.” This enables them to hire and train potential clients and internal staff looking to advance their careers.

5. The need for more sustainable technologies

Sustainability is rapidly changing from exception to rule: consumer expectations are rising, and sustainability is becoming a must for every aspect of business.

In 2023, consumers, corporate clients and investors will increasingly demand sustainable technology and transparency. For example, if more companies move their platforms to the cloud, the environmental impact and energy usage could go away. By 2023, any negative environmental impacts can no longer be “hidden in the cloud”.

Companies need to use clean and sustainable technologies at all levels, especially in areas with high resource usage, such as data centers and blockchain.

The explosive growth and rapidly changing landscape of the tech industry presents major challenges for tech companies.

Companies that want to survive in this challenging new market must proactively address and prepare for the aforementioned challenges, monitor the industry to keep up with future challenges and opportunities, and continue to think outside the box to stay one step ahead of the competition.

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