4 challenges facing South African businesses
The business landscape has faced unprecedented challenges, specifically intensifying in the past five years with the rapid rise of hybrid working, artificial intelligence (AI), and the integration of innovative tools like virtual reality (VR).
These transformative forces fundamentally reshape how companies operate, pushing them to adapt to new technologies while balancing elements like productivity, employee engagement, and ever-evolving customer expectations.
Anne-Marié Pretorius, Director at Bizmod, says that as South African businesses navigate this complex and somewhat overwhelming environment, they are confronted with both the opportunities and the challenges of a rapidly changing digital world.
“The pressure is on to not only conform to new ways of working but also innovate and develop strategies taking advantage of burgeoning technologies,” says Pretorius.
She outlines 4 key challenges that South African businesses are navigating:
Remote and hybrid working
As more large organisations, including Nedbank and Arena Holdings, in South Africa mandate a return to the office, tensions are rising between employees and employers.
Providing a hybrid work environment not only enhances employee retention but can also serve as a powerful recruitment tool for attracting top talent.
On the flip side, employers have struggled in recent years to cultivate a strong culture and promote collaboration among employees when they are not working together in person.
The rise of generative AI
In South Africa, the use of generative AI has significantly increased, reflecting a broader global trend driven by technological advancements and the growing accessibility of AI tools.
Pretorius says that while AI cannot replicate the deep knowledge and understanding that experienced workers bring to a business, overlooking the opportunities that AI might offer businesses could be short-sighted.
She cautions that while AI relies on historical data, which may not always reflect current business realities, there are significant risks associated with its use.
AI-generated insights can sometimes be inaccurate, misleading, or unethical, potentially leading to poor or harmful decisions if not carefully managed by skilled professionals.
The constant cybersecurity threat
In the latest CSIR survey, 47% of organisations reported encountering one to five cybersecurity incidents over the past year, highlighting the increasing threat of cyber-attacks that businesses of all sizes face.
To safeguard their valuable data and systems against these evolving threats, especially AI-driven phishing and social engineering attacks - companies must invest in robust cybersecurity measures.
As these cyber threats continue to rise, so does the demand for skilled cybersecurity professionals capable of defending against increasingly sophisticated attacks.
The survey also revealed a significant skills gap, with 63% of cybersecurity positions remaining partially or fully unfilled.
Skills shortages
The shortage of IT skills is growing, and organisations are needing to find new ways to recruit, train, retain, and upskill employees.
The IDC (International Data Corporation) predicts that by 2026, more than 90% of organisations worldwide will experience a shortage of IT skills, amounting to some $5.5 trillion in losses caused by product delays, impaired competitiveness, and loss of business.
The rapid emergence of new technologies and tools is resulting in a gap between employee skills and technologies, as individuals struggle to keep up.
In addition, the STEM curriculum needs to be timeously updated to allow for the changing technologies, the skills gap will continue to widen.
“It’s more than evident that businesses that achieve the fine balance of effectively managing a hybrid workforce and embrace the opportunities that digital transformation can bring will be better equipped for future growth and prosperity,” says Pretorius ends.