The global economy is facing a critical period. The aftermath of the COVID-19 pandemic continues to impact companies as they struggle to overcome ongoing supply chain disruptions, rising energy and transportation costs, and a shortage of skilled labor. Meanwhile, the war in Ukraine is creating unprecedented issues in the energy and food sectors.

To address this ongoing “permacrisis,” many organizations are shifting their digital transformation priorities away from traditional goals like profit or revenue growth. Instead, they focus on building flexible, resilient business models that can adapt quickly to change. Resilient businesses are strategically prepared to face disruptions, whether from pandemics, economic recessions, shortages in raw materials, skills gaps, or any other looming macroeconomic threats.

These scenarios prompt forward-thinking companies to focus on digital transformation initiatives to meet today’s most pressing challenges. Rising cyber threats, supply chain interruptions, environmental and social disruptions, and labor shortages will increasingly impact the operations of small and medium-sized Italian businesses. To survive, companies must rethink their business models to ensure they can respond flexibly and agilely to change.

Technological Revolution 4.0

Technology can transform business when new tools, methods, applications, or skills are introduced to solve widespread problems. Notable examples include video streaming, which enabled companies like Netflix to swiftly displace the long-established video rental market; Airbnb, which upended the travel and tourism sector; and ride-sharing apps like Uber, which disrupted urban mobility.

To withstand such threats, companies must ensure a deep understanding of emerging and disruptive technologies affecting their market. Ignoring them while competitors implement them is not an option. Some technologies currently proving disruptive across many industries include artificial intelligence (AI), the Internet of Things (IoT), virtual and augmented reality (VR/AR), and blockchain. Understanding how these technologies can enhance a business model is an excellent starting point for building a long-term resilience strategy.

For Italian SMEs, a promising starting point is adopting cloud-based technology solutions, such as Avantune’s Genialcloud platform, which enables integrated business process management in the office and remotely, offering benefits such as reduced time, increased flexibility, enhanced productivity, and reduced IT costs.

Cybersecurity

In the past, cybersecurity was often treated as an add-on. It was something that would be integrated and managed by the IT department as needed. With the sharp rise in the rate and severity of cyberattacks, it’s clear this is no longer feasible.

Cybersecurity must now be addressed at all levels of an organization, from executive leadership to operational offices and the factory floor. Employees need training on security skills, from identifying phishing and ransomware attacks to safe password use and two-factor authentication (2FA). These simple steps are essential to thwart most attacks that use social engineering tactics. The more devices connected to a network, the more potential entry points exist for bad actors, making it essential to conduct regular checks on all company equipment.

In today’s environment, adopting cloud solutions for business process and data management is increasingly important, as these solutions are equipped with advanced security policies that provide greater protection for businesses.

Supply Chains

The COVID-19 pandemic exposed the vulnerability of global supply chains that keep businesses operational and stocked. It also highlighted how drastic political disruptions (like Brexit and the Ukraine war) can disrupt essential connections that keep companies running. Another threat is the global recession and its impact on companies; the failure of a key supplier can have severe ripple effects on other organizations relying on it for components, products, or services.

Building resilience here means moving away from “just-in-time” models, which many industries adopted to simplify operations and minimize costs. Instead, companies are adopting more forward-looking strategies, such as stockpiling supplies even at additional costs or optimizing their inventories. Companies may also reconsider offshoring and outsourcing policies, ensuring that most of their production or logistical infrastructure remains under their control.

Data-driven technologies, AI, and machine learning can support companies in optimizing inventory, improving logistics and production, and analyzing business performance to uncover inefficiencies and identify weak links in the chain. Blockchain solutions are also emerging in many sectors to enhance transaction security across multiple companies. Embracing these opportunities is essential for organizations pursuing digital transformation with the goal of enhancing resilience amid a “permacrisis.”

Environmental Sustainability

In a global context marked by rising energy costs, many businesses understand the importance of moving toward sustainability goals like achieving net-zero CO2 emissions, reducing fossil fuel consumption, and lowering the negative environmental impact of their activities. This could mean reducing air pollution or cutting down on energy and water use, a crucial step in a world facing severe supply crises for both.

Thus, developing and achieving environmental goals should be integral to any digital transformation strategy. One vital step is assessing how migrating IT infrastructure to the cloud, abandoning outdated on-premise setups, can positively impact an organization’s emissions and energy use. Modern technologies, including IoT, AI, data analytics, and blockchain solutions, also provide new ways to monitor and forecast energy use, allowing for full oversight of sustainability matters.

In a factory, machine data can be used to optimize start-up times or identify shifts with the highest productivity, enhancing energy efficiency. In offices, efficiency can be improved with smart lighting and heating systems that automatically adjust to room activity.

For example, Avantune’s Powua, an IoT Orchestration platform, processes data from sensors placed on machinery, equipment, vehicles, and infrastructure to monitor KPIs related to energy consumption.

Larger organizations are also beginning to evaluate the downstream environmental impact of their products and services—that is, the impact created by their customers and users. These technologies provide a holistic view of all environmental governance elements, making them increasingly central to digital transformation processes.

Skills Gap

The World Economic Forum predicts that half of all employees will need reskilling by 2025. In this context, many companies face a future where they simply won’t have access to the skills necessary to benefit from emerging technologies. Digital strategies to help bridge this gap include investing in both technological innovation and workforce training and skills enhancement.

Avantune’s Genialcloud, a comprehensive business management platform, provides users with an accessible set of applications that can be used both in-office and remotely via any PC or mobile device and can be tailored to meet each company’s unique needs. This solution is supported by an e-learning platform, online courses, and video tutorials, allowing users to independently build their tech skills. This is just one example of how cloud-based technology can bridge the skills gap in the workplace.

Finally, companies can partner with schools and higher education institutions to understand which courses are developing the needed skills and support students in transitioning into the workforce.

Conclusion

In today’s economic environment, ICT industry research shows that large corporations and SMEs in our country are continuing to invest in digital and new technologies to withstand this period of “permacrisis.”

Avantune, a leader in the ICT sector, serves as a technological guide for companies, helping them transition from legacy application systems to state-of-the-art technology solutions through the sophisticated Genialcloud and Powua platforms.