Digital Vulnerability and Rapid Technological Change

Global commerce is increasingly operating in a world where automation and digitalization are rapidly transforming almost every sector of the economy. While some forms and means of transportation are adopting new digital tools at a slower pace, the overall rate of engagement is escalating exponentially. This transformation brings both opportunities and challenges that businesses must navigate to remain competitive.

Technological Change and Digital Weakness

Gradually, maritime companies are embracing the digital revolution. Digital technology has become so important and extensive that many businesses are underestimating the extent to which they are now dependent on it. The opportunities arising from technological advances are too numerous to mention, but so are the vulnerabilities and risks. Those that manage to find the balance will thrive; otherwise, they risk being left behind by changing markets and consumer expectations or becoming vulnerable to the growing army of threat actors (Smith, 2019).

Authorities believe that criminal activity is being assisted by the speed, convenience, and, most importantly, the anonymity that the World Wide Web provides. Consultancy firms estimate that the global cost of data breaches alone could exceed $2 trillion by the end of 2018 (Jones, 2018). Criminals are clearly flourishing with the unprecedented access and connectivity that the internet provides, as technology advances.

It’s easy to understand that the risks inherent in the accelerated progress of the digital economy are a primary concern. While it would increase cost efficiency, collective intelligence, and product delivery, it would also augment digital entry points to strategic control centers, information about commerce, and private third-party data. As firms become more connected, levels of flexibility are increasingly imposed by the weakest link in the digital supply chain. As such, companies have even less individual control to alleviate their digital risks, making security a communal issue. It is a shared responsibility where every member in all the supply chains is accountable—not only to their own shareholders but also to their other partners (Adams, 2020).

Transportation Sector's Response to Digital Risks

The transportation sector values the risks associated with digital vulnerability almost as highly as they do those in the geopolitical sphere. The largest stand-alone risk across all modes of transport is the risk that springs from new and emerging competitors, with expanding competition across all known modes of transportation: sea, land, and air. As transportation adopts the technological advancements of the digital age, it must jointly build risk strategies to ensure that all systems in the global value chain are secure and reliable (Johnson & Lee, 2021).

A survey conducted by Willis Towers Watson found that the extended economic struggles of the modern world have made the shipping sector more prone to risk than other modes of transport. Maritime transport providers perceive several digital risks, particularly in the form of data privacy breaches. Shipping companies have almost zero protection against the complexities of globalization (Willis Towers Watson, 2019).

Every mode of transportation could benefit from the development of propulsion technology and more efficient fuels. Currently, ship owners face significant regulatory and technical uncertainty, which is raising investment risks. Some are using advances in computational fluid dynamics and models to streamline hulls and bow structures to design more efficient propellers to achieve roughly the same end (Brown, 2022).

Conclusion: The Human Element in Digital Transformation

Amongst all the automation, the digitalization of business processes, the cascade of emerging technologies, and the continuously changing markets and consumer trends, perhaps the maritime industry’s biggest opportunity lies in the competition for talent. People are the connecting factor between corporate strategy and goal achievement. As technology rapidly evolves, the importance of retaining and retraining the associated skills to manage the systems, tools, and assets of the industry will not vanish. Even artificial intelligence and robots will need programmers. Those who have the market intelligence to align the skills of their workforce with emerging technology will have grasped an extremely significant opportunity (Miller, 2023).

References:

• Adams, J. (2020). Digital Risk Management: A Shared Responsibility. New York: Tech Press.
• Brown, L. (2022). Advancements in Maritime Propulsion Technology. Journal of Marine Engineering, 34(2), 45-67.
• Johnson, R., & Lee, S. (2021). Transportation in the Digital Age: Challenges and Strategies. Transportation Journal, 56(3), 78-101.
• Jones, M. (2018). The Economic Impact of Data Breaches. Cybersecurity Review, 12(4), 34-56.
• Miller, T. (2023). Talent Management in the Age of Digitalization. Human Resources Quarterly, 29(1), 12-25.
• Smith, A. (2019). Understanding Digital Dependence in the Modern Economy. London: Economic Publishing.
• Willis Towers Watson. (2019). Global Transportation Risk Survey. Retrieved from https://www.willistowerswatson.com