Digitalization: opportunities and challenges

In an analysis, the Swiss Central Bank highlighted digitalization and the trend towards sustainability as both an opportunity and a risk.

First and foremost, most companies see the ongoing digitalization as an opportunity to make production processes more efficient.

At the same time, increased interconnectedness -including through online sales channels- means that cybersecurity is becoming an ever greater challenge.

With a somewhat longer forecast horizon, the bank exposes that the sustainability trend arising from climate change is also seen by many companies as an opportunity for new business models. This applies particularly to the broad field of energy efficiency.

However, some aspects of the sustainability trend are viewed critically, especially when it comes to their impact on energy supply.

Digitization

From the bank’s angle, increased regulation and the additional investment it requires are also perceived as a major cost factor by some companies.

According to a Eurofound definition, digitization is the continuous integration of digital technologies and digitized data throughout the economy and society.

The dual ecological and digital transition accelerates the pace of change affecting all aspects of life and will have many consequences for the future of work.

Innovations and the evolution of advanced technologies are having significant effects on almost all areas of the economy.

Raw materials

On the other hand, the Swiss Central Bank sees procurement difficulties as a source of concern.

Many companies are also concerned about the supply situation for the coming quarters. According to the bank, companies do not expect the situation to ease in the short term.

Companies believe that developments will depend on factors such as the duration of the coronavirus blockades in China and the course of the war in Ukraine.