Magazine menu Close Magazine menu

Digital transformation

Latest stories

insight story ai machine learning

Customer wins from AI require strategy, not just investment

  • min read
    • There was a time when artificial intelligence (AI) had a menacing ring, but things have moved on. Chat GPT and generative AI apps are creating new roles or making some skills and careers obsolete, depending on who you listen to. Meanwhile, we see its benefits every day, like finding efficiencies and automating repetitive tasks. AI could soon be essential to most businesses. But it's not always clear how to use it. Kaspersky's new podcast, Insight Story unpacks emerging tech trends with global specialists and businesses successfully using the tech. In Episode 5, I speak with AI expert Dr. Romesh Ranawana (Sri Lanka,) customer loyalty consultancy Truth CEO Amanda Cromhout (South Africa) and Fabio Assolini, Head of Research in Latin America for Kaspersky's Global Research and Analysis Team. We examine how business should approach AI and machine learning to make the most of the opportunity while staying secure. Understanding what's meant by AI Romesh says we normally mean something more specific when we talk about AI. "All technology – be it Alexa, your car or washing machine – uses algorithms. An algorithm outputs something when you input something. For problems too big or hard to solve with software, a particular type of AI – machine learning – offers a new way to build algorithms, instead of a programmer writing lines of code." And this kind of AI is everywhere. "We hear much about how it's changing e-commerce and video streaming, but nearly every industry uses AI – from healthcare to retail to factories. Many of the biggest brands, like Amazon and AirBnB, owe their success to it." AI in customer loyalty Customer loyalty programs have long used AI to target customers with more relevant, personalized offers. Amanda's company Truth specializes in these. "Data is fundamental to customer loyalty programs. Everything we know about a consumer – whether the information they give or gained through transactions – has proven power." UK grocery outlet Tesco's Clubcard was one of the first schemes of its kind, with some 20 million members today. Amanda says their approach to data was groundbreaking: "Every quarter, Tesco sent out thank you vouchers with a small discount on your next shop. The vouchers were relevant to what you bought, and no set was the same." "It's a value exchange," says Amanda. Customers give their data because of what they get out of it. "Sometimes companies ask members or customers for data less overtly. Financial institutions may offer a reward to answer a questionnaire, creating a profile of your financial needs and propensity to borrow. They're paying so they can get a higher response rate to sales. If done well, it's win-win." Recent research, Global Data Privacy: What the Consumer Really Thinks 2022, found discounts and freebies were in the top three reasons consumers share data with brands. Amanda also thinks some companies confuse using data well with hard-sell. "They're not thinking through the value proposition. The younger generation especially knows their data's worth. They're asking, 'What am I going to get for that?'" Keys to success with AI Most companies investing in AI aren't getting immediate results. MIT research found only three in 10 companies investing in AI are getting a return on their investment. Who succeeds depends on how they approach it, Romesh says. He thinks why you're doing it matters too – it should be about changing how the company does business, not simply making savings. "If you look at AI as a way to automate what you do now, you'll get reduced costs but not much benefit. You need to mesh AI and people in your organization to generate value, so they're learning from each other." Amanda adds, "Many companies want to flick a switch and, in two hours, make it happen. They don't understand it has to be a strategic driver for the business." Romesh and Amanda both highlight good-quality training data as a critical success factor. Romesh says, "Customers and their behaviors change – what you train today may not be relevant in a week's time. AI systems must be continuously trained on real-time, up-to-date data. Companies need data collected continuously kept in a single space – we call it 'the data lake.'" Amanda also believes the C-suite must support an AI strategy, even lead it. "It doesn't start with marketing executives wanting to do this – it starts at the top, with the CEO and the board." But they shouldn't expect too much, too soon. "The leaders of any company must understand it's an ultramarathon, not a sprint." Romesh notes it's becoming possible for more people to work with AI. "AI systems are still complicated. It takes knowledge, data engineering and software skill. Over the last few years, more tools have come out – low-code or no-code tools – making AI more accessible to more people." How AI is changing cybercrime AI didn't need to be more accessible for cybercriminals to use it, which has implications for business. In research with Kaspersky's Global Research and Analysis Team, Fabio Assolini has seen several applications of AI in cybercrime. "AI is helping cybercriminals bypass new authentication methods. Some financial institutions and banking apps use biometric authentication, where the user must look to the right, to the left and smile. We've seen cybercriminals using AI tools to do this with only a victim's photo." How businesses should respond isn't straightforward – they need to identify more fraudsters while not misidentifying too many customers. "You can fine-tune authentication methods to better identify fraud attempts, but you may get many false positives. It's a balance," says Fabio. Fabio recommends businesses ensure AI training data is ethically gathered and complies with privacy regulation in countries they distribute to. "Some free apps for adding special effects to pictures collect and sell data sets for training AI. There's a privacy issue, especially in Europe with GDPR, but sometimes those collecting the data are in parts of the world without privacy restrictions." To comply with GDPR, AI systems that use personal data must be developed, trained and deployed with a clear objective determined at the design stage. It must be legitimate and compatible with the organization's goals. AI's future in business Amanda stresses the need for brands to understand what their data really means about every human behind it. "Data scientist Dr. Shorful Islam says, at the end of every data point is a human being we're trying to persuade to do something differently, or trying to make their engagement with a brand more pleasurable, or whatever the desired outcome. So you've got to think about behavior more like human beings, rather than robots." Romesh sees AI leading to powerful change in consumer behavior. "We're buying things we'd never have bought before because companies are pushing them to us. Amazon reports 35 percent of its revenue comes from recommendations." And those features will only get cleverer. "Systems will become more powerful because they'll have more data feeding in." Listen to the full Insight Story audio series on Podbean or your usual podcast provider.
insight story blockchain

Blockchain’s amazing versatility promises world-changing uses

  • min read
    • New blockchain applications are spreading fast in every type of business. It can do things once hard to do reliably, like validating supply chain sustainability, giving consumers more trustworthy information and even rewarding people for getting exercise. Does your business need to get to grips with blockchain, and how could you use it to transform your business for the better? Kaspersky's new podcast, Insight Story, unpacks emerging tech trends with global specialists and businesses successfully using the tech. Episode 3 looks at blockchain. I speak with UK-based Helen Disney, Director of The Realization Group and Founder of Unblocked. Germany-based Abhi Sharma, Global Lead of Mobility Platform, Blockchain and Partner Universe at BASF also joins us. A simple way to understand blockchain Helen likens blockchain to an old idea everyone recognizes. "We've had ledgers for a long time – someone sends you an invoice, you write down when someone pays and match the two. Blockchain is a digital, distributed ledger. It provides an audit trail for all transactions and activities on a shared network. 'Distributed' means everyone in that network has a copy, so you can't go back in time and change things." Businesses see that a reliable, shared ledger that's hard to change makes more things possible. Helen says, "There are examples of using blockchain in business and for social impact, like in healthcare and supply chains, in creative industries, the energy sector and environmental initiatives. In financial services, blockchain can create efficiencies, speed up settlement times and let people transact with assets not currently tradable." Blockchain Research Institute continually examines the many applications of blockchain, from ocean health to medical research to border security. Grand View Research estimates the global blockchain market is worth 10 billion US dollars today and will grow 88 percent each year. Cottoning on to value in supply chain sustainability Abhi Sharma explains a BASF blockchain initiative that capitalizes on the premium consumers are willing to pay for sustainable products to incentivize sustainable cotton production. The largely undifferentiated nature of the commodity market has made this challenging in the past. Abhi says, "Farmers have had no incentive to use better practices to protect the environment because that information doesn't flow to the consumer." Seed 2 Sew aims to change that. "Farmers enter information in a mobile application at every stage of their season, harvest and delivery of goods. When they use sustainable practices like natural irrigation, they can enter the practice in the application and take photos for proof, creating extra value." It's not just farmers who could claim credit for doing the right thing. "Other players in the market could be motivated to install solar panels, use sustainable electricity and so forth." Seed 2 Sew is designed to fit naturally with how farmers already work. "They're not sitting at a computer filling in spreadsheets – they're taking photos in the field and feeding that data into the blockchain. Their motivation is high, because there's high demand on the retail side for more sustainable products." And on the retail side, consumers need confidence in sustainability claims. "Consumers are becoming more conscious. They want to buy less, but buy more meaningful, story-driven products. We're creating that traceability and transparency that prevents greenwashing." Where to start with blockchain But where should a business leader start? Helen thinks it's down to understanding your business as much as blockchain. "Think about, in my business, where could this be beneficial? Do I want to offer some reward points or incentives to customers, change the business's financial infrastructure, or do something with my supply chain? Start with what's important to you, and look for real-world examples of what's been done." Many early-adopter projects haven't continued, and Abhi sees lessons in that. "Organizations need a start-up culture. You need fail fast, learn fast models. But it's more about the people than the investment – whether they can drive a project, whether they can scale it. Your people will drive your idea into the marketplace." He thinks exploring blockchain is worth it regardless of whether you ultimately use it. "For those who've dived into it, it shifts their mindset. Thinking about the possibilities gives them different ideas. Once you realize you can do something in a decentralized or distributed way, it changes how you think." Blockchain and cybersecurity Head of Kaspersky Global Research and Analysis Team (GReAT) for Latin America, Fabio Assolini, thinks businesses should note risks associated with blockchain, whether you use it in your business or not. "Blockchain isn't immutable. Attacks on these systems have happened, like 51 percent attacks." That's when a group of cryptocurrency miners achieves control of more than half of a network's computational power, allowing them to alter the blockchain. "Another problem with blockchain is double-spending – under certain conditions, miners can modify blocks to spend cryptocurrency twice. For small companies, that can be a real problem." But cybercriminals using blockchain is behind a fast growing number of attacks. "Cryptojacking is one of the most common attacks. Cybercriminals hijack the power of processing on your servers by programming your device to mine cryptocurrency for them. When they invade a system, they will also sell the access to other cybercriminals." Cryptojacking is rising dramatically – Kaspersky research showed a 230 percent increase in 2022. It can slow systems and ramp up your energy bills, but Fabio warns there aren't always obvious signs. "More professional fraudsters prepare crypto mining software that runs smoothly. The administrator may not realize there's something going on." Businesses can prevent cryptojacking by adopting cybersecurity best practice. "There's no single action, but a set of good practices to protect against remote access. For example, you need firewalls, access control to all systems and logging of all user activity," says Fabio. "Attacks that install crypto mining software will also be detected by a good endpoint security solution." Where will blockchain go next? Blockchain will be as common as smartphones, according to Helen. "In the future, we'll all have a web wallet and assets and tokens sitting on blockchains." She believes the incentives and benefits will compel consumers to adopt blockchain-based products fast. "We're already seeing examples, like play-to-earn games, where you can earn cryptocurrency playing computer games and then trade it for other things. Sweatcoin lets you earn money for walking. These apps also generate data business or research organizations could use to understand our lives better." Our experts have a few thoughts for those considering or starting to use blockchain. Abhi says, "Business leaders should think more about how to maintain it. I see many sustainability-related blockchain initiatives, but few survive." Helen thinks we need a more widespread understanding of blockchain to unleash its true potential. "We can solve big global problems by building communities of interest and incentivizing change. Blockchain is for everybody. You needn't be technical to understand it. Make time to learn, and you'll find it fascinating." Listen to the full Insight Story audio series on Podbean or your usual podcast provider.
insight story smart grids

As bills rise, smart businesses are saving with smart energy tech

  • min read
    • Alongside emissions reduction goals, energy prices have hoisted reducing energy consumption to the top of business agendas. In the UK, between 2022 and 2023, electricity prices rose 67 percent and gas prices 129 percent. In the US, energy prices are up as much as 40 percent. It's no longer a case of, should businesses cut their energy use, but how? Many organizations are looking for technologies that can help them better control their power use and use more renewable energy. As I wrote in this primer on electricity's history, a shocking 13 percent of the world's population, mostly in sub-Saharan Africa, have no access to electricity. Could more business investment in renewables help to bridge the gap? Kaspersky's new podcast, Insight Story, unpacks emerging tech trends with global specialists and businesses successfully using the tech. Episode 2 looks at smart energy. I speak with Feroz Koor, Group Head of Sustainability at Woolworths Holdings. South Africa and Singapore-based Nilesh Jadhav, Founder and CEO of BtrLyf creators Qi Square, and former Programme Director, EcoCampus initiative, Nanyang Technological University. BtrLyf is an "AI-enabled assessment and marketplace platform to plan and achieve super-low energy, net zero and green certified buildings, quickly and at super-low costs." It creates 'digital twins' that let businesses model a range of energy conservation measures to find out what will work best.  Slashing grocery energy bills Woolworths has some 1,400 stores in Sub-Saharan Africa, Australia and New Zealand selling groceries, clothing, homeware and more. "Retail food businesses have a large energy footprint," says Feroz. Sustainability data science experts ESource says energy costs make up around 15 percent of food retail overheads. Feroz's company opted for smart tech to become more energy-efficient. "We've sub-metered all our stores with smart meters. There are different meters for lighting, refrigeration and air conditioning for example, so we can see what's driving consumption." The tech isn't cheap but paid for itself fast. Feroz recounts a huge discovery: "After metering one store in a new shopping center, we found we were being billed for other stores' electricity – the meters paid for themselves on the first day by proving it. We often use smart meter data to challenge incorrect billing – you'd be surprised how common it is." Meanwhile, the meters helped identify small changes that could save a lot of power. From smarter stores to smarter buildings Nilesh Jadhav, Founder of Qi Square who created BtrLyf, says, "Our customers want to improve their energy efficiency and reduce reliance on imported energy. Our platform makes the data available. So far, we've made digital models of 20,000 buildings in Singapore." Modeling their buildings gives businesses an approachable window on a daunting task. "If businesses can do an initial assessment of how they could save energy today, then how they could go to net zero [greenhouse gas emissions,] they can see the bigger picture." Woolworths is approaching a similarly daunting task – to use 100 percent sustainable energy by 2030. Feroz says, "We've made the commitment because it's the right thing to do, but we've got our work cut out for us. We have several options, like self-generation at shopping center level or sourcing from independent bulk producers. We're looking at wheeling, where you buy energy from a producer who then 'wheels' it through a distribution network. " From smarter buildings to smarter energy grids Increasingly nations and energy companies are making electricity smarter at grid level, aiming to reduce emissions and improve energy security. Smart grids can detect and react to customer use patterns, empower consumers to be more energy efficient and encourage renewable energy production by buying excess. All this can maximize renewable energy use and minimize the use of fossil fuel to generate electricity. Nilesh continues, "Microgrids take it to a system level using central energy management software and batteries to manage fluctuations." Smart grids also enable a market that incentivizes renewable energy production. Nilesh says, "If you can't put solar panels on your roof but your neighbor can, you could make a power purchase agreement (PPA). Singapore also has a market for renewable energy credits: You can buy these credits instead of buying electricity directly. If I want renewable energy but can't pay upfront for solar panels, buying renewable energy credits encourages third parties to invest, then sell the power." Securing smarter energy solutions Fabio Assolini, Head of Kaspersky Global Research and Analysis Team for Latin America, advises companies and nations to approach smart energy tech with due caution. "We've seen destructive attacks on civilian energy infrastructure – not just power grids, but their systems too." Fabio says over the years, these kinds of attacks are increasing. In 2021, a ransomware attack shut down a major US fuel pipeline. The same year, IBM reported energy was the third most attacked sector. Kaspersky threat predictions for 2023 foresee hacker groups carrying out high-profile cyberattacks on civilian infrastructure – such as energy grids and public broadcasting – using advanced persistent threats (APTs.) Critical infrastructure makes an attractive target for cybercriminals because of how much disruption successful attacks cause. Fabio suggests businesses pay attention to the security of their in-house energy infrastructure, as it may be particularly vulnerable. "Corporate and personal power grids are not as well protected as national infrastructure. They're often connected to the internet using older, more vulnerable hardware, and software not readily updated. Do a full security audit before launching a microgrid or smart grid." The future of smart energy for business Nilesh sees smart energy tech evolving through user participation. "On the tech side, I hope it'll go the same way as the smartphone: More resources for companies and innovators to make applications that sit on a central platform. Users could then adopt energy management tech faster. Over time, you'll see more participation from consumers." On the energy side, he thinks peer-to-peer energy sales are the future. "More people will be 'prosumers:' Consuming and producing energy and being paid for excess. Everyone will have better energy-buying options." Feroz has simple advice for businesses wanting to reduce their energy footprint. "Start now. The sooner you start doing something, whether it's just understanding your footprint or what your needs are, the better." Listen to the full Insight Story audio series on Podbean or your usual podcast provider.
insight story metaverse

What metaverse experts think your business should know

  • min read
    • There's much noise about the metaverse, and a feeling business must get on board today. Should you dive in? Two metaverse experts say yes, and no. Kaspersky's new podcast, Insight Story, unpacks emerging tech trends with global specialists and businesses successfully using the tech. Episode 1 looks at the metaverse, with Cortney Harding, World Economic Forum Metaverse Council member and founder of virtual and augmented reality agency Friends with Holograms. James Whatley, Chief Strategy Officer at gaming industry agency Diva, also joins me. James's 2022 talk What Metaverse? garnered much attention from the marketing industry, debating definitions and the effectiveness of brand-sponsored 'metaversal experiences,' as he calls them. A more cynical onlooker could say the metaverse is the emperor's new (virtual) clothes. In its glitchy 2006 version I attended – or tried to attend – in-world conferences in the early metaverse, Second Life. My clever friend sold virtual shirts to passers-by, but the predicted virtual commerce revolution didn't ignite then. I was keen to explore with James and Cortney whether the metaverse is really open for business, or if FOMO (fear of missing out) and the hype cycle is encouraging investment before audiences are ready. From science fiction to (virtual) reality There's no single agreed definition of the metaverse. Metaverses are virtual worlds where users see the world and interact through characters called avatars. Using a virtual reality (VR) headset, interacting in a metaverse can feel like real life. It can mirror many real-world experiences, like shopping, going to concerts, even owning property. Some say it's 'the next iteration of the internet' or 'Web 3.0.' Metaverses like Activeworlds and Second Life have been around for over 20 years. Others exist within online multi-player games like Fortnite and Roblox. Facebook changed its name to Meta in 2021, signaling a future focus on virtual experiences. Should businesses be in the metaverse? Cortney Harding says brands should approach the metaverse from their own perspective. "It depends on your audience. If you're a bank, you probably don't need to build a metaverse world right now – they've tried, and failed." Examples abound of banks establishing an often half-baked presence in the metaverse, then quietly backing away. Cortney continues, "If you're a consumer brand focused on a young tech-savvy audience, you should start thinking about it." But it's not about audience age. "It's more, is your audience tech-savvy? And niche communities are often strong in the metaverse." According to games researcher company Newzoo, more than a quarter of gaming metaverse users are age 36 or older. James Whatley thinks brands should work to understand not just who is in the metaverse, but why. Nike's success in Roblox is often hailed as an example of a brand getting it right. Their Nikeland shop, selling virtual Nike gear, attracted 7 million visitors in its first two months. James notes, "They're doing great, but copying Nike is not a strategy – it's looking and learning from it." Cortney gleans this from Nike's success: "You must resource metaverse worlds correctly to keep them going, making sure people have reasons to return. Nike has social events, and guest speakers – they give people a reason to go there." In developing metaverse experiences, brands should consider what makes the metaverse different. "In early VR, I saw directors do what's in 2D except in a VR headset," says Cortney. "Embodying an avatar with your voice is different than typing or watching a video. How can you harness that? Think beyond replicating and get to the point where it's creating something wholly new." Metaverse for good Cortney works with clients using metaverses and linked technology like VR for the greater good. "I do VR training around racial bias, child welfare, mental health and more. It lets people be in a space they've never been in and experience things like bias or exclusion, in hope they'll better understand what it feels like." PwC research found bias awareness training in VR is highly effective: "75 percent reported a 'wake-up call moment' that helped them identify times in their past when they had not been as inclusive as they'd thought. V-learners were up to 275 percent more confident to act on what they learned after training." Cortney also sees work needed to prevent bias being 'baked in' to the metaverse as it has been with other tech. "Many who built the current internet came from the same background. We want to build a world that's inclusive and safe – one everyone can be part of." Examples of creator bias leading to tech that discriminates include, voice recognition not recognizing women's and people of color's voices because its training data sets mostly contain white men's voices. Soap dispensers, fitness trackers and heart-rate monitors have also been found to rely on users having a light skin tone. It's unsurprising women have higher rates of injury in car accidents when you learn that a truly woman-shaped crash test dummy is a new thing – previous 'female' dummies were simply a smaller male dummy. Cortney appeals to brands to stay aware of how their metaverse presence affects customers. James agrees. "I believe video games are good for building community, and they have done for decades. Whatever the next iteration of the internet, the community piece comes where humanity goes." Alongside many good experiences, research shows more than half of children who play online games experience harms like bullying, hacking and inappropriate contact at some point. Raising your metaverse understanding Cortney says companies dipping a toe into the metaverse shouldn't expect too much at first, but should be in it for the right reasons. "If you look at some websites from the early days of the internet, your eyes will bleed out of your head. We can't expect everyone's metaverse execution will be perfect at this point, but you need more of an idea than just having heard a buzzword." If you choose to go there, James recommends involving metaverse natives. "Bring in the Roblox audience to help build, because they understand it. Get people with gaming experience – they understand narrative and interaction. Make a small investment, start experimenting, have people work on it as a side project. So when things start to really shift, you haven't ignored it." He thinks brands should avoid thinking metaverse is the answer, instead considering all options. "If you want to build a community around your brand, there are other ways. Do stuff in social media. Look at your customer relationship management (CRM.) Don't close the door – be aware of it, but act when it's right for your business." Metaverse cyber risks As new tech arrives, so do new threats. What are the cybersecurity implications of the metaverse? Fabio Assolini is head of research in Latin America for Kaspersky Global Research and Analysis Team (GReAT,) uncovering and understanding cyber threats in digital environments, including metaverses. "We're concerned about the kinds of attacks already common on Meta platforms like Instagram, Facebook and WhatsApp. On new platforms, we expect the same, like fraudsters impersonating brands," says Assolini. "We also expect more complex attacks like SIM swapping, where cybercriminals hijack users' phone numbers to receive authentication tokens." Assolini is also concerned about unclear roles and responsibilities in the metaverse. "If I'm a business and investing in, say, a launch party in the metaverse, is it my responsibility to put encryption and other security in place? Or is it for the end user to be more savvy when they're joining these experiences?" 'Cryptojacking' is another concern in the metaverse. Hacking users' devices to use their processing power for mining cryptocurrency is seriously on the rise, with Kaspersky research showing a 230 percent increase in 2022. While Meta's chief technical officer says moderating user behavior "at any meaningful scale is practically impossible," business will be glad to know metaverse security concepts are roughly the same as any online, digital environment. "Fundamental security practices carry over because the architecture is the same. It still runs on a server, you have databases on the backend, user and password management, and so on," said Nick Donarski, co-founder and chief technology officer at blockchain company ORE System. Best metaverse advice for business I asked James and Cortney their best metaverse advice for business. James says, "Go the extra click. If someone sends you a headline saying this is where the future is, find out where that's come from. Who paid for that data? There's an often-cited report from McKinsey valuing the metaverse at 5 trillion US dollars. When you look at where that figure came from, it doesn't mean anything." Cortney says, "Just start learning and experimenting. It's free or very cheap to sign up to many metaverses. Create a world just for fun. Spend time talking to people. Then you'll understand what you like, what you don't like, what could be better. You'll be more informed – or worst case scenario, have some fun." Listen to the full Insight Story audio series on Podbean or your usual podcast provider.
paper dead shredder

Is paper dead?

  • min read
    • For retailers, predicting customers' future wants and needs is crucial – especially in this era of disrupted supply chains. I hope you won't recognize this story as something that might happen in your business, but it demonstrates how soon retailers of all sizes could find themselves in a new future. I bought a blouse recently from a traveling vintage clothes seller. Picture several racks of bright retro outfits set up under a caravan awning with a changing room crafted from tie-dyed blankets. Incense hangs in the air, as does the ringing of tiny bells attached to the seller's impossibly long hair, jingling as she wanders around after customers, straightening coat hangers. To pay, I offer cash, but she instead presents me with a beautifully calligraphed sign showing her bank account details. Given the riskiness of this practice, I offer a moment of security education. She tells me she's in the habit of giving out her bank details because it means more sales, and keeping enough change around is hard when you're always on the road. Even those on the fringes are moving towards electronic payment for its convenience and customer preference, albeit sometimes not in ideal ways. When it comes to meeting customer expectations in how your transactions happen, are you ready for a future where paper money, receipts, plastic cards are a thing of the past? Could your retail business work in a world where all money is changing hands by smartphone? Among Kaspersky researchers' privacy prediction for 2023 is that we'll keep seeing smartphones and other smart devices encroaching on activities once dominated by paper and plastic cards. A future where all we'll need is a smartphone seems close when we're paying by near-field communication (NFC) like Apple or Samsung Pay or QR code like Swish, or using apps to show COVID-19 testing and vaccination status. What does this mean for paper and plastic transactions? And what privacy and security issues should business consider when it comes to doing it all by smartphone? Environmental reasons to stop using paper and plastic Some might say the sustainability drive to eliminate paper and plastic in business transactions is overplayed. While both have significant environmental impacts, business transactions are not a major source. Meanwhile, electronic transactions can be responsible for much energy use and the equipment used will ultimately become resource-heavy and hard-to-recycle ewaste. Gen Z, Millennials and those younger will do much to avoid adding more plastic and paper to the world. Regardless of environmental impact, consumer demand for more convenient paperless and cardless transactions will only grow. Processes likely to move to smartphone apps Digitized identity documents look set to be the next big frontier for smartphones. It's already been a common approach to declaring COVID-19 testing and vaccination status worldwide, but soon passports, driver licenses, student IDs and more will be made available through apps. Germany started using app-based ID cards in 2021. Around the same time, Apple announced several US states would make digital identity cards and driver licenses available using Apple Wallet. ID stored on phones brings convenience and risk. A well-implemented system would let stores verify customers' age without seeing personal details they don't need, like home address – also known as 'zero trust' security. Digitized IDs could also speed up know-your-customer (KYC) procedures when applying for a loan with a smartphone. But using a smartphone to store growing amounts of personal data introduces 'single point of failure' security risk. Those who develop and commission smartphone software like apps must ensure top-notch device security and privacy-preserving data storage. Cardless cash withdrawal at ATMs is taking off around the world, especially where bankcard fraud is more common, like India. Smartphone apps enable cardless withdrawals, for example, scanning a QR code on the ATM screen with a payment app like Google Pay, or using near-field communication (NFC.) Again, these transactions aren't without risk. Speaking to price-comparison service Bankrate, Ricardo Pina, founder of personal finance blog The Modest Wallet, said, "Since bank cards are being replaced by phones, criminals will now be more enticed to target and hack your phone to mine your data, information and even change your phone and bank app settings." When will paper and card transactions become history? Those who run businesses that experience higher overheads thanks to processing cash, cards and printed receipts may dare to dream of a world where these go the way of the 'check.' Ubiquitous throughout most of the 20th century, many banks have stopped issuing and accepting these. Check payment is expected to be extinct by 2026. Those old enough to remember when checks were commonplace might think they'd disappeared years ago. But sometimes these methods strongly persist in parts of an economy that need them for specific reasons. A few years ago, a friend and I hiked the five-day South West Coastal Path in Cornwall, UK – and yes, it was glorious. This part of the UK is far from any major city. We were surprised to notice most bed-and-breakfasts  accepted only cash or check. Once we understood the area's geography, we paid by check wherever we could. Traveling on foot and far from towns, it seemed unwise to part with cash we might need. These businesses told us they didn't take card payments because they only had customers in summer, making point-of-sale machines uneconomic. Similarly, can smartphones – and reliable access to affordable data to operate apps – be all things to all people in all places? While access to mobile technologies has certainly enabled greater economic participation from marginalized people, we can easily overestimate how many can and will use these technologies if we use them or see them used around us often. Pew Research estimates around 85 percent of the US population owns a smartphone, but in China and India, it's lower at 70 percent. While China leads the world in mobile payment adoption, smartphone ownership numbers don't tell us how many people could use their smartphone for payments – for example, successfully download and register to use payment apps, and access data when needed. Cash transactions still account for far more business than many people think – in 2021, customers used cash for over 20 percent of point-of-sale transactions globally, according to the International Currency Association. Many businesses wouldn't survive losing 20 percent of their sales. There is also the inevitable backlash against smartphones because of negative mental health impacts, seeing some choose to quit or radically reduce how much they use them. It seems paper- and card-based identity and payment options will be with us much longer than we think, if the lifecycle of check payment is anything to go by. For small business, alternative point-of-sale card payment providers are fast making accepting cards more affordable, making paying by card even more ubiquitous without reducing security. When it comes to taking payment, it 'pays' to be flexible and listen to what your customers want, rather than focusing on what suits your business. Meanwhile, keep an eye on evolving technology making retail transactions simpler and more affordable.
digital presenteism

Presenteeism threatens flexible work gains. Here’s how to beat it.

  • min read
    • The pandemic forced many businesses to make a swift move to enable      remote work. But it's not just the threat of infection that recommends this shift – remote work can often mean reduced costs and improved productivity. Flexible hours have significant benefits too, like improved talent-attraction and employee health. Despite the promised benefits, businesses offering remote work and flexible hours may still see 'presenteeism' – a greater emphasis on being 'at work' than being effective. Qatalog and Gitlab's Killing Time At Work report found workers spend an extra 67 minutes online every day just to show their colleagues and managers they're 'working'. Why does presenteeism happen? Tony Jamous, founder and chief executive officer of Oyster HR, says, "For many years, [we sat] at a screen for eight hours a day with few breaks. Now, because of increased remote work flexibility, employees are adopting 'non-linear' workdays. These empower employees to do the school run, take a gym break or adjust their schedules to find their optimal focus time." Back when manufacturing drove many economies, workers had to be on site to create output. As office-based work grew, output was less tangible, so we started to equate longer hours with productivity. What makes us productive and effective at work? Tariq Rauf, founder and chief executive officer of Qatalog says, "Someone could be visible and present online for 60 hours a week and achieve little. Whereas, the next person might work for half that time, at different times of the day, and be phenomenally productive." Contrary to popular belief, people who work most effectively are not necessarily those most disciplined, but those who speak to themselves with kindness and self-compassion. Georgetown University professor Cal Newport links peak productivity with deep work, meaning "working for extended periods with full concentration on a single task free from distraction." When it comes to distraction, constant app notifications are a big culprit – knowledge workers receive notifications from an average of 6.2 different apps or tools. Productivity's enemies include stress, anxiety and mental and physical fatigue. Psychotherapist Roxy Rhodes told me, "Mental and physical tiredness compound mistakes, which could negatively impact your career progression. Working through illness also means you may need longer to recover, increasing burnout risk." Dr. Wladislaw Rivkin, associate professor in organizational behavior at Trinity College Dublin agrees that working through illness – even digitally – is a bad idea. H     is research found working when unwell "has a knock-on effect for remote workers' performance on the next day as [it] drains employees' psychological energy, which cannot be fully recovered after work." Business impact of presenteeism Presenteeism can be more detrimental than absenteeism. An "always-on" communication expectation can hamper productivity and cause anxiety. Remote work was meant to level the playing field for employees with disabilities, but if workers feel forced to show up for the sake of it, that benefit is lost. Employee digital surveillance further corrodes trust, and brings challenges of its own making by reducing contextual performance and morale and increasing stress. Workers feel drained, fear their employer is 'out to get them' or retaliate using the likes of mouse jigglers – software or devices that simulate      mouse movements to prevent computer sleep mode from activating, giving the impression the employee is working. "Having to prove you're working by using mouse jigglers or clicking the screen every few minutes indicates a toxic culture. When we hire people, we look for candidates who will take ownership of their work. How long it takes them to accomplish a project is up to them, as long as the output is delivered. We don't need employee tracking software to see output," says Bhavya Arora, talent management and culture partner for sales engagement platform Outplay. Young workers and juniors in a team are more susceptible to practicing presenteeism. Some organizations position choosing your own working hours as a privilege earned by those higher up the career ladder, and junior workers worry their work ethic may be seen as lacking even if they're absent even for a few minutes. How to switch off "always on" culture 1.    Measure performance by output not hours "We don't believe someone's commitment to work or their performance should be measured by how many hours they've worked," says Outplay's Arora. Qatalog founder Rauf agrees, "Organizations should implement an output-driven culture that focuses on the work people do, rather than worrying about when they do it and how long they're at their desk." 2.    Use tools that suit asynchronous work Communication tools that send notifications can reinforce an "always on" culture and mean workers find it hard to switch off. Encouraging 'asynchronous' instead means finding ways for colleagues to work together even when not logged in at the same time. Tariq Rauf, founder and chief executive officer of Qatalog says, "Asynchronous work lets people with caregiving responsibilities fit work around their life." Qatalog tries to enable asynchronous working with their platform, which centralizes knowledge, processes and resources in their platform. Asynchronous communication tools, like Loom for video messaging, CloudApp for screen recording, Yac, which claims voice messaging can eliminate meetings, and Hypercontext for meeting management, aim to provide for effective, high-fidelity communication      for asynchronous work. "With the right technology, you can break down silos and provide visibility across an entire organization," says Rauf. "Once you can see what everyone is working on, with decisions made transparently, trust is much easier to build. It's not a silver bullet, but it's a strong foundation." 3.    Build trust and lead by example Asynchronous communication tools must feed into a culture of trust and empathy. Leaders should hire employees they trust to get the work done, so there's no need to be logged in at the same time. Psychotherapist Rhodes says, "You're setting a precedent for what's expected of your employees – if a staff member sees their boss showing up to work sick, they'll likely feel pressure to do the same." Small but thoughtful changes in how you communicate can also build trust: Don't send employees texts or emails outside work hours. Let team members control their availability, honoring 'do not disturb' statuses. Segment communication channels, for example, using Slack for regular communication but mobile messaging apps only for emergencies. Rhodes also recommends, "Having a non-contact way for employees to announce sickness is effective in some companies. Staff feel anxious about "phoning in sick" and having to have a conversation where they feel they have to justify how ill they are." Management consultancy McKinsey's 2022 report found 40 percent of workers value flexibility so much, it drives their decision to stay in a job or look for a new one. If workers can't do their best work, employers will lose them. Productivity is in work delivered, not hours worked or how fast employees respond to messages. No workplace benefits from performed productivity, and presenteeism can strip remote work of its benefits. Businesses must make sure they give employees the tools and freedom to work in the way that best suits them.
by Innovating leaders.
Innovative tech.
About Secure Futures

Secure Futures magazine is your go-to business guide for opinions, trends and insight into the world of technology and cybersecurity. We help your business to bring on the future. Brought to you by Kaspersky, the global cybersecurity experts.

  • For all other countries