Strategic technological innovation investment: enhancing resilience in the age of digital transformation

Purpose In the current business landscape, organizations are increasingly investing in digital transformation initiatives such as the adoption of artificial intelligence, cloud computing, blockchain, deep learning, to optimize their operations, maintain competitiveness and efficiently address customer demands. However, this heightened dependence on digital technology introduces elevated risks to cybersecurity and privacy. This study aims to investigate the relationship between investments in digital transformation and cybersecurity and privacy protection efforts. Design/methodology/approach To address this, a survey was conducted among 44 managers from diverse industries. The survey explored the correlation between digital transformation investments and cybersecurity measures, as well as assessed senior managers’ awareness of associated risks. Findings Our study reveals that, despite investments in digital transformation, insufficient efforts and resource allocation toward cybersecurity such as the failure to implement industry-standard practices like vulnerability assessments, data encryption, ISO 27001 and NIST guidelines may increase the likelihood and severity of future security breaches. Our study identified third-party integration as a major concern, with data breaches involving the theft of sensitive company and customer data being the most frequently reported security issue among participants. Our findings demonstrate the need for senior managers to improve their focus on cybersecurity in digital transformation projects. Originality/value This research highlights the gap between digital transformation investments and cybersecurity practices; presents actionable strategies including resource allocation, integrating cybersecurity into company culture, investing in human resources, evaluating third-party risks, and applying data protection principles; and emphasizes the need for a stronger managerial focus on cybersecurity.