The main objectives of the digital transformation strategy of most companies can be summarized as greater agility, diversification of revenue streams and higher employee engagement. Disruptive technologies lead to substantial changes in the markets and companies can only thrive by showing great agility in adopting the new market rules.
Understanding how customer demands and behavior will change is necessary for the development of new business opportunities. Taking advantage of upcoming disruptions by identifying opportunities for broadening the diversification of revenue streams is key.
However, achieving these long-term objectives within companies requires a stable governmental environment. With the decision ‘pro Brexit’, the UK will leave the globally trusted governmental environment of the EU market. Once more a stable factor for planning the future is gone.
Business relationships between the EU and UK are becoming more complex. Because of a similar governmental basis, the UK was often a pilot or test market for companies from continental Europe before entering the US. Now, for EU based companies the complexity of lunching new services within the UK increases. The decision of EU based companies to suspend activities in the UK market might be the first reaction. As a result, UK companies need to shift their perspective on digital service transformation and should focus on the heterogeneous markets combined in the commonwealth as well as on the US market.
The Brexit is directly cutting the UK off from the EU labor market. Not getting the right people driving the digital transformation might be the biggest disadvantage of the Brexit for the UK companies.
The Brexit forces companies to adjust their digital transformation strategy and re-prioritize the already started initiatives.
The Brexit will influence regulations related to the European data privacy under the assumption that the UK will comply with an own data privacy act. Companies will have the need to map requirements of local regulations against each other and find their way of handling individual requirements in order to comply with all related regulations.
Data storage and archiving will be subject to increased complexity and thus effort for companies operating their data storage in the UK and vice versa. Existing regulations limiting data storage and transfer to countries outside the EU will then also apply for the UK. This will cause effort for companies to relocate their data pooling.
Companies that have outsourced operational security services to UK-based companies will also have to clarify the impact of implicit contractual influence caused by changes in the national legislation framework. National regulations, on encryption, data exchange and data access might be in conflict with actual European regulations and usually service level agreements are not intended to address changes in the legislation framework.