Failure to plan 3 continuously that eliminates industry giants

Business continuity (BCP) is often something that many professionals do not pay attention to. History has shown us that even industry giants can be frustrated and lose to fall or significant income when they ignore important risks in the preparation of crisis.

This can be excessive confidence in their abilities and technologies used for geopolitical ignorance. If blind locations are not carefully managed, severe crises can be increased, which can also endanger the future of business.

This article will consider three devastating BCP’s devastating failures that reduced the industry Titans. Every organization or company can learn a lesson from them to ensure that they do not make similar mistakes.

Related: without preparation: Why many businesses lack continuity strategy

More confidence in technology – how Facebook lost the brand Value

Many well -known social networks were always confident that their AI and automation would help them solve crises without the need for human intervention. When complicated problems arise, it has more problems.

In 2018, Facebook suffered severe embarrassment of exceeding its automation after misuse in the network configuration tool, which caused her services to interrupt millions of people. The incident exposed an important flaw that there was no manual override to be able to correct the error.

Facebook not only suffered credible losses because consumers and advertisers lost their confidence in its reliability, but also exposed their slow response as engineers struggled to diagnose the problem due to the dependence of the vague system. There was also lack of waste because no backup system was activated to ignore poor automation.

One of the biggest lessons to learn from Facebook error is that automation is still just a device and is not yet a substitute for human decision. BCPs always ensure manual overrides, scenario testing for Fail Safe–ie important systems, which means regular exercises for technology failures, and clear communication protocols during transparency.

Related: Do you have a ‘business continuity plan’?

Adobe occupied Kodak as a result of failure to recognize geographical political belief

It is important for big companies to always focus on geographical political shifts and understand what a company has to adopt in the world. Kodak was guilty of treating geo -political shifts as a remote threat, and this briefness ended.

It was actually Kodak that invented a digital camera, but instead of further developing it, he chose to bury this technology to save his film business. Seeing that humans are migrating into the digital system, migrated before Adobe Kodak, embrace cloud -based tools and repeated revenue models. Kodak paid the price for a very late reaction and had to file it for bankruptcy in 2012.

Kodak paid the price because his leadership was wrapped up in a series of heritage revenue, he did not have BCP for interruptions, and as he ignored harsh trends like digital migration, which was inevitable.

Learning from the example of Kodak, it is always important for companies to monitor trends and to identify strict trends such as the evolution of settlement and technology to predict the obstacles. Flex flexible framework should be developed to allow high -speed axes, and should be the alignment of shareholders to ensure that leadership and teams are ready to change the change of change.

The semiconductor shortage crisis has led to reducing the risk of supply chain

Many BCPs choose to focus on internal risks, such as cyberrtex, and external dependence globally. 2020-2022 The lack of semiconductor was an example of this, as it disabled industries from automotive to consumer electronics.

Covade 19 pandemic diseases affected most of the industries-the global logistics network and many companies that rely on “only these” manufacturing, such as Toyota, suffered mass production delays. Companies that did not have diverse suppliers and inventory buffers lost billions of income. It is estimated that Ford has lost $ 2.5B due to a shortage of chip.

Due to the single -point failures and the fact that a handful of suppliers have increased greatly, some have been dropped. There was also a shortage of emergency stocks, and the lack of buffer inventory for important components greatly affected the business, while the slow adaptation and the supplier’s diversity delayed.

Related: Your business faces more risks than ever – here is to make sure you are ready for any disaster

The lesson of all of this is that it is necessary to be flexible, it must include supplier diversity, stress testing and inventory buffers. There should be partnerships with shopkeepers all over the areas. Stress testing will accelerate barriers to supply chain in BCP exercises, and inventory buffers will help maintain strategic reserves for important materials.

In today’s day and age, the difference between survival and end is often a lie to analyze and identify before the problems of blind locations. All businesses should learn from the aforementioned scenario because in business continuity, happiness is the greatest threat to all, as it can lead to a decline of business.

With the world and technology, there is a steady growing growth, a company has to accept change and should work permanently to find ways to be relevant for the future.