| | October 20199CIOReviewAs with all strategic initiatives, digital transformation must be driven from executive management through all functions within the organizationPromotion of New TechnologyAt the essence of digital transformation is the introduction of new online technology, networks, and process automation and business intelligence/machine learning. This is all the natural realm of the CIO and the systems/technology functions directed by the CIO. Layering these components into the infrastructure and building solutions that deliver impactful and stable solutions requires an underpinning of sound technology.Development of PartnershipsDigital transformation has encouraged entrepreneurial development of new technologies and solutions. In the financial services industry, we have seen the rise of Fintech companies and the innovative solutions they provide. The process of performing vendor management reviews and crafting appropriate partnerships is key to successful assimilation of new technologies and solutions. The risk of partnering with a company that doesn't have sound financial backing and proven technology can sink digital transformation initiatives, if not vetted and managed appropriately.Digital transformation initiatives often involved "proof of concepts" or "early adopter" initiatives. These can be high-risk initiatives with new partners and new products. The CIO should lead the effort to constantly review and challenge the initiative by determining the answers to the following questions:· Is this the right strategy?· Is this the right partner?· Is this the right product?· Can this initiative be successful in the timeframe(s) projected?Project ManagementDigital transformation will require numerous individual projects that build upon each other­ in technology, operational workflow, training, marketing, and organizational alignment. Additionally, the markets and consumers won't wait for companies who lag behind the competition, when it comes to the introduction of new solutions. The concepts of agile development and the agile organization align strategically with the process of digital transformation. The ability to organize and deliver digital transformation solutions in a timely fashion will be essential to achieving the desired impact on the market, and will require a strong project management focus.Security and ComplianceDigital transformation, as the name implies, is transformational in terms of work flow, technology, and delivery channels. With that upside, there are new security risks and compliance concerns. It will be paramount that, before any new solutions can be released, they must be appropriately vetted. Leadership--and, particularly the CIO--must validate that every new platform is secure, and can be trusted by consumers and channel partners.Digital transformation within a company is exciting and promising, but it also requires leadership to ensure that their entire organization is dedicated to the implementation and success of new technology solutions. This is where the CIO plays his or her most important role: to deliver innovative and effective new technology. Overall, the CIO must play a fundamental role in championing the digital transformation opportunity, and then be instrumental in organizing the ongoing promotion and maintenance of these new solutions. For many CIOs, this can be the most rewarding and impactful opportunity of their careers. Thomas Knapp
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