Tag Archives: analytics

Updates from McKinsey

Derisking digital and analytics transformations
While the benefits of digitization and advanced analytics are well documented, the risk challenges often remain hidden.
By Jim Boehm and Joy Smith – bank was in the midst of a digital transformation, and the early stages were going well. It had successfully transformed its development teams into agile squads, and leaders were thrilled with the resulting speed and productivity gains. But within weeks, leadership discovered that the software developers had been taking a process shortcut that left customer usernames and passwords vulnerable to being hacked. The transformation team fixed the issue, but then the bank experienced another kind of hack, which compromised the security of customer data. Some applications had been operating for weeks before errors were detected because no monitors were in place to identify security issues before deployment. This meant the bank did not know who might have had access to the sensitive customer data or how far and wide the data might have leaked. The problem was severe enough that it put the entire transformation at risk. The CEO threatened to end the initiative and return the teams to waterfall development if they couldn’t improve application development security.

This bank’s experience is not rare. Companies in all industries are launching digital and analytics transformations to digitize services and processes, increase efficiency via agile and automation, improve customer engagement, and capitalize on new analytical tools. Yet most of these transformations are undertaken without any formal way to capture and manage the associated risks. Many projects have minimal controls designed into the new processes, underdeveloped change plans (or none at all), and often scant design input from security, privacy, and risk and legal teams. As a result, companies are creating hidden nonfinancial risks in cybersecurity, technical debt, advanced analytics, and operational resilience, among other areas. The COVID-19 pandemic and the measures employed to control it have only exacerbated the problem, forcing organizations to innovate on the fly to meet work-from-home and other digital requirements.

McKinsey recently surveyed 100 digital and analytics transformation leaders from companies across industries and around the globe to better understand the scope of the issue. 1 While the benefits of digitization and advanced analytics are well documented, the risk challenges often remain hidden. From our survey and subsequent interviews, several key findings emerged:

  1. Digital and analytics transformations are widely undertaken now by organizations in all sectors.
  2. Risk management has not kept pace with the proliferation of digital and analytics transformations—a gap is opening that can only be closed by risk innovation at scale.

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Updates from Ciena

Retail Digitization… Friend or Foe?
By Brian Lavallée – The retail industry is one of the most competitive industries today, placing enormous pressure on the retailers who are continually striving to reinvent, reinvigorate, and rejuvenate their position with buyers, who are more informed than ever due to readily available online resources, long before they enter a brick and mortar store.

The same assets that consumers use to become increasingly informed can and are also being leveraged by retailers to best become the store of choice to sell their products – networks and data analytics.

The wealth of readily available and free online resources allows customers to perform advanced reconnaissance by researching product specifications, product field performance, as well as comparative product analysis pricing, performance, warranty, and user experience. This means that consumers are extremely informed before they purchase a product and often more so than the salesperson.

In short, the digital transformation has forever reshaped customer behavior and the shopping experience, which means retailers must change to this new shopping environment often by leveraging the very same tools that created the shopping ninja – networks and analytics – which allow retailers to create the required digital shopping experience that today’s consumers want and need. more>