Insurance organizations have reached a tipping point. Historic institutions, with in some cases hundreds of years of service, they are being forced to transform due to changing consumer demands and nimble, technology-centric startups bringing innovative products to market. No stranger to regulatory and privacy concerns, Insurance carriers have overcome many roadblocks throughout their lifetime of doing business. Now they must tackle their legacy IT systems and improve software risk management to deliver the value today’s market is after.
Fintech is the hot new thing. It’s the industry that will carry the UK through Brexit. It’s the latest wave of startup mania in NYC. It’s becoming the darling of Silicon Valley. Chinese tech investors are all over it. It’s fresh. It’s sexy. But, wait a minute. What is Fintech?
Recently I attended MIT’s Fintech conference (#MITFinTech). We heard Brad Peterson, CIO of NASDAQ, talk about his firm as the original Fintech founded 45 years ago. Brad told us that NASDAQ no longer thinks of itself as an exchange, but as a Fintech company. A couple MIT professors told us there are 1800 Fintech companies out there today, and that number is quickly growing. There are some that promote robo-advisors as autonomous correctors for investor freak-out during volatile markets, and others that collect live market data from the web in order to predict real economic indicators, as opposed to statistics collected by government technocrats. Blockchain, we were told, is like the Internet was back in 1993.
Companies are waking up to the fact that the digital transformation journey is not a leisurely stroll. It’s more of a marathon sprint. Between externalization of processes and the Internet of Things (IoT) the need to increase “velocity” is becoming a key attribute of success. Yet the pressure to maintain cost effective solutions has not gone away. Big reasons today’s enterprises are accelerating digital transformation include:
Panel Discussion at the 2016 Software Risk Summit
Software risk has historically been overlooked as a security concern by business leaders, and companies have paid a high price as a result. Remember the JPMorgan hack of 2014? That cost the bank more than $6 billion. RBS has paid £231 million for their IT failures as of two years ago. The Target breach? The retailer posted a write down of $152 million. Or, more recently, Jeep controls being taken over by hackers, and a similar incident with Toyota-Lexus having to fix a software bug that disabled cars’ GPS and climate control systems? That costs the manufacturers valuable consumer confidence points and can seriously damage sales.
So I was thrilled to know that the topic for the first annual Software Risk Summit in New York was indeed just that, software risk. I had the pleasure of moderating the panel discussion with esteemed guests from BNY Mellon, the Software Engineering Institute at Carnegie Mellon, the Boston Consulting Group and CAST. But beforehand, I was able to sit-in on the keynote by Rana Foroohar.
Today, CAST is meeting hundreds of Enterprise Architect aficionados, gurus, practitioners and professionals in National Harbor at the Gartner EA Summit. When glancing at the agenda, it is evident that EA has become omnipresent and is interacting either directly or indirectly with 100% of hot IT challenges such as Digital Transformation, Cloud Readiness, Internet of Things, Cyber Security and Innovation – the topics that are keeping many executives up at night.
The intent of this post is to share “one” view of the EA journey and provide some personal insight into software risk management and what I think will be the upcoming challenges in our favorite discipline.
On March 15, CISQ hosted the Cyber Resilience Summit in Washington, D.C., bringing together nearly 200 IT innovators, standards experts, U.S. Federal Government leaders and attendees from private industry. The CISQ quality measures have been instrumental in guiding software development and IT organization leaders concerned with the overall security, IT risk management and performance of their technology. It was invigorating to be amongst like-minded professionals who see the value in standardizing performance measurement.
Software Risk Management in Digital Transformation was the focus during the 4th edition of the Information Technology Forum, hosted by International Institute of Research (IIR). Massimo Crubellati, CAST Italy Country Manager, discussed how Digital Transformation processes are changing the ICT scenario and why software risk management and prevention is mandatory.
Massimo shared our recipe for Digital Governance evolution: including a specific ICT Risk chapter in the design of the governance structure of the digital transformation, whose most relevant aspect is to determine which methods and through which key performance indicators to measure the operational risk inherent in the application portfolio. Measurement needs to be continuous and structural, it must include the assessment of application assets inherent weaknesses, through the analysis of correlations between the layers composing them. Thus obtaining, not only an effective prevention of direct damage ensuring the service resilience, but a reduction in maintenance and application management costs.