New Research Explores the Critical Connection Between Cybersecurity and Digital Transformation
Digital transformation (DX) is a catchall term that means different things for different alternative investment institutions. For some, it means modernizing legacy applications to deliver a better customer experience. For others, it means reengineering their backend architectures, migrating data to the cloud, and building better analytics engines. Or it could mean a combination of both as organizations seek to improve business operations while keeping customers happy.
But there’s one important aspect of DX that many organizations tend to overlook: cybersecurity. It’s a critical component of DX and should be at the forefront of everyone’s DX strategies, right from the start. Bolting security onto the end of the project, rather than including it throughout the DX lifecycle, is a recipe for risk. Meanwhile, aligning cybersecurity and DX closely together can mitigate security concerns while delivering the customer value and satisfaction.
Institutions struggle with cybersecurity and DX
A recent IDC survey of 400 executives alternative investment institutions around the globe found that many are struggling to effectively incorporate cybersecurity into their DX projects. This is despite an increase in financial services cyberattacks and calls for more robust cybersecurity rules.
The study found most alternative investment institutions do not understand the inherent risks, mitigation strategies, or risk trigger points in the planning and scoping phases of a DX initiative. They also struggle with developing frameworks that help them understand and think critically about risks. 42% of survey respondents ranked “security strategy and road map development” as a top priority, when it should be a major component of every DX initiative.
White paper explores cybersecurity/DX concerns and benefits
These are some of the findings revealed in a new IDC white paper sponsored by ECI. Cybersecurity and Digital Transformation of the Global Alternative Asset Industry: A Critical Pairing digs deep into the critical relationship between security and DX and looks at the current state of transformation in financial services.
The research shows the efficacy of DX on innovation, reduction of business risk, customer satisfaction, revenue, and more—with some major caveats. For example, 57% of survey respondents cite “Security/Privacy”—a majority—as a main concern about implanting DX, indicating that there’s still work to be done when it comes to understanding the beneficial connection between cybersecurity and DX.
This white paper explores that connection by addressing the main concerns and benefits of implementing DX together with cybersecurity. It details how to plan and execute effective cybersecurity measures.
You’ll also learn:
What DX activities institutions have undertaken over the past 12 months regarding cybersecurity, IT, fraud, and risk management
The current phase of DX investing for institutions
Why cybersecurity and consulting services are important to DX projects
Current and future cybersecurity plans
Important attributes and budgetary constraints
To read the full findings, download the full IDC White Paper, sponsored by ECI, Cybersecurity and Digital Transformation of Global Alternative Asset Institutions: A Critical Pairing, doc #US49115722, May 2022.