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A Successful Digital Transformation Starts (and Ends) With People

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A Successful Digital Transformation Starts (and Ends) With People


Since the onset of the pandemic, organizations across the world have drastically accelerated their digital transformation timetables to remain relevant and keep employees engaged amid changing market dynamics. However, many have failed to fully achieve the business outcomes enabled by successful digital transformation.

At a time when competition in every industry is stronger than ever, that’s a major missed opportunity.

The Reason Behind Transformation Failures

In order to reap the full benefits of digital transformation, it is important to align skills, operations, knowledge, and culture to leverage digitalized work habits and new technologies. Research shows that a lack of this alignment, or digital maturity, is one of the most critical factors in determining why so many organizations fail to meet their digital transformation goals.

The good news? Achieving digital maturity is well within reach for organizations that are willing to put in the work.

What Is Digital Maturity?

Digital maturity is the ability to adapt people, experiences, and businesses to new platforms and tools in order to maximize the value that is created through successful digital transformation. As your transformation ramps up, it’s vital to get a realistic temperature of the digital maturity within your organization so you can avoid common pitfalls.

The more mature your organization’s digital culture is, the more likely it is to succeed in full-scale transformation. Attaining digital maturity means your company can adjust to changes quickly, avoid costly technical delays, and see improved operations alongside heightened efficiency.

Putting People First — Always

So what’s the secret to attaining this optimal level of maturity? First and foremost, establishing a digitally mature culture requires a shift in mindset and the implementation of practical strategies. Organizations must prioritize people over technology and create an environment that enables both employees and the business to thrive.

The benefits of establishing a digitally mature culture include enhancing employee satisfaction and engagement, improving retention rates, and reducing attrition. A people-first approach also attracts top talent, particularly among younger generations who expect organizations to have digital maturity.

The Far-Reaching Effects of People-Centricity

By fostering an environment that values employees and leverages technology effectively, organizations become more attractive to prospective employees. And those that don’t prioritize this type of people-first approach? They will lose out on top talent.

Beyond the obvious employee satisfaction metrics, a people-centric culture promotes growth and encourages continuous learning, all while enabling employees to adapt to change more effectively. This agility drives innovation, productivity, and competitiveness in the digital landscape.

Evaluating the Characteristics of a Digitally Mature Culture

Let’s look at the ingredients that bring a successful digital transformation to life. It’s helpful to evaluate these four characteristics to see where your organization’s digital maturity stands:

Innovation: You should take into consideration how easy it is for your current employees to generate and implement creative ideas. It is critically important to foster a culture that truly encourages and rewards innovations. Make sure that you have the platforms and the resources needed for employees to contribute their ideas. And remember to “decriminalize” so-called failures. Great ideas require plenty of trial and error.

Flexibility: You will need to evaluate the flexibility of your organization and how well it adapts to change so you can determine if there is room for adjustments and if you have the ability to request additional time. It’s important to promote an environment that strives for successful digital transformation and an advanced digital culture — one that encourages employees to adapt to new processes and technologies.

Collaboration: Assess if you’ve created an atmosphere that is conducive to collaboration among all team members. Your organization should encourage open communication and knowledge sharing to keep everyone moving in the same direction. This extends to leadership as well; leaders should be transparent about the company’s digital transform strategy and be open to answering questions and considering new ideas from employees.

Continuous learning: Encouraging ongoing education and training in the digital transformation journey is crucial. Evaluate if you have the proper resources and processes in place to do so. You want your employees to regularly engage in various types of learning to ensure they have a clear understanding of the digital culture, processes, and technologies used within your organization. Fostering this type of culture also shows employees that you are invested in their growth, increasing satisfaction and the ability to attract new talent.

How Organizations Can Ensure Successful Digital Transformation

There are several strategies you can implement in order to make your digital transformation successful while prioritizing your people. The most effective strategies include the following:

1. Take a Bottom-Up Approach.

Your employees play an integral part when it comes to implementing a successful digital transformation. For this reason, it is in your best interest to implement a bottom-up approach and allow all employees to play an active role in the process right from the beginning. When everyone is onboard and rowing in the same direction, the destination becomes a lot easier to reach.

2. Recognize Your Current State of Digital Maturity.

It is important for you to assess how digitally mature your organization is. There’s no need to sugarcoat the findings. Be realistic. Determining the current maturity level among your employees can help you hone in on the organization’s acceptance and willingness to make the necessary changes. A great way to do this is to survey your employees: What do they want from your digital transformation? How are they engaging with new processes? Taking the pulse of the organization provides valuable feedback needed to make future adjustments.

3. Overcome Resistance to Change.

One of the biggest challenges to successful digital transformation is gaining buy-in from those who are wary of the transition. However, overcoming this resistance to change is key to ensuring you are able to make the transformation work. One of the best things that you can do to help overcome such resistance is to create a support system for staff and leadership. Create an environment of open communication where you can discuss how digital maturity can be viewed as an opportunity instead of a threat. Emphasize the end goal if necessary; the company’s vision is X, and improving digital maturity is the way to achieve that.

Make no mistake, implementing these strategies does take dedicated time and effort. But doing so can help to ensure your organization is prepared to prioritize and support employee engagement amid constant change. Following the above steps will do wonders for enhancing your digital maturity and, ultimately, make your digital transformation more successful. There’s no better time to act than now.

Herman Kalra

Herman Kalra is Chief People Officer (CPO) at CTG. In his role, Herman assumes executive responsibility for strategic and operational leadership for all areas of the global people organization, including organizational design, talent acquisition, compensation and benefits, learning and career development, employee experience and engagement, culture, diversity, equity, and inclusion. His focus is on building a high-caliber, scalable people organization while continuing to drive a high-performance culture.

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Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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Politics

UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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