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The Must-Know Digital Leadership Styles

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Vivek Goel


The importance of digital transformation continues to be one of the most important priorities in organizations, especially so after the pandemic. The benefits of implementing digital leadership styles have become apparent.

Only the organizations that fully embraced and committed to digital transformation could survive the disruption caused by the pandemic. Others had to struggle and are working on getting their organizations to digital transformation as quickly as possible.

What is Digital Leadership

How are transformation initiatives implemented in organizations? How is a digital-first focus introduced and sustained? How are digital practices integrated with an organization’s various departments and projects?

The answer is quite simple — a digital leader ensures that digitization continues setting up businesses for success and maintaining a competitive advantage. Effective digital leadership styles often differentiate a successful digital (and cultural) transformation from an unsuccessful one.

The importance of digital leaders has been rising like never before in organizations.

An Aon index study found that 64% of organizations have placed digital leaders in critical roles to ensure a successful digital transformation. But what exactly is leadership, and what does it entail? Let’s dive in.

Management Style of the Digital Leader

A brand new management style, digital leadership, refers to driving dexterity, agility, and responsiveness in an organization for all things digital.

Digital leadership is about taking the reigns for successfully driving all large and small-scale digital transformation in an organization, which in today’s world can easily be compared to taking the onus of driving the organization towards sustained success.

A digital leader need not necessarily be tied to a department, a degree, a role, or a hierarchy. More than anything, these are the three must-haves in any agile leader:

Courage:

Carrying out organization-wide digital transformation and leading it to a path of sustained agility is not for everyone. Digital leaders are required to dream big, communicate their vision and then display the courage to stick to the vision despite facing resistance and obstacles along the way.

Digital transformations require taking employees out of their comfort zones and preparing them to face and adapt to disruptions with as much agility as possible. Therefore, the right digital champion needs to lead through example and display endless courage to make this happen.

Capability:

Digital leaders need to have the right mix of soft and technical skills, which falls in the latter category. Digital leaders, more than an educational degree or certification, need to have a track record of showcasing a digital-first approach and having the experience of leading the charge.

This is less to do with their hierarchy and their mindset and priorities. Mastery of design thinking, agility, and innovation set digital leaders apart.

Character:

A digital leader can command the organization to follow its direction and inspire others. Therefore, they need high credibility and charisma that commands attention and respect.

They would also need to maintain cordial relationships with everyone around them, requiring them to have a strong character and a certain level of likeability.

What are Must-Haves in Digital Leadership Styles?

These are sure the must-haves in any digital leader, but what are the various leadership styles available to a digital leader? Are there particular contexts or phases where these styles work better? Let’s find out.

Commanding Leadership

A style that seems to contradict the concept of agility itself, this leadership style limits autonomy and demands adherence to instructions with little to no leeway. People are expected to do what is asked of them without any interpretation of their own. Such a digital leadership style should be saved only for crises and emergencies.

In a digital context, such a situation can be regarding data safety and security, mandatory compliance with digital protocols, or the quick adoption of some technology due to a crisis. Such a style is incompatible with agile and innovative business culture. It should only be reserved for emergencies.

Democratic Leadership

In stark contrast to commanding leadership, autonomy, collaboration, and innovation are tolerated and encouraged here. Instead of a top-down approach, team inputs and a bottom-up approach drive this culture.

This style works best for finding solutions to identified problems, ensuring buy-in from multiple stakeholders, and making decisions. A democratic digital leader has an open mind, facilitates healthy discussion, and converges ideas to reach an effective solution.

Pacesetting Leadership

This type of leadership works in high-performance-driven environments, where results are everything. Environments like these are often found in startups that promote the “hustle” culture, where employees are only retained if they perform impressively on their targets.

This type of digital leadership style, which might work when delivering a crucial project or preparing an organization for a funding round, is not sustainable in the long run. The digital leader and those under his purview would eventually face burnout which would be detrimental to the digital transformation process.

Coaching Leadership

Not everyone in an organization has an equal level of comfort with technology. Some might even face insecurities because of a change in how they work or the reduced importance of their role due to digital disruptions.

It is a digital leader’s responsibility to communicate to people how digital adoption helps not only the organizations but also helps them in enhancing their skill set and makes them ready for the modern workplace. In such a scenario, coaching leadership is of utmost importance.

Such a digital leader would convey how people can align their personal development with the organization’s digital transformation and empower and train them to go through with the change.

Visionary Leadership

As mentioned earlier, digital leaders must have the courage to dream big and envision a future that those comfortable with the status quo can’t. This requires a true visionary who can stick to their vision despite facing challenges and criticism from skeptics. This type of leadership ensures that everyone can see the vision and make themselves a part of the effort to fulfill it.

As we can see, digital transformation is as much about the people leading it as it is about the technology itself. Since it is an ongoing activity, strong digital leaders are required by organizations to keep people motivated and to keep employees on their toes to face any digital disruption that comes their way.

Digital leaders must be aware of their strengths and weaknesses and understand the leadership style they need to implement, given the situation.

Conclusion

A strong mark for any effective digital leader is to keep an eye out for technology and platforms that enable and support the process of digital transformation.

Efforts must be made to ensure that technology trends are followed and adopted in the organization.

For the adoption, digital leaders shall create a protective net of training, learning, and experimentation for employees and their adoption of new technology.

Featured Image Credit: Photo by Sora Shimazaki; Pexels; Thank you!

Vivek Goel

19+ years of leadership experience in IT companies of all sizes ranging from start-ups to large organizations in India and USA. Expertise in strategy and operations across functions such as Sales and Business Development, HR, Process and Quality, Project Management and Product Development.

Politics

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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Politics

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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