As the business environment evolves rapidly, midsize enterprises are under increasing pressure to undergo digital transformation to stay competitive or risk losing market share to agile startups. Many of these businesses are relying on Chief Information Officers (CIOs) to lead their digital transformation efforts.

When developing a digital transformation strategy, CIOs must take into account several factors, including the unique needs of their business, available resources, and the ever-changing technology landscape. With careful planning and execution, midsize enterprises can successfully navigate this journey and establish themselves as leaders in their industries.

Here are some key strategies to help SMB executives drive digital transformation effectively.

Consider Innovative Security and Cyber Insurance
Having inadequate security policies, governance, and cybersecurity insurance can leave a business vulnerable to lawsuits, which can lead to significant reputational damage or even bankruptcy. While the idea of using a one-size-fits-all security solution might sound appealing, it can be complicated to implement. However, this shouldn’t hinder your digital transformation efforts.

Security should be a support system, not a roadblock. Some options to consider include:

• Security-as-a-Service (SaaS): Outsourcing security functions to experts can free up internal resources for core business activities.
• Zero Trust Architecture: This approach minimizes access privileges, granting permissions only when necessary.
• Cloud-based security tools with AI-powered threat detection and automated incident response provide strong protection without needing a large in-house team.

Traditional cyber insurance can be expensive and limited in coverage. Exploring newer options like parametric insurance, which focuses on specific outcomes of an attack rather than just data breaches, may offer a better fit for midsize enterprises with unique needs.

Shifting from Support to a Driver of Business
Digital transformation isn’t just about adopting new technologies—it’s about reimagining how your business operates and creates value. It’s a shift from:

• Technology as a support function
• Technology as the driving force behind business growth

Here are some strategies to help make this shift:

• Collaborative Vision: Business and IT leaders must work together to create a digital roadmap that defines goals, KPIs, and aligns on key business processes.
• SWOT Analysis for Prioritization: Conducting a SWOT analysis helps identify strengths, weaknesses, opportunities, and threats. This approach can guide the prioritization of initiatives and help secure the necessary budget.
• Embrace Emerging Technologies: Look beyond traditional solutions and explore new technologies like blockchain, containers, and microservices to create a more flexible, user-friendly infrastructure.

Focusing on Agility and Customer-Centricity
While robust security measures like two-factor authentication and data loss prevention are critical, focusing solely on defense can hinder innovation and agility. Midsize enterprises should prioritize flexibility and a customer-centric approach by:

• Using Low-Code/No-Code Platforms: These platforms allow non-technical staff to quickly create custom applications, speeding up innovation and improving internal processes.
• Leveraging Data for Decision Making: By using data analytics, businesses can better understand customer needs and personalize their offerings. It’s essential to invest in tools that make data accessible to business leaders—not just the IT department.
• Cloud Migration: Moving to the cloud promotes scalability and enables remote work, which is crucial in today’s fast-changing business environment.

Investing to Combat Ransomware and Other Risks
A significant ransomware attack can bring business operations to a halt. It can happen due to lack of proper backups, outdated infrastructure, or even a complete breakdown in the supply chain. This is where many CIOs wish business leaders would consider spending a bit more to strengthen their infrastructure against such threats.

Deploy a Central Dashboard for Network Access
IT managers prefer working in a central system that allows for easy management of privileged access. Implementing a portal that enables smooth access control and follows the principle of “least access” ensures employees only have the permissions necessary to perform their jobs. Raising awareness of network security among employees should also be a priority.

Create a Data Loss Prevention (DLP) Policy
In today’s business world, data flows constantly between employees and external companies. Without an effective data loss prevention strategy, businesses struggle to control and track their data. CIOs should implement a DLP policy to ensure compliance with relevant regulations, protect intellectual property, and gain insights into how stakeholders access and interact with data. To achieve this, it’s important to classify, index, and label data in a compliant manner, ensuring that employees can only access the information they are authorized to view.

Consider Mobile Device Management for Remote Workers
Mobile device management is essential to enable remote workers to have a seamless experience. These mobile systems should be connected to a single source of truth. Going forward, technologies like blockchain, containers, and microservices will likely become more common, helping companies adapt to the fast-evolving digital landscape.

Next Steps for Digital Transformation
To begin the digital transformation journey, CIOs of midsize companies should start with a SWOT analysis to identify their strengths, weaknesses, opportunities, and threats. This analysis will help prioritize which problems to tackle first. If there are multiple priorities but only enough budget for a few, a SWOT analysis can visually highlight this gap, potentially convincing business leaders to allocate more resources to IT.

Ultimately, technology is no longer just a support tool—it’s the driving force behind business development. Any digital transformation initiative should begin with collaboration between business and IT leaders to define goals, projects, and roadmaps for the future. Both parties need to understand each other’s processes and agree on key performance indicators (KPIs). From there, the focus should be on turning these KPIs into practical, technology-driven solutions.

The challenges of digital transformation are real and pressing today. Any midsize business that doesn’t have a clear strategy for digital transformation could face the risk of falling behind in a rapidly changing market.