Fintech Industry Paper Example

Introduction

Fintech is an industry that has been recently introduced that uses technology to improve activities in the finance sector. Some of the applications include mobile banking, cryptocurrency and electronic commerce. Change management is an organized approach that deals with the transition of an organization's goals, technology or processes. On the other hand, DevOps (development operation) is a set of activities that stress the collaboration and data exchange between software developers and Information technology professionals ("Six digital growth strategies for banks"). For the past year, there has been a digital transformation especially in the Fintech institutions; intelligence, digital and mesh.

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In the digital trend, the internet of things has been incorporated in the market. Internet of things has enabled data collection and data mining which has enabled the market analysts to predict the market patterns. Internet of things has transformed the business models through the collection of data from the customers especially during transactions which are usually used for market trend analysis ("Six digital growth strategies for banks"). The data collected enables the enterprise to analyze the shopping patterns and items purchased by the customers at a specific period hence enabling them to anticipate what to bring into the market. Digital transformation has been a huge step towards the Fintech.

Intelligence is another trend that has promoted Fintech by use of artificial intelligence in machines and smartphones. Artificial intelligence machines are adapting to the market and human environment. A. I (Artificial Intelligence) that is still being improved, is capable of learning new situations and variables. Artificial Intelligence will soon be customized to serve the people ("Six digital growth strategies for banks"). For example, Amazon and Netflix have incorporated the technology for customer support.

In the mesh trend, a combination of trends has been incorporated to support the Fintech. They include; advanced machine learning, intelligent apps, block chains, and distributed ledgers.

Business Transformation

Businesses are adopting the current technological advancements that are in the market today. For example; the transformation from building many branches to incorporating electronic commerce where most of the business activities like marketing and purchase can be done anywhere. Such transformations cut off operation costs and cost of employing stuff which will increase the income ("Six digital growth strategies for banks). Other business transformations include; Mobile banking that allows wireless payment and instant payment which also saves the customer from carrying cash all through.

Implementation of Business Changes

The following are some of the changes that have occurred in the business industry:

ITIL Change Management

Information Technology Infrastructure Library (ITIL) change management is an exercise that is easy and efficient for Information technology specialists to implement and prioritize change, without affecting the customers' needs ("Waterfall-ITIL vs. Agile-DevOps," 2012). ITIL also enables the organization to stay competitive in the market while they make changes especially policies. However, in most institutions, Information technology changes are usually augmented in the policies and standards to avoid the collapse of the organization. ITIL was established to ensure a smooth transition and the results include stable and reliable services and quick service change that meets the business requirement.

Water Fall Development Changes

The waterfall development change is a procedural model sequentially follows each other to achieve change. The steps start from Initiation where organizational needs are collected and then forwarded for Analysis. In the analysis stage, the requirements are broken down to activities that define the business models, schemas and business rule. The next step is system design that follows the rules established in the design for phase for software design ("Waterfall-ITIL vs. Agile-DevOps," 2012). After system design, the actual development is carried out using the parameters given in the previous stages and small units. Afterward, Integration and testing are conducted to check for any errors while assembling the individual units for them to work as a system. Implementation is the next step that allows the introduction of the system to the real environment with real-time data. Finally, Maintenance is carried out to fix errors that may occur as well as developing upgrades to improve system performance.

Agile Development Changes - DevOps (Pros & Cons)

Agile development, unlike the waterfall model, is flexible since it breaks down a project into iterative cycles. In agile development, phases like planning, design, development, and testing are never carried out. Agile methodologies include practices like Extreme Programming ("Waterfall-ITIL vs. Agile-DevOps," 2012). Agile's lifecycle combines both the incremental process model and the iterative model. It is suited for customer satisfaction since it focuses on the rapid development of the customer needs.

DevOps (development and operations) on the other hand enhances rapid development and testing for the developers ("Waterfall-ITIL vs. Agile-DevOps," 2012). DevOps is important since it allows of abstraction of complexities which enables the teams to focus on the major tools. DevOps allows for cloud services which makes it easier to incorporate other teams to develop. However, DevOps requires a higher level of expertise since it has complex processes that require full knowledge and experience. In addition, DevOps can lead to data breach especially when the operations are done over the cloud, a man in the middle attack can be carried out without authorization from the organization. DevOps can also lead to unforeseen complexities such as compatibility issues if the development is conducted remotely. The simulations that are performed during the cloud development at times do not account for the real-time errors that could occur hence they could lead to failure in system implementation.

References

Six digital growth strategies for banks. Retrieved from https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/six-digital-growth-strategies-for-banks

Waterfall-ITIL vs. Agile-DevOps. (2012, November 13). Retrieved from https://www.slideshare.net/paulpeissner/waterfall-itil-vs-agiledev-ops