[ by Melanie Gretchen ] The SEC is upgrading its information technology front, Chairman Mary Schapiro said at the SIFMA Compliance & Legal Conference last month.  Speaking on the morning of 3/20/12, Ms. Schapiro cited several examples of the Commission's move "into the 21st century...to improve our information infrastructure." Gate-Keeping. Going forward, the SEC's new Division of Risk, Strategy and Financial Innovation is working with the Office of Compliance Inspections and Examinations (OCIE) and the Division of Enforcement to build data-driven models that help us efficiently target examinations and investigations.  To this end, OCIE is using quantitative models along with qualitative approaches to identify firms most worthy of further review, and to more efficiently target areas of interest within examinations. Along with a new project-based staffing strategy and the adoption of national best practices, this should focus examination resources on areas likely to result in a deficiency notice or an Enforcement referral. Performance Review. In addition, Enforcement's Aberrational Performance Inquiry, collaborating with Risk Fin and OCIE, is using quantitative analytics and a process of qualitative review to identify hedge funds with performance characteristics worthy of further review.  To date, the Commission in December brought against 4 hedge fund advisers identified through the aberrational performance inquiry for inflating returns, overvaluing assets, and other actions that materially misled and harmed investors. A Whole New World. Going forward, the SEC's Transformation Plan will continue the Commission's evolution.  Designed to streamline, integrate, and upgrade the SEC's business practices, it hopes to better outcomes in the SEC's core investor protection mission, reduce costs and increase efficiencies in our operations, and improve services for both employees and the public. For further details, go to [SEC: Remarks at the SIFMA C&L Conference, 3/20/12].