Biggest Strategic Risk – Boards that are not Digitally Savvy
In today’s high stakes game of business and fundraising, this blog post from the Wharton Business School was completely inspiring and revealing.
I want to spend a few minutes sharing a few key points that truly resonated with me. Most importantly, this article Wharton blog post reinforces the notion that leadership not only must support digital initiatives as business strategy, but they must be deeply a part of the conversation.
The most important paragraph:
“Business model risk is today’s biggest strategic risk, and companies without boards that are digitally savvy could find themselves starved of investor capital, according to this opinion piece written by Deloitte & Touche partners William J. Ribaudo and Henry Ristuccia; Barry Libert, CEO of OpenMatters, and his associate Megan Beck Fenley.”
So here are a few more interesting points to consider:
“The digital revolution is particularly amazing when you consider its rapidity and pervasiveness.
1) Fewer than 10% of S&P 500 companies have integrated digital into their business model.
2) Only nine companies in the S&P 500 are “highly digital.”
3) The United States faces a gap of 1.5 million leaders who are savvy enough to take advantage of big data.”
“The most effective organizations are adapting their business models to serve today’s empowered and digitally connected customers — and investors are rewarding their efforts.”
“This initial assessment may reveal a critical gap in the board’s knowledge and experience with regard to digital strategies and disruption. If so, we believe there are three ways to fill the gap: educate, seek advice or recruit:
1) Educate the board (or individual board members) about digital technologies and digital disruption.
2) Seek advice from an advisory board or outside experts.
3) Consider recruiting a director with digital expertise.”
***The information in this post came from Wharton’s School of Business Blog