Boards of directors are often an obstacle to the digital transformation of companies
This gap between the level of technology engagement that organizations need and what often exists in boardrooms can ultimately threaten digital transformation and value creation strategies as a whole, according to Deloitte.
The report was prompted by Gartner’s forecast that global IT spending will reach US$4.4 trillion this year. At the same time, cyber-attacks have spread globally in the last two years.
Deloitte therefore asked whether boards have increased engagement on technology issues, including cyber and investment, and whether they are effective in doing so and helping to ensure that technology supports strategy rather than the other way around.
Organizations are looking for stronger board engagement in technology strategy. However, less than half of executives and board members surveyed believe they provide sufficient oversight of technology issues. A similar number of executives (44 percent) said their board directors lack the knowledge they need to provide effective governance in this key area.
The research also revealed a number of challenges in board oversight of digital, cyber and emerging technologies, including an over-reliance on governance, gaps in technology fluency, unclear technology governance structures, ill-defined governance information and unclear links between technology and strategy…
So, even the technology sector is struggling with the problems created by the management staff, unwilling to step aside and let the results speak for those in charge of the digital segment.