A vast majority of board directors agree about the importance of digital transformation but they are not on track achieving it. 89% of board directors say that digital business is in all business growth strategies but just 35% of them say they have achieved or are on track to achieving digital transformation goals, according to a survey from marketing and research firm Gartner.
“While CIOs have made significant progress leveraging technology for operational excellence, this is not enough to realize the strategic business benefits that BoDs are looking for from digital investments”, says Jorge Lopez, the company’s VP Analyst.
“As enterprises increasingly operate in a world of constant disruption, the most future-savvy boards are considering how upheavals and risks can serve as a source of opportunity. CEOs and CIOs will need to adopt this mindset as technology plays an ever-expanding role in driving business success.”
The survey was conducted online from June through July 2022 comprising 281 respondents in North America, Latin America, Europe and Asia/Pacific, who are in a board of director role or a member of the corporate board of directors.
“BoDs cited CEOs as the primary leader responsible for driving digital business initiatives within the enterprise, selected by 28% of survey respondents. This is ahead of the CTO and CIO, cited as the primary digital leader by 19% and 14% of board directors, respectively.”
“Boards are looking to invest in ‘breakthrough’ technologies that will drive digital business and enterprise success. 40% of board directors consider artificial intelligence (AI) and machine learning technologies to be imperative to digital business success in their organization, the most-cited response”, Gartner says.
“Board directors cited software enhancement as their second-highest priority among breakthrough technologies, selected as an area for investment by 30% of respondents.”
“Risk-taking is a key component of digital acceleration. The survey found that 64% of board directors are planning to increase their risk appetite through 2024, climbing seven percentage points from the previous year’s survey findings.”
“Many BoDs are also expanding their vision for digital business success to focus on a ‘digital economic architecture,’ with 71% of board directors reporting that they are pursuing or plan to pursue such an economic structure this year. A digital economic architecture is the approach that non-digital enterprises can use to achieve similar economic benefits – including growth, profitability, market cap and brand value – as digital giants have achieved via their ‘born digital’ business models.”