How boards need to change in a digital world

Digital transformation is not a shift that is looming on the horizon; it’s a current opportunity for boards that can also be a challenge. The only way for boards to overcome this potential challenge is to adapt to digital, embrace it, and use it to their advantage.

The best-performing boards understand the need to change in order to optimise the success of the digital transformation of their organisations. They recognise that agility is essential to thriving and attracting top talent. This involves the consideration of several factors.

Increased awareness of digital trends

Top-performing boards conduct regular sessions to ensure they are up to date with emerging trends in digital technology and their potential impacts on an organisation.

Having this knowledge enables boards to gain an understanding of how digital technologies fit at the core of their business. They are then able to communicate the advantages to internal and external stakeholders.

Exploring customer opportunities created by the digital world

Insightful executives know that digitalisation presents potential customer opportunities. This in turn enables the business to increase profits and succeed in a competitive market.

In order to gain in-depth knowledge of how digital technology can best be utilised, these executives contextualise the use of the technology within their organisation. This enables them to develop enhanced customer experiences and potential new revenue streams.

Building a strategy to embrace digital trends

Creating a digital strategy for the business allows boards to fully realise the potential that adopting digital technology presents. A successful digital strategy covers aspects including culture, governance, operating models, and talent gaps.

Having this strategy in place gives the organisation a solid foundation from which to build its digital operations.

Providing governance around the adoption of digital technologies

Traditional board governance is challenged by the adoption of digital technology in an organisation. Therefore, forward thinking boards adopt lean and agile practices to ensure that governance works across the digital landscape.

For example, boards develop governance that embraces various aspects of digital transformation such as artificial intelligence, robotics, big data, and machine learning. In addition, they recognise the need to ensure that the organisation is in the best position possible when it comes to abilities it has at its disposal.

This position can be enhanced by ensuring that human capabilities at its disposal are fully unlocked. This involves activities such as training individuals and bringing in extra resources from the external talent pool.

These factors come together to enable boards to understand how they can enhance the performance of their organisations by changing in a digital world. By developing an understanding of digital technology trends, appreciating the value they add, and creating appropriate strategies and governance frameworks, boards enhance the potential of their organisations to thrive.

Not changing to facilitate the use of digital technology is not something that any board can afford to risk. Digital growth and development continue at a fast pace and organisations that do not embrace this fact are likely to fall behind.

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