Nine out of ten (89%) of board directors say that digital business is now embedded in all business growth strategies, according to a survey from Gartner. However, just 35% of board directors report that they have achieved or are on track to achieving digital transformation goals.
► Only 35% of board directors have achieved or are on track to achieving digital transformation goals
► Companies want to invest in ‘breakthrough’ tech
► Increased appetite for risk taking
‘Boards have reached a point where digital business strategy and overall business strategy are one and the same’, said Jorge Lopez, distinguished VP analyst at Gartner. ‘While CIOs have made significant progress leveraging technology for operational excellence, this is not enough to realise the strategic business benefits that they are looking for from digital investments.
‘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 2023 Gartner Board of Directors Survey was conducted via an online survey from June through July 2022 among 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.
Gartner said that boards are looking to invest in ‘breakthrough’ technologies that will drive digital business and enterprise success, with 40% seeing artificial intelligence (AI) and machine learning technologies to be imperative to success. Software enhancement are their second-highest priority. Lopez said: ‘Boards are seeking to modernize and enhance bedrock such as ERP and CRM tools. In practice they are often complex and rigid when enterprises need agility and change.’
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. ‘Boards recognize that decision making in a turbulent business environment requires a higher level of risk. This ability is critical to competing at the speed of innovation’, said Lopez.
Fig. 1: Board of Directors’ Top 3 Breakthrough Technologies Imperative to Digital Business Success (Sum of Top 3 Choices)
Source: Gartner (October 2022)
