Digital frontier: A technology deficit in the boardroom has been saved
Digital frontier: A technology deficit in the boardroom
Business leaders highlight a technology deficit in the boardroom
The Deloitte Global Boardroom Program’s new report reveals underinvestment in technology and uncovers gaps in board engagement on digital transformation.
Over the past few years, technology investment and deployment has expanded dramatically.
In early 2022 the Deloitte Global Boardroom Program surveyed more than 500 directors and C-suite executives and spoke to leaders, directors, and subject matter specialists to find out how boards are managing and engaging in their technology investments. We explored if boards are stepping up to meet the new demands of expanded technology use and what they are doing to ensure that technology investments are linked to strategic objectives.
The research revealed that nothing has changed for many years when it comes to technology stewardship on boards. Board members lack the knowledge they need to ask informed questions and ensure technology is being driven by strategy, not the other way around. More broadly, this is creating a chasm between the level of engagement organizations need and what’s commonly taking place in the boardroom.
- The gaps in knowledge are creating friction between the board and c-suite. 4 in 10 directors say they rely too much on management, and equally, 4 in 10 CXOs say there is a deficit in technology fluency in the board.
- 60% of CXOs question if there is a lack of sufficient oversight by the board on technology investments. On the flip side, only 36% of boards have full confidence in their technology leadership teams.
- The measurement and reporting of digital and technology investments continue to undermine investment cases. 25% believe that there is fragmented reporting with inconsistent KPIs and metrics and over 42% cite a lack of ability to connect technology investment and growth.