Assessing the Impact of a Digitally Savvy Board on Company Performance
Name
MIT_CISRwp433_DigitallySavvyBoards_WeillApelWoernerBanner.pdf
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1.02 MB
Format
Adobe PDF
Checksum (MD5)
3d241ff750c51cde4fc01c1f1269bc30
Author(s)
Banner, Jennifer
Weill, Peter
Apel, Tom
Woerner, Stephanie L.
Date Issued
January 17, 2019
Publisher
Cambridge, Mass.: Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology
Citation
Banner, Jennifer, Peter Weill, Tom Apel, and Stephanie L. Woerner. “Assessing the Impact of a Digitally Savvy Board on Company Performance.” Working paper 433, Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology, 2019. https://dspace.mit.edu/handle/1721.1/175411.
Series/Report no.
MIT Sloan School of Management Working Paper 6762-19
CISR Working Paper 433
Abstract
One of the most important issues company boards of directors face today is the role of digital technology as both an opportunity and a threat to the future success of the company. The board best equipped to meet these challenges has digital savvy, which we define as an understanding, tested by experience, of how digital technologies such as social, mobile, analytics, cloud, and the Internet of Things will impact how companies will succeed in the next decade. In research done over the last five years, we found that only 24 percent of the boards of companies that were listed in the United States with over $1 billion in revenues were digitally savvy, and that companies with savvy boards outperformed the others in our research on key metrics including ROA, revenue growth, and market cap growth. In this paper we share results from the research, experiences from board directors we interviewed, and insights on how to increase the digital savviness of boards.
Subjects
Assessing Performance and Value
Top Performers
CxO Leadership
Boards
Business Models
Business Agility
IT-based Business Transformation
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