Companies with a Digitally Savvy Board Perform Better
Name
2019_0101_DigitallySavvyBoards_WeillWoernerApelBanner.pdf
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680.18 KB
Format
Adobe PDF
Checksum (MD5)
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Author(s)
Banner, Jennifer
Weill, Peter
Woerner, Stephanie L.
Apel, Tom
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, Stephanie L. Woerner, and Tom Apel. “Companies with a Digitally Savvy Board Perform Better.” MIT CISR Research Briefing Volume XIX, no. 1 (January 2019). https://dspace.mit.edu/handle/1721.1/174849.
Series/Report no.
MIT CISR Research Briefing, Vol. XIX, No. 1
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 briefing we share results from the research, experiences from board directors we interviewed, and insights on how to increase the digital savviness of boards. A long-form version of the text that includes complete findings and methodology for the research has been published as MIT CISR Working Paper 433.
Subjects
Assessing Performance and Value
Top Performers
CxO Leadership
Boards
Digital Savvy
Business Models
Business Agility
IT-based Business Transformation
Terms of Use
CC BY-NC 4.0 (Attribution-NonCommercial 4.0 International)
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