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Working Paper: Research Summary

Assessing the Impact of a Digitally Savvy Board on Company Performance

One of the most important issues boards of directors face today is the role of digital technology as an opportunity and a threat to future success.
RESEARCH SUMMARY

A summary of a research project with preliminary findings

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.

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About the Authors

Profile picture for user jenniferbanner@icloud.com

Jennifer Banner, CEO at Schaad Companies and Lead Director of BB&T Corporation

MIT CENTER FOR INFORMATION SYSTEMS RESEARCH (CISR)

Founded in 1974 and grounded in MIT's tradition of combining academic knowledge and practical purpose, MIT CISR helps executives meet the challenge of leading increasingly digital and data-driven organizations. We work directly with digital leaders, executives, and boards to develop our insights. Our consortium forms a global community that comprises more than seventy-five organizations.

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