THE NEED FOR OUTSIDE DIGITAL DIRECTORS
The value of outside directors who are well-versed in digital business models, practices, and industry best practices cannot be overstated, especially for companies that are making significant investments in digital transformation or other technology changes. This is particularly true for companies in technology-driven industries, where refined insights and expert counsel are crucial in navigating new and emerging digital-oriented disruptors.
One crucial perspective that a digital director can bring to the table is an external viewpoint, especially through the eyes of the customer or consumer digital experience. For instance, boards should ask themselves whether their digital experience enhances their brand by delivering on the brand promise, a strategic question that many cannot answer, including senior and middle management who may have never experienced their company's digital experience.
At the same time, a digital director can provide advice to other directors on the risks, remedies, and investments required to provide a right-sized cyber defense by understanding the exposure that cyber attacks present to a company and carefully analyzing the current defenses. Risks that include brand, financial, and regulatory exposures can have a board and governance level impact and require ongoing attention.
A digital director will also be mindful of the disruption that change can cause, both internally to individual contributors and management alike, and ensure that the right governance questions are raised. They will ensure that management has fully thought out the impact of change on the organization and taken steps to mitigate organizational disruption.
In addition, the digital director will be positioned to assess the digital and technology organization's leadership and provide insights to board deliberations on the subject.
Finally, the more a company's customers, channels, operating model, and cost structure are weighted or need to be weighted towards the digital economy, the more that company needs an independent digital director on its board. By having an external perspective that is steeped in digital business models, practices, and industry best practices, companies can better position themselves to thrive in today's rapidly evolving digital landscape.
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