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Considering the sheer speed, complexity and ever changing risk in today’s technology saturated business environment, it’s hardly surprising that the call for digitally savvy directors is increasing. Emerging research suggests serious consequences for boards that continue to ignore or delegate enterprise-level technology governance.      By Elizabeth Valentine

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It’s hardly surprising that the call for technology-savvy directors is getting louder. Emerging research points to serious consequences for boards that continue to ignore or delegate enterprise-level technology governance (Van Grembergen & De Haes, 2012). This is because boards are operating against a technology saturated backdrop characterised by speed, complexity and ever changing risk. They are expected to govern in an environment where the cloud, big data, mobile and social media are changing the way businesses operate and how modern societies work.

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Looking across industry and scholarly research about boards and technology governance I believe there’s good reason for concern. Boards know that technology is important to their businesses, but they don’t seem to be building bench strength in recruiting or developing digital directors. Neither are many boards putting the systems and process in place to ensure they are governing technology investment and risk effectively. Yet technology is increasingly integral to most business practices and processes, data monitoring and reporting and to all aspects of stakeholder engagement.

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The terms competency, core competencies and capabilities are linked and often used interchangeably. However there is confusion about how each term differs and is applied (Markus, Cooper-Thomas & Allpress, 2005). Some researchers suggest that uniqueness leading to competitive advantage comes, over time, because an enterprise has developed strategic capabilities that are inimitable, rare and valuable (Barney & Clark, 2007).

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