Today, the digital revolution is shaping how you do business. It is difficult to have a conversation about your business that does not include a discussion around technology and a digital strategy. It is imperative for companies to have a strategic plan that harnesses the power of digital to create innovate and differentiated products that engages and excites your client base. These plans require the company’s board to be technology savvy advisors in order to assist the CEO on continual product innovation strategies that strengthens revenue and allows the company to remain relevant to its customers.
Businesses at the forefront of the digital revolution are seeing higher engagement from their customers and they are also receiving higher rates of return from investors based on research conducted by OpenMatters with input from Deloitte & Touche LLP . Traditional businesses, those that make, market and sell physical products and traditional services are still struggling to find a way to embrace technology and as a result are encountering lower market valuations. Digitally focused enterprises are receiving between 5x and 8x price to earning ratio where traditional businesses are receiving 2x to 3x price to earnings ratios.
The disruptive power of digital technologies will produce new business models, product and services. Gartner’s 2014 CEO survey found that “CEOs rank digital marketing as the No. 1 most important tech-enabled capability for investment over the next five years.” Do you have the right board in place to for a company that needs to be constantly innovating and disrupting?