The Effectiveness of Implementing Agile IT Models in Large Companies

In the digital age, technology is essential to the success of organizations, impacting not only day-to-day operations but also strategy, innovation and competitive advantage. Yet many corporate boards treat technology issues peripherally, delegating technology oversight without a full understanding of their implications. This article argues that boards should engage directly with technology issues just as they do with audit and compensation, exploring the benefits and challenges of this active involvement.

Technology has evolved from a mere support to a core element of business strategy. Digitalization and technological innovation impact the competitiveness and long-term success of organizations. From the adoption of digital platforms and data analytics to process automation and new product development, technology influences almost every aspect of business. It is therefore crucial for board members to understand how technology can impact company strategy and operations.

Historically, boards focused on audit and compensation oversight, essential to corporate governance and control. However, as technology advances, the board's role must evolve to include oversight of technology strategy. Technology is not just an operational issue; it is also a strategic issue that affects how companies compete and adapt to changes in the marketplace.

A board that understands the technological implications can make more informed and strategic decisions. By being directly involved in the discussion about technology, board members can better assess the opportunities and risks associated with technology investments. This leads to more effective alignment of technology with business strategy and helps avoid costly decisions that could result in technology failures.

Technology introduces a range of risks, from cybersecurity to technological obsolescence. A board involved in technology issues can improve governance and control of risks associated with technology. This includes implementing appropriate measures to protect confidential information and ensure compliance with technology regulations. In addition, effective oversight helps identify and mitigate emerging risks before they become significant problems.

Technology is a key source of innovation. A board that understands the latest technology trends and their impact on the market can foster a culture of innovation within the company. By engaging in technology strategy, directors can drive the development of new products, services, and business models that offer a competitive advantage and respond to changing customer demands.

Investment in technology requires proper allocation of resources and budgets. A board that actively engages in technology oversight can ensure that resources are allocated efficiently and effectively. This includes evaluating technology projects, managing investment in technology infrastructure, and optimizing technology-related expenditures.

For boards to be able to effectively engage in technology issues, it is critical that they develop technology competencies. This includes training in basic technology concepts, understanding emerging trends, and the ability to assess the impact of technology on business strategy. Ongoing training and incorporating technology experts into the board can improve the board's ability to make informed decisions.

One of the best practices for engaging the board in technology oversight is to establish a technology committee. This committee can be comprised of board members with technology expertise and can focus on evaluating and overseeing the technology strategy. The committee can work closely with the IT team and provide strategic guidance on key technology issues.

To ensure that technology issues receive adequate attention, it is important to integrate them into the board's agenda. This involves including regular technology reports, discussing technology initiatives at board meetings, and allocating sufficient time to evaluate technology strategies. By doing so, the board can stay up-to-date on technology trends and their impact on the business.

The board should collaborate with technology experts, such as IT directors, technology consultants, and other board members.