Technology and Digital Acceleration on the Board Agenda: Corporate America went virtual in a fraction of the time it would have taken without a pandemic.

• Author: Hooda, Sheila
• Position: EYES FORWARD: Cybersecurity

Prior to the pandemic, most corporations were focused on technology and digital transformation. The pandemic has, however, added a heightened level of urgency to how boards and management view technology and digital capabilities. No longer is technology considered an enabling function or a source of cost advantage--it is a critical strategic differentiator and a key business driver.

This point is reinforced by a recent McKinsey report, which found that 68% of companies were modernizing or investing in core technology capabilities to make technology a competitive advantage. In a similar vein, the survey found that over a three-year period from 2017 to 2020 there was a five-fold drop in technology being viewed as a cost driver.

The pandemic and the ensuing economic crisis have accelerated tech/digital adoption by at least five years. This rapid shift has largely been instrumental in helping companies navigate the pandemic crisis, with an estimated 50% to 80% of customer interactions and product offerings going digital. This shift is predicted to continue not only through the recovery, but also afterward, as new customer behaviors and digital demands emerge.

To offer the benefits of remote work, e-commerce, entertainment, tele-health and other digital products and services, companies are investing in significant tech/ digital capabilities, talent and processes. For example, online cloud data storage now accelerates the delivery of these digital products and services. Additionally, artificial intelligence and advanced analytics are being used to gain deeper insights for customer centricity and enhanced customer experience. Robotics and machine learning are being leveraged to help drive efficiencies and scale. As a result, boards are dedicating time to educate themselves about technology as they integrate and embed technological/ digital oversight into the board governance infrastructure.

Along with the move to digital operations and data proliferation, the cyber risk threat landscape has evolved. To be successful, companies will need an effective cybersecurity program as an integral part of their risk management to secure these new digital operating models and domains. Delivering business value will require effective governance of the cybersecurity and visibility into the risks and investments involved.

This refocus of business on technology and digital tools was a result of an unforeseen crisis that forced rapid adaptation to the...