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The emerging role of the Board of Directors in enterprise business technology governance

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Abstract

In an increasingly business technology (BT) dependent world, the impact of the extraordinary changes brought about by the nexus of mobile and cloud technologies, social media and big data is increasingly being felt in the board room. As leaders of enterprises of every type and size, board directors can no longer afford to ignore, delegate or avoid BT-related decisions. Competitive, financial and reputational risk is increased if boards fail to recognize their role in governing technology as an asset and in removing barriers to improving enterprise business technology governance (EBTG). Directors’ awareness of the need for EBTG is increasing. However, industry research shows that board level willingness to rectify the gap between awareness and action is very low or non-existent. This literature review-based research identifies barriers to EBTG effectiveness. It provides a practical starting point for board analysis. We offer four outcomes that boards might focus on to ensure the organizations they govern are not left behind by those led by the upcoming new breed of technology-savvy leaders. Most extant research looks backward for examples, examining data pre-2010, the time when a tipping point in the personal and business use of multimedia and mobile internet devices significantly deepened the impacts of the identified nexus technology forces, and began rapidly changing the way in which many businesses engage with their customers, employees and stakeholders. We situate our work amidst these nexus forces, discuss the board's role in EBTG in this context and modernize current definitions of enterprise technology governance. The primary limitation faced is the lack of scholarly research relating to EBTG in the rapidly changing digital economy. Although we have used recent (2011–2013) industry surveys, the volume of these surveys and congruence across them is significant in terms of levels of increased awareness and calls for increased board attention and competency in EBTG and strategic information use. Where possible, we have used scholarly research to illustrate or discuss industry findings.

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  1. Queensland University of Technology, Y6, Gardens Point Campus, Brisbane, 4002, Australia

    Elizabeth L H Valentine

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  1. Elizabeth L H Valentine
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Valentine, E., Stewart, G. The emerging role of the Board of Directors in enterprise business technology governance. Int J Discl Gov 10, 346–362 (2013). https://doi.org/10.1057/jdg.2013.11

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