Why you need an IT professional on your board to empower business strategy planning

IT professionals could make a significant difference in supporting business strategy planning, corporate-level strategy, and the strategic management process. So why aren’t more boards seeking directors with an information technology background?
business strategy planning

The Critical Role of IT Professionals in Business Strategy Planning and Corporate Level Strategy

In today’s fast-paced business landscape, the role of IT professionals on boards has become indispensable for effective business strategy planning, corporate-level strategy, and the overall strategic management process.

Why aren’t more boards seeking directors with an information technology background? IT professionals could make a significant difference in supporting business strategy planning, corporate-level strategy, and the strategic management process.

According to the Australian Council of Superannuation Investors, most boards traditionally seek skill sets from law, finance, and accounting. Surprisingly, boards rarely seek IT experience, even though technology is pivotal in modern business operations. Statistics reveal a significant imbalance, with people from finance and legal backgrounds outnumbering IT professionals 2 to 1.

In a technology-dependent society where innovative technologies drive growth, having IT expertise on boards is critical. All IT expenditure decisions are ultimately made by the board, making it essential for boards to understand the IT industry.

Technology is continually evolving, influencing every industry. Phones, laptops, and mobile computers have become essential tools. With digital disruption and rising consumption, a pressing need for a specialist IT voice on boards is needed. This IT presence would offer pragmatic thinking and a deep understanding of how technology underpins business success. Such professionals can provide invaluable advice on managing risks and leveraging opportunities digital disruption presents.

Recognizing the advent of the 4th Industrial Revolution, the Gartner Report (2017) predicts that 20.8 billion devices will be connected to the internet by 2020. This highlights the importance of IT representation on boards to ensure a sound platform for future growth and align with business strategy planning.

Examining scenarios where technology has transformed everyday encounters, it becomes evident that there is a need for a technology spokesperson on committees and boards. Examples include:

  • Netflix vs. Blockbuster
  • Virtual offices vs. physical offices
  • Uber vs. taxis
  • Amazon vs. the retail industry
  • Spotify vs. the music industry
  • Airbnb vs. hotels

In these cases, technology acts as an enabler rather than a disruptor, providing convenient, easy, and quick solutions. This underscores the importance of a technology-savvy perspective in governance and the need to bridge the technology gap in strategic decision-making.

Significant technological changes are driving the imperative for an IT voice on boards. IT professionals are becoming as crucial as lawyers and accountants. While IT is relatively new in the boardroom, it is rapidly becoming a critical component without which organisations cannot prosper.

During a course at the Australian Institute of Company Directors, Blue Crystal Solutions’ Managing Director, Vito Rinaldi, found himself among doctors, lawyers, and accountants. Reflecting on the focus question of how often businesses should have strategy meetings, he highlighted the distinct IT perspective: “When dealing with IT, we live and breathe strategy, often having quarterly strategy meetings due to the rapid rate of change in the IT industry – further testament to the need for an IT voice on boards.”

As society increasingly depends on technology, any board without an experienced IT professional risks being left behind in the ever-evolving business landscape.

 

About Vito

With 30+ years of experience in IT, strategy and partnerships, Vito is dedicated to driving innovation and maximising his clients’ business performance through ICT.

Vito’s continuing commitment to providing value for money for his customers is reflected in BCS’s growth into leading areas such as Applications, Cloud, Artificial Intelligence, and Machine Learning.

Vito serves as a Board Director for the Australian Industry Information Association (AIIA), a peak representative body and advocacy group for those in the digital ecosystem. His passion for digital transformation and AIIA advocacy reaches large multinationals and small to medium organisations, punching above their weight. This aligns perfectly with this mission to represent small to middle-sized organisations in Local, State and Federal Governments, and as a result, has successfully influenced the direction of ICT in Australia.

His passion for supporting his community extends beyond IT. He actively supports local schools and sporting teams and provides local talent opportunities through graduate and leadership programs.

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Blue Crystal Solutions: your trusted & innovative IT partner.

Australian owned and operated since 2004, we provide information technology services locally, nationally and beyond.

We are a specialised supplier of Cloud, Application, Database & Infrastructure, Operating System Management, Modernisation and Transformation services. With security at the forefront of everything we do, we can also work with your cyber teams to significantly improve your security posture whilst ensuring all your services with us are fortified by our integrated outage protection and 24×7 monitoring tool, BlueDiamond

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