With every business turning into a digital and data business, do we need a new kind of CEO?
As business across all industries becomes digital and data-driven, many companies that once appeared to be built for success suddenly seem structured to fail.
According to a recent BCG study, over 80% of companies accelerated their transformation projects last year, but 70% fell far short of their objectives.
According to a study of 2,000 companies by Sloan Management Review, only 7% were led by digitally competent teams, with a firm understanding of how emerging tech will shape their company’s success. These companies outperformed the rest by 48% in terms of revenue growth and market valuation.
A MIT study of around 3,000 companies with over $1 billion in annual revenues showed that 76% of boards weren’t digitally savvy. Companies with three or more digitally savvy directors on their boards reported 17% higher profit margins and 38% higher revenue growth than those with two or fewer directors.
Not every CEO is born digital though, Brian Chesky (Airbnb), Tim Westergren (Pandora), Sean Rad (Tinder), and Evan Sharp (Pinterest) are all non-tech entrepreneurs who set up digital giants.
With every business turning into a digital and data business, does every CEO need to be able to lead their company’s digital transformation personally?
