According to research conducted by IMD's Global Center for Digital Business Transformation, four of today's top 10 incumbents (in terms of market share) in each industry will be displaced by digital disruption in the next five years. Despite this, most Fortune 500 companies still do not have IT represented in the boardroom. Everyday, traditional firms are being disrupted by nimble and technology-savvy competitors who are not just start-ups, but well-capitalised technology giants. So what does this mean for companies that seem to be falling behind in capabilities such as data analytics, evidence-based decision making, platform building and e-commerce?
To discuss these important topics, TMS Academy, the integrated leadership arm of Temasek Management Services (TMS), hosted a Directors-in-Dialogue (DID) forum on November 24, 2016 at the Hilton Hotel, Singapore. Participants included chairmen and board directors from the finance, healthcare, transportation, real estate, telecommunications, security, IT and engineering industries, as well as senior leaders from various government agencies.
Facilitated by Professor Jean-François Manzoni, President Elect of IMD and Professor Michael Wade, Cisco Chair in Digital Business Transformation and Director of the Global Center for Digital Business Transformation at IMD, the session highlighted several key insights such as how industry incumbents can leverage their competitive advantages to unsettle the disruptors and occupy new markets.
The DID is a flagship programme of TMS Academy and comprises a series of highly interactive forums that facilitate robust, in-depth discussion and debate on topical subjects of high relevance to board directors of both private and public organisations in Asia. Since its launch in August 2014, the forum has received tremendous support from the board community. To date, the DID series has built up an extensive alumni network of chairmen and board directors from across the Temasek network, the public sector, MNCs, ASEAN companies and social enterprises. Designed to address the evolving needs of board directors in Asia, this series provides the most current thinking on board effectiveness from global thought leaders and subject matter experts, blended with valuable insights and practical "usable" knowledge from some of Asia's most renowned boardroom leaders and practitioners. The discussion themes for each forum vary and are continually refreshed to reflect subjects that are top-of-mind for board directors in Asia today.
Despite the rise of digital disruption across many industries, digitization on boards is still in its infancy. According to Amrop's 2016 Digitization on Boards report, only 5% of board members in non-technology companies have digital competencies, and digital-critical sectors such as Consumer Goods & Retail (5%), Financial Services (4%) and Life Sciences (7%) have alarmingly low proportions of digital profiles in the boardrooms.