Peter Weill, Stephanie L. Woerner, and Aman M. Shah
March 03, 2021
Executive teams that understand how to wield the power of digital technologies are rare, but they deliver huge premiums in corporate growth and valuation.
There’s little doubt that the future of business is digital. Companies that are in the lead implementing digital technologies have radically improved their operational efficiency and their customers’ experiences. And, even more important, the new capabilities unlocked by digital technologies have allowed them to reimagine their purposes and their business models.
Having a digitally savvy top leadership team — that is, a team in which more than half of the executive members are digitally savvy — makes a huge difference. Our latest research shows that large enterprises with digitally savvy executive teams outperformed comparable companies without such teams by more than 48% based on revenue growth and valuation.
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1. P. Weill, T. Apel, S.L. Woerner, et al., “It Pays to Have a Digitally Savvy Board,” MIT Sloan Management Review 60, no. 3 (spring 2019): 41-45. In the study described in this article, we defined a board as digitally savvy when it included at least three digitally savvy members.