Why Digital Directors are Needed

The need for Digital Directors

Outside directors steeped in digital business models, business practices and industry best practices can be invaluable to companies making a big bet on a digital transformation or other technology change. Also, companies in technology driven industries require more refined insight and expert council to face new and emerging digital-oriented disruptors.

Having an external perspective, especially through the eyes of the customer or consumer digital experience, is one critical perspective a digital director can bring. For example, one strategic question every board should be asking themselves is “does my digital experience” enhance my brand by delivering on the brand promise? Many cannot answer this question, including senior and middle management since they have never used their company’s digital experience.  

Simultaneously, understanding the exposure cyber-attacks present to a company and carefully analyzing the current defenses, a digital director can advise other directors to the risks, remedies and investment required to provide a right sized cyber defense. Risks that include brand, financial and regulatory exposures, which have board and governance level impact and require ongoing attention.

A digital director will be sensitive to the disruption change causes especially internally to the individual contributors and management. A digital director will ensure that the right governance questions are raised, and that management has fully thought out the impact on the organization and taken steps to mitigate organizational disruption.

Additionally, the digital director will be positioned to assess the digital and technology organization leadership and provide insight to board deliberations on the subject.   

The more a company’s customers, channels, operating model and cost structure are weighted or need to be weighted towards the digital economy, the more that company needs an independent digital director on its board.