Last year, the Australian Institute of Company Directors (AICD) ran a series of 10 webinars under the umbrella of “The Digital Director”. Despite the title, there was very little exploration of “digital” technology itself, but a great deal of discussion on how to manage IT within the traditional corporate structure – as between the board of directors, the management, and the workforce.

There was a great deal of debate on things like “digital mindset”, “digital adaption and adoption”, and “digital innovation and evolution”. During one webinar, the audience were encouraged to avoid using the term “digital transformation” (instead, think “digital economy”) – yet 2 of the 10 sessions had “digital transformation” in the title.

Specific technical topics were mainly confined to AI, data privacy, data governance and cyber security. It was acknowledged that while corporate Australia has widely adopted SaaS solutions, it lacks depth in digital skills; and the percentage of the ASX market capitalisation attributable to IP assets shows we are “30 years behind the USA”. There was specific mention of blockchain technology, but the two examples given are already obsolete (the ASX’s abandoned project to replace the CHESS system, and CBA’s indefinitely deferred roll-out of crypto assets on their mobile banking app).

Often, the discussion was more about change management, and dealing with the demands of “modern work” from a workforce whose expectations have changed greatly in recent years, thanks to the pandemic, remote working, and access to new technology. Yet, these are themes that have been with us ever since the first office productivity tools, the arrival of the internet, and the proliferation of mobile devices that blur the boundary between “work” and “personal”.

The series missed an opportunity to explore the impact of new technology on boards themselves, especially their decision-making processes. We have seen how the ICO (initial coin offering) phase of cryptocurrency markets in 2017-19 presented a wholly new dimension to the funding of start-up ventures; and how blockchain technology and smart contracts heralded a new form of corporate entity, the DAO (decentralised autonomous organisation).

Together, these innovations mean the formation and governance of companies will no longer rely on the traditional structure of shareholders, directors and executives – and as a consequence, board decision-making will also take a different format. Imagine being able to use AI tools to support strategic planning, or proof-of-stake to vote on board resolutions, and consensus mechanisms to determine AGMs.

As of now, “Digital Directors” need to understand how these emerging technologies will disrupt the boardroom itself, as well as the very corporate structures and governance frameworks that have been in place for over 400 years.

Next week: Back in the USA