Do Boards Require a Technology Audit Committee?
What board committee exists for just 10% of publicly traded firms but yields 6.5% greater yields for those businesses? What's the single biggest budget item after wages and making gear?
While the present rapid pace of technological change means that corporate technology choices are regular and far reaching, the results of the choices-both nice and poor-will remain together with the company for a number of years. Normally technology choices are made unilaterally within the Information Activator Tool For Office Technology (IT) group, over which senior management decided to don't have any input or supervision. For the Board of a company to do its obligation to exercise business judgment over crucial decisions, the Board has to have a mechanism for reviewing and directing technology choices.
Generally these purchases were vindicated by executives in Finance, HR, or Businesses firmly urging their purchase as a means of keeping up with their opponents, who were additionally installing such systems. CIO's as well as line executives frequently didn't give enough consideration to the issue of the best way to create a successful transition to these quite complex systems. Alignment of corporate resources and direction of organizational change brought by these brand new systems was missed, frequently leading to a disaster. Many billions of dollars were spent on systems that either must not have been purchased at all or were purchased before the customer firms were prepared.
Surely, no successful moderate or big company could be run now without computers as well as the applications which make them useful. Technology additionally represents one of the Angelfire single biggest capital and operating line item for company expenses, outside of labor and production gear. For these two motives, Board-level supervision of technology is suitable at some degree.
