No abstract

In corporate governance, more dedicated attention to digital transformations is becoming essential. This research applies design science to design an information technology and innovation (IT&I) committee as an integral part of corporate governance for organisations that are engaging in digital transformations. This research builds on the work of Turel and Bart (2014). In our research, we conclude that the seven Dutch studied organisations, which are engaging in digital transformations, have corporate governance challenges for the board of directors related to these transformations. These challenges include the presence of digital capabilities and experience, as well as having sufficient dedication and focus on digital transformation. In most organizations, the audit committee addresses the risks associated with information technology including digital transformations. However, our research shows that the audit committee by default does not focus on business opportunities of digital transformations. Our research proposes a design for an IT&I committee, which enhances corporate governance, as well as the long-term value creation by means of IT, technology, and innovation. The IT&I committee councils and monitors digital transformations and facilitates decision-making by the board of directors. Overall, the results of our research suggest that installing an IT&I committee improves corporate governance for organisations that are engaging in digital transformations.