Presentation at West Sweden Chamber of Commerce AW on corporate governance

1. Digital Transformation of Swedish Industry
Professor Robin Teigland
Chalmers University of Technology
www.robinteigland.com | www.slideshare.net/eteigland | robin.teigland@gmail.com | @RobinTeigland

2. People
• “Net generation”
• 24x7 “mobile” workforce
• Gig economy
• Online learning
• Sharing not owning
• Sustainability
Technology
• Broadband/wifi
• Cloud, fog
• Internet of Things
• AI/ML/DL/NN
• Autonomous vehicles
• Smart robotics
• VR/AR/Holography
• 3D/4D printing/ALM
• Blockchains
• Nanotechnology
• Quantum computing
Open Source
• Software
• Hardware
• Physibles
Convergence of…..
Finance
• Microlending/microfinance
• Crowdfunding/equity/P2P lending
• Cryptocurrencies, tokens
• Blockchains, smart contracts
• Mobile money and payments
• M2M/R2R payments

3. Digital is the main reason
just over half the Fortune 500 companies
have disappeared since the year 2000.
-Pierre Nanterme,CEO Accenture, 2016
Yet..Digital disruption
has only just begun.

4. Updated from http://www.visualcapitalist.com/chart-largest-companies-market-cap-15-years/; statista, November 2018
$1.06T $754B$782B $820B
2018
$438B
Technology (AI) replacing energy and banking

5. While 63% of CEOs
believe AI will have
a larger impact on
the world than the
internet,….
https://www.pwc.com/gx/en/ceo-survey/2019/report/pwc-22nd-annual-global-ceo-survey.pdf
…only 6% have
AI initiatives on a
wider scale in the
organization.

6. AI-enabled research of digital transformation
• Mapping of AI competence in
firms
– AI-enabled analysis of Swedish
talent on LinkedIn
• Mapping of AI competence at
board level
– AI-enabled analysis of
interlocking directorates
• Development of AI Maturity
Scale
– Above results
– AI-enabled analysis of annual
reports and websites
• Organizational
performance
– Financial
– Innovation
– Other?
• Regional performance
– Employment
– Other?

8. Old fashioned Governance in the Era of AI Disruption –
The Challenges of AI for Sustainable Corporate Governance
© All rights reserved Digoshen AB
February 2019
Robin Teigland, Professor, Chalmers University of Technology
Liselotte Engstam, Chairman & Research Director, Digoshen, NED
Fernanda Torre, Researcher, Stockholm School of Economics
Anthony Larsson, Researcher, Stockholm School of Economics

9. Companies progressing but leadership falling behind
Research; Understanding Digital Maturity – MIT/CapGemini 2018

10. Boards overestimate their digital savviness
62% of
boards report
they are digitally
savvy
Source: MIT CISR 2014 Board Survey, 81 companies.
24% of boards
are digitally savvy
based on public
data
Source: MIT CISR 2018 Board Study, 1122 companies, based on
coding of public proxy data.

11. Digital Savvy Boards – The Next Frontier
• Companies with digitally savvy boards
• 38% higher revenue growth
• 34% higher ROA
• 34% higher market growth
• 3 digitally savvy directors required to impact
performance
Source: MIT Research 2018

12. “A single tech savvy director in the boardroom risks being lonely
and misunderstood. To effect change at the board level, there
must be a critical mass of directors who truly understand; and,
ideally, every director is conversant.”
—Jenny Banner, Lead Director, BB&T
Source: MIT CISR 2018 Board Study
Digitally savvy directors change the risk conversation from..
..the PROJECT RISK of
a particular initiative
to the BUSINESS MODEL RISK
of not doing something new

13. Boards and Top Management not aligned on AI importance
Research; AI in Europe & Sweden by EY and Microsoft 2018 (n=267)

14. The challenge for company leadership and boards
Rapid advancements in digital & exponential
technologies, in particular Artificial
Intelligence
Increasingly dynamic, complex, and
uncertain competitive environments
Higher customer, shareholder and
stakeholder requirements for fast innovative
response with sustainability considerations
The Challenge
• Updated competencies
• Updated leadership &
governance
approaches

15. Rethink board
processes and
procedures
(software, tools, etc.)
Rethink board competences
and mindsets
(IT quotas, “hooders” on boards)
Rethink board task focus
(disruptive innovation, new business
models)
Rethink corporations and value creation
(boards in the digital era, digital
transformation of society and business)
“Boards and four levels of digitalization” - Morten Huse
• Company-tailored workshop and interviews to
assess best practices and develop action plans
• Multi-company workshops to explore value creation,
board dilemmas, best practices
• Seminars to increase insights in AI-enabled
innovation & sustainable value creation
• Insights from 4Boards.ai reports
4Boards.ai
To identify, codify and disseminate a set of best practices to
enable corporate boards to more successfully govern and
leverage AI and other exponential technologies in their
innovation and sustainability efforts

16. Contact
Website:
4Boards.ai
Email:
Robin.Teigland@chalmers.se
Liselotte.Engstam@digoshen.com