Posts Tagged ‘innovation’

New Technology and the Director Experience

August 24th, 2015 | By

Over the past decade, I’ve found that few factors have influenced the evolution of the board’s role more than new technology. From drones to 3-D printing to the latest cybersecurity tools, the transformative force of technological innovation is reshaping the competitive landscape and redefining best practices for corporate boards.

As I often discuss with our members, this shift presents both opportunity and risk, leaving many of us wondering how to best forecast—or “futurecast”—potential disruptors and achieve desired outcomes.

A great place to learn more about state-of-the-art technologies and how they’ll affect you is the 2015 Global Board Leaders’ Summit from September 26–29 in Washington, DC, where directors, innovators, and leading governance experts will gather under one roof to discuss this shifting corporate terrain and how to effectively navigate it.

For the first time ever, NACD’s largest annual gathering will feature “Innovation Nation”—a hands-on, interactive exhibit displaying the most buzz worthy cutting-edge technologies. Think drones, 3-D printing, Google Goggles, and more.

In addition to “Innovation Nation,” our summit agenda is packed with change-the-world-and-business-as-we-know-it sessions. Here’s just a sampling:

The big ideas and technologies of tomorrow are already changing the way we live and do business, but how we work together to transform those ideas and advances into high-value assets that will create a successful, sustainable future is what’s important.

And that’s our goal at this year’s annual summit.  I hope you can join us.

Future Trends in Market Disruption

October 14th, 2014 | By

Seasoned venture capitalists during a keynote session this morning at the 2014 NACD Board Leadership Conference discussed future trends in marketplace disruption.

Scott Kupor, director of the National Venture Capital Association and managing partner at the venture capital firm Andreessen Horowitz, said that from an entrepreneurial standpoint, the so-called next big thing is whatever a business is doing to be innovative in their field. What many entrepreneurs are doing is streamlining the chain by which products or business ideas make it to market. They’re getting rid of the middle man.

John Backus, managing partner of venture capital firm New Atlantic Ventures, highlighted the importance of companies being aware, and staying ahead, of upcoming trends. As an example, Backus recalled a past employer, a home phone company in the 1990s that was so focused on its way of doing business that it totally missed the technological innovation of the Internet. Companies can essentially be wearing blinders, seeing only what they and their three or four nearest competitors are doing, ignoring the potential for disruptive innovation.

Kupor said his firm missed out on becoming an early investor in Airbnb.com–a San Francisco-based startup founded in 2008 that allows people to list rooms in their homes as being available for temporary rental instead of a hotel. Airbnb is now connecting people to available rooms–or couches to sleep on, in some cases–in 190 countries and more than 34,000 cities. Kupor said that the mistake that he and his team of investors made was in limiting their thinking to whether they would use the service. Their group wouldn’t, so they decided not to invest in the business; however, they later realized that many other people would use the service, so Kupor’s team later decided to invest in Airbnb.

“Big businesses have a really hard time changing the way they do business,” Backus said. “If you don’t innovate, somebody’s going to do it for you.”

Bill Reichert, managing director of Garage Technology Ventures, said that when a company finds out about a new innovative idea, corporate directors can’t just sit in the boardroom at the strategic level and say: “We’ve got to watch that, monitor that.” A company must react.

That reaction can play out in a variety of ways, depending upon the innovation and the industry.

Backus said that in some cases, companies react with merger and acquisitions. They purchase a company whose innovation might be disruptive and competitive to their company’s strategy. Then, they can either foster that innovation and bring it to market, or–in some cases–shutter the innovation to get rid of the threat of competition.

Other companies decide to invest in research and development hubs overseas, outsourcing their innovation to less expensive and more highly concentrated development teams in other countries.

Still other companies spin off their own team of venture capitalists to travel and seek innovative technologies in which to invest.

All the panelists agreed that the key to staying ahead of marketplace trends, after becoming aware of potential innovative ideas, was to take action. In other words, innovation ignored is a bad business practice.

Leveraging the Risks and Rewards of Information Technology

May 8th, 2014 | By

As information technology (IT) continues to evolve, so do the oversight responsibilities of corporate directors. From big data analytics to social media to cybersecurity, technology creates opportunities for companies to innovate, to create operational efficiencies, and to develop a competitive advantage.

These potential rewards can bring significant risks, however. Directors have the task of ensuring technology is integrated into both company strategy and enterprise risk management—and to do so they must first gain a deeper understanding of how technology is impacting their businesses.

To help directors ensure they are prepared to leverage both the risks and rewards of IT, NACD developed an eight-part video series—The Intersection of Technology, Strategy, and Risk in partnership with KPMG and ISACA.

The series includes insights from leading technology experts and top executives from AT&T, Citigroup, Dunkin’ Brands, Kaiser Permanente, and  Oracle, among others, and focuses on critical IT areas for directors, such as:

  • how emerging technologies are altering the business landscape;
  • critical questions boards should be asking about technology;
  • the role of the CIO;
  • disruptive technologies;
  • fostering innovation;
  • balancing IT risks and opportunities;
  • cybersecurity; and
  • social media.

To complement the video series, NACD has additional resources, including white papers, articles, webinars, full transcripts of each video, and a discussion guide for directors who would like to take a deeper dive and bring these topics into their own boardrooms.

To watch The Intersection of Technology, Strategy, and Risk video series and access the supplemental resources, visit NACDonline.org/IT.