![]() But without IT expertise at the director level, how can a board truly make an educated decision and, more importantly, follow it through until the end of the project, adapting the design of the overhaul over the course of years to take advantage of rapidly changing technology and consumer behavior? Only a multi-year, board-level sponsored effort can ensure a responsible IT overhaul. Who would argue against a future in which disruptive services continue to impact everything from healthcare to retail to personal finances? Amazon dramatically impacted not just book shops but shopping Google is now a verb. Few expected Apple to disrupt the music industry (with the iPod and iTunes), communication (with the iPhone) and now potentially consumer banking with ApplePay. Of course, this leaves too many companies vulnerable to technology-fueled disruption. The cost of overhauls can run into the billions of dollars, the risk of overruns and even failure is high, and that means than many executives kick technology refreshes into the tall grass. The main reason for this lag is that the project horizon of most IT overhauls goes beyond executive tenures. Utilities have only recently begun to add sensors throughout the electric grid and add smart meters in homes and business. Chalk remains the technological tool of choice in most education settings. Fax machines remain the preferred way to share health care data in most countries despite the fact that the cloud could theoretically allow clinicians to instantaneously share medical records. Consumer banking is one - layers of technology have been implemented since the 1960s and almost nothing has been taken out. The truth is that many industries today employ outdated technology. Why should knowledge of IT be an exception? ![]() Yet I perceive a large gap between the direct experience of non-executive directors and the experience required to challenge and support chairmen and CEOs in their quest to bring the best technology to their business.Įxecutive directors are usually selected for their leadership qualities they often have experience with generalized management or leadership experience rather than narrow expertise or technical acumen. ![]() Technology is the most important agent of change today hardly any industry is immune to both its value-creating and disruptive potential. I’m afraid this is typical not just in banking but across most major industries. I discovered that only one bank had a board member with some direct experience in technology and in that case it was as a sales executive. So I was curious as to whether the individuals charged with corporate governance would have any more than a layman’s knowledge of IT. Like almost every other major industry today, banking relies on hugely complex, enormously expensive technology. A few months ago I decided to look into the professional experience of non-executive directors at the major banks listed in Britain. ![]()
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