How Traditional Boards Face Disruptive Innovation

Boards say they are more frequently inviting management, shareholders and new direc- tors into discussions on how to add innovative technology to existing products to better compete in today’s tech-focused, disruptive marketplace. “Boards are more attuned to the fact that they have to be more aware of the technology dynamics. For example, the sharing economy concept is important; it’s all about efficient asset utilisation,” says Dan Siciliano, faculty director at Stanford’s Rock Center for Corporate Governance. “Boards are being encouraged to spend more time on these types of strategies.” Having the right people at the table is the key to surviving in this rapidly evolving environment, as those boards who are unable to address technological change in their industry can lose business and ultimately put a damper on their company’s stock price, experts and di- rectors say.