An article from the Financial Times suggests that auto insurance firms should expect their premium revenue to fall by as much as $20B over the next ten years due to the effects of driver assistance technology. These assistive technologies like auto braking assist, blind spot warnings and backup cameras, will drive down the rate of accidents as they become widely adopted forcing auto insurers, in turn, to cut their rates in order to stay competitive.
This story, like so many others, shows how all companies, from a strategic perspective, are really technology companies. Even if a company isn't engaged in technology development itself, and even if it its own operations aren't being significantly transformed by technology, technology can and does significantly affect the strategic landscape within which it operates.
Board members need to keep abreast of these technology trends and, just as importantly, need to be able to carve out the time to reflect on the implications of these trends for the organizations that they have in their care. There is no magic solution for this, and no substitute for considered judgment and accumulated experience. But, there are certainly approaches that can help boards, such as using technology to help carve out time to reflect on these trends. Does your board take the time to discuss the impact of technology trends on your organization during your board meetings? At iBoardrooms, we can help you drive the strategic conversation forward for your board. Give us a try today.