Five Benefits of Tech Experts on the Board

Technology touches every industry daily. This may range from disruptive technologies or innovations along a technological path — but every business is shaped by technology and its applications in the company. Here are five key reasons why a company may prioritize having a technology seat on the board.

Expertise. Many times, technology executives bring a completely different mindset and expertise to the strategy dialogue at board meetings. Companies want to make informed decisions about their risks and competition, and see what potential impacts technology may have on their business. By bringing this point of view to the discussion, the board will help the executive team determine the right strategies as they pursue growth.

Strategic planning. Technology should be integral to the research & development of the company and the strategic planning process. Internal executive teams will have the domain experience in the industry to know what the typical playbooks entail, but having a technology seat on the board can help integrate technology investments into the strategic plans of the business. 

Risk management. Technology is a key element in sizing and articulating the risks of the business. Boards should understand not only the company’s total cost of risk but also what strategies have been put in place to adequately manage the risks in the future. An example may be the cybersecurity roadmap and how it relates to protecting the business from bad actors, or understanding what risks come with technology adoption and best practices to manage those emerging risks.

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Innovation. Most companies desire to grow and innovate over time to create lasting business value.  Technology is key to how that innovation occurs and will bring up key questions like what innovation needs to happen internally versus what can be purchased or adopted from other players. How do you structure innovation in the company? Are new ideas given enough protection to grow to a reasonable size before competing with internal resources and budgets?

Competitive advantage. Companies that leverage technology appropriately end up having a competitive advantage against peers. I served on the board of a major convenience store retailer. Initially, they wanted my point of view on store technology to keep them competitive. What I learned from that experience was technology adoption was pervasive across the organization. From use of digital marketing tools, robotic process automation in the accounting department, building an internal data sciences team — all of these strategies lead to an amazing competitive advantage both in the core line of business but also in adjacent new lines of business.

These are just five ways a technology seat can positively influence the composition and dialogue at board meetings. So, what can a forward-thinking board do? As you have seats transitioning, consider your current composition. If light on technology experience and mindset, look to prioritize that qualification as you search for new directors. You will find these candidates bring a fresh perspective to the dialogue at board meetings and new ways to solve the challenges of the business.

Michelle Tinsley is a director of YellowBird Holdings Inc. and Arizona Tech Investors. She is an advisory board member of Wealth Venture Partners Inc. and CEO and founder of Tinsley Retail Insights.

About the Author(s)

Michelle Tinsley

Michelle Tinsley is a director of YellowBird Holdings Inc. and Arizona Tech Investors. She is an advisory board member of Wealth Venture Partners Inc. and CEO and founder of Tinsley Retail Insights.


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