ELEVATE BOARD PERFORMANCE - Northern California · Press Conference January 2019 LIVING IN DIGITAL TIMES • The Retailization of Lifestyle • IoT: A World of Machines in Conversation

ELEVATE BOARD PERFORMANCE© NACD 2018. All rights reserved.

Thank You to Our Program Host

© NACD 2018. All rights reserved.

Board Insights from CES® Evening Wine Reception

January 24, 20194:30 p.m. - 5:00 p.m. Registration & Wine Reception5:00 p.m. - 6:30 p.m. Program & Peer Exchange6:30 p.m. - 7:00 p.m. Networking

Sponsored and Hosted by Baker Botts LLP, Palo Alto


Moderator: Maureen Conners

Board Director, Fashion Incubator SF and NACD Northern California Chapter; Former Board Director, Deckers Brands (NYSE: DECK)


CES® 2019


VR/AR, AI, and Voice

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CES as an Ecosystem

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• All industries are going through massive changes. This era requires ecosystem thinking.

• This panel will give you insights about CES® 2019 and the future strategic impacts on boards.

• Business leaders need to think of themselves as Formula One race car drivers!


Five Actions for Boards in 2019

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1. Create a technology learning plan.

2. Assess most important technologies, business models, and opportunities.

3. Look at strategic impacts on the organization, resources, and priorities.

4. ERM of the future and implications.

5. Communicate the strategic impacts of these influences to shareholders.


Speaker Robin Raskin

CEO, Living in the Digital Times; Board Trustee, Consumer Technology Association (CTA) Foundation—the Organizer of CES®

Press Conference

January 2019

LIVING IN DIGITAL TIMES

• The Retailization of Lifestyle

• IoT: A World of Machines in Conversation with Each Other

• Smart Homes to Take Care of You

• AI/Machine Learning = Unprecedented Amount of Data,

Winners Make it Actionable

• AR/VR: Immersive/Personalized Experiences

• Bye-Bye Keyboard and Screen

• The Digital Diet: Healthy Balance of Tech and Life

• The Digitization/Personalization of Everything

• All Tech is Political: Decentralization and Privacy in 2019

2019: THE BIG PICTURE

Press Conference

January 2019


❖ Sleep Deprivation is Driving

Innovation

❖ Mattresses Get Smarter

❖ Tech Delivers Enhanced

Sleep

The Irony of Vegas? Sleep Tech @ CES

Grows 20%

Press Conference

January 2019

LIVING IN DIGITAL TIMESDigital HealthThe Doctors:

Personalized Medicine, Digital Therapeutics, Neuromodulation, AI diagnoses and predictive preventionVoice, AI, VR and AR= assistantsTelehealth

Press Conference

January 2019


New Consumer Control:

Hearing Aids, Glasses, Caregiving, Monitoring, Aging in Place

Voice = Companionship, Information, Renewals, Biomarkers

RETAILIZATION OF HEALTHCARE

Press Conference

January 2019

LIVING IN DIGITAL TIMES2019 SPORTS AND FITNESS TRENDS

2019 TRENDS:

▪ Training with Sensors

▪ Live Stream Coaching &

Classes

▪ Home Gyms go Hi-Tech

▪ AI and Connected Coaching

▪ E-Sports, Betting, Fandom

Wearables: Health, Fashion, Embedded Fabrics,

New Interfaces

The disappearing wearable

New textiles with embedded silicon

Changeable/Adaptable Clothing

Press Conference

January 2019


Preparation for 21st Century Workplace

Disappearance of Screens (Nervous Parents)

Price Sensitivity

More public play spaces for things like VR

Tech is part of play, not the reason for it

KIDS Trends

Press Conference

January 2019


Connected/Convenient

Protection/Security

Human Touch Services

Intergenerational

2019 FAMILY TRENDS

Press Conference

January 2019


THEIR EXPERIENCE

2019 RETAIL TRENDS

YOUR DATA

PERSONALIZATION

Press Conference

January 2019


The Retail Ecosystem

2019 RETAIL TRENDS

▪ E-commerce is still only 19% of the

total retail

▪ Personalization --- within branded

limits

▪ VR before hammer or nail

▪ Voice vs. Visual Search

▪ Online stores go physical

▪ Mistake Proof Shopping

▪ Experiential Shopping

▪ Robots at Retail

▪ A retail ecosystem based on smart

tagging and contracts

Press Conference

January 2019


Changing World of Payments:

▪ Are you in Vegas with No Cash? No Problem!

▪ Security and Digital ID Top of Mind

▪ The Year of Unattended Payments

▪ Robochats & Voice Elevate Humans to High Touch

▪ AI Predicting Everything from Fraud to Best Loan for You at the Right Time

▪ Growing the Ranks of the “Banked”

▪ Fintech & Banks Make Peace

2019 MONEY TRENDS/Fintech

Press Conference

January 2019


Questions for the New Year:

▪ Will the next Wikipedia, Facebook or Spotify be

Blockchain/Decentralized?

▪ Will Crypto Winter Turn into Crypto Warming?

▪ Have we weeded out the “fakes”? Are ICOs a Thing of The Past?

▪ Tech Disrupted Everything Else, Why is Money Taking so Long?

2019 CRYPTO TRENDS

Press Conference

January 2019


Machine-to-Machine Commerce

5G and New Payment Experiences

Stable Coins

Safety and Trust in Your Wallets

2019 Future of Money


Speaker: John Hotta

Board Director, FIRST Washington Robotics and NACD Northern California Chapter; Board Member, Kaiser Permanente Washington Advisory; and NACD Master Class Teacher on Innovation and Disruption

ELEVATE BOARD PERFORMANCE© NACD 2018. All rights reserved. 27

• Augmented and Virtual Reality

• Robotics

• Machine Learning and Artificial Intelligence

• Quantum Computing

• Easy and Convenient Customer and Employee Experiences

Current Disrupters 1-2 Years Disrupters 3-4 Years Disrupters

• Mobile Networks

• Blockchain

• New Privacy and Security Regulation

• Voice First

• GDPR

• Payment and Fintech

Management should consider new customer and employee experiences

Customer Experience

Digital health example:

• Internet of Things (IoT) and wearablesmonitor customer needs.

• Security embedded in IoT transmits data via wireless communication without manual input.

• AI uses algorithms to recommend products and services.

• Cloud transfers information to mobile, smart home devices, and healthcare provider.

• Customer can speak to voice device or home robot to place order.

Employee Experience

Purchasing employee example:

• Use voice input and mobile devices.

• Work collaboratively with AI assistants.

• AI purchases machine-to-machine and does paperwork and financial transactions.

• Robotics manufacture products.

• Blockchain ensures authenticity of components.

• Self-driving trucks expedite delivery.

• Training delivered to employees via AR and VR.

ELEVATE BOARD PERFORMANCE© NACD 2018. All rights reserved. 29

Full Board• Strategy

• New, easy, and convenient customer and employee experiences enabled by technology

• Risk• Competitive threats

• Finance• Funding for new experiences

• Management Performance• Expect some failure

Committee Work


Questions for Panel

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• What innovation are you most impressed with?

• What are the key takeaways for boards?

• Audience Q&A


Questions for Peer Exchange

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1) Which technologies will be most important to your industry? Why?

2) How will these innovations and trends impact board strategy?

3) What questions should board directors be asking management?a) What are the potential strategic impacts of new technologies?b) What are the possible implications of new business models?c) What changes are happening with customer beliefs, behaviors, and attitudes?

4) How is your company handling privacy and transparency? a) Do we need to increase trust, privacy, and transparency with all stakeholders?b) How do you know if it is adequate?c) What does your company do to protect customer information?d) Is your company preparing for GDPR or a similar U.S. regulation?

5) What changes in investment or talent are needed to compete in the future? Do you anticipate how innovation could affect the workforce of the future?

6) What is the best board structure for dealing with this new era of innovation?a) A technology committee?b) A audit or risk committee?c) In the quarterly ERM?d) Other approaches?

7) What changes do you think might be required in the annual report or proxy for disclosures about new technologies, business model changes, and risks?

8) What skills do board directors need to be able to anticipate future trends, potential risks, and future opportunities?

9) If an institutional shareholder or activist asked the CEO how well the board was prepared to address the strategic impacts of new technologies, what would he/she say?


REGISTER for Upcoming Programs

February 19 San Francisco Breakfast ProgramFebruary 20Menlo Park Wine ReceptionDiversity and Inclusion in Board Selection: A Nom/Gov Perspective

February 6WebinarBriefing on the Biggest Change to Nonprofit Accounting in 20 Years

March 12San Francisco Breakfast Program CEOs and the Board Work Together on Innovation and Digital Transformation

March 13Sacramento Wine ReceptionThird Annual Board Insights from CES®

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ELEVATE BOARD PERFORMANCE - Northern California · Press Conference January 2019 LIVING IN DIGITAL TIMES • The Retailization of Lifestyle • IoT: A World of Machines in Conversation