Get Stagflation Ready: Go on offense with Web3, Cyber, Talent, Tech-savvy Board.

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Go on the offense with Web3 and Metaverse

The metaverse is a rapidly growing digital economy made up of virtual worlds and online communities. This new economy is powered by programmable assets, which can be bought, sold, or traded on decentralized exchanges. The Metaverse provides a unique opportunity for businesses to create value in new and innovative ways.

Digital business assets (DBAs) are a key part of the metaverse economy. DBAs are virtual goods or services that are created and used as part of customer engagement. They can be used to represent anything from a product or service to a loyalty program or membership.

The work is never done. Visions and strategies must constantly be tested and adjusted. Create value in new ways through metaverse -creator economy, tokenized assets, data visualization, etc.?

Avoid the dominant business model trap. Instead, the board's strategic planning must foster a business model mindset by constantly honing the redesign of business models. -Khwaja Shaik, Board Advisor

The Board's technology committee should explore the potential of the metaverse as part of their digital transformation strategy. The metaverse is a device-independent virtual world that offers opportunities for product development, brand placement, customer engagement and financial flows.

The board's strategic planning must foster an innovative business model mindset by constantly honing the business model differentiation. This will ensure businesses can future-proof their revenue, operations and stay ahead of the curve in an ever-changing landscape. -Khwaja Shaik, Board Advisor

Metaverse-based business and financial models are executed through smart contracts. These contracts are stored on a blockchain, which provides a secure and transparent way to track transactions. Smart contracts enable businesses to automate their operations and reduce costs. They also allow customers to interact with businesses in a more direct and transparent way.

By leveraging the trustless and secure environment of the Metaverse, businesses can tokenize assets, create data visualizations, and build decentralized applications (dApps). These applications can be used to provide financial services, such as lending and borrowing platforms, or to represent real-world assets, such as stocks and commodities.

Go on the offense with Web3 to future-proof your business around data privacy, end-user ownership, and democratization. -Khwaja Shaik, Board Advisor?

The Board's technology committee should explore the potential of the metaverse as part of their digital transformation strategy and innovation imperatives. The metaverse is a device-independent virtual world that offers opportunities for product development, brand placement, customer engagement and financial flows.

There are several implications as part of Board's oversight responsibilities:

• It should consider the potential benefits and risks of investing in the metaverse.
• They should also ensure that the metaverse is integrated into the overall digital transformation strategy.
• They should also be aware of the potential legal and regulatory implications of the metaverse.
• They should also consider the impact of the metaverse on society and culture.
• They should also ensure that their company has the resources and capabilities to participate in the metaverse.
• They should also consider the impact of the metaverse on their company's competitive position.

I agree with Betsy Atkins ?that Web3 will present new opportunities for the companies best positioned to seize them, and it will present new risks for everyone.?Learn more here .

Gain Trust and Business Resiliency with an effective tech strategy and execution

As businesses become more reliant on technology, it's crucial that they have systems in place that can keep the lights on and help them recover quickly from a crisis. When making a business case for automation, it's important to focus on operational resilience and efficiency.

Technology can also help businesses shape their workforce to meet the ever-changing needs of the cybersecurity landscape. In this stagflation era, by considering the ratio of employees to contractors and gig workers, businesses can ensure they have the right mix of skills and experience to meet their needs.

Investing in automation is a smart way to protect your business against cybersecurity threats. By taking the time to build a business case that reflects the efficiency of automation, you can make a strong case to the board for why this is a critical investment.

When making a business case for cybersecurity investments to the board, focus on operational resilience and efficiency. -Khwaja Shaik, Board Advisor

Explain how automation can help businesses shape their workforce to meet the ever-changing needs of the cybersecurity landscape.

I agree with the KPMG thought leaders on their take on cyber security as both the greatest threat and greatest operational priority.?Read more here.

Ensure Risk Oversight across all aspects of business.

In this new accountable era, it is more important than ever for firms to have an integrated approach to risk management. With increased risks becoming the new normal, risk management must be a business imperative. I have seen few firms apply it on a silo lens.

Risk events remain a blind spot for many boards as emerging technology gets infused into the core business models. -Khwaja Shaik, Board Advisor

I counsel C-suite and Boards to spur innovation underpinned by noble purpose and integrated risk management -data privacy, information security, strategic, operational, reputation, and conduct risks. In so doing, firms can create long-term stakeholder value and maintain a competitive edge.

Read more in this The Wall Street Journal article -Federal Reserve Wants Citigroup to Move Faster to Fix Problems With Its Risk Systems

Strengthen Your Cybersecurity Strategy

As the potential for cyber-related losses continues to increase, it is becoming more important for boards of directors to be aware of the limits of their organization's cyber insurance coverage. Cyber insurance underwriters are increasingly taking into account factors such as multi-factor authentication, privileged access, network monitoring, and business continuity and disaster recovery planning when assessing risk. As a result, quantifying potential losses (for example, of a ransomware event or a technology provider disruption) is becoming more important in order to future-proof the cyber insurance budget. Board oversight of these issues is essential to ensure that an organization is adequately protected in the event of a cyber incident.

Cyber insurance is vital for organizations in today's digital age, but it is important to remember that coverage is not unlimited. Board members should be aware of the potential risks and limitations of their organization's cyber insurance policy in order to ensure that the organization is adequately protected.

Read more in this The Wall Street Journal article -Who will pay the price for cyber attacks?

Manage Total Enterprise Risk for long-term survival, Future-proof the risk appetite for your ecosystem

Regulators have the power to order banks to replace managers or directors in cases of risk management failure. This new era calls for "integrated" risk management, which few firms have applied so far. Risk events remain a blind spot for many boards as emerging technology gets infused into the core business models. I counsel C-suite and Boards to spur innovation underpinned by noble purpose and integrated risk management. This will help to mitigate risks related to data privacy, information security, and other strategic and operational risks.

This new era with an interconnected world calls for "integrated" risk management, which few firms have applied so far. -Khwaja Shaik, Board Advisor

When making decisions in today's business environment, Board's risk oversight is super important. With the ever-increasing pressure to make decisions quickly and the growing number of interconnected risks, Board's imperatives in supporting risk-informed decisions is more critical than ever.

Read more on this -Federal Reserve Wants Citigroup to Move Faster to Fix Problems With Its Risk Systems

Create a capable digitally-savvy board and Redesign the Board's Committees

The board of directors is responsible for the overall governance of an organization. In today's business environment, that includes having a clear understanding of the role technology plays in achieving strategic goals and managing risk. Unfortunately, many boards lack the tech expertise needed to leverage technology effectively.

Upskilling and reskilling board members in digital literacy and technology are essential to staying competitive and achieving ESG targets. A sound technology committee can help drive business transformation. But success ultimately depends on the board's ability to provide oversight and ensure the execution of the tech strategy.

Diversity is also important when it comes to boards and technology. A diverse board brings a wealth of experience and perspectives that can help an organization navigate the ever-changing landscape of technology.

I have seen major skills gap on boards when it comes to?environmental, social, and governance ?(ESG) issues. This is becoming more and more of a concern as technology is not effectively used to solve climate change and other global challenges.

Investors are starting to pay more attention to how companies are addressing ESG risks and opportunities, and they are increasingly filing shareholder resolutions on these issues. Board members need to be up to date on the latest technology developments in order to make informed decisions.

We need the digitally-savvy directors for today and tomorrow to stay ahead of the digital disruption curve. -Khwaja Shaik, Board Advisor

However, many boards lack the expertise and knowledge necessary to effectively manage ESG risks and opportunities. This is a problem that needs to be addressed if companies are going to be able to meet the challenges of the future.

Read more on this 麦肯锡 article -How effective boards approach technology governance

Make Purpose real by discussing talent at every board meeting.

We should never waste a good crisis to transform the business and the world. There are several examples of major corporations investing in their workers and communities to sustain long-term value creation. For instance, I have seen this in the tech space. When you invest in employees by upskilling and reskilling them so that their personal purpose is aligned with the corporate purpose, innovation flourishes and leads to better products and services. This creates a virtuous cycle in which all shareholder's interests are met.

JUST Capital data suggests that investors are leaving money on the table by not looking at how companies are investing in human capital and treating their workers. Hear more from JUST Capital CEO?Martin Whittaker ?appearing on?CNBC 's Squawk Box on why companies that lead on the public’s priorities –?workers – are also good for investors.?More on this here -Worker issues remain a top priority among Americans, JUST Capital survey finds

BOOK RECOMMENDATION

Race Anti-Racist Leadership: How to Transform Corporate Culture in a Race-Conscious World

Douglas Conant and his team had a fabulous Fall BluePrint Leadership summit this week. The top leadership luminaries & CEOs from across the business space such as,?John Pepper ,?Rob Garver , Fran Horowitz,?James D. White , Krista white,?Stephen M. R. Covey , and?McKinlee Covey shared their leadership wisdom.

James D. White and Krista White offered seminal anti-racist?#leadership ?best practices to transform corporate?#culture . I agree wholeheartedly to drive real change in DEI practices, it must be incorporated within the?#culture . Most importantly, it starts with the?#boardroom ?by effectively leading with the "G" pillar of "ESG."?

When it comes to creating an anti-racist workplace, leaders have a crucial role to play. As the people in charge of setting the tone and direction for their organizations, they have the power to make real change happen.

James D. White and Krista White has put together this amazing book. It's a comprehensive guide to building an anti-racist company, from the ground up. This book challenges leaders at all levels to get involved in creating and cultivating equitable communities.

You'll learn about the history of racism in America and how it manifests in the workplace today. You'll also get concrete advice on what you can do to create a more diverse, equitable, and inclusive work environment.

If you're ready to take a bold stance against racism and create a better world for your employees, customers, and community, this book is for you.

ABOUT KHWAJA SHAIK

Khwaja Shaik ?is the award-winning C-level Global IT Executive with 25+ years of technology, industry, and board leadership with?GE, IBM, Bank of America & PwC. He was recognized globally for turning visionary thinking into breakthrough growth.?As one of?IBM’s CTOs, Khwaja counsels CEOs, Boards, and Startups on corporate strategy, digital transformation, AI, Cybersecurity, ESG, and culture shifts to unlock performance.

Using his innovative mindset, he saved $1.1 billion per year for?Bank of America ?by transforming the Global IT Operating model and future-proofed business by mitigating risk and infusing new?fintech. Khwaja has 20 years of experience in the highly?regulated banking and financial services?industry.?

In addition, as a Big5 thought leader at?PwC , he incubated new businesses, reshaped business and?platform operating models— digitized end-to-end business processes to capture value, and protected firms from?cyberattacks?through AI & the cloud.

Khwaja has a history of leading over $10B digital business transformations by scaling Agile practices for cost optimization, revenue-generation, and societal transformation imperatives. It includes digital business optimization and using digital business models to capture profitable growth, customer lifetime value & competitive advantage to Fortune 500 firms.

Khwaja transformed the Omnichannel customer experience by delivering world's largest next-gen Contact Center platform as part of BAC's M&A (CFC, MBNA, Fleet etc.) by replacing aging telephony system with VoIP. Contact Center platform serves 1 billion calls, 500K interactions annually and 300 million outbound calls annually to support multichannel strategy

In 2016, Khwaja was among the most exceptional IBMers appointed with the rare distinction of?IBM ?Academy of Technology member. In 2020, Khwaja was recognized as IBM’s senior inventor and top 100 technical leaders driving technology ethics and data stewardship, providing the direction of IBM on societal transformation with responsible innovation that matters.

Service to others has been a part of Khwaja’s purpose. Khwaja promotes economic equity, social responsibility, diversity, and inclusion for the prosperity of all -the reinvention of education through innovative programs such as Open P-TECH. Due to his holistic stakeholder engagement in the industry, partner ecosystem, and?community, Khwaja received several service awards from IBM, Bank of America,?University of North Florida , Indo US Chamber of Commerce of Northeast Florida, and 2022 ORBIE Awards?FloridaCIO ?Finalist.

Khwaja serves on the boards of directors of the?Museum of Science & History , UNF School of?Computing Advisory Board ,?TECt, ?MIT ?CIO Forum,?Interfaith Center of Northeast Florida ,?and McKinsey Executive Panel.

Khwaja regularly writes on?LinkedIn ,?Twitter ?and regularly?interviewed ?for?industry insights ?or cited in the?news ,?Thought Leadership POVs . He is a frequent international speaker at elite universities, including IIT Hyderabad, CIO IT & Security Forum,?MHI ?Supply Chain Conference, and JAX Chamber IT Council.

Khwaja is a Fellow of Herndon Directors Institute, sponsored by?Nasdaq ?and?Atlanta Life Insurance Company . Khwaja holds an MBA and a bachelor’s degree in Engineering. Khwaja lived on three continents, experienced three different cultures, reads too much, doesn’t do enough gardening, married for over 22 years, and has two boys.

?More details on Khwaja’s career and thought leadership activities could be found via?Linkedin, ?Khwajashaik.com ?or follow him on Twitter @Khwaja_Shaik

"The postings on this site are my own and don't necessarily represent IBM's positions, strategies, or opinions."