Disruptive CEOs Combine Vision, Strategy & Technology

When it comes to market-changing business strategy, technology is no longer an afterthought. The four CEOs profiled on the following pages have proved to be masters at leveraging technology to reshape the market.

The CEOs

Ray Killian ITG
Seth Merrin Liquidnet
David Krell International Securities Exchange
Thomas Peterffy Interactive Brokers Group

When it comes to the visionary chief executive officers who have changed the way the entire business environment operates, a few names come to mind. Jack Welch, Steve Jobs and Michael Dell usually are on everyone's short list.

Welch drove GE to a No. 1 or No. 2 market-share position in virtually every market segment (home appliances, aircraft engines, medical equipment) in which the diverse corporation operated. In turn, GE's competitors were forced to alter their business models to survive.

Jobs, first with Apple Computer and now with Pixar, has proven that innovation -- not to mention style -- can shift markets. Apple virtually started the personal computer revolution in 1977 with the release of the Apple II, and more recently, Apple's iPod also has revolutionized the music industry.

And Michael Dell, founder of Dell Computer, flipped the home PC market on its head when he decided to sell computers directly to consumers -- cutting out retail stores and driving down prices throughout the market. Dell made all this possible by reinventing the supply chain into an ultra-efficient distribution network.

In financial services, however, innovation and market-changing business models sometimes are less obvious. In fact, Business Week's April 24 cover story about the world's most innovative companies -- which included Microsoft, Google, Apple and even Starbucks -- failed to mention one financial services company in the top 25, listed only one in the top 50 (Capital One at No. 37) and just two more in the top 75 (Progressive Insurance at No. 65 and ING Bank at No. 68). Does this mean that financial services is falling behind other industries or is comfortable with the status quo? Hardly.

Like any company, in order to disrupt the status quo, it takes leadership, a vision, confidence and the willingness to take risks. Increasingly, CEOs must include some sort of technology in their market-changing game plans, according to Shawn Banerji, an executive director at executive search firm Russell Reynolds Associates in New York. In financial services, which spends more on technology than virtually any other business segment, a business strategy that includes cutting-edge technology from the start is a requirement.

According to Allan Z. Loren, who has held a number of CEO and CIO positions throughout his career, a clearly defined strategy that is understood by the entire management team is the most important part of any CEO's plan. "The CIO and CEO roles are very hard jobs," says Loren, who retired in May 2005 from the CEO post at Dun & Bradstreet, a company he helped to turn around with a flexible corporate structure and a responsive IT organization. "These jobs are demanding and difficult. A clearly defined strategy is the most common element for success."

Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio