Predicting the Tech Future

Having regular interactions with tech titans such as Bill Gates and Allan Kay probably helped. But it was mainly Donald Stewart's role as chief information officer at Sun Life Financial (Toronto, $300 billion in assets under management) more than a quarter-century ago that gave Stewart, who is now chairman and CEO, Sun Life Financial, a keen sense of technology's potential.

According to Stewart—whose CIO role lasted from 1987 to 1992—witnessing the development of technologies such as TCP/IP (transmission control protocol/Internet protocol) and mainframe email from their beginnings through to maturity has contributed to his ability to predict uses for technology.

"If you examine technologies, they are typically around for some decades before they begin to mature," says Stewart. Mainframe e-mail and TCP/IP were "the basis of the tremendous network capability that exists today. It was helpful for me to have that immersion, because it gave me a better understanding of how technologies evolve."

Keeping Informed

Although Stewart—who heads a decentralized organization that is active in more than a dozen countries—is no longer immersed in the thick of technology, he keeps up on the latest technology trends. Stewart prefers to read relatively concise business publications rather than analysts' research reports. He finds The Economist's quarterly review of technology trends helpful and reads The Wall Street Journal on Mondays and Thursdays. "I wouldn't dream of missing Walt Mossberg's column on personal technology on a Thursday," Stewart says. "Even when I was CIO, I found that the Gartner Group Stamford, CT and Forrester Cambridge, MA weren't as good as The Wall Street Journal at bringing me timely and interesting technology information."

Applying his regularly updated tech knowledge with his sense of how technology will evolve, Stewart heads an organization that he describes as a "balanced early adopter" of technology. He warns against the dangers of adopting too early in a technology's maturity cycle. "It is very easy to be at the wrong point in the cycle because, although you may see the promise, you may not have an understanding of the cost-benefit relationship," says Stewart.

Finding such a balance is especially challenging in the current economy. "Today there is more sobriety about the future and, therefore, spending discipline is under closer scrutiny," observes Stewart. "Those of us familiar with technology are still excited about its promise, but we realize that it will take longer for us to work through."

The pending integration of Sun Life Financial and Clarica Life Insurance Co. (Waterloo, ON) will be another of Stewart's challenges in the months ahead. Sun Life recently acquired Clarica, making it the number-one group life-and-health insurer in Canada. Clarica will operate as a wholly owned subsidiary of Sun Life. "Indeed, the integration is a challenge," says Stewart. "IT is crucial." The integration will be particularly challenging because the different countries in which Sun Life operates have different regional financial service regulations. Managing such an organization is simplified through regional heads, as opposed to functional heads, he explains.

Looking to the future, Stewart predicts continued improvement in remote communications. "The ability to do videoconferencing has flowered significantly since September 11," he says. "I see it as having infinitely more capability as bandwidth expands within the next five years."

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DONALD A. STEWART

Chairman and CEO, Sun Life Financial (Toronto), $300 billion in assets undermanagement.

BACKGROUND:

Previously, president and COO, Sun Life Financial; prior to that, senior vice president and chief actuary. Stewart served as CIO from 1987-1992. He graduated from the University of Glasgow in 1968 with first class honors in natural philosophy.

ONE PERSON I'D LIKE TO MEET:

"AIG's Hank Greenberg. He is a legend in the business, he is in his mid-70s and runs a very successful company."

HOBBIES:

"I spend time at the gym. I also have three adult children. I like to stay as close to them as I can. My wife and I like to attend plays."