Kenneth L. Lay.

• Author: PORTER, MARTIN

Bridging the Old and New Economies, Enron's chairman adds his energy to the board of i2 Technologies.

ONLY TWO WEEKS before his Inauguration Day George W. Bush met with leaders of mostly Blue Chip, high-technology companies to discuss ways to revive the New Economy sector. Among the high-profile executives in attendance at the two-day economic workshop was longtime friend Kenneth L. Lay, chairman of Enron Corp.

While Enron may not be instantly thought of as being in the pantheon of high-technology companies, it has successfully bridged the digital gap, transforming itself from its origins as a natural gas pipeline operator into a New Economy juggernaut that is the country's biggest buyer and seller of electricity and natural gas, with a booming online trading system that also makes markets in pulp and paper, metals, and broadband capacity. Last year, Enron doubled its stock price and doubled its annual revenues to $90 billion. The company's earnings have risen by more than 30% in each of the last five quarters.

"Enron today is a pretty good mix of New Economy and Old Economy businesses," Lay tells DIRECTORS & BOARDS. He notes that Enron began its major embrace of high-technology in the late '80s, when it established its wholesale energy marketing and trading businesses.

Lay's board service has also offered a window on how technology is transforming the business landscape. He has been a director at Compaq Computer Corp. since 1987. His newest directorship at i2 Technologies Inc., an innovative developer of B2B and e-commerce supply chain management software, "Will provide another good window to look into technology and software development," he says. He is also a director of investment firm Trust Co. of the West and pharmaceuticals giant Eli Lilly & Co.

Dallas-based i2, with revenues topping $1 billion, is a partner with and customer of Enron: Enron manages i2's global Internet bandwidth needs, and i2 provides many of its services to Enron, including providing software for EnronOnline, an Internet site launched in 1999 linking buyers and sellers of commodities. One of the largest sites of its kind, EnronOnline manages nearly $2.5 billion in trades daily.

Last year, Enron and i2, together with Citigroup and other partners, launched a new company called FinancialSettlementMatrix.com Inc., a B2B e-marketplace that connects buyers and sellers with payment processing, credit and other financial services through multiple participating banks and...