Innovation key to unlocking business success
By Enterprise Innovation Editors | 2011-04-15
Innovation will play a key role in how businesses of today attain success in their respective organizations in the next five years, according to a latest study by IT solutions firm Hewlett-Packard.
According to the new study, 98 percent of business and government executives said that innovation will be critical to the success of their organizations over the next five years. When asked about their current views on innovation, 95 percent of CEOs, CFOs and CIOs and their public sector counterparts indicated that innovation is important to the success of their organizations.
The study revealed the importance and measurement of innovation. According to respondents:
— Seventy-nine percent of business executives and their public sector equivalents said innovation is very important to the future growth of their organizations (the most important reason to innovate overall).
— For the private sector, 74 percent of executives said innovation is very important to support their organizations’ profitability (the second most important reason to innovate in this sector), while in the public sector, reputation was the second most important motive for innovation with 59 percent of respondents selecting that option.
— Sixty-five percent of all executives (equally split between sectors) said that their organizations actually measure the success of their innovation initiatives.
— Sixty-eight percent of executives indicated they are a leader in innovation in their industry. CEOs are most confident in their innovation leadership (74 percent), followed by CIOs (67 percent) and then CFOs (63 percent).
CEOs are perceived as most responsible for driving innovation by the majority of business executives surveyed. Responsibility for innovation differs in the public sector, with almost a tie between heads of divisions and CIOs.
The study also revealed the goals and barriers to innovation.
According to respondents:
— Twenty-nine percent believe that the primary goal of innovation is to meet changing customer or citizen demands; 24 percent feel it is to produce higher quality products and services; while 23 percent voted for increased efficiency. When combined, these goals were selected by more than three-quarters of the executives surveyed and indicate the top three objectives of an Instant-On Enterprise.
— More than three-quarters of the respondents identified limited funding as a challenge to overcome for their organizations to become more innovative. Inadequate technology also was recognized as a key barrier by one out of two CEOs interviewed.
To drive innovation, the first area where business and government executives would invest is in applications and software that enable more flexible processes. In addition, almost two-thirds of all executives strongly agreed that the speed of technology delivery is critical to innovation.
This data supports the critical role innovation and technology play in today’s enterprises. HP Application Transformation solutions accelerate the journey to becoming an Instant-On Enterprise by modernizing applications and processes designed for another era.