global it luminaries - the innovation imperative

2

In this survey we define innovation as a

“practice, process or technology that is demonstrably new and different and has a

measurable positive impact on an organization’s success”

CA Technologies and IDG Research recently sponsored an in-depth survey of 800 IT and business executives from large organizations in the U.S., Brazil, U.K., France, Germany, Australia, Japan and Singapore.

The research explored key topics in innovation, and the evolving role of IT as a key driver of innovation for their organization

The results may surprise you!

Insight from your peers

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State of innovation: 48% report that innovation is widely practiced, while 20% say it is minimal or nonexistent

None: Innovation is nice-to-have and largely unsupported

Minimal: Pockets of innovation, culture does not support or reward

Moderate: Pockets of innovation and supporting culture

Frequent: widely practiced and encouraged

Established and Formulized

4%

16%

32%

35%

13%

Current State of Innovation

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48%

20%

1. Current state and

best practices

Q1: Which of the following best describes the current state of innovation in your organization? Base: Total 800

33% of organizations in the U.S. report that innovation is minimal or nonexistent

For technology projects, “iteration” is much more prevalent than “disruption”

Technology disruption

Route to market/channel innovation

Business process innovation (e.g., supply chain)

Business model innovation (e.g., pricing models)

Design innovation

Service innovation

Technology iteration/evolution

30%

34%

35%

38%

40%

43%

46%

Percent indicating innovation projects fall under each category frequently


1. Current state and

best practices

Q3: Thinking of past, current or planned innovation projects within your organization, how frequently do these projects fall under each category? Base: WW 750 (Those who report at least minimal levels of innovation at their organizations)

Bleeding edge innovation

Mobility: device, mobile workforce New ways to enter new market Attracting new revenue Provide new services Boosting customer satisfaction

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A great idea is not enough

Taking existing product and services and make it better

Evaluate customer needs and analyzing current process, customer satisfaction

Sometimes, the best innovation is in what you already have

Collaboration is key


Q21: Which of the following benefits has your organization achieved or is it expecting as a result of innovation? Base: WW 800

Benefits achieved and expected as a result of innovation

Decrease in capital investments

Competitive advantage

Higher employee satisfaction

Identified growth opportunities

Increase in revenue/market share

Increase in profit

Ability to enter new markets

Increased speed to market

Higher customer satisfaction

22%

28%

29%

29%

30%

31%

31%

32%

33%

45%

53%

50%

52%

53%

54%

51%

47%

53%

26%

14%

16%

14%

12%

11%

14%

16%

10%

5%

5%

5%

5%

4%

5%

5%

4%

Benefit Achieved Benefit Expected Benefit Not Achieved or Expected Don't know


2. Triggers, obstacles

and benefits

Q6: Which group or function is the single biggest roadblock to innovation for your organization? Base: Total 800, NA 150; EMEA 300; APAC 275; LA 75

LOB employees and exec management are biggest roadblocks


Customers15%

Exec Mgmt26%

IT19%

LOB employees26%

Competitors14%

Biggest Roadblock to Innovation

IT Leader’s role

More innovative C-levels have closer collaboration relationship (with line of business, marketing, financial and all teams)

Bring ideas forward

Ability to drive the conversation and put IT on the business roadmap

Major obstacles are budget and time

Q7: What are the major obstacles to innovation at your organization? (Please select up to three.)Base: Total 800, NA 150; EMEA 300; APAC 275; LA 75


Tips to overcome

Formalizing process

Align budget with business goals

Extracting budget you already have: self-funded

Transform IT & Free up resources (people and budget)– organically fund innovation projects

Q5: Which group or function is the single biggest instigator of innovation for your organization? Base: IT 399 Bus Execs 401

Who is the biggest instigator of innovation? 20 point gap

Competitors

LOB employees

Top management

Customers

IT

0% 10% 20% 30% 40%

10%

14%

20%

22%

34%

Competitors

IT

LOB employees

Customers

Top management

0% 10% 20% 30% 40%

9%

14%

17%

20%

30%


4. IT Report Card

IT Respondents Business Executive Respondents

Close the perception gap between business and IT Collaborate and alignment – Don’t just do it for the sake of

doing it Innovation is NOT just about the flash of brilliance – analyze,

apply practice to support business growth IF YOU DON’T INNOVATE: you won’t survive!

Key take away

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Assess innovation priorities Formalize innovation process Start a dialogue with your business counterparts, enroll

them in your plan Formalize innovation that is connected to business

Key steps

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