When you look at surveys of CEOs, such as the one by PwC in 2014, McKinsey in 2013 and IBM in 2012, they reflect what we should all know: that the innovative use of technology is one of, if not the primary, enabler of business innovation these days.
Whether it’s connecting with the customer (as referenced by IBM), obtaining market insights (through analytics including big data analytics -- see this discussion of a McKinsey report), or simply finding new ways to deliver products and services to customers, technology is a critical driver of business success.
Don't Be Left Behind
As PwC says:
CEOs told us they think three big trends will transform their businesses over the next five years. Four-fifths of them identified technological advances such as the digital economy, social media, mobile devices and big data. More than half also pointed to demographical fluctuations and shifts in economic power.
The smartest CEOs are concentrating on breakthrough, or game-changing, innovation. They’re explicitly incorporating it in their strategies. And they’re using technology not just to develop new products and services, but also to create new business models, including forging complete solutions by combining related products and services. In fact, they don’t think in terms of products and services so much as outcomes, because they recognize that products and services are simply a means to an end.
Breakthrough innovation can help a company rewrite the rules and leapfrog long-established competitors.”
Organizations that fail to leverage new technology are likely to be left behind by customers and competitors. In an ISACA report on big data, the point was made that failing to take a risk with new technology is very often a greater risk than any risks created by the new technology.
(Please see these earlier posts on IT Risk and Audit -- Deloitte says mid-market companies are using new technology to great advantage, and Digital Transformation.)
Now we have a few reports and discussion documents indicate that companies, executives and consultants that aim to guide them are all missing the boat!
A new report from McKinsey, IT Under Pressure, says that dissatisfaction with IT’s effectiveness is growing. They start the report with:
More and more executives are acknowledging the strategic value of IT to their businesses beyond merely cutting costs. But as they focus on and invest in the function’s ability to enable productivity, business efficiency, and product and service innovation, respondents are also homing in on the shortcomings many IT organizations suffer. Among the most substantial challenges are demonstrating effective leadership and finding, developing, and retaining IT talent.”