Companies with IT-driven business innovation in DNA use technology to
optimize business strategy and customer engagement, a Harvard Business
Review Analytic Services survey sponsored by Red Hat shows
RALEIGH, N.C.--(BUSINESS WIRE)--
It is no surprise that businesses are being transformed by new
technologies, especially those that bring more intelligence and mobility
to their operations and products. Some companies - known as "Innovation
Accelerators"- are driving this transformation by pursuing IT-enabled
business innovation as a core strategy throughout their organization,
according to the results of the "Business Transformation and the CIO
Role" survey announced today by Red Hat, Inc. (NYSE: RHT), the world's
leading provider of open source solutions.
The survey of 420 global business leaders, commissioned by Red Hat
through Harvard Business Review Analytic Services, found that these
Innovation Accelerators (32 percent of survey respondents) are
anticipating significant change over the next three years, particularly
in how they engage with and learn about customers, as well as in their
business models, products and services, and end user processes.
Specifically, Innovation Accelerators are more than twice as likely to
invest in the creation of new applications compared to peers in
companies where innovation is not a priority (72 percent vs. 34
percent). They are also more likely to focus on revenue generating
opportunities with new customer experience strategies (71 percent),
business model innovation (69 percent) and service innovation (68
percent). By contrast, companies for which innovation is not a priority
will focus more internally on the automation of business processes (70
percent).
The way organizations engage with and understand their customers leads
the list of areas that will be changed the most by IT-enabled
innovation, with 55 percent of all survey respondents saying it will be
changed significantly and 20 percent saying it will be completely
transformed (rating it a 10 on a scale of 1-10). Respondents also
believe IT-enabled innovation will change the way employees do their
work (48 percent say it will be significantly changed; 15 percent say it
will be completely transformed); the company's products/services (46
percent say it will be significantly changed; 11 percent project it will
be completely transformed); and business models (42 percent expect it
will be significantly changed; 13 percent say it will be completely
transformed). For Innovation Accelerators, the numbers are significantly
higher: 70 percent say their approach to customer engagement and insight
will be significantly changed, and 33 percent indicate it will be
completely transformed.
These changes translate to a number of specific projects that
respondents expect to engage in over the next three years. More than
half of survey respondents are planning to automate business processes
(67 percent); execute customer experience strategies (66 percent);
create new applications (60 percent); and innovate their services (57
percent) and business models (56 percent).
Additional survey findings include:
-
Business intelligence/analytics and mobile technologies and apps lead
the list of technologies that survey respondents expect to drive
business innovation over the next three years, at 66 percent and 53
percent, respectively. These are followed by process automation (44
percent), collaboration tools (29 percent), cloud computing (28
percent) and social media (24 percent).
-
C-level leadership plays a significant role in driving
technology-driven business innovation. According to survey
respondents, CIOs lead this type of innovation in 41 percent of
organizations (25 percent alone and an additional 16 percent in tandem
with another executive), CEOs lead technology-driven business
innovation in 16 percent of organizations, and other C-level
executives account for 16 percent. In approximately one-fifth of
organization (18 percent), a senior cross-functional committee or
innovation board leads IT-driven business innovation.
-
According to survey results, Innovation Accelerator organizations
value this cross-functional collaboration, with nearly half (48
percent) reporting that IT and the business typically engage together
to identify innovation opportunities.
-
While CIOs have a mandate to help drive this innovation, daily
responsibilities of running IT and limited resources may be hindering
their ability to do this. According to survey respondents, while 57
percent believe the CIO should drive innovation and strategy, only 12
percent say their CIO actually does that. Survey results indicate that
CIOs at Innovation Accelerator companies perform more strategic roles,
developing and refining business strategy (26 percent), driving
business innovation (30 percent), and identifying opportunities for
competitive differentiation (26 percent).
"It is clear from survey results that every organization should strive
to become an Innovation Accelerator," said Lee Congdon, CIO, Red Hat.
"These companies have moved from a ‘keep the lights on' strategy to one
where they are driving strategic initiatives like customer experience
and service innovation. It is clear to me that the role of the CIO is
changing as a result too, now playing an essential role in IT-driven
business innovation."
See the results of the Business Transformation and the CIO Role survey
in an infographic, available at http://enterprisersproject.com/hbr-infographic,
or download Harvard Business Review Analytic Services report, available
at http://enterprisersproject.com/hbr-report.
Methodology and Demographics
Harvard Business Review Analytic Services conducted an online survey on
behalf of Red Hat to examine business transformation and the role of the
CIO, followed by 12 phone interviews with 12 hand-selected survey
participants. The survey polled 420 individuals in executive management
or board-level positions in companies with 500 or more employees.
Forty-five percent (45 percent) of respondents were from organizations
of 10,000 or more employees. Respondents represented major sectors,
including technology, financial, manufacturing, healthcare, and
government. Respondents were from North America (40 percent), Asia (24
percent), and Europe (23 percent). Thirteen percent (13 percent) were
from the rest of the world.
Connect with Red Hat
About Red Hat, Inc.
Red Hat is the world's leading provider of open source software
solutions, using a community-powered approach to reliable and
high-performing cloud, Linux, middleware, storage and virtualization
technologies. Red Hat also offers award-winning support, training, and
consulting services. As the connective hub in a global network of
enterprises, partners, and open source communities, Red Hat helps create
relevant, innovative technologies that liberate resources for growth and
prepare customers for the future of IT. Learn more at http://www.redhat.com.
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Red Hat, Inc.
Stephanie Wonderlick, 571-421-8169
swonderl@redhat.com
Source: Red Hat, Inc.
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