A new study from CA (News - Alert) Technologies shows that a major disconnect exists between IT and business executives may result in missed opportunities for companies to drive revenue, grow their market share, increase their speed to market and improve customer satisfaction.
According to the study, "Why IT Needs to Lead Now: The Innovation Imperative," the communication disconnect among top executives plus a lack of focus on innovation could lead to a number of missed opportunities. CA interviewed more than 800 global business and IT executives for the survey, which showed that 34 percent of business respondents characterize their relationship with IT as combative, distrustful or stilted.
And more troubling was that 31 percent of those interviewed on the IT side agree with that assessment. One-third of IT respondents went on to identify IT as an authority or expert on innovation while only one-fifth, or 21 percent, of business executives felt the same way.
Furthermore, IT respondents were more likely to describe themselves as driving innovation, being an expert on innovation or having the required skills to foster innovation than were their fellow business executives. Those same business respondents actually rated IT lower in that area, including their knowledge of the business, skill sets and communication skills.
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The study also shows there's a lot of work to be done among IT and business executives to meet company objectives, and also points to the importance of innovation for driving business success. The study reveals perceived achieved or expected benefits of innovation range from higher customer satisfaction, increased speed to market, increased profit and increased revenue/market share. Respondents also believed that not investing in innovation could result in an inability to attract new customers and markets, revenue loss and increased competitive pressure.
A companion study, "The Future Role of the CIO: Digital Literacy," surveyed 685 CIOs in 22 countries. One-fifth of those surveyed indicated that those in their management level do not understand the impact of new and emerging technologies and that this "digital illiteracy" is leading to diminished market responsiveness, missed business and investment opportunities, slower time-to-market and poor competitiveness.
“This study on innovation confirms that the majority of IT resources are still dedicated to ‘keeping the lights on,’" said Andi Mann, vice president, Strategic Solutions, CA Technologies (News - Alert). "IT is at a critical point where it must determine how to remove inefficiencies to deliver business-critical projects with speed and agility. Formalizing, measuring and rewarding innovation are important first steps to deriving true business value and will help to create confidence among a CIO’s peers in the C-suite for IT to take the reins on innovation.”
“CIOs are in a good position to become more involved in strategic discussions," said Professor Joe Peppard, director of the Information Systems Research Centre at Cranfield School of Management. "This will enable them to demonstrate how a particular digital strategy or project can deliver value, and win the credibility to take it forward.”
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