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IT's Innovation Call to Arms

Published: June 26 2012, 01:30 PM
by Denise Dubie

Poll data reveals more IT leaders are ready to embrace innovation in the coming months.

IT leaders dutifully tightened belts, cut costs and did more with less for many years. And while IT organizations will probably continue to apply modest budgets to big business demand, the move is on to make innovation a top priority among pressing IT projects.

Recent research from CA Technologies shows trends such as cloud computing and the consumerization of IT are both driving the need to innovate as well as providing some crucial technology tools to enable innovation across IT organizations and the businesses they support. Yet innovation isn't entirely in the clear just yet. IT leaders acknowledge they will be making innovation a priority, but they also recognize the challenges that could stall efforts.

For instance, a CA Technologies online poll of 726 respondents shows that 50% will be increasing the percentage of their IT investment dedicated to innovation. Fourteen percent said they would need to decrease the investment put toward innovation, and 12% expected that number to remain flat. Another 24% said they didn't measure investment in this way (see figure 1).

The impetus is there. IT leaders realize now is the time to innovate, and with a few IT trends helping them along, IT organizations could become the centers of innovation today's businesses need. According to another CA Technologies online poll of 772 respondents, the "anything-as-a-service" trend is the primary driver for innovation today. Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) offerings are potentially freeing up IT resources from some of the more workaday tasks and redirecting the focus toward innovation. Many of the service offerings also rely on cloud providers, which in some ways help IT reduce the complexity of adopting newer technologies and become more agile in providing services to the business.

Consumerization of IT represented the second biggest driver of innovation for those responding to the poll. Some 24% pointed to the trend that includes the bring-your-own-device (BYOD) reality that most IT organizations are dealing with today. The challenges of developing mobile applications, supporting myriad smartphones and embracing social media also represent opportunities to these respondents who tagged the tech area as an innovation catalyst. Other drivers for innovation include business analytics and collaboration and knowledge management, each garnering 17% of responses (see figure 2).

Still, all the incentive to innovate isn't without some challenges. IT leaders continue to deal with several factors that could hamper innovation and hinder efforts to create a more agile IT organization capable of responding quickly to business demand.

According to a CA Technologies online poll that garnered some 717 responses, 40% said the lack of budget represented the biggest impediment to innovation in their organization. About one-quarter (24%) pointed to a lack of staff resources as a problem, and 20% simply are too "consumed with keeping the lights on" to change their focus to more innovative endeavors. Somewhat promising is the 16% of respondents who said "no buy-in from the business" was the biggest impediment (see figure 3). The percentage of those struggling to get buy in from the business seems considerably less than those not struggling. That means the business for many might also get it; now is the time to innovate.

CA Technologies will continue to poll on the topic of innovation. To participate online, please visit here.

 

By: Denise Dubie
Denise Dubie (@DDubie) is New Media Principal in CA Technologies Thought Leadership Group. She is charged with creating content relevant to today’s most pressing technology and business trends for industry leaders and IT professionals. Prior to joining the company in 2010, Dubie spent 12 years of her...
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4 people have left comments:

Hi Denise, nice post providing some very interesting data. This tweet about your post from Andi Mann caught my attention: "Spend too much time keeping the lights on to do innovation? See what holds back IT shops." I was excited to see this question posed because I have a very strong opinion regarding the answer. I am convinced the greatest barrier to IT-driven business innovation is the business - and their pervasive view that IT is primarily a source of efficiency and a cost-to-be-controlled. That is why I get so frustrated with the endless "call to arms" for IT and the CIO - as if it is up to them to unilaterally step up to the innovation-plate and start swinging away. It seems your post is yet another article suggesting it is solely up to IT. One of the problems with this survey is that you appear to be interviewing IT leaders and not business leaders – suggesting IT has the power to unilaterally innovate or not. But the greatest problem is the conclusion you draw at the end of your post: “The percentage of those struggling to get buy in from the business seems considerably less than those not struggling. That means the business for many might also get it; now is the time to innovate.” This conclusion ‘appears’ to be supported by the mere 16% reporting “no buy-in from the business.” I contend that this conclusion is flawed due to another data-point in your survey – the 40% reporting “lack of budget” to innovate. Who provides the budget for IT? The business. So what is the primary indicators of “business buy-in” of IT-driven business innovation? The IT budget. Given this logic, I contend that 56% of your respondents are reporting ‘lack of business buy-in’ as the greatest impediment to IT-fostered business innovation. I agree that now is the time for IT innovation – because I have believed that for the past 30 years of my IT career. Yesterday, today, and tomorrow are all great times for IT to drive business innovation. But widespread IT-fostered business innovation won’t occur until the business views IT as a source of business innovation and as a strategic enterprise asset. This said, I will always add the caveat that IT organizations desiring to drive business innovation have little chance of doing so if they don’t have a solid and robust service-delivery capability – something I am certain with which you agree. Thanks agan for a thought-provoking post.

Posted by: Steve Romero | June 28, 2012 3:05 PM

Hi Steve, Good to hear from you and thank you for the thoughtful response. I agree with you that IT needs to be in full partnership with the business to enable innovation and that without an integrated relationship IT will have a difficult time pushing any innovative projects through. I've recently seen data that while IT budgets are flat, the investment by companies in technologies is increasing -- which means groups outside of IT are spending budget dollars on technology, perhaps driving innovation. And it's been widely reported that end users are bypassing the IT department to gain access to consumer driven technologies and the like. That's why it's imperative that IT demonstrate its ability to drive innovation and prevent becoming seemingly irrelevent to the business. By taking actions to partner with the business, the IT department can become the source of innovation within their organizations. Again, thanks so much for your thoughful response. Great to hear from you!

Posted by: Denise Dubie | June 28, 2012 4:25 PM

Hi Denise, great points all. One of my recent posts looks at the advent of the 'consumerization of IT' and 'Shadow IT' - and my view of these "threats to IT" as great opportunities. http://www.itgevangelist.com/blog/2012/6/8/shadow-it-cutting-off-the-it-nose-to-spite-the-business-face.html. Keep those thought-provoking posts coming Denise.

Posted by: Steve Romero | June 28, 2012 9:07 PM

CIOs and IT leaders across the board have been handed a challenge this year: to transform traditional

Posted by: The CA Cloud Storm Chasers | August 30, 2012 9:07 AM

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