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McKinsey finished a survey during which they interviewed 9,600 businesses. They surveyed both technology executives (CIO, CTO), and their business counterparts (here - requires subscription).

The findings are interesting:

• 79% of technology execs see technological innovation as a critical global trend and a profit driver, while only 71% of their business counterparts believe that.
• 80%-90% of IT budgets go to IT operations and maintenance -with the rest allocated to projects to improve overall business performance
• 53% of tech execs cite the ability to innovate as the most important capability for growth - with innovation around current products as the most important action - 43% and 25% respectively for their business counterparts
• The roles are reversed when it comes to developing new products - 19% of the tech execs see that as the second most important action while 22% of their business counterparts see that
• 43% of tech execs see automating business processes as a way to achieve greater operating efficiency, while only 29% of the business execs share that opinion

I am surprised that the numbers are not higher. If you believe the Product Development Management Association’s or Prof. Cooper’s Product Development Institute’s numbers that 50% of revenues and 40% of profits come from new products, and that 75% of all new products fail - then you’d expect execs to rate new product innovation actions way higher than they did.

[Technorati Tags: innovation new product development]

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