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.