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Businesses need to bet on innovation

Leading CIOs have called on IT professionals to drive business change

Phil Muncaster, IT Week 14 Mar 2008
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Leading CIOs have called on IT professionals to be more proactive in driving business improvements and winning the confidence of senior executives.

Consultancy Capgemini’s third annual global CIO survey, which was published last week, revealed that two-thirds of CIOs regard IT as playing a critical role in fostering business innovation. However, only a quarter say that IT is taking a leadership role in delivering that innovation.

Rorie Devine, chief technology officer of online gambling firm Betfair, suggested that the best way to ensure IT delivers innovation is by building it into business objectives. “We have set a target percentage of revenue that we want to derive from new products – and set up both structured and non-structured channels to deliver it,” he said.

According to Chris Robinson, IT director at construction firm Davis Langdon, it is time for IT to become the “engine room of business innovation”, adding that CIOs need to “spend the majority of their time on relationships and understanding the business.”

Alex Thomson, IT director at Travelodge, argued that he has helped the business improve conversion on its web site. “It is the role of IT to demonstrate to its business counterparts that it can add value and, in doing so, it will be invited to lead business innovation,” he said.

As IT has become the engine room of today’s enterprise, many departments end up focused on operations, said Capgemini’s executive consultant, Ivar Sinka. “But if you do that to the exclusion of all else it becomes a self-fulfilling prophecy,” he said. “There should be an element of the [business change agent] role and the [IT operator] role in CIOs, and ­ matching the balance of the two with your sector’s requirements is important.”

Alex Cullen of analyst firm Forrester argued that many CIOs do not receive the necessary executive support to ensure that innovation is prioritised. Typically, business leaders will say they want innovation in business models and processes but subsequently focus “only on product innovation”, he said. " Consequently, while CIOs say they want to be involved with innovation, it almost never makes the CIO’s top five priorities," Cullen added.

The research found that in most businesses that were classed as “top innovators”, the CIO reported directly to the chief executive or chief operating officer.

See also:

Only a quarter are able to drive innovation in their business, according to Capgemini  11 Mar 2008
council buildingProgress is still slow, according to Socitm  03 Mar 2008
john higginsIT is moving to the frontline in the war against C02 emissions, says Intellect’s director general  29 Feb 2008
Gartner warns IT departments to prepare for recession  27 Feb 2008
Mindtree campusThe IT services firm has created a knowledge ecosystem to boost workers’ output  21 Feb 2008
Can a good IT chief be both business change agent and manager of IT operations?  11 Feb 2008
Recent financial results paint a positive picture of the technology industry  01 Feb 2008

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