Our second Innovation Index, a survey of 1,000 business and IT executives, provides a comprehensive look at how organizations across industries are prioritizing business strategies, digital investments, and innovation to create value.
Executive Outlook
Unlike the past 24 months when most organizations and employees played defense by focusing on basic needs, a growth mindset now predominates despite continued market uncertainty. And while 23 percent of executives across industries still fear negative impacts from geopolitical and climate change, most organizations are hopeful for the future and feel more prepared to conquer disruption with resiliency and speed. They also have a renewed appreciation for the role an engaged workforce brings to sustainable success. Innovation is increasingly a long-term play and organizations are more confident and proactive in their approach to practical innovation too.
Challenges Persist
Although executive confidence grew significantly with more than 80% saying they performed average or above average in terms of profitability and operating cost reduction, familiar concerns persist.
How Market Leaders Are Moving Ahead
Leaders in our study who focused these last two year on four key factors — value and speed, resiliency, insights and a winning workforce — are ahead of the game. Almost 50% of leaders are more likely to be profitable and dedicated to developing an innovation-focused culture. They’re also more able to deliver speed of service, drive operational cost reductions, use data to inform decision making and offer flexible work options for their employees.
How did they do it?
- Integrated new technologies into their processes to prepare for global changes
- Used technology and automation to orchestrate CX engagements in real-time
- Invested in reskilling initiatives to include customer behavior
- Focused in on new reskilling/upskilling initiatives to build the workforce of the future
Practical Innovation Pays Off
Staying fresh, relevant and ahead of the competition is a differentiator between those who survive and those who thrive. Leaders who focus on driving innovation—the development of new processes, products or services—are primed to achieve greater growth, efficiency and profitability.
In terms of innovation, 42% said creating gradual, continuous improvements on existing products and services generates the most return on investment – with a 30% increase year-over-year of those executives who say their organization’s innovation agenda is proactive. Executives who invested in Internet of Things (70%), Artificial Intelligence (66%) and Machine Learning (62%) are also seeing ROI.
Technology is the Foundation for Growth Now and in the Future
Technology Adoption Today |
Technology Adoption in Two Years |
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