WHAT FACTORS HOLDBACK INNOVATION

Placing Support, Budget and Skills at right place to achieve Innovation
source :kcom

Innovation is held up by three factors lack of skills, support from venture capitalist and no fixed budget.This is supported by research released from KCOM.

According to the research, almost half of businesses surveyed are considering driving digital transformation to improve competitive advantage to be their top priority in the next year. And, a further 32% are allocating at least 20% of IT budget to new projects.

Organisations often champion themselves as leaders in innovation. And, while this enthusiasm is admirable, it is regularly misplaced. Tight resources and strong internal resistance, too often, scupper innovation plans.

These problems are being compounded by an overly predictive procurement processes, whereby organisations are turning away the specialist skills and experience that could help them advance.

However, eager to be more competitive, businesses are looking to leap over these innovation hurdles.

switching to cloud

Organisations are moving to the cloud to help support their digital transformation efforts. Indeed, the move to the cloud is the first step on the road to successful innovation.

“Organisations are making an effort to increase data security, with 65% intending to invest in improving identity management services. By contrast, only 20% will invest in integrating data across systems to improve business flow and customer view — KCOM”

The research backs this up. When it comes to innovation, organisations are overwhelmingly looking to the cloud. Almost three quarters of those surveyed — following Carlsberg’s and The Telegraph’s example  are planning to invest in cloud migration and the implementation of cloud native applications in the next twelve months.

Failure is essential

Managing expectations and dealing with failure are crucial aspects of innovation drives and digital transformation initiatives. In fact, a willingness to fail is essential to the success of new projects.

According to KCOM’s research, fortunately, the majority either embrace failure if it is recognised early enough to limit costs (46%) or see it as a natural part of innovation (10%).

The definition of ‘failure’ depends on the industry. Over two in five of those in health and social care view late delivery as failure, whereas only a fifth of those in financial services feel the same way.

Budget is also an issue, and more than 72% of the total respondents — regardless of industry — defined a project that comes in over budget as a failure. This is compared to nearly half (45%) who define it as a failure to achieve the original designated outcome.

“Innovation, by its very nature, involves pushing the boundaries of what is known and understood. Organisations must accept that failure plays an important role in doing this.

Business need to prepare to fail, and build in a fast failure stage into all their innovation projects.

“fortune favours the prepared mind”

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