Only 21% of Organizations Achieve Their Innovation Goals, as Many Challenges Stand in the Way
15 November 2023 - 3:10AM
Business Wire
NTT DATA 2023 Innovation Index reveals what the
most innovative companies do differently to succeed
96% of executives believe innovation — the development of new
processes, products or services that increase business value over
existing offerings — will be a primary source of achieving growth
over the next two years. However, according to NTT DATA’s 2023
Innovation Index research findings only 21% of executives
definitively met their innovation goals as reported in the research
of 1,000 North American executives across a wide range of
industries and company sizes.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20231114590039/en/
NTT DATA’s “Innovation Index 2023: How
North American Organizations are Achieving Growth, Value, and High
Performance,” provides details on what the Innovators are doing
differently to achieve business impact, as well as how
organizations are approaching and investing in innovation to
increase profit and grow faster. (Graphic: Business Wire)
The NTT DATA report, “Innovation Index 2023: How North American
Organizations are Achieving Growth, Value and High Performance,”
explores the primary drivers of innovation, and where organizations
focus their resources to support innovation.
“A failure to achieve innovation goals leaves organizations at a
disadvantage,” said Tanvir Khan, Chief Digital and Strategy
Officer, NTT DATA Services. “When faced with big tech leaps
like generative AI, most organizations are ill-prepared to handle
or implement this or other technologies into existing
infrastructure to reap the full benefits. What I think is most
critical is the speed of adoption of these new technologies.
Waiting is not an option. If you wait, you’ll be playing
catch-up.”
Five Significant Challenges Hinder Innovation
Initiatives:
- Data Challenge: Innovation depends on data to power
technologies like predictive analytics and generative AI, but only
22% of organizations trust their own data. Nearly half (46%) of
organizations don’t use data to gain insights or make decisions
because a whopping 72% don’t consider their data a strategic
asset.
- Workforce Challenge: Organizations need top-shelf talent
and skills to innovate, but the number one challenge for both
innovation and data capabilities is lack of employee skills. 88%
say lack of employee skills holds back innovation efforts. And 43%
(a three-fold increase from 16% in 2021) say lack of employees with
needed data analysis skills is their biggest challenge for using
their data. Furthermore, organizations are not investing enough to
build data capabilities for their workforce:
- 44% are reskilling existing resources
- 42% are enhancing the extended workforce through contractors
and service providers
- 33% are recruiting new employees
“It’s not a winning strategy to rely on the marketplace to
change the skills in your workforce,” said Kim Curley,
Vice President of People & Organization Consulting, NTT DATA
Services. “All of us — from the highest level of leader to the
folks early in their careers — need to be learning constantly.
Investing in-house is a no-brainer.”
- Technology Modernization Challenge: Technology is the
backbone of innovation initiatives, but 86% of executives say their
technology is outdated. Outdated IT infrastructure is a barrier to:
- Effectively using data (35%)
- Delivering high-quality customer experiences (32%)
- Providing exceptional employee experiences (31%)
- Customer Experience (CX) Challenge: Customer experience
drives business growth, but when we asked what hinders their CX
efforts, executives listed in order:
- Inefficient processes (40%)
- Lack of resources to deliver products and services on time
(37%)
- Rapidly changing customer demands (34%)
- Outdated IT (32%)
Organizations are not performing in innovation and speed to
market either, both critical elements for CX. 54% said they were
average or below average in product and service innovation and 63%
said the same for speed to market.
- Leadership and Culture Challenges: Leadership,
accountability and cross-functional collaboration can go a long way
in driving a culture of innovation, but:
- 78% of executives say poor organizational culture holds back
their innovation efforts.
- 58% rate the level of their organization readiness in culture
as “weak” or “mixed” as it relates to fostering innovation.
- 40% report that their culture is not conducive to fostering
enriching employee experiences and retaining talent.
Meet the Innovators
The study also identified a select group of organizations as
being more advanced and mature in innovation systems and
infrastructure, leadership, culture and digital customer
experience. These “Innovators” (11% of survey respondents) are
exceeding expectations from innovation investments compared to the
rest of the market. Interestingly, the Innovators believe that
using new technology to create a new market or disrupt an existing
market will achieve the biggest impact for their organizations.
This is a different, more aggressive view from the majority of
executives who believe innovation that builds on past successes
(gradual, incremental, and significant innovation) will produce the
best ROI for their organizations in the coming two years. The
higher-risk bets that Innovators take pay off with higher revenue
growth, profit and innovation ROI compared with the rest of the
organizations:
- Innovators are more profitable: 54% more Innovators
achieved net profit margins of 10% or greater than the rest of the
market.
- Innovators grow faster: 38% more Innovators achieved
growth rates of 10% or greater than the rest of the market.
- Innovators exceed ROI expectations: 64% more of the
Innovators Group exceeded senior leadership expectations on
investment returns for innovation over the rest of the market.
The NTT DATA report, “Innovation Index 2023: How North American
Organizations are Achieving Growth, Value, and High Performance,”
provides details on what the Innovators are doing differently to
achieve business impact, as well as how organizations are
approaching and investing in innovation to increase profit and grow
faster.
About NTT DATA
NTT DATA is a $30 billion trusted global innovator of IT and
business services. We help clients transform through business and
technology consulting, industry and digital solutions, applications
development and management, managed edge-to-cloud infrastructure
services, BPO, systems integration and global data centers. We are
committed to our clients’ long-term success and combine global
reach with local client service in over 80 countries. Visit
nttdata.com or LinkedIn to learn more.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231114590039/en/
Scott Keenan, NTT DATA Services scott.keenan@nttdata.com
506.461.8934
NTT Data (TSX:9613)
Historical Stock Chart
From Apr 2024 to May 2024
NTT Data (TSX:9613)
Historical Stock Chart
From May 2023 to May 2024