Chief executive officers (CEOs/CXOs) and other C-level executives at global enterprises believe that innovation is more critical than ever, particularly as a way to differentiate their businesses following the 2008-09 downturn, according to a survey conducted by
The study of 300 CEOs and other C-level executives at global enterprises (insurers included)—corporations with $500 million-plus in annual revenues—also examines attitudes towards two other key areas of future revenue growth: sustainable or “green” business practices, and opportunities in emerging markets such as China and India.
“Global CXO Outlook: Growth Strategies for 2012 and Beyond” found that executives see a very clear business case for using “green” practices, and more than 70% have embraced green business practices as part of their corporate innovation strategies. Green IT is a priority for more than three quarters of companies. Their strategies in this area include reducing data center footprints, greater use of server virtualization, and greater use of cloud computing.
Another concern for respondents is speed-to-market. More than 80% of survey respondents agreed that getting a product or service swiftly out to market is a critical business innovation tactic.
Executives also see investment and expansion into emerging markets as crucial to their strategies today and in the near future. More than half believe China holds the greatest opportunity, followed by India, Southeast Asia and Eastern Europe. Expansion into emerging markets is being driven by lower costs and a higher rate of growth, according to executives surveyed. Potential barriers to strategic success in these areas include poor distribution channels, unstable political environments and a shortage of skilled talent.
A hurdle for fostering innovation continues to be cost. It topped the list of innovation barriers cited by C-level executives, followed by issues related to the regulatory environment, and finding and retaining top talent.
“Traditionally, R&D was one of the first casualties in times of business distress,” said Rajan Kohli, CMO of Wipro’s Global IT business. “But with innovation being pushed to the fore of growth strategy, companies are willing to overcome budgetary constraints and invest prudently, yet confidently on this business imperative. Bucking the trends of the past, we see innovation, sustainability, and emerging markets as the three pillars of growth that CXOs will rely on in the coming years.”
The study indicates that paying attention to best practices is the most effective way to foster innovation. Attention to best practices is the premier technique for 80% of surveyed respondents. The next most-effective tool for business innovation is technology, rated effective by 79% of respondents. Closely related to technology, data-based decision-making ranks third, tied with collaboration with customers.
The study can be found
