Global IT and Finance Leaders Survey Finds Biggest Blocker to Innovati…
(Business Wire / Korea Newswire) Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, and the leading third-party support provider for Oracle and SAP software products, today revealed the results of a recently commissioned global survey to better understand the priorities and challenges IT and finance decision makers face when it comes to funding and investing in innovation.
The survey, conducted by Vanson Bourne, a technology market research firm, and analyzed by llan Oshri, Professor of the Graduate School of Management, University of Auckland Business School, is based on responses from 900 CIOs, IT leaders and financial decision makers from a broad range of industries, located in North America, South America, Europe, Middle East and Africa, and Asia-Pacific.
A key finding of this research is that despite recognizing the importance of innovation and business transformation, IT and finance leaders face major roadblocks including “spending too much keeping the lights on” (77%), “lack of board support for significant investment in innovation” (76%), and being “locked in to vendor contracts that restrict innovation” (74%).
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Balancing Innovation Spend with Maintaining Business Operations
While most organizations claim to have the drive and ambition to be an innovator, 71% of the global survey respondents indicated that their firms struggle to find budget for these initiatives. With shrinking to flat IT budgets, IT and finance decision makers are challenged to pursue and invest in growth strategies for their business, while balancing this directive with the significant budget required to maintain and run their current operations.
Getting the Board On Board
Also topping the list of obstacles faced by IT and finance leaders when seeking budget for transformational initiatives, 76% of respondents cited “lack of board support for significant investment in innovation.” While the survey confirms there is innovation leadership at the board level, half of the respondents also note that they failed to convince the board that investing in innovation was critical for the business.
There was also agreement among respondents that the board refrains from complex, transformation projects that integrate the entire IT infrastructure (64%), the board is more focused on cost-cutting than innovation (63%), and the board is not confident that the firm has the skills to meet innovation objectives (57%).
These board-level attitudes to investment in transformational projects create a major challenge for those forward-looking CIOs and IT and finance leaders focused on supporting the organization's growth and competitive edge.
So how do IT and finance leaders shift this board mindset to receive approval to move forward with their much needed business transformation initiatives?
llan Oshri, Professor of the Graduate School of Management, University of Auckland Business School, and author of the report, “IT Leaders Frustrated with Barriers to Innovation and Falling Behind,” based on the Vanson Bourne research data, said that investing in innovation requires an organizational culture that encourages taking risks and accepting failure in order to learn.
“Most companies are more comfortable producing predictable and reliable outcomes, and are less inclined to challenge accepted conventions within the business. This risk mitigation approach is embedded into their DNA,” said Oshri. “However, organizations that excel in innovation embrace a dual mentality that balances investments in uncertain, but transformative, innovation projects with a focus on operational excellence. This balance is extremely challenging, but essential, in order to succeed today and in the future.”