What blocks innovation?
The skills gap, investments and business culture are all potential barriers that stand in the way of success
Companies must constantly be on the lookout for new opportunities in order to remain competitive in today's fast-paced digital world. Those opportunities might be a new area to sell in to, or leveraging a new piece of technology or software. Whichever it is, innovation like this is key.
There is a consensus among modern companies that data is vital for innovation. However, business leaders have mixed feelings about their organisation's ability to innovate - and that is not the only barrier.
Research presented in a Computing white paper shows that fewer than a fifth of companies - 18 per cent - have a function or team dedicated to innovation. 21 per cent consider it part of the R&D team's responsibility, and 19 per cent say it belongs to the data analytics department. Nearly a third (29 per cent) said that they do not manage the process of innovation at all.
This is the fundamental contradiction that lies at the heart of innovation: just about every business agrees that they should be doing it, but continual innovation is challenging and individuals within a business often find reasons to prioritise different activity.
Respondents ranked ‘An organisational culture that supports innovation' joint-third when asked about the most challenging aspects of innovation in their organisation. The largest challenge, perhaps unsurprisingly, was recruiting the right people in the first place. More than half of our survey participants named this as an innovation blocker, suffering from the chronic skills gap that affects the wider IT industry.
Another key barrier was securing investment: a problem that is being exacerbated in the short term by the general nervousness and uncertainty of the economic and business climate. Ironically, a challenging climate is exactly the time that businesses should prioritise innovation.
From our research, we can safely say that innovation informed by data analysis and science is the best way to optimise the results of innovation activity - but the primary obstacle of complexity looms large. Key to navigating this complexity, and regaining control over data, is the consideration of data management, visibility and integration as a whole.
Many organisations, understandably frustrated at not being able to use a tool that they already have, are now seeking specialists outside of their businesses and considering cloud data management and integration platforms in order to avoid wasting more time with tactical data management and to free up that time for more strategic, innovative activity.
This strategy will probably show its strengths in the near future; the pressure to innovate is unlikely to abate as technology and associated expectations continue to advance. 74 per cent of our respondents expected their firms' need for innovation grow at least moderately over the next 12 months - and a third of those expected it to do so significantly. The vast majority of the remainder expected their need to innovate to remain constant. The digital economy will provide no respite for those who fail to do so.
For more insight into our research, download the white paper now.