Constant Innovation, Key to Growth: Report

Banking CIO Outlook | Monday, January 04, 2021

FREMONT, CA:Nearly one third of US organizations believe that the failure to innovate and keep up with evolving customer needs will have the biggest negative impact on their company in the next five years, according to a new global study, “Innovate or Perish”, sponsored by Automic Software and conducted by Vanson Bourne.

400 Business Decision Makers (BDMs) and 4,000 consumers in the U.S, France, the U.K. and Germany (100 BDMs and 1,000 consumers in the U.S) participated in the survey, voicing their opinions on the current scenario. It spanned four important verticals: energy and utilities, financial services, retail, and telecommunications.

 The research indicates that 77 percent of companies anticipate a decline in the number of customers if they fail to evolve, while 70 percent forecast a reduction in revenue and 68 percent expect international operations to decline. However, U.S. BDMs are more confident about the innovative nature of their organizations as compared to their European counterparts: specifically, 21 percent feel their organization is on the cutting edge of technology and has kept up completely with changing customer demands, compared with just 8 percent in the U.K. and 14 percent in Germany.

Key findings of the study shows that U.S. innovation priorities are different from Europe. Nearly 100 percent of the organizations in the U.S. are planning to innovate over the coming years. Their priority focus is different to Europe though: in the U.S., the main areas they want to innovate in are products and services (59 percent), IT and technology systems (49 percent) and customer service (41 percent). European priorities are: IT and technology systems (61 percent average across U.K., France and Germany), products and services (41 percent) and customer service (31 percent).

53 percent of BDMs believe that speed of an online product/service holds greater importance over personalization. 78 percent respondents believe that their organization is willing to sacrifice the personalization of an online product in favor of the speed of that service.

According to the survey, 22 percent of BDMs in the U.S. claim that their customer experience is second to none compared with 18 percent in France, 16 percent in Germany and 9 percent in the U.K. Moreover, just 2 percent of BDMs in the U.S. say their organization has not kept up well with customer needs, compared with 14 percent in the U.K., 3 percent in France and 4 percent in Germany.

“This survey highlights the importance the US places on utilizing technology for customer satisfaction and how well US businesses are doing when it comes to embracing cloud, big data and business automation as a key instrument in delivering enterprise innovation and change,” says Chris Boorman, CMO Automic.

Check out: Enterprise Technology Review

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