Friday 21 March 2008

Technology Driven Innovation versus Business Innovation: poor alignment!

In many cases Technology Driven Innovation is an important driver for change in doing business. But what kind of technology are we talking about? Davila described in “Making Innovation Work” a distinction of three kinds of technology changes; namely in product and service offerings, process technologies and enabling technologies.

Enabling technology facilitates the speed of execution of the company’s strategy. ICT is by far the most important enabling technology in speeding up communications between the partners in the eco-system end value chain. Alignment between ICT and Business Innovation is become a key-success-factor. How are Top Innovators managing this alignment?

Recently a Global CIO Survey 2008 (400 CIOs across the globe representing all Industry sectors) showed that the role of IT function is almost non-existing in driving the Business Innovation. Alignment between ICT driven innovation and Business driven innovation is just not happening in almost every industry sector!

Business doesn’t recognize the most value Technology Trends which could enable the innovation strategy to execute.
On the other hand IT doesn’t recognize the main business drivers and can’t support the necessary changes in the business model.

I think there are already working Business Innovation Concepts to create this alignment. The challenge is how to mobilize the execution power. A lot of work is still to do!

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