Business Innovation and Information Management

Business Innovation and Information Management

Eng K. Chew (University of Technology, Australia) and Petter Gottschalk (Norwegian School of Management, Norway)
Copyright: © 2009 |Pages: 36
DOI: 10.4018/978-1-59904-802-4.ch010
OnDemand PDF Download:
$37.50

Abstract

The Global CEO Survey by IBM (2006) shows that two thirds of the CEOs anticipate significant change to their companies over the next two years. The inevitable change is attributed to changing market forces caused by intensifying competition and increasing customer expectations, which are further compounded by globalization, technological advances, regulatory changes, and workforce changes. The CEOs see innovation as the only way to survive and thrive in this rapidly changing industry landscape. Firms can no longer be satisfied with their current market performance, however superior they may be. They must constantly challenge the status quo and reinvent themselves to stay ahead of the curve to avoid being made obsolete by the competition. The 2005 McKensey Survey of Global Business Executives (Marwaha, Seth, & Tanner, 2005) also “identifies the increasing pace of technological innovation, the growing affluence of emerging economies and the low-cost offshore manufacturing (and now services) as the most important trends of global business.” Both the business and technology executives see innovation as the number one driver for growth. The Gartner (2007) Survey of Global CIOs show that 63% of enterprises expect to grow at a faster rate than the market, twice the percentage from 2006. Innovation is also rated as the key driver for growth.
Chapter Preview
Top

Introduction

The Global CEO Survey by IBM (2006) shows that two thirds of the CEOs anticipate significant change to their companies over the next two years. The inevitable change is attributed to changing market forces caused by intensifying competition and increasing customer expectations, which are further compounded by globalization, technological advances, regulatory changes, and workforce changes. The CEOs see innovation as the only way to survive and thrive in this rapidly changing industry landscape. Firms can no longer be satisfied with their current market performance, however superior they may be. They must constantly challenge the status quo and reinvent themselves to stay ahead of the curve to avoid being made obsolete by the competition.

The 2005 McKensey Survey of Global Business Executives (Marwaha, Seth, & Tanner, 2005) also “identifies the increasing pace of technological innovation, the growing affluence of emerging economies and the low-cost offshore manufacturing (and now services) as the most important trends of global business.” Both the business and technology executives see innovation as the number one driver for growth.

The Gartner (2007) Survey of Global CIOs show that 63% of enterprises expect to grow at a faster rate than the market, twice the percentage from 2006. Innovation is also rated as the key driver for growth.

All these global surveys highlight the critical importance of innovation for companies worldwide to remain competitive. Moreover, disruptive innovation (Christensen & Overdorf 2000), business concept or management innovation (Hamel, 2000, 2006), strategy innovation (Johnson & Bates, 2003), and value innovation (Kim & Mauborgne, 2005) show various approaches to business model innovation to create significant new market growths and profitability. These authors show how companies have successfully reshaped their strategic frontiers from the prevailing competitive landscapes to establish a new set of ground rules which leave competition in their wake. Corporate and business strategies invariably will seek growth through innovation to sustain their competitive positioning. CIOs and IT organizations must therefore proactively redefine their roles and develop the requisite capabilities to effectively contribute to business innovation pursued by their enterprises. How can IT contribute to such dramatic shift in business models and corporate strategies? IT organizations are increasingly expected to not only run IT efficiently and effectively to save costs, but also to contribute to innovation for business growths. Research has shown that highly effective and fast growing enterprises in majority of cases have highly effective and innovative IT organizations (Ross, Weill, & Robertson, 2006). Indeed, today’s successful IT organizations must not only be innovative in managing IT but particularly innovative in exploring and exploiting information technology to create new business capabilities to increase revenues and achieve differentiation for the enterprise, so much so that there are some in the industry who suggest that moving forward, CIO should be called chief innovation officer instead of chief information officer. This new title reflects more accurately the emerging new role of CIO globally being responsible for innovation (through leveraging information). Hamel (2000) argues that “to turn IT into a secret weapon” CIO must possess the skills to conceive new business models that will transform their company’s business. To quote Hamel (p. 17): “If technology is going to become anything other than a great leveler, CIOs will have to become Chief Imagination Officers.” It behooves CIOs and IT organizations, therefore, to understand the principles of innovation and in what ways information, knowledge, and information technology management can contribute to business innovation. This chapter discusses the principles of innovation and the ways information and information technology management contribute to business innovation. Knowledge management is a relatively new discipline whose close relationship with innovation is rapidly gaining international attention. The next chapter is devoted to understanding the principles, theories, and practices of knowledge management from the business innovation perspective.

Complete Chapter List

Search this Book:
Reset
Table of Contents
Foreword
Michael K. M. Leung
Acknowledgment
Eng K. Chew
Chapter 1
Eng K. Chew, Petter Gottschalk
A general understanding of business firms is required in order to be able to develop business and IT strategies. This chapter will present the... Sample PDF
Theories and Models of Business Firms
$37.50
Chapter 2
Eng K. Chew, Petter Gottschalk
Building on the understanding of the theories and models of firms, this chapter reviews the basic principles of strategic management of business... Sample PDF
Strategic Management Principles
$37.50
Chapter 3
Eng K. Chew, Petter Gottschalk
Over the last several decades, strategy researchers have devoted attention to the question of how corporate elites (i.e., corporate executives and... Sample PDF
Strategic Alignment, IT Value, and Organizational Analysis
$37.50
Chapter 4
Eng K. Chew, Petter Gottschalk
As discussed in Chapter III, a successful IT strategy must align with the business, fully at every stage of the end-to-end strategic management... Sample PDF
Critical Success Factors of IT Strategy
$37.50
Chapter 5
Eng K. Chew, Petter Gottschalk
Chapter IV defines the macromodel for achieving business/IT alignment. This chapter defines the detailed methodology for each step of the IT... Sample PDF
Strategic Alignment for Business Value Creation
$37.50
Chapter 6
Eng K. Chew, Petter Gottschalk
The role of integrated enterprise architecture in IT strategy and strategic alignment is explained in Chapter V. This chapter describes in detail... Sample PDF
Enterprise and Technology Architectures
$37.50
Chapter 7
Eng K. Chew, Petter Gottschalk
The previous chapters describe how IT strategy and enterprise architecture can be defined in line with business strategy. The success of business... Sample PDF
Strategic Programs: Planning and Execution
$37.50
Chapter 8
Eng K. Chew, Petter Gottschalk
As introduced in Chapter II and Chapter V, performance differences across firms can be attributed to the variance in firms’ resources and... Sample PDF
Strategic IT Resources and Sourcing Strategy
$37.50
Chapter 9
Eng K. Chew, Petter Gottschalk
In many organizations, information technology has become crucial in the support, sustainability, and growth of the business. This pervasive use of... Sample PDF
The CIO Enabling IT Governance
$37.50
Chapter 10
Eng K. Chew, Petter Gottschalk
The Global CEO Survey by IBM (2006) shows that two thirds of the CEOs anticipate significant change to their companies over the next two years. The... Sample PDF
Business Innovation and Information Management
$37.50
Chapter 11
Eng K. Chew, Petter Gottschalk
As described in Chapter X, fundamental to the company’s innovation capabilities is the level of collaboration and knowledge management capabilities... Sample PDF
Innovation and Driven Knowledge Management
$37.50
Chapter 12
Eng K. Chew, Petter Gottschalk
This chapter is about the “know-how” part of IT strategy and management best practices. This case example aims to illustrate a successful practical... Sample PDF
Business-Aligned IT Strategy Case Example: CLP Group, Hong Kong
$37.50
About the Authors