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Business Innovation and Information Management
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.
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