Research:50% of Australian businesses are not geared for innovation

If innovation makes businesses more profitable, why aren’t the other half of businesses considering innovation?

Statistics prove that businesses who invest in innovation significantly outgrow other businesses by up to four times in employment growth and five times in sales when compared to businesses that do not invest in innovation. On average, every dollar invested in innovation returns two dollars in sales.

Technology is often the centrepiece of innovation in businesses. The digitisation of content for streaming music services such as Apple Music and streaming videos services such as Netflix have overtaken the demand for CDs or DVDs. The success of data-driven marketplaces such as Uber ride’s sharing platform and short-term letting services like Airbnb have disrupted personal transportation and accommodation -- but they don’t own any vehicles nor properties. These are examples of how digital transformation is advancing businesses through new business models and revenue streams.

If you looked closely at how these businesses have been successful and how they have been able to innovate, this has largely been possible with their focus on three fundamental technologies -- data, networks and the cloud.

We wanted to understand more about the innovation disconnect so we spoke to C-level executives and IT managers. We wanted to see if mid-sized or large enterprises were “innovation-active” and what were the IT barriers they faced in growing their businesses.

 The research uncovered some interesting highlights on how they were managing data, networks and the cloud:

  • Data analytics helps businesses to deliver more innovative products and services to target customers. Over half (53 percent) of large enterprises are lacking in data integration capabilities to perform customer analytics.
  • The adoption of cloud computing wasn’t as widespread as we thought across businesses and there is still room for growth. 65 percent of IT managers expressed they were still looking to invest in cloud computing over the next two years.
  • Despite the importance of a high-speed network to support collaboration and communications, only 36 percent of mid to large enterprises have switched to a fibre network in the past 12 months.

If innovation is critical to the success of your business, what is stopping you from optimising your investment in data, networking and cloud technologies?

Learn more from our research findings and find out how your business measures up with other companies when it comes to funding IT investments for innovation and how you can embark on your own journey through digital transformation.

Call us on 1300 88 99 88 or fill out a contact form to find out how Vocus can help your business.

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