Time to Formalize Technology Innovation Processes?

April 7, 2008

As IT organizations struggle to help their companies achieve growth, profitability and competitiveness through technology innovation, two-thirds of Global 1000 companies will have formalized technology innovation processes by 2010. Technology is becoming inextricably linked with business and management innovation. Because of the high levels of impact and spending that result from this linkage, technology innovation needs formal planning and management.

“Integrating emerging technologies is an important source of innovation for the business,” said Jackie Fenn, vice president and Gartner Fellow. “Innovation initiatives may emerge from ideas generated by the business or from research areas, such as the IT organization's Emerging Technologies Group (ETG). Organizations should exploit both idea channels and map clear links between their business goals, business projects and emerging technology planning.”

The primary imperative in managing technology innovation is to make someone accountable. The accountability most often lies in IT, but a few organizations are beginning to place the direct accountability with business units. A second-level imperative is ensuring diversity in the conversation and planning.

“Although the ETG is responsible for delivering a strategy for emerging trends and technologies, the extended team needs diversity in background, current role or responsibility, business or IT orientation and generational knowledge,” Ms. Fenn said. “The diversity of the technology planners should mirror the diversity in the organization.”

Organizations need timely innovation to meet either internal organization performance needs or to address customer or market needs. Having clear innovation processes and accountable leaders also contributes to ensuring progress and timely innovations.

“IT has multiple opportunities to contribute to business innovation. In fact, IT plays three roles: innovating the internal IT processes and services, introducing emerging trends and technologies in support of business objectives, and supporting business-led innovation initiatives through direct participation and providing innovation expertise,” said Kathy Harris, vice president and Distinguished Analyst at Gartner. “IT leaders should clarify the three roles in their organizations and ensure that they’re building the capabilities and leadership to fulfill their responsibilities in each role.”