IT innovation is becoming more central to organisations' growth plans, but many projects are still missing their targets, according to new research released today by global consultancy AT Kearney.
The study found that, although 84 per cent of C-level executives believe that innovative IT projects are key to a successful business strategy, they think that investment in these projects misses target levels by more than 75 per cent.
Farhan Mirza, principal at AT Kearney, argued that IT leaders need to free up extra money for IT innovation by outsourcing operational tasks, and giving more responsibility to end users for the day-to-day running of their systems.
"Everyone talks about innovation, but money is not being put aside for these projects because it gets used on operational fire-fighting," he said.
"IT departments need to pull back and think about automating and outsourcing more. The budget you're releasing will then allow you to do the interesting work everyone in IT really wants to do."
The AT Kearney study highlighted six areas crucial to successful IT innovation, including balancing IT leadership with business partnerships, integrating products and services with back-office IT and collaborating better with customers, employers and suppliers.
The firm also advised IT leaders to place IT initiatives and investment targets under a single umbrella to give innovation the investment it needs.
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