Growth is very much back on the agenda for businesses across Europe, according to a new research study from Infosys conducted by the European Business Awards.
The study titled ?Shaping Europe?s Future? is based on interviews with 80 business leaders of European companies with annual revenues in excess of $1 billion. Over 60 percent of these companies have also reported better performance as compared to their competitors in the last two years.
The study reveals that nearly two-thirds (68 percent) of the leaders surveyed believe new ideas and innovation will be vital to accelerate business growth. Coming in a close second, 44 percent of these leaders believe that more than any other growth strategy, entering into and sourcing from new markets would serve as a key driver of growth over the next two years.
However, in order for businesses to continue investing in new technologies to drive innovation, the study found that more work is required to track Return on Investment (ROI) on new ideas.
Highlights:
Innovation in all areas of business is actively encouraged by 86 percent of the leaders surveyed and 73 percent said their organizations have formal processes for capturing innovative ideas
While 84 percent say a ROI model is essential all of the time or some of the time, over half of businesses surveyed noted that they do not have a way to measure and show ROI on innovation Just behind innovation and tapping new markets, 35 percent of respondents rated the introduction of new technologies such as the Internet, Cloud and social media as critical for growth
Nearly two-thirds (63 percent) of businesses stated that the IT department is now the primary growth enabler for their business. The most important roles of the IT department are centered around accelerating growth: bringing new ideas to the business, implementing new technologies quickly and effectively, and co-creating in order to launch new products and enter new markets
IT enjoys a strategic role when it comes to business growth, with only eight percent of business leaders citing cost-cutting as the most important role for the technology department
BG Srinivas, president and member of the Board, Infosys, says, ?The results of this study speak to a renewed confidence amongst European businesses. For a region of the world that has struggled for the past few years, the results of this study are highly encouraging. Technology and innovation are crucial engines for growth. However, for these growth drivers to deliver on their potential, it is important that organizations put in place robust models for accurately measuring the efficacy of innovation. This must include clear visibility on ROI to ensure that as businesses grow they keep a prudent eye on cost control and operational efficiency.?
