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A Major IT Shift – Delivering Business Outcomes

During geek-fests like CiscoLive, it’s easy to become hypnotized by all the amazing technology. So many smart people are innovating in so many amazing ways. When the party’s over, though, we all need to get back to business. Not just CIO’s and CTO’s -- everyone in IT needs to focus on business outcomes -- now more than ever. Here’s why.

IT is under increasing pressure to innovate and help deliver business results, as evidenced by several new data points in our industry. Understanding these trends and next steps can help IT, business, and operations teams all work better together to deliver more value from technology.

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Increasing Business Investments and IT Opportunities

Charting a New CourseAs business groups increase their technology investments and gain more access to new technologies and consumption models, IT’s balance between operational excellence and innovation is shifting. Technical innovation can now happen anywhere. This change presents a huge opportunity for IT to drive innovation in new ways. So which organizations are seizing this opportunity?

To find out, we recently conducted the Cisco Business and IT Priority Survey to determine how these groups manage innovation, and how their business and IT priorities are linked. See the info graphic and previous blog for global results and observations, and see how your priorities compare to your peers by taking the survey here.

As today’s innovation and technology investments can dramatically impact tomorrow’s business results, the investment levels by region are particularly interesting.

For example, 50% of business leaders in China see technology innovation as a critical differentiator to their business, whereas in the US, only 21% rank innovation as critical. Multiple times in the survey, the responses from China indicated a collective interest in innovation as a top business priority. In Germany, 23%, and the UK 25% of business leaders also see innovation as a business priority as critical.

Companies in India and China also indicate that their investments are growing faster than other regions’. About 81% of Indian business leaders surveyed, and 75% of Chinese ones expect their technology budgets to increase next year – many by more than 25%. By contrast, 54% of UK businesspeople, 48% in Canada and Germany, and only 41% in the US expect their technology budgets to grow.

Indian and Chinese business leaders also indicate that they’re spending a bigger proportion of their own growing budgets on technology. In China 82% of those surveyed plan to spend at least 25% of their business budgets on technology, and in India 71% are doing the same. By contrast, only 41% of US and 45% of Canadian business leaders are spending more than 25% of their budgets on technology.  Read More »

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