The major roadblock, as is often the case, is cost. 52 percent of CSC survey participants (66 percent in North America) identify budget constraints as one of the top roadblocks to innovation, where IT often plays a leading role.
Another key roadblock is the perception of IT in the enterprise—specifically, that few executives consider their IT leaders closely involved in strategy. And according to a recent McKinsey report2, confidence in IT’s ability to support growth and other goals is also fading. (See chart below.) The research points to wide gaps around priorities (cost-cutting v. growth), business relationship skills, and budget constraints as the main drivers of this trend.
But even if budgets are a little tight, that doesn’t mean CIOs aren’t looking at newer technologies and disruptive approaches. But that’s also where things can get messier. Case in point: according to the report, over the next three years, Webscale IT (34 percent), machine-to-machine integration (31 percent), and “software-defined anything” (29 percent) will be considered a major part of businesses’ strategic plans. Compounding that, 70 percent of all respondents—and 79 percent of those in Europe—said modernizing legacy applications is a high priority over the next year.