Adapting to The Internet of Things requires a lot of innovation and business leaders seem OK with that.
While most business execs see innovation as important, most of them also look to innovation as a way to develop new products or services.
A large majority (91%) of business leaders say innovation is a strategic priority for their company and most (66%) of them see it as a way to develop entirely new products or services moving forward, according to a new study.
The third annual study is based on interviews with 3,100 senior business executives in 25 markets conducted by StrategyOne for GE.
In a change from the past studies, the majority (52%) now look to innovation in the development of new business models.
This is logical, since IoT technologies are going to impact how many companies actually do business, especially with the promised wealth of consumer information coming.
This isn’t lost on business execs, with 60% of them seeing the ability to understand customers and anticipate market evolutions as the number one requirement for a company to innovate successfully, according the study.
All that customer information is part of the coming wave of big data and most (63%) business leaders say their businesses are developing the ability to use big data for innovation.
Many companies (43%) also recognize the need to attract and retail innovative people.
The study also identified a potential gap in how companies are going to innovate moving forward.
While a large majority (79%) of businesses say accessing new technologies is the top reason to collaborate with other companies, a majority (64%) also see the lack of intellectual property protection as the number one barrier to actually collaborate.
Interestingly, size and location of companies to collaborate with are not a major factor.
This may be good news for IoT startups, as their technologies may more easily be adopted by large companies, even those not in the same geography.
The Internet of Things, with its billions of Internet-connected objects, will result in a lot of innovation, whether companies expect it or not.