HP announced new global research that reveals the need for organizations to free up dollars spent on operations and instead invest in driving innovation.

According to the new study, more than half of business executives indicated their organizations suffer from “innovation gridlock,” where IT organizations are blocked from driving new business innovation because the majority of technology funding is consumed by operating the current environment.

In looking at the effect of innovation gridlock, the research focused on business and technology executives around the world. Almost 70% of all respondents indicated they are unable to invest in new technologies to meet changing business needs. The study found that 40% of respondents’ current budgets were spent on mission-critical systems and 30% on legacy systems, with only 30% left for new technology initiatives.

“The phrase ‘time is money’ rings true here, as 99% of organizations say that innovation gridlock cost them in lost time,” said Thomas E. Hogan, executive vice president of sales, marketing and strategy for HP Enterprise Business. “By breaking the innovation gridlock, organizations can regain time to market and capitalize on new opportunities.”

Costs to the business add up

Not only does innovation gridlock impact IT organizations’ ability to drive new innovation and create positive results, it also results in a significant cost to the business. According to the respondents:
  • Ninety-five percent of business and technology executives said innovation gridlock resulted in lost opportunities for their organizations.
  • Ninety-one percent felt that innovation gridlock cost their organizations in lost effort (from resources).

Business and technology executives come together

The research reveals that business and technology executives are aligned on the perceived factors that prevent their organizations from investing in innovation. Business executives are more likely to identify fears about the economy, too much budget spent on operations, and difficulties measuring the success of innovation as limiting factors. Technology executives are more likely to cite the business risks associated with innovation.

Furthermore, 73% of business executives indicated that innovation gridlock prevented them from generating real flexibility in their operations. Almost 60% of executives felt this gridlock also prevented their organizations from keeping up with the competition.


Coleman Parkes Research Ltd. conducted the HP-commissioned survey by performing 410 detailed interviews with chief information officers and technology executives of major organizations across the globe using a telephone research methodology. An additional 150 detailed telephone interviews were conducted with chief executive officers and business leaders of major organizations globally. Twenty-five percent of all interviews were conducted with organizations with 500 to 999 employees and the rest with organizations of 1,000 or more employees. Regions included: North America (United States and Canada), Europe and the Middle East (Czech Republic, Denmark, France, Germany, Russia, United Arab Emirates, United Kingdom), Asia Pacific (Australia, China, India, Japan, South Korea), and Latin America (Brazil, Mexico).

More data is available atwww.hp.com/go/HPEnterpriseResearch2010.