Executive Summary for the CIO Agenda:
In this podcast, José A. Cano highlights essential facts that every the C-Level need to know:
- Digital products and services: Over 40% of organizational revenue now comes from these, a critical shift from traditional revenue streams.
- Data growth: More than 2,000 terabytes of data are generated every minute, with 50% of that data losing value within 5 hours & 75% after 2 days!
- Digital skill gap: 28% of companies in Spain and 24% in Europe admit lacking the necessary digital skills for current transformation efforts.
- Open innovation: Companies adopting open innovation increase productivity by over 20%.
These figures emphasize the need for immediate action on digital transformation and innovation.
Insights from a conversation with José Antonio Cano, Research Director at IDC Spain
by Alan Zettelmann
In today’s fast-paced business environment, innovation is no longer just an advantage—it’s a requirement for survival. This was the central theme of my recent conversation with José Antonio Cano, Research Director and Head of the Spanish Office at IDC, during an episode of my podcast Ahead of the Curve Innovation. Together, we explored how emerging technologies are transforming the future of business, and how leaders can position their organizations to thrive in an era of constant disruption.
José brought a wealth of expertise to the discussion, providing valuable insights into how companies can leverage technologies like artificial intelligence, cloud computing, and data analytics to stay competitive. One thing became clear: innovation is no longer a side project—it’s the engine driving business strategy. Here are some key takeaways from our conversation, supported by the hard numbers José shared, which should resonate with any leader focused on future-proofing their business.
Innovation is No Longer Optional—The Numbers Don’t Lie
A standout point from my discussion with José is how innovation must become part of the DNA of every business. He emphasized that companies can no longer rely solely on traditional revenue streams. In fact, many organizations historically generated 80% of their revenue from current operations and only 20% from future, innovative income streams. However, this model is rapidly changing, with data-based products and services now accounting for over 40% of total organizational revenues.
This seismic shift highlights the need for businesses to prioritize innovation, especially through the lens of technology. Those who fail to innovate systematically will quickly find themselves falling behind in an increasingly data-driven world.
The CIO’s Role is Expanding—From IT to Innovation
One of the key points José brought to the table was how the role of the Chief Information Officer (CIO) is evolving. Traditionally, the CIO focused on IT infrastructure, but today, they are increasingly being asked to drive innovation within the business. In fact, 60% of CIOs in Europe are now expected to take a more active role in developing digital products and services that generate new revenue streams.
José stressed that this shift reflects the growing importance of technology as a core business driver. With data becoming the fuel that powers everything from product development to customer engagement, the CIO’s role is no longer just about keeping the lights on—it’s about shaping the future of the company.
The Data Explosion—2,000 Terabytes Every Minute
The sheer volume of data being generated today is staggering. During our conversation, José noted that the world now produces more than 2,000 terabytes of information every minute. But here’s the kicker: 50% of that data loses its value within just 5 to 6 hours, and 75% becomes irrelevant after two days. This underscores the importance of real-time data analysis and decision-making.
For businesses, the challenge isn’t just collecting data—it’s making sense of it quickly enough to drive value. Those who can master real-time data analytics will have a significant edge in the marketplace, able to respond faster to changes and capitalize on opportunities more effectively.
ISO 56001: Structuring Innovation for Success
We also delved into the upcoming launch of the ISO 56001 standard, which will provide companies with a structured framework for managing innovation. José explained how this standard will help organizations not only implement innovation processes but also measure and improve them. In a world where 24% of organizations in Europe and 28% of organizations in Spain acknowledge they lack the skills necessary for digital transformation, this kind of structure could be a game-changer.
The ISO 56001 standard will allow businesses to systematize their innovation efforts, ensuring that ideas move from concept to execution more effectively and with measurable results. This is particularly important as innovation becomes a more central part of business strategy, not just a creative exercise. The norm will be officially launched in the INTERNATIONAL INNOVATION FORUM in Lima, Peru, the 17 of October 2024, hosted by the Universidad del Pacífico.
Digital Trust and Cybersecurity—The Pillars of Modern Innovation
As businesses become more reliant on digital technologies, José stressed the increasing importance of cybersecurity and digital trust. “You can’t innovate if you don’t protect the data and systems that power your innovation,” he said. With data breaches and cyber threats on the rise, the ability to build and maintain digital trust has become a crucial competitive advantage.
Customers and partners are more likely to engage with businesses they trust, which makes cybersecurity not just an IT issue but a key business differentiator. José pointed out that without strong cybersecurity measures, even the most innovative companies will struggle to succeed in the long run.
A Final Thought: Innovation Must Be Systematic and Measurable
Reflecting on my conversation with José, it’s clear that innovation is no longer a choice—it’s a necessity for survival. But more than that, it needs to be managed and measured systematically. Businesses that adopt structured innovation frameworks like ISO 56001, harness the power of real-time data, and build digital trust will be the ones to succeed in the future.
If you missed this episode of Ahead of the Curve Innovation, I highly encourage you to listen. José’s insights are essential for any business leader navigating the complexities of innovation and digital transformation in today’s fast-paced world. Together, we explored the future of business in a way that is both visionary and practical—because the future belongs to those who innovate with purpose and strategy.
