NTT DATA's First Innovation Index Reveals Organizations Are Still Stuggling in an ‘An Era of Constant Disruption’'

NTT DATA’s First Innovation Index Reveals Organizations Are Still Stuggling in an ‘An Era of Constant Disruption’’

New research shows 77 percent of organizations surveyed are not prepared for continued challenges from health crises and natural disasters. And many companies aren't looking to their employees for the answers.

Still, a small group of leaders with a focus on innovation—about 6 percent—are performing “above average” in nearly all areas, including financial performance, productivity, and employee satisfaction.

New research from Plano-based NTT DATA shows organizations are still stuggling to overcome disruption.

The company’s first Innovation Index shows 77 percent of organizations surveyed are not prepared for continued challenges from health crises and natural disasters. And many of them aren’t looking to their employees for the answers.

Still, the findings show a small group of leaders—about 6 percent—are performing “above average” in nearly all areas, including financial performance, productivity, and employee satisfaction.

Produced in partnership with Oxford Economics, “Innovation Index: Digital Strategies for an Era of Constant Disruption” explores how business and IT executives spanning 16 industries in North America are prioritizing digital transformation initiatives.

Employees take a back seat?

Even though U.S. resignation rates are at record highs in some industries, only 16 percent of respondents noted employee satisfaction and retention as a priority. That’s despite the cost of turnover, the IT services leader says.

That’s in sharp contrast to what 66% of execs consider a top priority: Customers. That’s an area where employees can have a direct impact, the company says.

Employees contribute significantly to key business drivers like financial performance. Yet just 5 percent of the organizations see employees factoring into operational and strategic decision-making. And for one-third of the organizations surveyed, company culture is not viewed as a primary component of employee satisfaction.

NTT DATA noted only 21 percent of executives ranked flexible working options as a top contributor to employee satisfaction. That conflicts with reports from employees “that flexible work is not only important, but something they would consider leaving their job over.” About half of the organizations said “rigid processes do not allow for remote or flexible work.”

As resignations continue to rise to record numbers, says NTT Data, “organizations will need to evaluate the connection between customer satisfaction and employee retention and engagement.”

More results

Per NTT DATA, the new survey of industry leaders also shows:

60% are unprepared for the pace of technology change, and nearly half still view innovation as a “nice to have” rather than critical for survival
Executives are heavily investing in cybersecurity, CRM, and cloud, but many emerging technologies still lag in investment, despite high expectations
67% believe managing data keeps getting harder and cite regulatory challenges as a barrier for effective data use

Standout performance

The group of leaders that emerged from the survey performing “above average” show a focus on driving innovation through data-driven decision making, employee and customer experience, and leveraging technologies, NTT DATA says. That 6% reported above-average growth and also claim a higher productivity rate.

“The continued shockwaves of the global pandemic have left many organizations feeling the impacts of disruption across their workforces, customers, and bottom lines,” Eric Clark, chief digital officer, NTT DATA Services said in a statement. “When times are uncertain, it’s a natural response to tighten budgets and focus on short-term goals that bring revenue, but this comes at the expense of innovation and future goals.”

Tech is the foundation for innovation

The report shares digital strategies industry leaders are using to overcome challenges.

“Leaders must focus on identifying the effective digital technologies that allow them to quickly scale resources, support remote work and respond to market pressures while prioritizing employee retention,” said Clark, who was named to NTT DATA’s top digital post in 2018 to advance digital-first and cloud-first agendas for clients.

In an era where the only constant is change, the company says the key to adapting to changes in the market is investing in technologies that will serve as the foundation for future innovation.

Go here to get the report.