77% of businesses in India consider that innovation is now a must for them to respond quickly to market challenges and opportunities, and ensure business resilience, according to a Microsoft and IDC report.
The study found that in a short span of six months, organisations in India have increased their ability to innovate by 4 per cent by maturing their culture of innovation. It surveyed 439 business decision makers and 438 workers in India within a 6-month period, before and since COVID-19.
The study also showed that close to 78% of organizations in India are accelerating the pace of digitalization in response to the crisis
This included launching digital products and introducing digital payments to embracing ecommerce and automation.
As a result, Indian companies are aiming at increasing their revenue from digital products and services to 50% in the next 3 years from 36% at present.
According to the survey, 64% of respondents acknowledged that innovation has become easier in the post-COVID-19 era.
Prior to the pandemic, only 32.5% of Indian business found innovation in their products and services easy.
“Innovation is no longer an option, but a necessity. We have seen how the recent crisis has spurred the need for transformation; for organizations to adapt and innovate in order to emerge stronger,” said Rajiv Sodhi, COO, Microsoft India. “We commissioned this research to gain better understanding of the relationship between having a culture of innovation and an organization’s growth. But now, more than achieving growth, we see that having a mature culture of innovation translates to resilience, and strength to withstand economic crises to recover,” he added.
“We see amongst leaders a constant appetite for growth and evolution. During COVID-19, 31% of firms in India said they think their business model will lose competitiveness in five years’ time. This desire and urgency for continuous improvement through agility and adaptation to change will determine the success of businesses in this new normal,” said Vasant Rao, Managing Director – India and South Asia, IDC.
The study introduced the culture of innovation framework, which spans the dimensions of people, process, data, and technology, to assess organizations’ approach to innovation.
The India study was part of a broader survey among 3,312 business decision makers and 3,495 workers across 15 markets in Asia Pacific region.
When asked about their priorities for the next 12 months ahead, organizations in India (45%) indicated that they will focus on Technology as most essential for business resilience and recovery.
According to the report, some best practices will include developing a culture that promotes investing in disruptive technologies and leveraging data to differentiate and enhance products and services.
The other area of focus is people. In the coming year, 18.5% businesses in India plan to focus on embracing risks and driving innovation through ongoing learning, and the right talent and skills.