Ovum: Innovation Is Sooo 2006

February 8, 2007: Ovum takes on the English language and IT vendors with scepticism over the word ‘innovation’ frequently used in vendor sales pitches.

After in-depth discussion with key stakeholders, Ovum says too many years of disappointment have left end-users sceptical about vendor pitches concerned with innovation. The problem arises from differing definitions of what actually constitutes ‘innovation’ and the alternate expectations of what ‘innovation’ should actually deliver.

Angel Dobardziev, IT services practice leader at Ovum says there is a mismatch of vendor/client expectations which means end-user wind up unhappy, even if their purchased solutions deliver on agreed expectations.

“Clients will talk about and demand innovation, but what they are really after are outcomes,” says Dobardziev. “Vendors should focus on these desired outcomes and take time to understand the different and often conflicting needs of various client stakeholders.”

According to Dobardziev, every vendor has their own interpretation of ‘innovation.’ But it’s not just a marketing term, it’s a reality that exists within vendors and one that if addressed appropriately, creates business value.

The trick, according to Ovum, is to ensure everyone is closely involved in defining ‘innovation’ and expectations. This will often mean addressing risks as well as rewards and ensuring clear communication processes between the end-user and the IT vendor. Valuable innovation comes from partnerships rather then now ageing concept of customer versus supplier.

“It’s not enough just to say that a vendor/client relationship is strategic, you have be prepared to invest in the relationship,” says Dobardziev. It’s people who innovate, not processes and end-user engagement is therefore critical.

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