IBM survey: Training, tech needed to grow revenue

NEW YORK - Revenue growth is the top corporate priority, but a lack of technology tools and skills stands in the way of achieving it, according to a new IBM study.

IBM's Business Consulting Services division surveyed 456 CEOs, a majority through in-person interviews, to catch a glimpse into corporate planning agendas. Among the respondents, 80% say increasing revenue is their primary objective. Notably, the push for revenue growth has supplanted cost-cutting efforts, which dominated CEO agendas in recent years.

As economic trends have begun to improve, CEOs are satisfied with the cost-containment measures put in place over the last two years and are ready to focus more aggressively on new opportunities, IBM says. Achieving growth won't be easy, however. One obstacle is a perceived lack of responsiveness. Most CEOs say their companies are not agile enough to identify and chase new market opportunities.

Among respondents, 80% cite the ability to respond rapidly to changing market forces as a high priority in the next few years. Only 13% of CEOs rate their organizations as "very responsive" to changing business conditions. In addition, 43% of CEOs rate their company's change-management record as unsuccessful.

To continue reading, register here to become an Insider. You'll get free access to premium content from CIO, Computerworld, CSO, InfoWorld, and Network World. See more Insider content or sign in.

NEW YORK - Revenue growth is the top corporate priority, but a lack of technology tools and skills stands in the way of achieving it, according to a new IBM study.

IBM's Business Consulting Services division surveyed 456 CEOs, a majority through in-person interviews, to catch a glimpse into corporate planning agendas. Among the respondents, 80% say increasing revenue is their primary objective. Notably, the push for revenue growth has supplanted cost-cutting efforts, which dominated CEO agendas in recent years.

As economic trends have begun to improve, CEOs are satisfied with the cost-containment measures put in place over the last two years and are ready to focus more aggressively on new opportunities, IBM says. Achieving growth won't be easy, however. One obstacle is a perceived lack of responsiveness. Most CEOs say their companies are not agile enough to identify and chase new market opportunities.

Among respondents, 80% cite the ability to respond rapidly to changing market forces as a high priority in the next few years. Only 13% of CEOs rate their organizations as "very responsive" to changing business conditions. In addition, 43% of CEOs rate their company's change-management record as unsuccessful.

Joseph Reiser, CEO at Locus Pharmaceuticals in Blue Bell, Pa., says it's a challenge to be responsive. The nature of the pharmaceutical industry requires Locus to anticipate patient needs and commit research-and-development resources to particular drug design projects years before the drugs will become available to consumers.

Technology helps the company compress the time and cost of drug development - although it's still a massive undertaking that can cost up to $1 billion for one drug. Locus recently signed a deal with IBM to outsource some computation work that's done on a 2.3 teraflop IBM supercomputer. Locus needs the supercomputer to perform continually evolving design algorithms that only get more complex, Reiser said at an IBM event that announced the survey results. "Cost-cutting your way to success just isn't an option," Reiser said.

Skills deficiencies also pose an obstacle to achieving revenue growth, according to survey respondents. About 60% of CEOs said the major barrier to managing change-related projects is limited internal skills and leadership resources.

Click to see: Bill Pence

Bill Pence, CTO of online music company Napster in Los Angeles, agrees. "It's been harder to find good technical talent over the last 18 to 24 months," Pence said at the IBM event. In years past, the company had more qualified applicants than it needed, he said.

The survey results will help IBM set its own priorities for future investments, said Ginni Rometty, managing partner of IBM Business Consulting Services. It also confirms ongoing investments IBM has made in areas such as business analytics, telematics and radio frequency identification technology, she said.

"It's heartening to hear CEOs telling us, indeed, they are going after growth and want to leverage all this information and connectivity that is emerging to be more responsive," added Irving Wladawsky-Berger, IBM's vice president of technology and strategy. "Eighteen months ago, when we launched the On Demand initiative, these are the kind of market conditions and requirements we were hoping for."