Majority of Global CEOs Plan Fundamental Change and Expect New Forms of Innovation to Drive Growth, According to IBM Study

Majority of Global CEOs Plan Fundamental Change and Expect New Forms of Innovation to Drive Growth, According to IBM Study

In a study unveiled today by IBM Business Consulting Services, 65% of the world’s top corporate CEOs declared that due to pressures from competitive and market forces, they plan to radically change their companies in the next two years.

The IBM Global CEO Study 2006 is based on in-person interviews with more than 750 of the world’s top CEOs and business leaders, and is the most comprehensive CEO-level study of its kind. This year’s study follows The IBM Global CEO Study 2004, which revealed that CEOs had moved their agenda from cost-cutting to driving profitable growth.

As they contemplate this radical change, only 20% of CEOs recognize that they have been highly successful in such endeavors in the past. In driving this change, the study found that CEOs are looking beyond growth through new products and services. They are increasingly focused on innovation in their business models and operations as key mechanisms for driving change.

Indeed, CEOs stated that approximately two-thirds of their efforts are now targeted at business model and operational innovation. Furthermore, fully 61% of CEOs who have a primary focus on business model innovation fear that changes in the business model of a competitor could likely result in a radical change to the entire landscape of their industry.

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