Include Innovation in Your IT Strategy

This IDC Perspective argues that CIOs must intentionally include innovation as a core element of IT strategy, treating it as a managed discipline rather than a by-product of technology delivery. Public and private sector organizations increasingly expect CIOs to do more than run reliable, efficient IT operations. As digital transformation matures, IT is judged by its contribution to business strategy, customer experience, and competitive differentiation. Yet in many enterprises, IT strategy still centers on uptime, cost control, and governance, leaving innovation to ad hoc efforts or isolated business units. The result is solid operational performance but limited ability to anticipate market shifts, create new value, or respond to disruption. Drawing on IDC MaturityScape: CIO Innovation 1.0, the document describes five dimensions - vision and strategic alignment; technology and data foundation; innovation processes and governance; people, knowledge, and innovation networks; and measurement and value realization - that enable repeatable innovation. It also distinguishes between structured innovation, which aligns with defined business outcomes, and exploratory innovation, which depends on special conditions such as slack capacity, psychological safety, strong margins, and rich data. While few enterprises can operate like innovation standouts like Google, Bell Labs, or DARPA, every CIO can create "microenvironments" for exploration within a governed framework. The document provides strategic guidance for CIOs on shifting IT from service provider to strategic enabler by grounding innovation in business understanding, building an innovation portfolio aligned to enterprise goals, integrating innovation into governance and financial planning, and partnering selectively to accelerate capability while keeping critical IP and learning in-house. It then outlines a tactical playbook for operationalizing innovation, including life-cycle stages from intake to retirement, activation of innovation labs with clear charters and metrics, embedded roles and accountabilities, integration with security and compliance, and the use of data and KPIs to guide decision-making and prove business impact."When CIOs treat innovation as a strategic capacity, not a side project, IT moves from keeping the lights on to illuminating what can be imagined," says Gerald Johnston, adjunct research advisor with IDC's IT Executive Programs (IEP).