In an insightful conversation with Biztech 2.0, Rishikesha T Krishnan, professor of Corporate Strategy and Policy, IIM Bangalore, discusses the relationship between IT and innovation.

How important is it for an enterprise to innovate?

It is tremendously important for an organisation to innovate, it could be to create a new business or a new product, the important thing is to consistently innovate. Any company that doesn’t innovate will not survive for long. Innovation can be small or big; however, it has the power to change the business or the product. Evidence shows that innovation is extremely important.

How does IT enable innovation?

IT enables innovation in many ways. Today, there are a lot of tools available to facilitate the innovation process. An organisation can source ideas from employees and then it should set up a good IT system to capture and store these ideas. It should also have a mechanism in place, which will filter out the ideas and take the powerful ones to the next stage. Promotion of collaborative innovation within the organisation can be facilitated with IT. There is no doubt that IT is a great enabler for innovation.

Can IT obstruct innovation?

IT could obstruct innovation if an enterprise starts looking at IT as a technology rather than an enabler or facilitator. If an organisation focusses on the purpose and long-term benefits of IT, then IT will emerge as an enabler for business.

How can enterprises maintain the perfect balance between IT and innovation?

IT and innovation should normally not come in conflict with each other and therefore, an organisation need not worry too much about balancing the two. An organisation should make sure that it has the right IT infrastructure in place, which can enable the desired levels of innovation. The more important thing is to identify what the needs of the enterprise are.

Which verticals do you think are aggressively innovating?

A vertical that is innovating aggressively is the automobile sector and we have the Nano as proof of that. There are other innovative products in the pipeline from companies like Mahindra&Mahindra and a few motorcycle companies. Automobile component companies are also doing a lot of interesting work. The pharmaceutical segment is also innovating a lot in the areas of making new drugs available and making generic products more affordable.

Please elaborate on the role of CXOs in maintaining harmony between IT and innovation.

CXOs generally have an important role in encouraging and enhancing innovation. They are the ones who set the vision and encourage people to innovate; however, they must ensure that they don't come in the way of innovation. They need to make sure that the right IT infrastructure is made available to employees; this can enable people to innovate. Overall, CXOs should create a conducive culture and environment for employees to innovate.