A recent report by Deloitte entitled “America’s economic engine – Breaking the Cycle”, which polled mid-market and private companies, found that executives are focused on increasing their productivity in 2017. One method they’re planning to pursue is engaging in deal activity, exploring public offerings and mergers and acquisitions. However, this is only one strategy these executives are considering for growth.
The survey also found that technology investment is also key to growth and innovation, especially as we grow more connected in the current global economy. Respondents planned on developing new products and services in 2017 as a central component of their growth strategy. Additionally, upgrading existing systems and implementing new systems were neck-in-neck for the top spot of investment priorities, both with the goal to increase productivity and customer engagement.
Technology has continued to lead capital expenditure for the middle market and is perceived by executives to have the greatest potential for increased productivity. Moreover, 85% of mid-market companies are leveraging emerging digital technologies to transform their organizations and to drive strategic business goals. The survey found that more companies are using technology as a means to increase profitability and productivity while meeting the needs of both the workforce and the customer.
“Technology is becoming more of a differentiator in the middle market. At a strategic level, technology is helping smaller, growing companies scale faster and increase their valuations” ~Harvey Michaels, Principal at Deloitte Consulting LLP.
Survey Question: Rank in order of importance your management’s top three strategic priorities for next 12 months [top selection shown]
According to SWC Technology Partners, there are 4 predominant ways in which middle market companies are successfully using technology for growth:
Other highlights from Deloitte’s survey include:
The survey findings also reveal some of the challenges that mid-market executives face. Here are some of the top few: