The Mighty Mid-Market Growth Leaders Survey

Transcription

1 The Mighty Mid-Market Growth Leaders Survey Technology Priorities, Core Strategies and Near-Term Investment Plans Exclusive research insights on high growth drivers and challenges 1 The Mighty Mid-Market Growth Leaders Survey

2 Table of Contents Executive Summary: Investment Drives Growth...3 How Technology Enables Execution...5 Security Permeates a Customer-First Culture...7 Cloud Levels the Playing Field...9 Data-Driven Benefits Span Multiple Functions...11 Sustaining Growth Requires Overcoming Challenges...12 Conclusion The Mighty Mid-Market Growth Leaders Survey

3 E xecutive Summary: Investment Drives Growth The National Center for the Middle Market (NCMM) at The Ohio State University Fisher College of Business defines the U.S. mid-market as 200,000 companies with revenues ranging from $10 million to $1 billion. These companies employ close to 48 million people and represent one-third of the private sector GDP. 1 They are private and public, family-owned, and sole proprietorships, geographically diverse, and span almost all industries, according to NCMM. 2 The health of these businesses and their respective outlook serve as a solid indicator for the greater U.S. economy. High growth leaders value data-driven analytics to add new value for customers and drive productivity and better decisions. Clouds apps and services also are top-ofmind, as is security. Time Warner Cable Business Class (TWCBC is now Spectrum Enterprise) sponsored the Mighty Mid-Market Growth Leaders Survey to gather and share insight into these unsung heroes of business resilience. (Consider that during the financial crisis of , mid-market companies actually added 2.2 million jobs across U.S. sectors and geographies. 3 ) It s our hope that our customers and the mid-market business community at large can use the findings from this survey to build strong business practices that spawn healthy and sustainable growth. 3 The Mighty Mid-Market Growth Leaders Survey

4 The survey results reveal that high growth mid-market leaders say that IT investment and a sharp focus on customers are top drivers of more sales, geographic expansion and better product offerings. The results also reveal that these companies view network-enabled collaboration and communication as must-have capabilities for both internal and customer-facing work. Supporting View: Technology Is Critical To Growth MIGHTY MID-MARKET SURVEY HIGHLIGHTS* 48% 41% More Sales, More Locations 78% Customer-first culture is most important to growth 60% Adding new locations 46% Growing between 10%-40% 21% Growing between 41%-76%+ Prioritizing Technology 70% Investing in network technology over the next 12 months 48% Investing in cloud apps and services over the next 6 to 12 months 41% Investing in web-based collaboration over the next 6 to 12 months 23% Average increase of network technology investment 48% of mid-market companies said technology is critical to their growth strategy, vs. in % 2015 Mid-Market Technology Survey, Deloitte 4 *Please note, all sets of figures in this research report do not add up to 100% because of multiple choice responses. 4 The Mighty Mid-Market Growth Leaders Survey

5 How Technology Enables Execution High growth mid-market companies clearly view technology as a critical enabler based on their IT investment priorities. They plan near-term investment in cloud apps and services, and digital collaboration and communication tools all known for lowering cost, simplifying processes and enhancing one-on-one experiences, whether internal or customer facing. Meanwhile, behind the scenes, network infrastructure is what keeps traffic moving and communications flowing smoothly and securely. Network infrastructure as the No. 1 investment choice indicates a mature understanding of modern business technology. The network influences business-wide technology ROI because without network reliability and security, the performance of all other technologies suffers. Supporting View: Mid-Market Leaders Increase Technology Spend 2/3 of respondents say their company s technology spend is higher than last year. 30% indicate their technology spend is more than 19% of revenue up from in % Middle Market Indicator 2Q 2015, National Center for the Middle Market, in collaboration with The Ohio State University Fisher College of Business and GE Capital 5 5 The Mighty Mid-Market Growth Leaders Survey

6 PERFORMANCE OUTWEIGHS COST High growth leaders emphasize reliability, speed and security over low cost when making decisions about their business network. NETWORK INVESTMENT TOPS PRIORITIES High growth leaders understand that the business network is the foundation of critical enablers, such as cloud apps, managed services and web-enabled communications. WHAT S IMPORTANT TO YOU WHEN MAKING DECISIONS ABOUT YOUR BUSINESS NETWORK? WHERE WILL YOU PRIORITIZE INVESTMENT IN THE NEXT 6 TO 12 MONTHS? 1. Reliability 2. Speed 3. Security 4. Low Cost Network infrastructure Cloud apps and services Web-based collaboration solutions Voice, data, video/tv solutions Managed services 58% 48% 41% 29% 20% 6 The Mighty Mid-Market Growth Leaders Survey

7 Security Permeates a Customer-First Culture Mid-market growth leaders say a customer-first culture is their most critical differentiator. Security of data is also a priority and was identified as the No. 1 technology investment driving customer engagement and one of the top three technology investments driving productivity internally. Cyber crime is a growing threat capable of both top- and bottom-line harm, as a breach can break trust from vendors, employees and customers; force operations offline for an extended period; and lead to costly litigation and penalties. Supporting View: Mid-Market Companies Prioritize Security In Near Term Midsized enterprises are putting more of a focus on data security. More than three-quarters say they plan to increase investments in data security over the next 12 months. A similar number (75%) require data-security training for employees. American Express Survey of Midsized Companies, The Mighty Mid-Market Growth Leaders Survey

8 WHY MANAGING RISK MATTERS Maintaining critical differentiators that contribute to growth requires intense use of digitallydriven capabilities, such as cloud-hosted applications, anytime/anywhere access and 24/7 customer support services. High growth leaders understand that this intense use also makes them more vulnerable to cyber crime, so they ve made security a priority. LEARN MORE ABOUT CYBER-RESILIENCY Promoting Cyber-Resiliency through Situational Awareness and Outreach Programs TOP 3 TECHNOLOGY INVESTMENTS DRIVING CUSTOMER ENGAGEMENT 1. Security By Richard Harman, Manager of Spectrum Enterprise Security Operations GET THE ARTICLE 2. Data-analytics capabilities 3. 24/7 support services 8 The Mighty Mid-Market Growth Leaders Survey

9 C loud Levels the Playing Field High growth companies rely on the cloud to match the capabilities of their larger competitors and embed scalable solutions into their IT infrastructure. They are using the cloud for multiple applications, such as hosting exchange and telecommunication services, but the most critical role cloud plays is for data management. Supporting View: Scalability Is a Game Changer TOP 5 REASONS FOR USING THE CLOUD 1. Data storage 2. Data backup 3. Hosted exchange 4. Data redundancy and restoration 5. Telecommunications services The ability to store company data in a system that can always scale up to meet rising needs is a game changer, especially for midsized companies with little room for error in their IT expenditures. What s more, the various cloud functionalities available from third-party applications allow midmarket firms to battle larger competitors on a more equal footing in critical areas, including data analytics that help inform research and development, sales, marketing and customer service. Building a Cloud Technology Blueprint for Your Company, Rob Carey, National Center for the Middle Market 7 9 The Mighty Mid-Market Growth Leaders Survey

10 As companies processes, correspondence and outreach increasingly move to the digital realm, management and protection of vital flows and vast repositories of data become more critical to maintaining competitive advantage. TOP 3 TECHNOLOGY INVESTMENTS DRIVING PRODUCTIVITY 1. Collaborative applications and tools 2. Cloud solutions that support anytime/anywhere access 3. Security 10 The Mighty Mid-Market Growth Leaders Survey

11 D ata-driven Benefits Span Multiple Functions More than half of the high growth leaders chose data-driven decision-making as the No. 2 most important differentiator feeding growth (after No. 1, customer-first culture). They report powerful benefits. For example, half of the growth leaders said data analytics have enabled them to provide better products/services, and 38% said data analytics improved prospect targeting and/or helped open new markets. TOP 3 DIFFERENTIATORS MOST CRITICAL TO GROWTH 1. Customer-first culture 2. Data-driven decision-making 3. Ongoing cost control ANALYTICS CAPABILITIES % doing or planning to adopt soon More customized or higher-quality products/services to customers Improved productivity through more strategically aligned measures Faster decision-making based on predictive data modeling Better targeting of prospects and/or new market opportunities Better decision-making based on predictive modeling 75% 73% 71% 70% 70% Our survey is one of several documenting interest in the benefits of data analytics among mid-market companies. A 2015 American Express 4 survey asked mid-market leaders to choose what they see as data s greatest value for their organizations. The top four choices were: increased operational effectiveness; ability to predictively manage aspects of the business; greater competitive edge in understanding customer trends and patterns; and increased customer intimacy derived from available relevant data. 11 The Mighty Mid-Market Growth Leaders Survey

12 S ustaining Growth Requires Overcoming Challenges High growth mid-market companies are not immune to challenges impacting larger and smaller businesses. All of the challenges high growth leaders identified have been lingering for years with no easy fixes emerging. In fact, NCMM s quarterly survey of mid-market companies also lists staff/employees as the No. 1 challenge to growth. 9 The best response is to get in front of the challenge. For example, make sure as many infrastructure investments as possible are scalable so that processes align smoothly as you grow; and, look for opportunities to tap outside expertise to fill skills gaps and control costs. Business value propositions have become so specialized that at a certain inflection point, it makes sense for mid-market companies to narrow human capital investment to roles directly supporting value creation, while outsourcing non-core competencies. In fact, high growth respondents that use IT Managed Services and those that don t both identified IT can focus on more strategic priorities as the top benefit of outsourcing network management. CHALLENGES TO OVERCOME Which of these will be most critical to sustain growth in the future? Access to employees with the right skills 66% Controlling costs while maintaining quality Internal alignment around strategic goals Scalable technology solutions Insight into market changes/needs 62% 42% 39% 39% 12 The Mighty Mid-Market Growth Leaders Survey

13 Conclusion Sustained and profitable growth doesn t just happen at mid-market companies. As this survey of high growth leaders portrays, companies must invest in technology, new locations and competitive capabilities to rise to the top. The most critical technology investment is the business network, which is the foundation for growth-driving technologies, such as cloud apps and services and web-based collaboration solutions. About 70% of survey respondents plan to invest in their business network over the next 12 months. Highly valued capabilities, such as data analysis and cloud-based data management, also need a reliable, scalable secure network. The outcome of these smart technology investments is a customer-centric culture, which leaders identify as the most critical corporate attribute for growth. The leaders also report that security is essential to maintaining high-availability of crucial customer-facing and internalproductivity technology. In summary, mid-market companies must get technology right to get growth right. Using these survey findings as benchmarks and guideposts is a wise first step to evaluating where your company is on the growth-potential scale. We can help you use this survey to benchmark your technology road map against that of growth leaders. Relying on the right technology solutions and a partner can help push you into the ranks of the Mighty Mid-Market high growth leaders. Contact your local Spectrum Enterprise representative today. GET GROWING 13 The Mighty Mid-Market Growth Leaders Survey

14 About Spectrum Enterprise Spectrum Enterprise, a division of Charter Communications, is a national provider of scalable, fiber-based technology solutions serving many of America s largest businesses and communications service providers. The broad Spectrum Enterprise portfolio includes Internet access, Ethernet access and networks, Voice and TV solutions extending to Managed IT solutions, including Application, Cloud Infrastructure and Managed Hosting Services offered by its affiliate, Navisite. Our industry-leading team of experts works closely with clients to achieve greater business success by providing these right fit solutions designed to meet their evolving needs. For more information, visit enterprise.spectrum.com. END NOTES 1 National Center for the Middle Market, in collaboration with The Ohio State University Fisher College of Business and GE Capital, Middle Market Indicator 2Q 2015, middlemarketcenter.org 2 ibid 3 ibid 4 Deloitte, 2015 Mid-Market Technology Survey as highlighted in Perspectives: Disruption in the mid-market, How technology is fueling growth www2.deloitte.com/us/en/pages/deloitte-growth-enterprise-services/articles/disruption-in-the-mid-market-how-technology-is-fueling-growth.html 5 National Center for the Middle Market, in collaboration with The Ohio State University Fisher College of Business and GE Capital, Middle Market Indicator 2Q 2015, middlemarketcenter.org 6 American Express, American Express Survey of Mid-sized Companies, September 9, About the Survey The 2015 Mighty Mid-Market Growth Leaders Survey was conducted by Decision Tree Labs and sponsored by Time Warner Cable Business Class. * It invited previously identified high growth companies with employees and $50 million-$500 million in revenue. Responding titles included Owner, CEO, COO, CTO, CIO, CSO, IT Director, VP of IT, Systems Administrator, Systems Engineer, Database Administrator and Department Director. The survey received 290 responses. 7 Carey, Rob. Building a Cloud Technology Blueprint for Your Company, August 17, American Express, American Express Survey of Mid-sized Companies, September 9, National Center for the Middle Market, in collaboration with The Ohio State University Fisher College of Business and GE Capital, Middle Market Indicator 2Q 2015, middlemarketcenter.org Time Warner Cable Business Class and the TWCBC logo are trademarks of Time Warner Inc., used under license. * TWCBC is now Spectrum Enterprise Charter Communications. All rights reserved.