Analysis

Mid-market perspectives blog

The changing technology landscape

​There is increasing recognition among mid-market companies of the pivotal role that technology can play in achieving their business goals. Results from Deloitte's second annual mid-market technology survey show that cloud-based solutions and business analytics tools that offer "large corporation solutions" to mid-market enterprises can enhance operational capabilities, boost productivity, and provide competitive insights.

The changing technology landscape for mid-market companies

August 18, 2014

A blog post by Irwin Goverman, principal, Deloitte Technology Strategy and Architecture Services, Deloitte Consulting LLP

There is increasing recognition among mid-market companies of the pivotal role that technology can play in achieving their business goals. Results from Deloitte's second annual mid-market technology survey show that cloud-based solutions and business analytics tools that offer "large corporation solutions" to mid-market enterprises can enhance operational capabilities, boost productivity, and provide competitive insights.

  • How has the technology landscape changed for this market segment?
  • Half of the executives surveyed say their companies are currently using or migrating to cloud-based solutions.
  • Forty-one percent of respondents say their leadership now views technology as a “critical differentiator and key to growth,” while another 38 percent view it as “a strategic investment.”
  • Fifty-eight percent report their company’s technology spend as higher or significantly higher in 2014, compared to 45 percent in 2013.
  • Thirty-six percent of respondents are dedicating at least half of their IT budgets to implementation of new technology versus maintenance of existing systems.
  • More companies are using data analytics to convert vast amounts of client and transactional data into targeted marketing campaigns that focus on consumers. However, 27 percent of respondents cite the challenges of dealing with large quantities of unstructured and social media-based data as a significant hurdle in using analytics.

The survey findings also support the notion of technology becoming a great equalizer for mid-market companies. Cloud computing is playing an even greater role in customer-facing operations, with a growing number of firms investigating and employing cloud solutions for their sales and customer management business functions.

Respondents acknowledge there are still challenges, including one-quarter of executives who say it’s difficult to keep up with the rapid pace of change in the technology landscape. And similar to last year’s survey findings, about one-third of respondents expressed continuing concerns about the security of the data and services provided by cloud-based solutions.

Looking ahead to the coming year, priorities for technology managers appear to be shifting, as investments in technology by mid-market companies continue to increase and analytics and mobility will increasingly shape business operations. Emerging technologies like additive manufacturing (3D printing) and wearables also may have an impact on mid-market companies in the future, although this year’s survey did not show significant adoption.

It’s clear from our survey findings that companies that embrace technology and have leadership support are positioned to capitalize on the results. Decisions about what happens next can be shaped by a technology strategy that is forward-looking and considers the opportunities that technology can provide to help increase operational efficiency, boost productivity, and provide better connectivity with customers.

For more information please consult Technology in the mid-market: Perspectives and priorities.

Did you find this useful?