Midmarket firms that adopt a holistic organization-wide digital transformation strategy are growing at 2.2X vs. Siloed digital transformation strategy. They are also experiencing 2.1X business process cost reduction, 1.9X better customer intimacy and 1.4X improved employee productivity vs. Siloed adopters. Techaisle’s US midmarket digital transformation trends study shows that it pays to have an organization-wide, holistic digital transformation strategy. Survey of 876 US midmarket firms reveals that Holistic adopters are experiencing better business outcomes than Siloed adopters of digital transformation.
We are all responsible for the pace of change – and to ensuring that it benefits rather than threatens our success. Nowhere is this clearer than with digital transformation – the adoption of digital infrastructure as the foundation for digital business processes, which enhance operational efficiency, employee empowerment, product innovation, customer intimacy, competitiveness and profitability throughout the organization. Businesses that embrace digitalization are more agile, more adept at using technology to accelerate cycle time and expand reach, better able to respond to market opportunities and requirements – while those that are left behind face an uncertain future in which one wrong step can lead to diminished business viability.
For example, drilling down into the first point – Holistic adopters growing at 2.2X the Siloed adopters, data shows that nearly 3/4th of midmarket firms in the Holistic segment are high revenue growth. Connected & automated processes contribute to efficient operations & business agility. On the other hand, within the In-the-shadows segment, nearly 3/4th of midmarket firms are experiencing average growth or declining growth.
This data also poses a ‘chicken and egg’ quandary: is high growth the consequence of an advanced approach to digitalization? Or is digitalization a luxury that only high-growth firms can afford to invest in? There is probably truth in both statements. Connected and automated processes will drive operational efficiency and overall agility. At the same time, Holistic firms have larger IT budgets and higher growth in IT budgets, so they are better able to allocate funds to innovative initiatives and less consumed by ‘keep the lights on’ maintenance spending.
Perhaps the best answer is that the two sides of the issue combine in a virtuous circle: that the efficiencies gained through digitalization drive higher growth and a better understanding of the value of investments in digitalization, which attracts more funding for digital transformation initiatives, which then drives improved economic performance. Digitalization solution marketers who use this construct will be able to blunt ‘yeah, but more money’-type objections, and draw meaningful connections between their offerings and business success.
Related insights blogs:
Techaisle study reveals four midmarket segments by digital transformation strategy and vast untapped potential
Techaisle study reveals four pillars of midmarket digital transformation
Exclusive survey research report:
Techaisle’s US midmarket digital transformation trends study