Techaisle Blog

Today, there are several different frameworks that are being used. One of the most common is a six-step process from awareness to purchase. Techaisle’s view is that a buyer-centric marketing framework should consist of four stages which can be easily understood and actionable. Techaisle’s four-stage framework begins from the stage when a business need is generated within a firm and search begins for a technology solution. These four stages are:

1. Identification of business requirements / needs,
2. Determination of technology requirements to meet business needs,
3. Identification of potential solutions and suppliers,
4. Selection of solution and supplier

In each of the above stages it is important for the marketer to understand the decision-making unit, the decision makers and their care-abouts.

Consider these facts from Techaisle’s SMB and midmarket buyer’s journey research:

• 275% increase in number of decision makers in the last decade
• 87% of firms search for partners to help simplify technology
• 74% of IT purchases are triggered by an acute business pain point
• 70% of the buyer’s journey is complete before first meaningful contact with a potential supplier
• 56% of buyers are millennials and Gen-Zs are not far behind
• 24% of firms use six or more information sources

In 2018, 41 percent of US midmarket firms had set their ambitions on a “Holistic” digital transformation strategy, meaning that these firms believed that Internet and digital technologies impacted every aspect of their business and should be a core part of their organizational strategy. In 2019, midmarket firms have tempered their ambitions and only 27 percent believe in holistic strategy. Nevertheless, the percent of midmarket firms with “Inclusive” digital transformation has remained unchanged at 43 percent. These firms believe that digital transformation while important is still a subset of strategic planning but not seen as critical business-wide. Both the 2018 and 2019 surveys were conducted with 876 midmarket firms.

Good news is that 17 percent of midmarket firms have either completed or have substantially completed their digital transformation journey. Another 46 percent are focusing on digitally transforming their businesses in the next 1-2 years. Highest planned adoption at 41 percent is coming from high-growth midmarket firms.

So what changed in the last 1-2 years?

Techaisle has released its annual research infographics on top 10 IT priorities, business issues and IT challenges of SMBs (1-999 employees), midmarket firms (100-999 employees) and small businesses (1-99 employees) for 2019. In its detailed SMB survey Techaisle investigated 21 different technology areas and several technology sub-categories, 23 different IT challenges and 21 different business issues. This is the 9th year of Techaisle’s annual survey research initiative that probes for top business issues, IT priorities and IT challenges. Tracking history provides a fascinating evolution in which new business goals drive new IT priorities and uncover challenges that must be addressed to enable progress on business objectives.

Primary research was conducted among senior IT and business decision makers from Techaisle network of 1.2M B2B IT professionals spread across 30+ countries.

There are some interesting differences in IT priorities as compared to 2018. IoT and VR/AR fell below top 10 (but still within top 15) and replaced by Voice/Digital assistants as well as Open source solutions. Across all regions (US, Europe, Asia/Pacific, Latin America) digital unified workspace and software-defined are becoming a priority for both SMBs and midmarket firms. Security many places within the top 10 IT challenges in different forms – cloud security, mobile device security, data protection/recovery/business continuity – with Cloud security as the top IT challenge.

Global SMB & Midmarket IT spend (excluding telecom services) in 2019 is projected to be US$665B and corresponding cloud spend is expected to be US$115B. Research also found that IT budget growths in 2019 will be the highest in Asia/Pacific (6.2%) and lowest in Latin America (1.8%). While IT budget constraint is not the top challenge within SMBs in the US and Asia/Pacific, it is the top concern in Latin America.

Managing data growth is continuing to pose challenge for SMBs and when probed further Techaisle research found that only 11% of SMBs and 29% of midmarket firms have evidence-driven culture with data-driven decision-making business processes in which data defines requirements or opportunities and management then determines the best option for moving forward. In the US, 17% of small business and 34% of midmarket firms consider themselves to be innovative.

2019 Top 10 SMB business issues, IT priorities, IT challenges

A Techaisle survey of nearly 900 midmarket firms in the US found that 41% of midmarket firms believe digital technologies impact every aspect of the business and are a core part of organizational strategy and more than one-third of midmarket businesses – 34% - believe that digital transformation is a key to customer intimacy. Executives are surrounded by examples of organizations that are using data – drawn from integrated internal systems, or from social media, or from far-flung sensors, or from third party services, or from a mix of all of these sources – to improve the key operating parameters of their businesses. Midmarket firms anticipate 21% improvement in upsell/cross-sell, 20% improvement in brand image and 19% improvement in customer satisfaction as outcomes of a successful DX strategy.

DX-enabled organizations generate more revenue from cross-sell/upsell; they have greater customer loyalty; they are able to open new markets and introduce new products and services faster and with better payback periods. And they do this through customer intimacy – by better understanding what their clients want and need, and by being agile in responding to these wants and needs. Techaisle research finds, in fact, that performance metrics that are tied to customer intimacy – improved upsell/cross-sell of products, improved brand image, and better customer satisfaction and retention – are the areas expected to improve the most as a result of digital transformation in the organization.

The constraints
Building customer intimacy is a little bit like making Baked Alaska: the promise is delicious, but the method is mysterious. With Baked Alaska, it’s the notion that ice cream can emerge from an oven unmelted. With customer intimacy, it’s the mystery of how to successfully aggregate data and integrate it with customer-facing activities.