appendix technology in the mid-market—embracing disruption · determine the role that technology...

Technology in the mid-market—Embracing disruptionAppendix—Full survey resultsAugust 2018

From May 16 to June 4, 2018, a Deloitte survey of mid-market companies was conducted by OnResearch, a market research firm. The survey examined technology trends taking place in this market segment to determine the role that technology plays and how it influences business decisions.

The 500 survey respondents represented mid-market companies with annual revenues ranging from $100 million to a little over $1 billion. Half of the respondents were C-suite executives, while the remaining executives held other management roles. Eighty percent of the respondents represented companies that are privately held, while the remainder were publicly-traded firms. Thirty-three percent of the respondents were from consumer and industrial products companies; 24 percent represented technology, media and telecommunications companies; the remainder were divided among energy and resources, financial services, life sciences and health care, and other industries.

The report based on these survey findings, Technology in the mid-market—Embracing disruption, can be found on our website at www.deloitte.com/us/mid-market-technology.

Technology in the mid-marketEmbracing disruption

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Technology in the mid-market—Embracing disruption

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Business environment


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Role and value of technology

Speed the pace of transactions and business interactions


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Role and value of technology (cont.)

Developing new talent strategies to attract, recruit and retain an inclusive workforce

Enhancing learning and development — experiential format using case studies, simulation and experiential learning, gamification technologies and cognitive skills

Increasing focus on flexibility and well-being programs

Driving a culture of open and transparent communication with leadership

Internal crowdsourcing, focus on job rotations, global mobility and diverse experiences

Other

Not applicable/Don’t know

It has allowed us to become more agile in product/service development

It has allowed us to engage with a more diverse pool of workers

It has allowed us to develop entire new lines of business

We have been able to enter new geographic markets

We do not engage “gig” workers (freelance or contract talent)

Other

Don’t know/Not sure

Our company plans to hire more people than we did before implementing new technologies

Our company’s hiring needs have not changed

Our company is looking for fewer people, with a focus on specific technical skillsets

Technical complexity (e.g., integrating with legacy systems)

Reskilling employees to realize the greatest benefit from new technology tools

Redesigning jobs and tasks to make it easier for people and machines to work together

Recruiting new talent

Including skills related to robotics, artificial intelligence (AI), and cognitive analytics in competency requirements and performance assessments

Use of crowdsourcing to address select business problems

Redeploying employees replaced by robotics, AI and cognitive technologies

Leveraging the “gig” economy (e.g., freelance or contract talent)


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Role and value of technology (cont.)

We are expanding investments in emerging technologies

We have made new hires/intend to hire new talent to expand our digital capabilities

We are considering strategic, technology-focused acquisitions

We are considering the relocation of off-shored IT and R&D operations back to the United States to take advantage of lower tax rates

We are anticipating/considering acquisition offers from foreign buyers

We do not plan significant operational changes based on the passage of tax reform legislation

Using analytics to anticipate business trends and/or predict business outcomes

Managing cyber-security and information security risk

Reducing IT costs and simplifying IT architecture

Business innovation — developing new products and services

Modernizing and transforming legacy systems

Aligning business processes to capitalize on technology-enabled opportunities

Moving toward a cloud-first (or cloud-only) architecture

Acquisition of talent required to support emerging technologies

Adjusting/redesigning current IT organization operating model

Managing cyber-security and information security risk

Business innovation — developing new products and services

Reducing IT costs and simplifying IT architecture

Modernizing and transforming legacy systems

Using analytics and cognitive technologies to anticipate business trends and predict outcomes

Aligning business processes to capitalize on technology-enabled opportunities

Moving toward a cloud-first architecture

Adjusting/redesigning current IT organization operating model

Acquisition of talent required to support emerging technologies


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IT governance and oversight

Building and developing IT governance and processes and structures

Investigating IT process and improvement, but no formal governance in place

Little to no formal IT processes, structures, or awareness

}

Lack of resources to build and develop IT governance processes and structures

Cost

Lack of understanding of the importance of IT governance within the C-suite

Cybersecurity risk and governance being led by the board of directors

Understanding data management privacy protocols

Increased awareness of ethical obligations toward customer data


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Technology spend

Educating employees about risks and adhering to security protocols

Investing in advanced security hardare to mitigate security risks

Hiring or contracting with cybersecurity specialists to address security risk

Implementation of new information security processes


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Technology trends

Augmented reality (technology overlay of real environment)

Cloud integration (cloud-to-cloud package integration)

Cognitive computing (including artificial and machine intelligence)








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Employee training, education, and learning (e.g., working remotely, virtual meetings, recruiting, learning)

Marketing and customer service (e.g., virtual demos, tours, product displays, virtual design walk-through)

Operations (e.g., field technicians, warehouse workers using IoT-enabled apps tailored to their unique tasks, advanced machine operation)

Communication and collaboration (e.g., virtual meetings, simulated training environments)

Engineering and design modelling (for products, machinery or construction site plans)

Data visualization allowing multiple individuals to coordinate and plan effectively*

Technology trends (cont.)

Industrial devices (e.g., HVAC, environment sensors, chemical sensors, smart metering, logistics or supply chain tracking)

Machine intelligence sensors (products that provide cognitive contextual monitoring and self-aware data capture)

Wearable devices provided to employees for work or health tracking (e.g., health/activity sensors, trackers, or security devices like body cams, etc.)

Business automation devices

Connected medical devices (e.g., remote sharing of medical data for diagnostics, operational data for preventive automation)

Smart traffic management through connected vehicles or self-driving (autonomous) cars

No action planned — not relevant to our business strategy

Building — in the deployment phase of an AR/VR solution

Experimenting — pilot projects started or being planned in AR/VR

Investigating — interested in the potential opportunities augmented or virtual reality offers

Waiting — no action taken yet

No action planned – not relevant to our business strategy


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We don’t anticipate using cognitive machine intelligence in the next 24 months

Automating the analysis of data to anticipate business outcomes

Using computers to read and encode human communication for data processing

Natural language engines to interpret spoken words to accelerate processing

Robotic process automation to mimic human behaviors or tasks


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High volume, labor intensive, redundant document processing tasks



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Cyber and information security

Employee-introduced risk compromising data or infrastructure

Targeted attacks (by cyber criminals, phishing, “hacktivism,” organized crime, foreign nation threats)

Internal access controls

Integration with external systems (business partners, customers)

Leveraging external cloud hosting providers (e.g., Amazon, MS, Google)

We provide education and training on information security risk and data protection matters

We have a plan in place to manage internal information security threats

We have governance structures and procedures in place concerning information security threats

We have a plan in place to manage external information security threats

We share threat information with law enforcement and industry peers to avoid risk isolation

We do not currently have plans in place to mitigate information security risks


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Blockchain

Storing and securing digital records (providing control of both data and assets)

We are evaluating blockchain and expect to implement at some level

Executing smart contracts (automates contracts and compliance streamlining business processes

Exchanging digital assets (transferring ownership without banks or payment processors)

Readiness of IT to work across enterprise to build proof of concepts that deliver business value

Immature vendor market for blockchain-based solutions

Lack of overarching technical standards for blockchain


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Analytics


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Social media

Attracting new customers and connecting with existing customers via influencer marketing*

Greater customer intimacy (e.g., sales responsiveness, connectivity)

Monitoring and addressing consumer feedback around product experience

Monitoring and addressing consumer feedback around brand

We have teams that monitor messages about our brand (e.g., online mentions on social platforms, tracking social shares)

We have defined codes of conduct and governance policies for social platforms*

We engage internally through surveys, polls, contests, etc.

We engage externally through surveys, polls, contests, etc.

We evaluate online mentions on a case-by-case basis, but don’t have a defined strategy

We use customizable chatbots (customer support, buying process, analytics)*

We use other automated tools (listening tools) to monitor messages about our brand

We do not have a dedicated team that manages our social strategy


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Survey respondent demographics


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Survey respondent demographics (cont.)


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Deloitte Private PerspectivesThis report is just one example of Deloitte research on topics of interest to mid-market companies, including private enterprises. Deloitte Private Perspectives is a multifaceted program that utilizes live events, signature reports, research publications, webcasts, newsletters, and other vehicles to deliver tailored and relevant insights in an integrated fashion.

Please visit our Deloitte Private website (http://www.deloitte.com/us/ deloitte-private/solutions/deloitte-private-company-services.html) to view additional material on issues facing mid-market companies, including private enterprises.

AcknowledgmentWe would like to thank all survey respondents and interviewees for their time and the insights they shared for this report, Technology in the mid-market—Embracing disruption.

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Roger NanneyNational Managing Partner Deloitte PrivateDeloitte [email protected]

Doug BeaudoinDeloitte Private Consulting LeaderDeloitte Consulting LLP [email protected]

Chris JacksonDeloitte Private Technology LeaderDeloitte Consulting [email protected]

Ranjit BawaPrincipal and Cloud Leader for TechnologyDeloitte Consulting [email protected]

Rick BorelliDeloitte Private Risk and Financial Advisory LeaderDeloitte & Touche [email protected]

Research and editorial leadJanet HastieSenior Marketing ManagerDeloitte Services LP

Report designIsaac Brynjegard-BialikSenior ManagerDeloitte LLP

Maureen BujnoManaging DirectorCenter for Board EffectivenessDeloitte [email protected]

Khalid KarkResearch Director, US CIO programDeloitteConsulting [email protected]

Bob RosoneManaging DirectorDeloitte PrivateDeloitte [email protected]

Wolfe ToneDeloitte Private Tax LeaderDeloitte Tax [email protected]

Contacts

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appendix technology in the mid-market—embracing disruption · determine the role that technology...

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