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Us Dges Technology Perspectives 080513

A Deloitte survey conducted in 2013 revealed that mid-market companies are increasingly viewing technology, particularly cloud and mobile solutions, as a strategic asset for growth rather than just an expense. The survey indicated that nearly half of the respondents prioritize technology investments to boost productivity and reach new customers, while also addressing security concerns related to data privacy. Overall, the findings suggest a cautious yet optimistic approach among mid-market executives towards leveraging technology for competitive advantage and global expansion.
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0% found this document useful (0 votes)
4 views32 pages

Us Dges Technology Perspectives 080513

A Deloitte survey conducted in 2013 revealed that mid-market companies are increasingly viewing technology, particularly cloud and mobile solutions, as a strategic asset for growth rather than just an expense. The survey indicated that nearly half of the respondents prioritize technology investments to boost productivity and reach new customers, while also addressing security concerns related to data privacy. Overall, the findings suggest a cautious yet optimistic approach among mid-market executives towards leveraging technology for competitive advantage and global expansion.
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© © All Rights Reserved
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Perspectives on technology

Mobility and the cloud in the mid-market


About the survey
From April 26 to May 21, 2013, a Deloitte survey conducted by OnResearch, a market research firm, focused on technology issues for mid-market
companies. The 466 survey respondents were from businesses with annual revenues from $100 million to more than $1 billion, and 65 percent
were senior executives.

Almost half of respondents were from consumer and industrial product companies or the financial services sector, with the remainder divided
among the following: technology, media and communications, energy and resources, life sciences and health care, and other industries.

The full survey results are included in this report; some percentages in the charts may not add to 100 percent due to rounding, or for questions
where survey participants had the option to choose multiple responses

This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business,
financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision
or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its
affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

As used in this document, “Deloitte” means Deloitte LPP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain
services may not be available to attest clients under the rules and regulations of public accounting.
Contents

2 Executive summary
4 Technology: the great equalizer
8 Cloud and mobile: putting the customer first
12 The next stage: addressing security concerns
14 Conclusion: nothing ventured, nothing gained
16 Appendix: full survey results
Executive summary

In new and exciting ways, midsized companies are turning 1. Technology is seen as a catalyst for growth
to technology to help improve their business. While these Echoing the findings of Deloitte’s report, Mid-market
companies have always had a basic need to manage their perspectives: 2013 report on America’s economic engine,
resources carefully by focusing on areas that provide the respondents to our technology survey indicate that mid-
best return on their investment, increasingly, emerging market executives are optimistic about their businesses, and
technologies are providing just that. New solutions tied that growth initiatives take precedence over cost-cutting as
to the cloud and mobile are allowing middle market a priority. What’s more, they see technology as a key driver
businesses to boost back-office productivity, reach new of that growth in the year ahead. Once predominantly
customers, and reinforce their culture. seen as an expense, technology is now viewed by more
business leaders as a worthwhile investment and a source
These are among the findings of a recent Deloitte-sponsored of strategic advantage. Additionally, the advent of cloud-
survey of mid-market IT executives, who indicate they either based technology offers more affordable alternatives for
are already tapping the potential of emerging technologies, mid-market companies as they work to drive growth in
or are laying the groundwork for their adoption. Our their organizations.
respondents make it clear that they are approaching new
technologies such as cloud and mobile as they would any The linkage between technology investment and focus on
new product or service rollout: through careful assessment, growth helps explain why nearly half of those surveyed
pilot testing, evaluation, revision and development. report their companies are spending more on technology
this year than they did in 2012. A large number of those
While today’s pace of business creates a sense of urgency surveyed also say their organization sees technology playing
for companies big and small, mid-market competitors an important role in accelerating growth and effectiveness,
are finding this deliberate approach especially useful for as well as a means to both compete on a differentiated
generating early successes with limited resources. It is also basis and support efforts to globalize. Media, technology
allowing them to evaluate the various security and privacy and telecommunications companies lead the way in this
considerations in employing new technologies as they respect, but other sectors are not far behind.
continue down the road toward their further adoption.
Recognizing technology’s increasing value, the vast
Our report identifies three overarching themes as mid- majority of the mid-market companies surveyed now have
market companies work to address these and other a dedicated executive to identify, set and oversee the
considerations. technology agenda.

New solutions tied to the cloud and mobile are allowing


middle market businesses to boost back-office productivity,
reach new customers, and maintain or build their culture.

2 Perspectives on technology
2. New technology forays are focused on the customer surveyed say issues concerning data privacy and security
Mid-market companies are moving deliberately toward risks are giving them pause, and the issue is cited as the
greater technology adoption, in many instances focusing prevailing challenge in using cloud-based services.
on functions such as customer relationship management
(CRM) and sales force automation (SFA). At the same time, change from within — specifically,
employees’ use of mobile devices — is increasing the
Even those businesses that are just investigating cloud urgency for IT leaders to understand the security and
services say they will begin their journey with sales and privacy ramifications. Many of the companies we surveyed
customer management business activities, rather than have yet to establish policies and procedures for remote
targeting more operationally critical functions such access to data and smart phone use. As many larger
as manufacturing and finance. Many of these initial companies have done, their mid-market counterparts
technology successes have helped them make internal will likely have to proactively work to mitigate such risks
work streams more efficient, though our respondents say through organized assessments, development of plans and
they have started to look into deploying new technologies policies, and rigorous monitoring.
“outside the walls” through platforms such as consumer-
facing mobile applications. Overall, our survey suggests that change is not only coming
to the middle market, but that it has already arrived
3. Security concerns are hampering IT adoption for many companies. Leading mid-market CEOs, CFOs,
Security of information is a concern for many mid-market and CIOs appear to be embracing technology’s promise
CIOs, and it helps explain why their early deployment of as a competitive differentiator for supporting growth,
new technologies has been limited to peripheral sales maintaining an entrepreneurial culture, and increasing
support functions. Nearly four in every 10 executives we competitiveness — albeit with a healthy dose of caution.

Tom McGee Irwin Goverman


National Managing Partner Principal
Deloitte Growth Enterprise Services Deloitte Technology Strategy and Architecture Services
Deloitte LLP Deloitte Consulting LLP

Mobility and the cloud in the mid-market 3


Technology
The great equalizer

Two decades ago, if you asked mid-market executives Technology and growth
how they planned to compete and win against larger Earlier this year, Deloitte released a survey of mid-market
competitors, they would most likely have cited a executives that found they are poised for growth despite
combination of superior strategy, adaptability, nimbleness, ongoing headwinds facing their businesses and the
execution, and talent. Perhaps the last thing you would economy at large. Mid-market perspectives: 2013 report
have expected them to prioritize was technology. With on America’s economic engine showed that mid-market
many best-in-class technology solutions plagued by high companies spent the past year taking steps to grow
price tags, IT leaders at smaller companies faced an their revenue, boost productivity, and fine-tune their
uphill climb — hindered by lack of resources, the inability competitive positions.
to focus on large implementations, and lack of access
to capital — in trying to make the case for technology Our current technology survey findings echoed this sense
investments over other pressing business needs. of optimism. Eighty-two percent of the respondents
indicate their company’s revenues increased over the last
But today, advances in cloud computing, data analytics 12 months, and nearly as many — 78 percent — report
and mobile platforms are lowering the barriers to IT they are at least “cautiously optimistic” about the business
entry and promising new insights and capabilities at a outlook over the coming year.
fraction of the cost of the more traditional systems that
were predominant in the past. Deloitte’s Tech Trends It is interesting to note the prevalence of executives
2013 report points to the power of the Postdigital who say their companies are more focused on growth
Enterprise™ — an organization that is able to harness the initiatives than cost-cutting. Deloitte Services LP’s Michael
disruptive forces of analytics, mobile, social, cloud and E. Raynor and Deloitte Consulting LLP’s Mumtaz Ahmed
cyber to more quickly understand their customers, help recently published a book based on a statistical study of
improve operations, and elevate their performance. In this thousands of companies to isolate three rules that help
emerging postdigital era, mid-market CIOs are combining explain how companies achieve exceptional results over a
such advances with breakthrough thinking in strategy, long period of time.2 One of the principles they identified
operations and human capital to gain more clout in the is to prioritize increasing revenue over reducing costs. The
organizational hierarchy.1 technology survey respondents are apparently living this
mantra, as investing in organic growth is ranked as their
Our survey results suggest that such companies’ growth top priority for 2013; cost-reduction initiatives finished a
aspirations are connected in some ways to the importance distant fourth, behind improving operational processes
they place on technology and the internal champions who and supporting technologies, which appear especially
are setting the technology agenda. The findings paint a important to family-owned businesses in the coming year.
picture of an increasingly engaged market segment that per-
ceives technology as a strategic asset, capable of supporting
organizations’ growth objectives in new and exciting ways.

Our survey results suggest that companies’


growth aspirations are connected in some ways to
the importance they place on technology and the internal
champions who are setting the technology agenda.
1
Suketu Ghandi and Bill Briggs, “CIO as the Postdigital Catalyst,” Tech Trends 2013: Elements of Postdigital, Deloitte, January 2013.
2
Michael E. Raynor and Mumtaz Ahmed, The Three Rules: How Exceptional Companies Think, Portfolio Hardcover, May 30, 2013.

4 Perspectives on technology
As telling, perhaps, is the perception among mid-market respondents who are pessimistic about the outlook. This
companies that technology is or will soon be a key driver correlation applies to actual spending on technology as
of those growth plans. Nearly half of the respondents — well, as executives at companies that increased IT spending
46 percent — report that leadership values the role that over the past 12 months are more than twice as likely to
technology plays as “strategic.” be optimistic about their business prospects (89 percent
compared to 42 percent).
What is more, respondents at companies reporting
revenue growth over the past 12 months are nearly twice As you might expect, this segment of the economy takes
as likely as those companies with decreased revenue to a cautious and practical view of technology investments.
see technology as a strategic asset. Just over one in three A third of the respondents describe their company’s IT
points to technology playing an important role toward adoption and implementation as “pragmatic” in comparison
growth and effectiveness at their company, and that they to their peers — a finding that was pronounced among life
have made a significant investment in IT. Almost half of the sciences and health care executives (53 percent). Twenty-
executives — 45 percent — say their company’s current eight percent call their company a “fast follower,” with only
level of spending on technology is higher compared to a 18 percent describing them as “visionary.”
year ago.
These characterizations are replicated in real dollars. The
The more value respondents place on technology at their majority of mid-market companies continue to commit
companies, the more likely they are to be optimistic about 5 percent or less of their revenue to IT, with executives
the business outlook. Among those who are upbeat about from companies in energy and resources and consumer
their prospects over the next 12 months, 60 percent and industrial products indicating their companies spend
believe that technology can increase their organization’s the least. More than a third of technology, media, and
A14. Technology
overall is often perceived
competitiveness, compareddifferently
to just 40 in
percent of A17. What
telecom is your company’s
executives say their current “spend”
companies on more than
spend
organizations. How does your company’s technology? (Please select one.)
5 percent on IT.
leadership value the role that technology plays?
(Please select one.)

How does your company’s leadership value the role What is your company’s current “spend”
that technology plays? (Please select one.) on technology? (Please select one.)

Strategic (not an expense, Our spend is above 5%


but more of an investment) . . . . . . . . . . 45.9% of revenue . . . . . . . . . . . . . . . . . . . . . . . 21.3%
Necessary (sometimes an investment, We spend between 1-5%
but often seen as an expense) . . . . . . . . . 48.5% of revenue on technology) . . . . . . . . . . . 55.3%
Not critical (necessary but certainly Our spend is negligible
not an investment, only an expense) . . . . 5.6% (< 1% of revenue) . . . . . . . . . . . . . . . . . 15.4%
We do not currently have a
separate, identifiable spend . . . . . . . . . . 8.0%

Mobility and the cloud in the mid-market 5


Technology and globalization Technology and headcount
Mid-market companies understand that having a We often think of technology and headcount as having
technology strategy is critical to support global expansion. an inverse relationship, but our respondents indicate a
Today’s workforce expects to tap the power of the willingness to invest in both areas as they pursue their
enterprise anywhere and anytime, but especially at the growth objectives. In this, technology appears to represent
point where decisions are made and where business both an area of direct investment and one that leverages
is transacted. At the same time, dealing with social investments made in other areas, such as personnel,
media requires global collaboration inside and outside geographic expansion and new markets. We see this in
of organizational boundaries and allows companies to the survey, as executives reporting higher technology
interact with consumers individually. spending at their companies are also more likely to
anticipate headcount increases. All told, 60 percent of the
Executives seem to recognize the benefits in going global respondents expect their companies to add employees
and see technology — particularly mobile — as the over the coming year, with 18 percent projecting an
fabric that connects business processes with employees increase of 10 percent or more. Of those executives at
and customers on the ground. Our survey bears this companies seeing increased spending on technology this
out, as nearly two-thirds of the respondents believe that year, 77 percent expect their headcount to increase as well
globalization is important to their company’s overall in the coming 12 months.
strategy — including 31 percent who “strongly agree”
with its importance. Mid-market companies believe they will not have much
trouble finding skilled workers to support or implement
Notably, technology is seen by many as the bridge that will technology purchases, the survey suggests. Nearly two-
help them access new markets. Among executives who thirds of the respondents believe it will be fairly easy
agree that globalization is important to their company’s to find qualified technology experts either within their
strategy, more than half see their companies’ technology organization or in the marketplace. This is an interesting
investments as a strategic imperative. Of those who finding in the face of reported shortages of skilled IT
disagreed that globalization is important, only 26 percent workers in the labor market.3 It also comes at a time
see technology through the strategy lens. In addition, when companies are getting smarter and projecting their
those with global aspirations were more likely than those workforce demands by “thinking like an economist,”
focused on the domestic market to describe their company employing analytics based upon economic indicators and
as “visionary” or a “fast follower.” college graduation projections to better identify, attract,
hire, and retain the appropriate workforce.4

Executives seem to recognize the benefits in


going global and see technology — particularly
mobile — as the fabric that connects business processes
with employees and customers on the ground.

3
Paul McDougall, “U.S. Tech Worker Shortage Looms, Study Warns,” Information Week, March 23, 2012.
4
Barbara Adachi, Michael Gretczko and Bill Pelster, Human Capital Trends 2013: Leading Indicators, Deloitte, May 2013.

6 Perspectives on technology
Technology and leadership engagement One challenge some technology leaders, and especially
Deloitte’s Tech Trends 2013 report noted that CIOs are CIOs, continue to face is that they are not always well
in a unique position to lead change,5 and the executives connected to the business as a whole. Technology may
we polled appear to subscribe to this view. Technology lie at the heart of business strategy for many mid-market
has become important enough at mid-market companies companies, but the survey indicates that one-third of the
to warrant a dedicated executive. The IT leader’s status companies surveyed report technology investments are
and reporting relationship varies by organization. The vast frequently or always made within the business without
majority of companies — 90 percent — report having consulting the IT function. As technology becomes
a CIO or technology director, but only 35 percent say more integral to an organization’s growth, culture and
these roles report directly to the CEO or the president. competitive strategies, this finding suggests CIOs should
Even so, 51 percent report that their organization’s keep pushing to stay in charge of, or at least involved in,
executive leadership is actively engaged in emerging and the technology agenda.
next-generation technologies, with another 10 percent
indicating they are “leading the charge.”

A19. What is the reporting relationship of the


A19. What
head is the reporting
of Information relationship
Technology at yourof the A20. How would you describe the role of
head of Information
enterprise? Technology
(Please select one.) at your executive leadership in your organization with
enterprise? (Please select one.) regard to emerging and next-generation
technologies (including cloud, mobile and
What is the reporting relationship of the head of How would you describe the role of executive leadership
social)? (Please select one.)
Information Technology at your enterprise? in your organization with regard to emerging and next-
(Please select one.) generation technologies (including cloud, mobile and social)?
(Please select one.)

We have a CIO who reports to the CEO


Wesenior
(or have aequivalent,
CIO who reports
such astopresident)
the CEO They are leading the charge
(or senior equivalent,35.2%
such as president) 10.0%
35.2%
We have a position dedicated to technology and this They are actively engaged
We havereports
position a position dedicated
to the CFO or to technology
other non-CEOand this
position 51.5%
position reports to28.5%
the CFO or other non-CEO position
28.5%
They are passive, but willing to be engaged
We have a technology director dedicated to the 25.8%
We have a technology
implementation director dedicated
and production to thesystems
of technology
implementation and production of technology systems
27.0%
27.0% They have bigger fish to fry
11.0%
We do not have a person identified as head of
We do not have
Information a person identified as head of
Technology
Information
8.7% Technology They are actively obstructing change
8.7% 1.7%
Other
Other
0.6%
0.6%

5
Suketu Ghandi and Bill Briggs, op. cit.

Mobility and the cloud in the mid-market 7


Cloud and mobile
Putting the customer first

Technological change can bring disruption of all kinds — Cloud-based services


to business models, to investment strategies, to workforce The survey findings suggest that mid-market companies
needs, and to the competitive landscape. When it comes are further along in the use of cloud-based solutions than
to the postdigital forces emerging today, one could argue one might expect. In fact, 56 percent of the executives
that the potential for disruption has never been greater. say their organization is already using some form of cloud-
Our respondents appear to understand the potential of based service.
new technologies to disrupt not just the competitive
landscape, but also their mainstay business processes and In a separate question, a significant number of the
ongoing operations. respondents — 42 percent — say their company is either
investigating or experimenting with cloud-computing
Middle market technology leaders and their C-suite resources. Additionally, 26 percent describe their organiza-
supporters are taking a cautious approach by focusing first tion as actively building those resources, and 9 percent say
on functional areas that are not core to financial reporting their companies have already led successful deployments.
and regulatory requirements, offer the greatest return
on investment — and pose the least amount of risk. In Notably, CRM services takes the top spot, with another
managing this balance between disruptive innovation and customer-outreach offering — sales force automation —
stability, IT solutions that are focused on the customer — also popular. This suggests that mid-market companies see
such as customer relationship management (CRM) and sales greater opportunity for quick returns from functions that
force enablement services — are proving to be a logical first are not critical to financial and regulatory reporting and
step. In the future, our respondents see these initial forays can increase the top line, as opposed to core functions
transitioning to more widespread IT adoption of social and such as enterprise resource planning and supply chain
mobile platforms, as well as predictive data analytics. management. Among those respondents investigating
cloud-computing resources, 51 percent indicate these
functions are being considered, and marketing was not far
behind, at 39 percent. Finance and tax, by comparison,
come in a distant fourth, garnering only 22 percent.

The survey findings suggest


that mid-market companies
are further along in the use of
cloud-based solutions than one might expect.

8 Perspectives on technology
A21. Which basic information systems do you A27. Which cloud-based services does your
have in place? (Please select all that apply.) A27. Which cloud-based
organization services
currently use? does
(Please yourall that
select
organization currently use? (Please select all that
apply.)
apply.)

Which basic information systems do you have in Which cloud-based services does your organization
place? (Please select all that apply.) currently use? (Please select all that apply.)

Financials and accounting Financials and accounting Financials and accounting Customer Relationship Management (CRM
81.3% Financials and accounting
17.4% 21.5%
81.3%
17.4%
Human resources Human resources Enterprise Resource PlanningHuman
(ERP) resources
65.5% Enterprise Resource
17.8% Planning (ERP) 41.0% 17.8%
11.4%
Customer Relationship Management (CRM) Customer Relationship Management (CRM) Customer Relationship Management
Financials(CRM)
and accounting
54.9% Customer Relationship
21.5% Management (CRM) 54.9% 17.4%
21.5%
Data warehouse/analytics Data warehouse/analytics Human resources Sales Force Automation (SFA)
43.8% Human resources
13.9% 65.5%
15.0%
17.8%
Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) Enterprise Performance Management
Data warehouse/analytics
(EPM)
41.0% Enterprise Performance Management (EPM)
11.4% 29.8% 13.9%
7.1%
Sales Force Automation (SFA) Sales Force Automation (SFA) Manufacturing Resource Planning
Enterprise
(MRP)Resource Planning (ERP)
31.5% Manufacturing
5.4%
15.0% Resource Planning (MRP) 22.5% Original11.4%

Supply Chain Management (SCM)


30.5%
Supply Chain Management (SCM)
Supply 9.4%
Chain Management (SCM)
Supply Chain Management (SCM)
30.5% order
Supply Chain Management (SCM)
9.4%
9.4%
Enterprise Performance Management (EPM) Enterprise Performance Management (EPM) Knowledge Management System Knowledge
(KMS) Management System (KMS)
29.8% Knowledge
7.1% Management System (KMS) 28.8% 9.0%
9.0%
Knowledge Management System (KMS) Knowledge Management System (KMS) Sales Force Automation (SFA)Enterprise Performance Management (EP
28.8% Sales Force
9.0%Automation (SFA) 31.5% 7.1%
15.0%
Manufacturing Resource Planning (MRP) Manufacturing Resource Planning (MRP) Data warehouse/analytics Manufacturing Resource Planning (MRP)
22.5% Data 5.4%
warehouse/analytics 43.8% 5.4%
13.9%
Other Other Other Other
4.1% Other4.3% 4.1% 4.3%
4.3%
My organization
organizationdoes
doesnot
notcurrently
currentlyuse cloud-based
use cloud-based services My organization does not currently use cl
services
My organization does not43.6%
currently use cloud-based services 43.6%
43.6%

For front For


appendix

© 2013 Deloit

Mobility and the cloud in the mid-market 9


Mobile Just as telling are the relatively small numbers of respon-
As large enterprises turn to mobile to get closer to their dents who say their companies have not yet acted on
customers, mid-market companies appear to understand opportunities to introduce mobile to the enterprise (11
that it will be just as important for their companies to stay percent), have only engaged in mobile application pilots
on top of their customers’ wants and needs — and they or trials (11 percent), or don’t see mobile as a strategic
see mobile as a key lever in that respect. priority (8 percent).

Surprisingly, two-thirds of the executives report that their Social and mobile initiatives appear to be far more
organization is either planning (34 percent) or has already important to those mid-market companies where
developed (33 percent) at least one mobile application. globalization is a significant part of their growth strategy,
But actual deployment is taking some time — a separate with nearly twice as many respondents indicating their
question reveals that customer-facing mobile initiatives are organization has distinct plans for social or mobile
underway at only 17 percent of respondents’ companies. business opportunities (55 percent, compared to 26
As with the case of cloud services, mobile’s predominant percent of respondents who disagreed that globalization is
use in the middle market is to enhance productivity in important).
internal settings: while 39 percent say mobile technology is
being used at their companies only for email, calendar and Looking ahead, more than half of the executives —
contacts, more than two-thirds of the overall respondents 55 percent — agree that mobile computing will be a
indicate that mobile computing will be used to increase differentiator for their company. Not surprisingly, those
workforce productivity. in the technology, media and telecom industry are more
committed to this view (72 percent), while life sciences and
health-care respondents were not far behind (61 percent).
These technology-dependent companies are also much
more likely than the general population of respondents to
agree that their organization has distinct plans for social or
mobile business (62 percent versus 48 percent).
A40 Which of the following best describes the A41 Where is your organization seeing the most
status of your organization’s development of a traction with respect to mobile? (Please select
mobile application? (Please select one.) one.)

Which of the following best describes the status Where is your organization seeing the most traction
of your organization’s development of a mobile with respect to mobile? (Please select one.)
application? (Please select one.)

We currently have developed at least Business to employee . . . . . . . . . . . . . . . 37.3%


one mobile application . . . . . . . . . . . . . 33.0% Business to consumer . . . . . . . . . . . . . . . 37.3%
Business to business . . . . . . . . . . . . . . . 25.4%
We are planning on building at least one
mobile application in the next year . . . . . 34.4%

We are not planning on building a mobile


application in the next year . . . . . . . . . . . 32.6%

10 Perspectives on technology
Analytics When it comes to strategic decision making, leading
As digital technology transforms the ways companies businesses are beginning to see the value of applying
reach out to customers and build their brands, it is also advanced analytics to areas such as risk management,
creating a wealth of data. At least for now, though, product development, reputation management and supply
most mid-market companies are only scratching the chain operations in a bid to remove the “unknowns” and
surface of what data can reveal about their customers detect early signals of change. To stay competitive, mid-
and future market opportunities, according to our survey. market companies should continue to evolve in their use of
The majority of executives — 58 percent — report that analytics by turning to customer data not just to support
their organization’s focus on analytics is using data to their marketing decisions, but to manage processes and
help manage the business, while 16 percent say analytics deliver new insights between and across functional areas
are being used to review historical data. Only one in throughout their organization
five reveals that their company is focused on leveraging
analytics to facilitate predictive decision-making.

Most mid-market companies are only scratching


the surface of what data can reveal about their
customers and future market opportunities.

Mobility and the cloud in the mid-market 11


The next stage
Addressing security concerns

Mid-market companies may be putting plans in motion to Despite security issues with emerging technologies, many
seize the opportunities afforded by new technologies such of the respondents indicate they do not have policies
as cloud and mobile, but it is clear that security concerns and procedures in place to manage the growing array of
are acting as a speed bump on the road to adoption. In devices employees are using to conduct their work. Nearly
other cases, companies may be overlooking key security a quarter of the executives reveal that their companies
aspects of new technology initiatives, potentially creating subsidize device purchases made by employees. Nearly a
risks for the organization. fifth of the companies in the survey have official “Bring
Your Own Device” (BYOD) policies, where the firm
“There is no such thing as hacker-proof,” Deloitte’s Tech subsidizes data and voice charges.
Trends 2013 report concluded, given how well-resourced,
capable and methodical cyber criminals are these days.6 While this trend is accelerating the mid-market’s evolution
This growing threat suggests organizations move from toward adopting new technologies by forcing change
a reactive stance to a more proactive position, creating from within, it may be getting ahead of companies’ ability
a systematic enterprise-wide program to quickly detect, to prepare for it. Slightly less than two-thirds say their
isolate and contain an event when it occurs. company has an integrated set of policies and procedures
for remote access to data and smart phone use, and less
Confidence in information security is top of mind for than half say they have policies relating to tablets, social
our respondents, as 35 percent see the issue as the media, and instant messaging.
greatest challenge in deploying or using cloud-based
services. Ensuring data integrity and reliability ranks a As emerging technologies begin to take firmer root in the
close second (30 percent). We know that were it not for middle market, forward-thinking leaders should work to
security concerns, mid-market companies would likely proactively mitigate potential business risks by building
be embracing the cloud more. Nearly four in every 10 the requisite due diligence and security strategies into
executives surveyed say issues concerning data privacy their technology plans. Adopting a different mindset, one
and security risks are holding them back from adopting in which security and technology are incorporated into
cloud-based services. Of those respondents, security is the the business planning cycle, can empower mid-market
predominant concern among 76 percent of them; that companies to stay ahead of the adoption curve.
figure rises to 84 percent at public companies.

Mid-market companies may be putting plans


in motion to seize the opportunities afforded by
new technologies such as cloud and mobile, but it is clear
that security concerns are acting as a speed bump on the
road to adoption.

6
Kelly Bissell and Kieran Norton, “No Such Thing as Hacker-Proof,” Tech Trends 2013: Elements of Postdigital, Deloitte, January 2013.

12 Perspectives on technology
A31 What is the most significant factor A32 What are the data privacy and security risk
influencing the pace of your organization’s issues of concern to your company? (Please
current adoption of cloud-based services? select all that apply.)
(Please
What is select one.)
the most significant factor influencing the What are the data privacy and security risk issues of
pace of your organization’s current adoption of concern to your company? (Please select all that apply.)
cloud-based services? (Please select one.)

Security
76.0%

Reliability/performance
55.3%

Long-term viability of platform providers


37.4%

Other
Understanding business drivers and 2.2%
value proposition of cloud . . . . . . . . . . . 12.9%
None of the above
Issues concerning data privacy 0.6%
and security risks . . . . . . . . . . . . . . . . . . 38.4%

Integrating with existing applications Don't know


and infrastructure . . . . . . . . . . . . . . . . . . 25.3% 1.7%

Funding, staffing and talent . . . . . . . . . 10.3%


No need at this time . . . . . . . . . . . . . . . 13.1%

Adopting a mindset in which security and


technology are incorporated into the business
planning cycle can empower mid-market companies
to stay ahead of the adoption curve.

© 2013 Deloit

Mobility and the cloud in the mid-market 13


Conclusion
Nothing ventured, nothing gained

Our technology survey findings reveal that a slice of the mid-market is taking
bold steps toward tapping the significant value of new technologies such
as the cloud, social, and mobile. But these findings also point to a careful,
measured approach, perhaps to reduce risk.

Still, there comes a time when every company with growth aspirations
should venture into unfamiliar terrain. New technology brings new risks,
but risk is already omnipresent. We see it in the regulatory environment,
the nature of competition, corporate culture, geopolitics, and many other
aspects of business. Risk is a given, and a way to avoid it altogether is to shy
away from opportunity.

Given how much new technologies have penetrated everyday commerce,


this may not be a realistic option. As our survey results show, cloud-based
services are making serious inroads in critical business support areas, and
mobile is here to stay, with companies and their employees significantly
increasing the use, contribution, and value of this technology. And while
many companies may not yet be taking full advantage of the potential of
data analytics, the power of predictive insights they promise can also be
enticing for growing companies. It’s a good bet that if your company isn’t
marshaling these technologies, your competitors are.

14 Perspectives on technology
Leaders of mid-market companies may want to ask themselves:

• Are we taking advantage of the lower cost of entry, flexibility, and reduced
implementation time offered by cloud-based technology?
• Given that mobile is not a trend, but rather a proven, valuable platform,
do we have a strategy to better connect our people and get closer to our
customers?
• Are we successfully complying with the regulatory and internal
requirements around confidentiality, data protection, and security?
• How can we get more insights out of our analytics efforts?

Some positive next steps include evaluating the potential of better and higher
value use of technology, especially cloud and mobile, while establishing
processes for managing it. Based upon the survey results, it appears that it is a
journey well worth taking for growing and successful mid-market companies.
The English poet Geoffrey Chaucer couldn’t have fathomed what would be
technologically possible more than six centuries ago, but his take on risk still
resonates today: “Nothing ventured, nothing gained.”

Mobility and the cloud in the mid-market 15


Appendix: full survey results

Note: some percentages in the charts throughout this report may not add to 100% due to rounding,
or for questions where survey participants had the option to choose multiple responses.

Acknowledgment
We would like to thank all survey participants, whose responses helped determine the focus of this report.
Business strategy and growth
A7. Over the last 12 months, my company’s A9. Based on your company’s performance over A12. Please rank your company’s top three
revenue has… A12.do
the past 12 months, how Please rank your
you expect yourcompany’s top
A12.three
strategic
Pleasepriorities over
rank your the next 12
company’s topmonths
three in
company’s headcount strategic
A12.toPlease
change priorities
over
rank the
your over
nextthe next
company’s top12 months
order
strategic
A12.
threePlease inrank your
of importance.
priorities over the next 12
company’s topmonths
three in
year? order
strategic
A12. of
Pleaseimportance.
priorities overcompany’s
rank your order
the next 12top
months
A12. ofinimportance.
strategic
three
Pleasepriorities over
rank your the next 12
company’s topmonths
three in
Over the last 12 months, my company’s revenue has… order
Based on your company’s of
strategicimportance.
priorities over
performance the next 12order
overthe Please of
strategic
months importance.
in
rankpriorities over the next
your company’s 12 months
top three in
strategic
past 12 months, howorder of expect
do you importance.
your company’s order of importance.
priorities over the next 12 months in order of
headcount to change over the next year? importance.

Increased up to 5% Increase up to 5% Investing in organic growth


25.3% 23.0% Investing in organic growth Investing in organic growth30.5%
Investing in organic growth 30.5% 16.3% growth
Investing in organic 30.5%
Increased 5% to 10% Increase between 6% Investing
and 9% in organic 16.3%growth
30.5% Investing10.5%
in organic
16.3% growth30.5%
31.5% 18.7% 10.5%
16.3% 30.5% 10.5%16.3% 30.5%
10.5% 16.3% Mergers 10.5%
and16.3%
acquisitions
Mergers10.5% and acquisitions Mergers 10.5% 21.9%
and acquisitions
Increased more than 10% Increase 10% or more
Mergers and 21.9%
acquisitions Mergers 9.2%
and 21.9%
acquisitions
25.8% 18.5%
Mergers and 9.2% acquisitions
21.9% Mergers7.9%
and acquisitions
9.2% 21.9%
7.9% 21.9%
9.2% 9.2% 21.9%
7.9%
Decreased by 5% or less No change/stay the same Improving operational processes and supporting technologies
9.2%
7.9% 9.2%
7.9%
10.1% 26.0% Improving
7.9%operational processes and Improving supporting technologies
12.0%
7.9% operational processes and supporting technologies
Improving operational12.0% processes and supporting Improving 12.0% 19.3% processes and supporting technologies
technologies
operational
Decreased between 5% and 10% Decrease by 5% or less Improving 19.3%processes and supporting
operational
12.0% Improving12.0%
technologies
operational
19.3% processes and supporting technologies
17.6%
4.7% 9.0% 12.0% 17.6%
19.3% 12.0% 19.3%
17.6%
19.3%
17.6% Cost-reduction initiatives
19.3%
17.6%
Decreased more than 10% Decrease between 6% and 9% Cost-reduction 17.6% initiatives 11.2%
Cost-reduction initiatives
17.6%
2.6% 2.1% Cost-reduction 11.2%initiatives 13.3%
11.2%
Cost-reduction initiatives
Cost-reduction
11.2% 13.3%initiatives Cost-reduction
11.2% initiatives
17.8%
13.3%
Decrease 10% or more 11.2%
13.3%17.8% 11.2%
13.3%
17.8%
2.8% 13.3%
17.8% Navigating13.3%
changes
17.8%in the regulatory environment
Navigating changes in the regulatory Navigating environment
7.3%changes
17.8% 17.8%in the regulatory environment
Navigating 7.3%
changes in the regulatory environment
Navigating10.5%
7.3% changes in the regulatory environment
7.3%10.5%
Navigating changes in the regulatory environment
Navigating
7.3%
9.7%changes in the regulatory environment
10.5%
7.3%
10.5%9.7% 7.3%
10.5%
9.7%
10.5%
9.7% Strategic9.7%
divestiture of current assets
10.5%
A10. For the next 12 months, my company’s A11. Please indicate your Strategic
level divestiture
of agreement of current assets Strategic
5.2% divestiture of current assets
9.7% 9.7%
overall business outlook appears to be… with the following Strategic
statement: 5.2%
divestiture of currentisassets Strategic
“Globalization 6.4%
5.2% divestiture of current assets
important to my company’s Strategic
5.2% 6.4%
divestiture
overall of current assets Strategic
strategy.” 5.2%
4.5%
6.4%divestiture of current assets
5.2%
4.5%
6.4% 5.2%
6.4%
4.5%
For the next 12 months, my company’s overall Please indicate your level 6.4%
of agreement with the
4.5% Improving
6.4%overall enterprise risk profile, processes, and programs
4.5%
business outlook appears to be… Improving overall
following statement: “Globalization is enterprise
importantrisk
to profile, processes,
Improving and enterprise
4.7% overall programs risk profile, processes, and programs
4.5% 4.5%
my company’s overall Improving 4.7%
strategy.” overall enterprise risk profile, Improving
processes,
7.1%
4.7% overall
and programs
enterprise risk profile, processes, and programs
4.7%7.1%
Improving overall enterprise risk profile,Improving
processes,
4.7%
7.1% overall
and programs
12.7% enterprise risk profile, processes, and programs
4.7%
7.1% 12.7% 4.7%
7.1%12.7%
7.1%12.7% Making7.1%
changes
12.7%in our business model
Making changes in our business model 4.1%
Making changes
12.7% 12.7%in our business model
Making4.1% changes in our business model Making changes in our business model
7.1%
4.1%
Making 7.1% in our business modelMaking
4.1%changes 4.1%changes in our business model
9.4%
7.1%
4.1%
7.1% 9.4% 4.1%
7.1%
9.4%
7.1% Making7.1%
changes to financial processes and supporting technologies
9.4% 9.4%
Making changes to financial processesMaking and supporting
3.2%changes to technologies
financial processes and supporting technologies
9.4% 9.4%
Making3.2% changes to financial processes and Making
supporting
3.2%changes
10.7%technologies
to financial processes and supporting technologies
Making
3.2%changes 10.7%to financial processes Making and 3.2%
supporting
changes
10.7% technologies
9.9% to financial processes and supporting technologies
3.2% 9.9%
10.7% 3.2%9.9%
10.7%
10.7%
9.9% 10.7%
9.9%
Optimistic . . . . . . . . . . . . . . . . . . . . . . . 27.8% Strongly agree . . . . . . . . . . . . . . . . . . . . 31.1%
9.9% Ranked9.9%
first
Cautiously optimistic . . . . . . . . . . . . . . . 49.6% Agree . . . . . . . . . . .Ranked
. . . . . .first
. . . . . . . . . 33.3%
second
Ranked first
Neutral . . . . . . . . . . . . . . . . . . . . . . . . . 16.1% Neither agree nor disagree Ranked . . . . . . . . . . . 18.5%
Ranked firstsecond Ranked third
first
second
Pessimistic . . . . . . . . . . . . . . . . . . . . . . . 5.2% Disagree . . . . . . .Ranked
.Ranked
.Ranked
. . . .second
.first
.third
. . . . . . . . . 12.2% first
second
Ranked third
Highly pessimistic . . . . . . . . . . . . . . . . . . 1.3% Strongly disagree .Ranked
.Ranked
. . . . .third
.second
. . . . . . . . . . 4.9% second
Ranked third
Ranked third Ranked third

© 2013 Deloit

Mobility and the cloud in the mid-market 17


Technology
A14. Technology is often perceived differently in A16. Compared to your industry peers, how A17. What is your company’s current “spend” on
organizations. How does your company’s would you describe your company relative to IT technology? (Please select one.)
leadership value the role that technology plays? adoption/implementation? (Please select one.)
(Please select one.)
How does your company’s leadership value the role Compared to your industry peers, how would you What is your company’s current “spend” on
that technology plays? (Please select one.) describe your company relative to IT adoption/ technology? (Please select one.)
implementation? (Please select one.)

Strategic (not an expense, Visionary . . . . . . . . . . . . . . . . . . . . . . . . 17.6% Our spend is above 5%


but more of an investment) . . . . . . . . . . 45.9% Fast follower . . . . . . . . . . . . . . . . . . . . 28.3% of revenue . . . . . . . . . . . . . . . . . . . . . . . 21.3%
Necessary (sometimes an investment, Pragmatic . . . . . . . . . . . . . . . . . . . . . . . 33.3% We spend between 1-5%
but often seen as an expense) . . . . . . . . . 48.5% Conservative . . . . . . . . . . . . . . . . . . . . . 15.5% of revenue on technology) . . . . . . . . . . . 55.3%
Laggard . . . . . . . . . . . . . . . . . . . . . . . . . 5.3%
Not critical (necessary but certainly Our spend is negligible
not an investment, only an expense) . . . . 5.6% (< 1% of revenue) . . . . . . . . . . . . . . . . . 15.4%
We do not currently have a
separate, identifiable spend . . . . . . . . . . 8.0%

A19. What is the reporting relationship of the


A15. Which one of the following statements A18. Compared to last year, my company’s A19. What
head is the reporting
of Information relationship
Technology at yourof the
most Which
A15. closelyone
describes
of the the contribution
following of
statements current level of technology spend is: head of Information
enterprise? Technology
(Please select one.) at your
technology
most closelyto your organization’s
describes the growth
contribution of and enterprise? (Please select one.)
A15. Which one of the following statements
effectiveness?
technology
most
Whichclosely
one of (Please
todescribes
your
the select one.) growth
organization’s
the contribution
following statements of and
most closely Compared to last year, my company’s current level What is the reporting relationship of the head of
effectiveness?
technology (Please
your select
describes thetocontribution one.) growth
organization’s
of technology and
to your of technology spend is: Information Technology at your enterprise?
effectiveness? (Please and
organization’s growth select one.)
effectiveness? (Please (Please select one.)
select one.)

We have a CIO who reports to the CEO


Technology plays
Technology plays an an important
important rolerole at
at our
our enterprise
enterprise and we Significantly
have higher Wesenior
(or have aequivalent,
CIO who reports
such astopresident)
the CEO
and we haveplays
aTechnology
significant a significant
investment ininvestment
IT role atinour IT enterprise and we have 6.4% (or senior equivalent,35.2%
such as president)
an important
a significant plays
investment 35.5%
in IT role at our enterprise and we have 35.2%
Technology an important
a significant investment 35.5%
in IT Higher We have a position dedicated to technology and this
Technology is
Technology is becoming
becoming more
more important
35.5% important and and we
we are
are considering 39.1% We havereports
position a position dedicated
to the CFO or to technology
other non-CEOand this
position
consideringinvestments
additional additional investments position reports to28.5%
the CFO or other non-CEO position
Technology is becoming more important and we are considering
additional 23.8% more important and we are considering 28.5%
Technologyinvestments
is becoming About the same
23.8%
additional investments 47.8% We have a technology director dedicated to the
Technology is
Technology is veryvery
23.8%important to our enterprise and
important to our enterprise and allows us We have a technology
implementation director dedicated
and production to thesystems
of technology
marketplace implementation and production of technology systems
Technology isdifferentiation
allows us marketplace intothe
differentiation
very important ourproducts
in the or services
products
enterprise we us
and allows provide
Lower
27.0%
or services 15.7%
marketplace wedifferentiation
provide in the products or services we provide 27.0%
Technology is very important to our enterprise and allows us 6.4% Significantly higher . . . . . . . . .
marketplace 15.7%
differentiation in the products or services we provide We do not have a person identified as head
Higherof . . . . . . . . . . . . . . . . . .
We are currently
15.7%making significant investments in technology We do not have
Information a person identified as head of
Technology
Significantly lower Information About the same . . . . . . . . . . .
and/or
We areadding
currently
currentlynew functionality
making
making significant
significant(e.g., ERP)
investments
investments in
in technology 8.7% Technology
and/or
technology9.7%
adding new
and/or functionality
adding new (e.g., ERP)
functionality (e.g., ERP) 0.3% 8.7% Lower . . . . . . . . . . . . . . . . . .
We are currently making significant investments in technology
9.7%
and/or adding new functionality (e.g., ERP) Other Significantly lower . . . . . . . . .
Technology9.7%is considered a necessary component of our business Other
but is not seen
Technology is as a differentiator
is considered
considered aa necessary
necessary component
component of of our business 0.6%
but
our is 8.4%
not
businessseenbut asisanot
differentiator
seen as a differentiator 0.6%
Technology is considered a necessary component of our business
8.4%
but is not seen as a differentiator
Technology
8.4%plays a minor role and we are most interested in the
basic transactional
Technology plays aa functions
plays minor role(e.g.,
minor role and
and wefinancial
we are accounting)
are most
most interested in the © 2013 Deloit
basic 6.9%inplays
transactional
interested
Technology a functions
the basic role(e.g.,
and financial
transactional
minor functions
we accounting)
are most interested in the
basic 6.9%
(e.g., transactional
financial accounting)
functions (e.g., financial accounting)
6.9%

18 Perspectives on technology
A20. How would you describe the role of A21. Which basic information systems do you A32 What are the data privacy and security risk
executive leadership in your organization with have in place? (Please select all that apply.) issues of concern to your company? (Please
regard to emerging and next-generation select all that apply.)
technologies (including cloud, mobile and
How would you describe the role of executive lead- Which basic information systems do you have in What are the data privacy and security risk issues
social)? (Please select one.)
ership in your organization with regard to emerging place? (Please select all that apply.) of concern to your company? (Please select all that
and next-generation technologies (including cloud, apply.)
mobile and social)? (Please select one.)

They are leading the charge Financials and accounting Security Financia
10.0% 81.3% 76.0%

They are actively engaged Human resources Reliability/performance Enterpris


51.5% 65.5% 55.3%

They are passive, but willing to be engaged Customer Relationship Management (CRM) Long-term viability of platform providers Custome
25.8% 54.9% 37.4%

They have bigger fish to fry Data warehouse/analytics Other Human r


11.0% 43.8% 2.2%

They are actively obstructing change Enterprise Resource Planning (ERP) None of the above Enterpris
1.7% 41.0% 0.6%

Sales Force Automation (SFA) Don't know Manufac


31.5% 1.7%

Supply Chain Management (SCM) Supply C


30.5%

Enterprise Performance Management (EPM) Knowled


29.8%
A35. Does your organization have an integrated
Knowledge Management System (KMS) set of policies and procedures for the following? Sales For
28.8% (Please select all that apply.)

Manufacturing Resource Planning (MRP) Does your organization have an integrated set of Data wa
22.5% policies and procedures for the following? (Please
select all that apply.)
Other Other
4.1% 4.1%
Remote access to data
64.6%

Smart phones
63.9%

Tablets
46.8%

Social media (related to your employees or customers)


42.9%

Instant messaging
37.3%

None of the above


11.4%

© 2013 Deloit

Mobility and the cloud in the mid-market 19


A22. How often do you see technology A23 Do you believe that technology can A34 Which of the following best describes your
investments being made from within the increase your organization’s overall organization’s focus on analytics (specific to
business without IT department involvement? competitiveness? business intelligence, data query and
How often do you see technology investments Do you believe that technology can increase your visualization
Which of the and data warehouse
following technologies)?
best describes your orga-
being made from within the business without IT organization’s overall competitiveness? (Please select
nization’s focusone.)
on analytics (specific to business
department involvement? intelligence, data query and visualization and data
warehouse technologies)? (Please select one.)

Always; IT is limited to “keep the lights on” Significantly . . . . . . . . . . . . . . . . . . . . . . 53.2% The focus is on current data
and business units are responsible Somewhat . . . . . . . . . . . . . . . . . . . . . . . 43.8% used to manage the business . . . . . . . . . 57.9%
for their own new technology . . . . . . . . 7.8% Not at all . . . . . . . . . . . . . . . . . . . . . . . . 3.0%
The focus is on predictive data,
Frequently; functional/business unit leads providing insight into the future . . . . . . . 20.2%
subscribe to cloud offerings or maintain
dedicated technology staff . . . . . . . . . . . 24.9% The focus is on retrospective
(historical) data . . . . . . . . . . . . . . . . . . . 16.2%
Rarely; only small requests that require
minimal effort will be directly sourced . . . 44.9% None of the above . . . . . . . . . . . . . . . . . 5.7%
Never; all IT spend must be overseen
by the IT organization . . . . . . . . . . . . . . . 22.4%

A24 How easy is it to find qualified technology A25 How easy is it to find qualified technology
resources within your organization to support resources in your marketplace to support your
your business needs? business needs?

How easy is it to find qualified technology How easy is it to find qualified technology
resources within your organization to support your resources in your marketplace to support your
business needs? business needs?

Very easy . . . . . . . . . . . . . . . . . . . . . . . . 18.0% Very easy . . . . . . . . . . . . . . . . . . . . . . . . 18.7%

Fairly easy, with some difficulty Fairly easy, with some difficulty
locating specialized skill . . . . . . . . . . . . . 64.2% locating specialized skills . . . . . . . . . . . . . 65.2%

Not easy, with significant difficultly Not easy, with significant difficultly
locating qualified and/or locating qualified and/or
affordable resources . . . . . . . . . . . . . . . 17.8% affordable resources . . . . . . . . . . . . . . . 16.1%

© 2013 Deloit

20 Perspectives on technology
The cloud
A30. Regarding your organization’s interest in
A27. Which cloud-based services does your the potential opportunities cloud-computing
organization currently use? (Please select all that offers, what business functions are you
apply.) considering? (Please select all that apply.)
Which cloud-based services does your organization Regarding your organization’s interest in the
currently use? (Please select all that apply.) potential opportunities cloud-computing offers,
what business functions are you considering?
(Please select all that apply.)

Customer Relationship Management (CRM) Sales/customer


Financials
management
and accounting
Financials and21.5%
accounting 17.4%
50.5%
17.4%
Human resources Marketing Enterprise Resource Planning (ERP)
Enterprise Resource
17.8% Planning (ERP) 39.4%
11.4%
11.4%
Financials and accounting Human resources
Customer Relationship Management (CRM)
Customer Relationship
17.4%
21.5%
Management (CRM) 26.3% 21.5% See
Sales Force Automation (SFA) Finance/tax Human resources
Human resources
15.0%
17.8%
22.2% 17.8% slide 20,
Data warehouse/analytics
Enterprise13.9%
Performance Management (EPM)
Manufacturing
Enterprise Performance Management (EPM)
16.2% 7.1% question
7.1%
Enterprise Resource Planning (ERP)
Manufacturing
11.4% Resource Planning (MRP)
Other Manufacturing Resource Planning (MRP)
Original
11.1% 5.4%
21
5.4%
Supply Chain Management (SCM)
Supply Chain
9.4% Management (SCM) order
Supply Chain Management (SCM)
9.4%
9.4%
Knowledge Management System (KMS) Knowledge Management System (KMS)
Knowledge
9.0%Management System (KMS) 9.0%
9.0%
Enterprise Performance Management (EPM) Sales Force Automation (SFA)
Sales Force
7.1%Automation (SFA) 15.0%
15.0%
Manufacturing Resource Planning (MRP) Data warehouse/analytics
Data 5.4%
warehouse/analytics 13.9%
13.9%
Other Other
Other4.3% 4.3%
4.3%
My
My organization
organizationdoes
doesnot
notcurrently use
currently cloud-based
use cloud-based services My organization does not currently use cloud-based services
services
My organization does not 43.6%
currently use cloud-based services 43.6%
43.6%

For
appendix

27

© 2013 Deloitte Development LLC


© 2013 Deloit

Mobility and the cloud in the mid-market 21


A28 If you are currently deploying or using A29 Which term most closely describes your A31 What is the most significant factor
cloud-based services, what do you consider to organization’s current use of cloud-computing influencing the pace of your organization’s
be the greatest challenge? (Please select one.) resources? (Please select one.) current adoption of cloud-based services?
If you are currently deploying or using cloud-based Which term most closely describes your (Please
What is select one.)
the most significant factor influencing the
services, what do you consider to be the greatest organization’s current use of cloud-computing pace of your organization’s current adoption of
challenge? (Please select one.) resources? (Please select one.) cloud-based services? (Please select one.)

Confidence in information security . . . . . 34.6% Mature; successful deployments Understanding business drivers and
(e.g., ERP, CRM, HR) . . . . . . . . . . . . . . . . 9.2% value proposition of cloud . . . . . . . . . . . 12.9%
Ensuring data integrity and reliability . . . 30.0%
Building; in the deployment phase of Issues concerning data privacy
production for cloud-computing services . . 26.0% and security risks . . . . . . . . . . . . . . . . . . 38.4%
Complexity of integration with
core systems . . . . . . . . . . . . . . . . . . . . . 20.2%
Experimenting; pilot projects started Integrating with existing applications
Business processes and workflow or being planned . . . . . . . . . . . . . . . . . . 20.6% and infrastructure . . . . . . . . . . . . . . . . . . 25.3%
management . . . . . . . . . . . . . . . . . . . . . 12.9%
Investigating; interested in the potential Funding, staffing and talent . . . . . . . . . 10.3%
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3% opportunities cloud computing offers . . . 21.2%
No need at this time . . . . . . . . . . . . . . . 13.1%
No action; still waiting
to take concrete steps . . . . . . . . . . . . . . 13.6%

No action; don’t have a need . . . . . . . . . 9.4%

© 2013 Deloit

22 Perspectives on technology
A33. For each of the following functions, please
describe each function’s relationship to the
cloud.

For each of the following functions, please describe


each function’s relationship to the cloud.

Customer Relationship Management (CRM)


19.1% 16.8% 34.3% 29.8%

Sales Force Automation (SFA)


16.9% 12.7% 34.3% 36.1%

Data warehouse/analytics
14.2% 13.7% 34.9% 37.2%

Human resources
16.0% 14.6% 28.7% 40.7%

Knowledge Management Systems (KMS)


12.0% 12.3% 34.2% 41.5%

Financials and accounting


22.8% 11.0% 24.6% 41.6%

Enterprise and Resource Planning (ERP)


14.2% 15.3% 28.9% 41.6%

Enterprise Performance Management (EPM)


9.9% 14.0% 31.5% 44.6%

Supply Chain Management (SCM)


9.9% 11.5% 31.4% 47.2%

Manufacturing Resource Planning (MRP)


6.5% 10.9% 29.7% 52.9%

Already cloud-based In the process of moving to the cloud Considering moving to the cloud No interest in moving to the cloud

© 2013 Deloit

Mobility and the cloud in the mid-market 23


Mobile and social computing

A36 How would you describe your A37. Which of the following most closely describes yourA38
organization’s
Please indicate
current
yoursituation
level of agreement
with
organization’s mobile device policy? (Please respect to mobile technology (e.g., the use of smart phones,
with the
tablets,
following:
remote“Iaccess
believetothat
datamobile
and
select one.) instant messaging as ways to communicate)? (Please select
computing
one.) will be a differentiator for my
How would you describe your organization’s mobile Which of the following most closely describes your Please indicate your level of agreement with the
company.”
device policy? (Please select one.) organization’s current situation with respect to following: “I believe that mobile computing will be
mobile technology (e.g., the use of smart phones, a differentiator for my company.”
tablets, remote access to data and instant messaging
as ways to communicate)? (Please select one.)

Mobile applications are being actively used for Mobile technology is being used only Strongly agree . . . . . . . . . . . . . . . . . . . . 13.9%
customer engagement (B2C), workforce for email, calendar and contacts . . . . . . . 38.8% Agree . . . . . . . . . . . . . . . . . . . . . . . . . . 41.4%
productivity (B2E), and business-partner Neither agree nor disagree . . . . . . . . . . . 29.2%
interaction (B2B) . . . . . . . . . . . . . . . . . . 51.5% Customer-facing mobile initiatives
Disagree . . . . . . . . . . . . . . . . . . . . . . . . 12.9%
are under way . . . . . . . . . . . . . . . . 16.5%
Strongly disagree . . . . . . . . . . . . . . . . . . 2.6%
Mobile device purchases are subsidized
(employees are fully or Mobile applications are being actively used
partially reimbursed) . . . . . . . . . . . . . . . . 23.0% for customer engagement (B2C),
workforce productivity (B2E) and
business-partner interaction (B2B) . . . . . 14.4%
We have a “Bring Your Own Device” policy
(BYOD) where employees use their own mobile Several mobile application pilots/trials
devices for work and the organization subsidizes are under way, and/or a roadmap of
the data and/or voice charges . . . . . . . . 19.5% mobility initiatives exists . . . . . . . . . . . . 11.2%
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7% Considering potential opportunities to introduce
mobility to the enterprise, but no
None of the above . . . . . . . . . . . . . . . . . 4.3% implementations have been started yet . . . 10.7%

Mobile is not a strategic priority . . . . . . . 8.4%


A39 Please indicate your level of agreement A40 Which of the following best describes the A41 Where is your organization seeing the most
with the following: “Mobile computing will status of your organization’s development of a traction with respect to mobile? (Please select
increase workforce productivity at my mobile application? (Please select one.) one.)
company.”

Please indicate your level of agreement with Which of the following best describes the status Where is your organization seeing the most traction
the following: “Mobile computing will increase of your organization’s development of a mobile with respect to mobile? (Please select one.)
workforce productivity at my company.” application? (Please select one.)

Strongly agree . . . . . . . . . . . . . . . . . . . . 18.7% We currently have developed at least Business to employee . . . . . . . . . . . . . . . 37.3%
Agree . . . . . . . . . . . . . . . . . . . . . . . . . . 50.4% one mobile application . . . . . . . . . . . . . 33.0% Business to consumer . . . . . . . . . . . . . . . 37.3%
Neither agree nor disagree . . . . . . . . . . . 23.2% Business to business . . . . . . . . . . . . . . . 25.4%
We are planning on building at least one
Disagree . . . . . . . . . . . . . . . . . . . . . . . . 6.7%
mobile application in the next year . . . . . 34.4%
Strongly disagree . . . . . . . . . . . . . . . . . . 1.1%
We are not planning on building a mobile
application in the next year . . . . . . . . . . . 32.6% © 2013 Deloit

24 Perspectives on technology
A42 What is the most valuable business benefit A45 Which of the following best describes your
that mobile solutions can contribute to your organization’s plans for social or mobile
organization? (Please select one.) business? (Please select one.)

What is the most valuable business benefit Which of the following best describes your
that mobile solutions can contribute to your organization’s plans for social or mobile business?
organization? (Please select one.) (Please select one.)

Provide efficiency and effectiveness gains They are managed as distinct initiatives,
for internal workforce by deploying but with some coordination
mobile tools . . . . . . . . . . . . . . . . . . . . . . 51.5% between efforts . . . . . . . . . . . . . . . . . . . 28.2%

Improve customer engagement through They are tightly linked, but distinct,
mobile channels for marketing, loyalty, initiatives . . . . . . . . . . . . . . . . . . . . . . . . 19.1%
service/customer care,
and transactional capabilities. . . . . . . . . . . 26.6% They are managed as independent
initiatives . . . . . . . . . . . . . . . . . . . . . . . . 15.5%
Increase market share and revenue via
They are managed as a single initiative
mobile enablement of sales force . . . . . . 14.6%
(or by same leadership team) . . . . . . . . . 12.7%
Improve asset efficiency by embedding
communication capabilities into equipment Not applicable; social or mobile business
not currently connected . . . . . . . . . . . . . 4.7% is not our strategic roadmap . . . . . . . . . 24.5%

Spur innovation into new markets


or business models . . . . . . . . . . . . . . . . . 2.6%

A43 Please indicate your level of agreement A44 Please indicate your level of agreement
with the following: “Social or mobile computing with the following: “My organization has
will affect my company's business in the coming distinct plans for social or mobile business.”
year.”

Please indicate your level of agreement with the Please indicate your level of agreement with the
following: “Social or mobile computing will affect following: “My organization has distinct plans for
my company’s business in the coming year.” social or mobile business.”

Strongly agree . . . . . . . . . . . . . . . . . . . . 15.2% Strongly agree . . . . . . . . . . . . . . . . . . . . 12.4%


Agree . . . . . . . . . . . . . . . . . . . . . . . . . . 40.6% Agree . . . . . . . . . . . . . . . . . . . . . . . . . . 36.1%
Neither agree nor disagree . . . . . . . . . . . 28.3% Neither agree nor disagree . . . . . . . . . . . 27.7%
Disagree . . . . . . . . . . . . . . . . . . . . . . . . 11.8% Disagree . . . . . . . . . . . . . . . . . . . . . . . . 16.1%
Strongly disagree . . . . . . . . . . . . . . . . . . 4.1% Strongly disagree . . . . . . . . . . . . . . . . . . 7.7% © 2013 Deloit

Mobility and the cloud in the mid-market 25


Survey respondent demographics
A1. What was your company's 2012 A2. Which of the following best A6. In what sector does your
annual revenue in U.S. dollars? describes your title? company operate?

What was your company’s 2012 annual revenue in Which of the following best describes your title? In what sector does your company operate?
U.S. dollars?

Between $100 million and $249.99 million Owner/partner Consumer & Industrial Products
27.3% 9.2% 25.5%

Between $250 million and $499.99 million Board member Energy & Resources
24.5% 1.9% 7.8%

Between $500 million and $749.99 million CEO Financial Services


17.2% 6.4% 23.8%

Between $750 million and $1 billion President Life Sciences & Health Care
15.0% 3.2% 7.8%

More than $1 billion CFO Technology, Media & Telecommunications


16.1% 8.8% 13.9%

CIO Other
7.9% 21.2%

COO
3.6%

Other C level
5.2%

Senior vice president/vice president


18.5%

Head of business unit


3.2%

Head of department
7.5%

Controller
3.6%

Senior director/director
8.4%

Senior manager/manager
12.4%

© 2013 Deloit

26 Perspectives on technology
A3. Which of the A4. following
Is yourdescribes
company public
A4. orIs your company public or A5. If private, which category
A5. If best
private, which ca
your level of knowledge
private?regarding private? describes your company? describes your compan
your organization’s information
Which of the following describes your level
technology? Is your company public or private? If private, which category best describes your
of knowledge regarding your organization’s company?
information technology?

I am very knowledgeable Public


about . . . . . . . . . . . . . . . . . . . . . Public . . . . . .21.5%
. . . . . . . . . . . . . . . . . . . . . . . . . 21.5% Family-owned . . . . . . . . . . . . . . . Family-owned
. . . . . 25.7% . . . . . . . . . . . .
our information technology
Private. . .. .. .. .. .. .. .. . .42.3%
. . . . . . . . . . . . Private
. . . . . .78.5%
. . . . . . . . . . . . . . . . . . . . . . . . . 78.5% Closely held (excluding family-owned) Closely
. . . held
31.4%
(excluding family-o
I am somewhat knowledgeable . . . . . . . 57.7% Private equity owned . . . . . . . . . . Private. . . . . equity
32.0% owned . . . . . . .
Venture capital backed . . . . . . . . Venture . . . . . capital
5.7% backed . . . . .
Other . . . . . . . . . . . . . . . . . . . . . Other
. . . . . . .5.2%
................

© 2013 Deloit

Mobility and the cloud in the mid-market 27


A46. In which state is your
company's headquarters located?
[Number of respondents shown]
In which state is your company’s headquarters
located? [Number of respondents shown.]

© 2013 Deloit

28 Perspectives on technology
Contacts

Tom McGee
National Managing Partner
Deloitte Growth Enterprise Services
Deloitte LLP
[email protected]

Harvey Michaels
National Consulting Leader
Deloitte Growth Enterprise Services
Deloitte Consulting LLP
[email protected]

Irwin Goverman
Principal
Deloitte Technology Strategy and Architecture Services
Deloitte Consulting LLP
[email protected]

Bob Rosone
Director
Deloitte Growth Enterprise Services
Deloitte LLP
[email protected]

Acknowledgments
A special note of appreciation to the following Deloitte Consulting LLP contributors to
this report: Bill Briggs, Chris Jackson, Mariahna Moore, Mark White, and Jeff Alderton.

Perspectives
This report is just one example of Deloitte research on
topics of interest to mid-market private companies.
Presented by Deloitte Growth Enterprise Services,
Perspectives is a multifaceted program that utilizes live
events, signature reports, research publications, webcasts,
and other vehicles to deliver tailored and relevant insights
in an integrated fashion.

Please visit our Perspectives library on the Deloitte Growth


Enterprise Services website (http://www.deloitte.com/us/
perspectives/dges) to view additional material on issues
facing mid-market private companies.
Copyright © 2013 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited

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