Appendix: full survey results Disruption in the mid-market: How technology is fueling growth A mid-market perspectives report Acknowledgment We would like to thank all survey respondents and interviewees for their time and the insights they shared for this report, Disruption in the mid-market: How technology is fueling growth. 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 LLP and its subsidiaries. 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. Disruption in the mid-market About the survey From May 29, 2015 to June 16, 2015, 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 and value 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 more than $1 billion. Half of the respondents were C-suite executives, while the remaining 50 percent held other management roles. Three-fourths of the respondents represented companies that are privately held, while the remainder represented publicly-traded firms. One-third of the respondents were from consumer and industrial product companies, with the remainder divided among energy and resources; financial services; life sciences and health care; technology, media and communications; and other industries. The full survey results are included in this report; some percentages in the charts may not add up to 100 percent because of rounding, or for questions where survey participants had the option to choose multiple responses. The report based on these survey findings, Disruption in the mid-market: How technology is fueling growth, can be found on our website at www2.deloitte.com/us/Disruptioninmidmarket. Appendix: full survey results 3 Business environment hasHow your company’s headcount changed over My company’s business outlook over the next 12 12 A12 Over the past 12 months, myHow A13 company’s has revenue your company’s growth hasheadcount been: A14 Mychanged company’s over business the last outlook month o Over the past 12 months, my company’s revenue growth has been: the last 12 months? months appears to be… 31% or higher Increased 10% or more Highly optimistic 6.0% 6.8% 21% - 30% 23.8% 27.8% Increased between 6% and 9% 8.6% 12.2% 22.4% 16.4% 16% - 20% Cautiously optimistic 52.0% Increased up to 5% 20.2% 11.0% 11% - 15% 58.4% 34.2% 32.8% No change/stayed the same 24.2% 22.6% 5% - 10% 49.6% Neutral 10.8% 20.2% 23.6% 14.8% 16.1% Decreased by 5% or less 25.8% 28.2% 1% - 4% 5.2% 8.8% Decreased between 6% and 9% 10.0% 12.2% 0% 2.2% 2.2% Decreased 10% or more 1.4% 2.0% 0.8% 1.0% 2.4% 3.2% Negative 5% - 9% 0.8% 1.0% Negative 10% or lower 0.6% 0.8% 2015 2014 Disruption in the mid-market: How technology is fueling growth Pessimistic 2.2% 2.8% 5.2% Highly pessimistic 0.6% 0.2% 1.3% Negative 1% - 4% 4 34.4% 15.0% 15.2% 2015 2014 2015 2014 2013 15 Please indicate your level of agreement with the following statement: “Operating globally is important to m overall strategy.” Please indicate your level of agreement with the following statement: “Operating globally is important to my company’s overall strategy.” Strongly agree 38.0% 33.6% 31.1% Agree 37.0% 32.4% 33.3% Neither agree nor disagree 11.2% 13.8% 18.5% Disagree 9.8% 12.6% 12.2% Strongly disagree 4.0% 7.6% 4.9% 2015 2014 2013 Appendix: full survey results 5 Technology trends Who leads the adoption of new and emerging technologies within your company? How would you describe the role of executive Technology is often perceived differently in A5 How would you describe role organizations. A11 of executive Technology is often inperceived your organization differen leadership in your organization with regard the to Howleadership does your company’s leadership A11 Technology is often perceived emerging and next-generation technologies value the role that technology plays? Select only A11 Technology is cloud, often perceived differently in select organizations. Howdifferen does yo technologies (including mobile, plays? and social)? Please only ONE. A11 is often perceived in organizations. Howdifferen does y A11differently Technology is often perceived (including cloud,Technology mobile, and social)? one. 4. Who leads the adoption of new and emerging technologies within your company? option of 4. new Whoand leads emerging the adoption technologies of new and within emerging your company? technologies within your company? plays? Please select only ONE. plays? Please select only ONE. plays? Please select only ONE.plays? Please select only ONE. Business leaders (CEO, CFO, COO, business unit leaders, supporting Theyfunctions) are leading the charge s unit leaders, Business supporting leaders functions) (CEO, CFO, COO, business unit leaders, supporting functions) Critical (differentiator 32.9% and key to growth) 26.1% Critical (differentiator and key to growth) 26.1% 48.0% 20.0% IT leaders (CTO, CIO, IT department leaders) 48.0% 40.8% rs) IT leaders (CTO, CIO, IT department leaders) 35.9% They are actively engaged 40.8% 35.9% Strategic (not an expense, 45.7%but more of an investment) Both Business and IT Strategic (not an expense, but more of an investment) Both Business and IT 35.6% 49.0% 36.5% 36.5% Other Other 0.8% 0.8% Don't know/Not sure Don't know/Not sure 0.8% 0.8% Critical (differentiator and key to growth) Critical (differentiator and key 48.0% to growth) Critical (differentiator and key 48.0% to growth) 40.8% 48.0% 40.8% Strategic (not an expense,40.8% but more of an investment) Strategic (not an expense, but more of an investment) 35.6% Strategic (not an expense, but more of an investment) 35.6% 37.6% 35.6% 35.6% 37.6% 37.6% They are passive, but willing to be37.6% engaged Necessary (sometimes an37.6% investment, but often seen as an expense) (sometimes an investment, but often seen as an expense) Necessary an expense) 15.2% 17.0%(sometimes an investment, but often seen as Necessary Necessary (sometimes an investment, but often seen asNecessary an expense) (sometimes an investment, but often seen as an expense) 15.2% 15.2% 19.8% 20.8% 15.2% 15.2% 19.8% 19.8% They have bigger fish to19.8% fry Not critical (necessary 19.8% but certainly not an investment, only an expense) Not1.2% critical (necessary but certainly not an investment, only an expense) Not critical (necessary but certainly not an investment, only an expense) 3.2% Not critical (necessary but certainly not an investment, Not only1.2% an expense) critical (necessary but certainly not an investment, only an expense) 1.8% 6.2%1.2% 1.2% 1.2% 1.8% 1.8% They are actively obstructing change 1.8% 1.8% 0.4% 2015 2015 1.8% 2015 2014 2015 2014 Not applicable/don’t 2014 know 2015 2014 2014 0.8% 2.2% 2015 2014 What is your company’s current “spend” on Which of the following statements is true about A17 What is your company’s current “spend” oninvolvement technology? technology? Select one. organization? your with the end A16 What is the biggest IT challenge faced byonly your Please select A18IT Department’s Which ofonly the ONE. following statements customer of your organization? Select all that apply. Please select only ONE. A18 Which of the following statements organization? Please select all that appl What is the biggest IT challenge faced by your organization? Select only one. Keeping up with new technology We do not currently have a separate, identifiable spend 9.0% 30.2% 24.2% 14.2% 8.0% Budget to implement new technology 22.2% 25.2% Our spend is negligible (< 1% of revenue) 13.8% Tactical hurdles 18.6% 16.8% 13.4% Not having the right talent/skill set 15.4% We spend between 1-5% of revenue on technology 47.4% 10.0% 16.0% 47.8% 55.3% Understanding ROI 9.6% 12.4% Our spend is above 5% of revenue 29.9% Leadership support 19.4% 9.6% 8.8% 2015 2014 6 Disruption in the mid-market: How technology is fueling growth 21.3% A18 Which of the following statements organization? Please select all that appl A18 Which oftechnology the following statements organization? Please select all that appl We are actively building platforms to better We are actively building platforms to better engage custo A18 Which oftechnology the following statements engage with customers organization? Please select all thatwith appl We are actively building platforms to better engage custo 51.0% A18 Which oftechnology the following statements organization? Please select all thatwith appl We actively building technology platforms to better with custo Our are IT department department is focused focused on51.0% delivering seamless/integrated organization? Please select allengage thatcustomer appl Our IT is on delivering seamless/ We are actively building technology platforms to better engage with custo 51.0% Our IT department is focused on delivering seamless/integrated customer 48.4% integrated customer experiences We are actively building technology platforms to better engage customer with custo 51.0% Our IT department is focused on delivering seamless/integrated 48.4% Our IT department is involved in designing of products and customer solu We actively technology platforms to engage with focused on delivering seamless/integrated customer We are are actively building building technology platforms to better betterand engage with custo custo 48.4% Our IT department is involved in51.0% designing of products customer solu 45.0% Our IT department is involved in designing of products and 51.0% Our IT department is focused on delivering seamless/integrated customer 48.4% Our IT department is involved in51.0% designing products customer solu 45.0% customer solutions Gathering and analyzing customer data is aofpriority for and the IT organization Our is on delivering seamless/integrated customer 48.4% Our IT IT department department is focused involved in designing products customer solu focused on delivering seamless/integrated customer 45.0% Gathering and analyzing customer data is aof priority for and the IT organization 41.8% 48.4% Our IT department is involved in designing products customer solu 45.0% 48.4% Gathering and analyzing customer data is aofpriority for and the IT organization 41.8% Our corporate customer acquisition, Gathering and strategy analyzingemphasizes customer data is a priority for theretention and loy Our IT department is involved in designing of products and customer solu 45.0% Gathering and analyzing customer data is a priority for the IT organization Our IT department is involved in designing of products and customer solu 41.8% corporate strategy emphasizes customer acquisition, retention and loy IT organization 38.6% 45.0% Gathering and strategy analyzingemphasizes customer data is a priority for theretention IT organization 41.8% 45.0% Our corporate customer acquisition, and 38.6% Technology and Marketing departments have established joint processesloy a Gathering and analyzing customer data is aa priority for IT 41.8% Our corporate strategy emphasizes customer acquisition, and loy Gathering and analyzing customer data ishave priority for the theretention IT organization organization 38.6% Technology andstrategy Marketing departments established joint processes a 31.8% Our corporate emphasizes customer acquisition, 41.8% Our corporate strategy emphasizes customer acquisition, retention and loy 38.6% 41.8% retention and loyalty Technology and Marketing departments have established joint processes a 31.8% None of the above Our strategy emphasizes customer and 38.6% Technology Marketing departments haveacquisition, established retention joint processes a Our corporate corporate strategy emphasizes customer acquisition, retention and loy loy 31.8% None of theand above 3.8% 38.6% Technology and Marketing departments have established joint processes a 31.8% 38.6% None3.8% of theand above Technology Marketing departments have established Technology and Marketing departments 31.8% None of theand above joint processes and governance Technology Marketing departments have have established established joint joint processes processes aa 3.8% None3.8% of the above 31.8% 31.8% None of the above None3.8% of the the above above None of 2015 2014 2013 3.8% 3.8% How describe the current statetechnology of IT the current What will state be your organization’s top three 23 would Howyouwould you describe 24.What will of be IT governance your organization's within you A19 Compared to last year, my company’s current level of spend is: willorganization? be your organization's top three technology prioritie 24.What will your organization's 23 How would you describe governance the current state of IT governance withinstate your organization? 2324.What Howwithin would you describe the current of ITthegovernance within you your technology priorities forbe next 12 months? Select 24.What will be your organization's 24.What willofbe organization's three technology 23 How would you describe thewould current state IT your governance within organization? 23 How you describe the current state ofyour ITtop governance within youp up to three. Compared to last year, my company’s current level of technology spend is: Significantly higher Mature 14.6%with established processes Mature with established processes 34.2% Mature with established processes Improving existing business processes Mature with established processes 34.2% Improving existing business processes Mature with established processes 38.8% Improving existing business processes Improving existing business processes 38.8% Improving existing business processes 38.8% 34.2% 36.2% 10.3% Managing cybersecurity and information risk 38.8% 38.8% 34.2% 34.2% 36.2% 36.2%and information risk Managing cybersecurity Managing cybersecurity and information risk 6.4% 35.2% Building and developing IT governance and processes and structures 36.2% 36.2%cybersecurity and information risk Managing cybersecurity and information risk Managing 35.2% 35.2% Building and developing IT governance and processes Building and structures and developing IT governance 46.8% and processes and structures Maintaining availability35.2% and performance of IT systems 35.2% Building and developing IT governance and processes and structures Building and developing IT governance and processes and structures Higher Maintaining availability and performance of IT systems Maintaining availability and performance of IT systems 46.8% 46.8% 47.8% 27.4% and performance of IT systems Maintaining availability and performance of ITMaintaining systems availability 46.8% 52.3% 47.8% 47.8% 27.4%46.8% 27.4% Reducing IT costs and driving efficiency Investigating IT process and improvement, but no formal governance in place 47.8% 27.4% 47.8% 27.4% 47.6% ReducingITITin costs efficiencybut no formal governance Reducing IT costs and driving efficiency Investigating IT process and improvement, but no formal governance placeand Investigating process anddriving improvement, in place 13.8% Reducing IT costs 27.0% and driving efficiency 39.1% IT process and improvement, Investigating Reducing IT costs and driving Investigating but no formal place ITgovernance process andinimprovement, but noefficiency formal governance in place 27.0% 27.0% 13.8% 13.8% 11.2% Assisting in business innovation - developing new products and services 27.0% 27.0% 13.8% 13.8% 11.2% 11.2% Assisting in business innovation - developing new products Assisting and services in business innovation - developing new products and services 25.4% About the same Little to no formal ITAssisting processes, structures, or awareness 11.2% Assisting in business innovation - developing new products and services 11.2% in business innovation - developing new products and services 25.4% structures, or awareness 25.4% Little to no30.9% formal IT processes, structures, or awareness Little3.6% to no formal IT processes, Simplifying IT infrastructure and applications 25.4% 25.4% to no formal IT processes, structures, Little or awareness to no formal IT processes, structures, or awareness Simplifying IT infrastructure and applications Simplifying IT infrastructure and applications 3.6% Little 3.6% 4.8% 38.6% 25.0% Simplifying IT infrastructure and applications Simplifying IT infrastructure and applications 3.6% 3.6% 4.8% 4.8% 25.0% 25.0% 47.8% Providing timely and relevant information to business stakeholders Don’t4.8% know/Not sure 25.0% 4.8% 25.0% Providing timely and relevant information to business stakeholders Providing timely and relevant information to business stakeholders Don’t know/Not sure Don’t know/Not sure 23.8% 1.6% Providingstakeholders timely and relevant information to business stakeholders Providing timely and relevant information to business Lower Don’t know/Not sure 23.8% 23.8% 1.6% Don’t know/Not sure 1.6% 0.0% Developing/improving 23.8%the organization's digital capability 23.8% 1.6% 1.6% 1.7% 0.0% Developing/improving the organization's digital capability Developing/improving the organization's digital capability 0.0% 23.4% Developing/improving the organization's digital capability 0.0% Developing/improving the organization's digital capability 0.0% 3.5% 23.4% 23.4% Driving large complex 23.4%technology implementation projects 23.4% 2015 6.4% Driving large complex technology implementation projects Driving large complex technology implementation projects 2015 22.4% technology implementation projects 2015 2014 Drivingprojects large complex Driving large complex technology implementation 22.4% 22.4% 2015 2015 2014 2014 Adjusting/redesigning current IT operating model Significantly lower 22.4% 22.4% 2014 2014 Adjusting/redesigning current IT operating model Adjusting/redesigning current IT operating model 17.0% 0.5% Adjusting/redesigning current IT operating model Adjusting/redesigning current IT operating model 17.0% 17.0% Other 0.0% 17.0% 17.0% Other Other 0.3% 0.6% Other Other 0.6% 0.6% Don't know/Not sure 2015 0.6% 0.6% Don't know/Not sure Don't know/Not sure 2014 2.0% Don't know/Not sure Don't know/Not sure 2.0% 2.0% 2013 2.0% 2.0% How would you describe your organization’s How would you describe your organization’s Please indicate how technology has generated spend on the maintenance of existing systems as spend on the maintenance of existing systems as changes within your business. Select all that apply. compared tooninvestment in innovation (e.g., an spend oncompared to investment in your the implementation of on 20b would youofdescribe organization’s 20bspend How would the you maintenance describe your of existing organization’s systems spend as on the maintenance of existing your organization’s 20a How spend would the youmaintenance describe your of organization’s existing systems the How maintenance existing systems compared to investment in the implementation compared of the latest to investment technology in (e.g., the an implementation 80-20 mix will of the latest technology (e.g., an 80-20 80-20 mix will 80%in of budget spend on 80-20 the technology (e.g., an 80-20 includeinvested nnovation (e.g., as an compared 80-20 mix toinclude investment will include 80% innovation of budget (e.g., spend an on mix willlatest include of budget spend onmix will include 80% of80% budget spend on maintenance, include with 20%80% of budget in the spend implementation on maintenance, of new with 20% invested in the implementation maintenance, with20% 20%invested invested innovation)? 80% of budget spend on maintenance, with 20% technology)? technology)? Increased overall productivity to free up talent to assume ed in innovation)? maintenance, with in in innovation)? invested in the implementation of new technology)? Increased overall productivity productivity to free free up up talent talent to to assume assume new new or or additiona additiona new or additional responsibilities Increased overall to A22. A22. A22. A22. 80-20 80-20 60-40 20.9% 60-40 50-50 50-50 21.6% 40-60 40-60 20-80 40-60 20-80 20-80 5.5% 5.5% Other Other 1.4% 1.9% 1.9% Don’t know Don’t know Don’t know 2.2% 2.4% 2.4% 48.0% 48.0% 48.0% 48.0% Enhanced business business planning and and execution of of strategies Enhanced strategies Enhanced business planning planning and execution execution of strategies strategies Simplified maintenance maintenance of of business business assets, equipment equipment 48.0% Simplified assets, 48.0% 48.0% 14.1% 14.1% 5.8% Other 25.7% 25.7% 16.1% technology technology technology technology 50.4% 50.4% Streamlined business processes to reduce cost Streamlined Streamlined business business processes processes to to reduce reduce cost cost Increased customer conversion or retention by detecting 50.4% Increased customer customer conversion conversion 50.4% or retention by detecting detecting patterns patterns of of beha beha Increased or retention by 50.4% 29.5% 48.0% patterns of behaviors Increased customer customer conversion conversion48.0% or retention retention by by detecting detecting patterns patterns of of beha beha Increased or Increased customer conversion or retention by detecting patterns of beha Enhanced business business planning planning and and execution of of strategies strategies 48.0% Enhanced execution 29.5% 50-50 how how how how 55.0% 55.0% 20.9% 60-40 3.7% indicate indicate indicate indicate 55.0% 55.0% Increased overall productivity to free up talent to assume new or additiona Increased Increased overall overall productivity productivity to to free free up up talent talent to to assume assume new new or or additiona additiona Streamlined business processes to reduce cost cost Streamlined business processes to 55.0% reduce cost 80-20 21.3% Please Please Please Please 47.8% 47.8%assets, equipment Simplified of business Simplified maintenance maintenance maintenance of of business business assets, assets, equipment equipment Simplified equipment Detection of anomalies, disruptions, threats 47.8% Detection of anomalies, disruptions, threats to to the the business business 47.8% 47.8% 36.4% Detection of anomalies, disruptions, threats to the business 36.4% Detection Detection of of anomalies, anomalies, disruptions, disruptions, threats threats to to the the business business Other 36.4% Other 6.0% Other 6.0% Other Other Don't 6.0% know/Not sure sure Don't know/Not 36.4% 36.4% 6.0% 6.0% 2.0% Don't know/Not sure 2.0% Don't Don't know/Not know/Not sure sure Not2.0% applicable Not applicable 2.0% 2.0% 1.8% Not applicable 1.8% Not Not applicable applicable 1.8% 1.8% 1.8% Appendix: full survey results 7 Technology trends (continued) A21 What are the biggest drivers or technology investment at your organization? Please select the A34 of the following technology-related trends have the potential to produ e biggest drivers or technology at organization? Please select the top and A21 are the biggestinvestment drivers orofWhich technology investment at your Please select the What areWhat the biggest drivers technology Which the your following technology-related trends What areorganization? the data privacy andthree security risk issues rank in order of importance. Please type ato organization? 1,2 or 3 next to each of your top choice (1=Top; A41 What are the data privacy and sec A34 Which of the following technology-related trends have the potential to2=Sec produ A34 Which ofor the following trends have the potential to produce the greatest productivity gain A21 What are the biggest drivers or technology investment at your organization? Please select the biggest drivers or technology investment at your Please select the top three and investment at your organization? Please select the technology-related have the potential produce the greatest of concern to your company? Select all that apply. organization? Select all that apply. importance. Please type a 1,2 or 3 next to each of your top choice (1=Top; 2=Second; rank in order of importance. Please type a 1,2 or 3 next to each of your top choice (1=Top; 2=Sec A41 What are the data privacy and security risk issues of concern t A41 What are the data privacy and sec A21 What are the biggest drivers or technology investment at your organization? Please select the iggest drivers or technology investment at your organization? Please select the top three and top three and rank in order of importance. productivity gains for your organization? Select all organization? Select all apply. organization? Select all that apply. 3=Third) rank in ordertype of importance. Please typeof a 1,2 ortop 3 that next to (1=Top; each of your top choice (1=Top; 2=Sec mportance. Please a 1,2 or 3 next to each your choice 2=Second; that apply. 3=Third) rank in order type a 1,2top or 3 next to each of your top choice (1=Top; 2=Sec portance. Please typeofa importance. 1,2 or 3 nextPlease to each of your choice (1=Top; 2=Second; 3=Third) Increase revenue Analytics Phishing and targeted attacks Mobility 3=Third) Analytics Phishing and targeted attacks Mobility Analytics Mobility Increase revenue 40.8% Increase revenue 40.8% Increase revenue 27.3% 40.8% 27.3% Cloud applications 18.0% 47.0% 47.0% 47.0% Phishing and targeted attacks 60.1% 60.1% [This response42.6% was not offered in prior surveys.] Analytics [This response was not offered in prior surveys.] Analytics 43.4% Integration with external systems (business partners, customers) 40.8% Integration with43.4% external systems (business partners, Integration customers) with external systems52.5% (businessCloud partners, customers) 52.5% Cloud 52.5% Cloud 49.4% 60.1% Cloud applications [This response was not offered in prior surveys.] Cloud applications Analytics 27.3% 40.8% 18.0% 43.4% 27.3% Mobility 18.0% Increase customer base through personalization and engagement Mobility Mobility 18.0% 41.6% ersonalization Increase and engagement customer base through personalization and engagement 25.2% 49.4% 49.4% 41.6% 41.6% 39.0% Increase customer base through personalization and engagement rsonalization and engagement Cloud infrastructure Migration to cloud 25.2% 31.9% Increase customer base through personalization and engagement alization and engagement Cloud infrastructure Cloud infrastructure Big data Migration to cloud Migration to cloud 25.2% 40.4% 47.5% 18.2% 31.9% 25.2% 40.4% 40.4% 31.0% 47.5% 47.5% 45.9% 18.2% 31.9% Big data 45.9% 45.9% Big data Big 18.2% data 31.9% Social business 36.2% Reduce capital expenditures (e.g., migration from on-premise to off-premise cloud-based solutions/services) Internal access controls 18.2% 36.2% 23.2% migration fromReduce on-premise toexpenditures off-premise cloud-based solutions/services) capital (e.g.,36.2% migration from on-premise toInformation off-premiseInternal cloud-based access controls Internal access controls security (cybersolutions/services) intelligence) 17.0% 46.2% capital expenditures (e.g., migration from on-premise toInformation off-premise security cloud-based migration from Reduce on-premise to off-premise cloud-based solutions/services) (cybersolutions/services) intelligence) 46.2% Information security (cyber intelligence) Information security (cyber intelligence) 44.8% 17.0% 46.2% 22.5% 32.0% Reducetocapital expenditures (e.g., migration from on-premise to off-premise cloud-based solutions/services) tion from on-premise off-premise cloud-based solutions/services) 17.0% 44.8% 32.0% 22.5% 32.0% 22.2% 44.8% 27.3% Internet of Things (IoT) 17.0% Mobility 22.5% 27.3% Internet of Things (IoT) Internet of Things (IoT) 3D printing (additive manufacturing) Mobility 30.2% Mobility 22.5% 38.6% 27.3% Reduce non-capital27.3% expenditures (maintenance, travel, interest payments, etc.) 30.2% 30.2% 16.2% 38.6% 38.6% 30.2% Social business maintenance, travel, payments, etc.) Reduceinterest non-capital expenditures (maintenance, travel, interest payments, etc.) 12.5%business Social business Social Wearable technologies 30.2% 30.2% 26.8% Reduce non-capital expenditures (maintenance, travel, interest payments, etc.) maintenance, travel, interest payments, etc.) 12.5% 14.6% etc.) expenditures enance, travel, Reduce interest non-capital payments, 26.8% 26.8%(maintenance, travel, interest payments, etc.) 10.0% 12.5% Wearable technologies 2015 14.6% 32.9% 12.5% Wearable technologies Wearable Other 14.6% technologies 2015 2015 2014 15.0% 32.9% 14.6% 15.0% 2014 15.0% 1.4% 2014 32.9% 3D printing (additive manufacturing) Other 32.9% 3D printing (additive manufacturing) 3D printing (additive manufacturing) Other 12.4% 1.7% Other 12.4% 12.4% 1.7% 0.7% Other Other 1.7% Other 0.7% 0.7% Other 0.4% 1.7% 0.7% 0.7% 0.4% 0.4% 0.7% None — I don’t believe any technology-related trends will produce productivity gains for my company 0.7% Don’t know/Not — I don’t believe any technology-related None —sure I don’t believe any technology-related trends None will produce productivity gains for my companytrends will produce productivity gains for my company 0.7% 3.2% Don’t know/Not sure 2.9% 3.2% 3.2% Don’t know/Not sure 2.9% 0.0% Don’t know/Not sure 2.9% 0.0% 0.0% 2.9% 0.0% 0.0% 0.0% 0.0% 0.0% Big data Big data 40.8% 40.8% 39.0% 39.0% 31.0% 31.0% Social business Social business 23.2% 23.2% Information security (cyber intell Information security (cyber intell above is 2014 Top Top Second Top Second Third Top Second Third Second Third Third 42.6% 42.6% 22.2% 22.2% 3D printing (additive manufactu 3D printing (additive manufactu 16.2% 16.2% Wearable technologies Wearable technologies Other Other 10.0% 10.0% 1.4% 1.4% A33 How does your organization handle adoption of new trend A35 How often does yourtechnology company evalua A33 How does your organization handle of new technology trends? A33 How does youradoption organization handle adoption of new technology trend As growing numbers of devices are networked, How does organization of How often doesoften your company evaluate the emerging A35yourHow oftenhandle doesadoption your company A35 evaluate How the outcomes does your that company evalua tec Please select only ONE. Internet-enabled and take action without human new are technology trends? outcomes emerging technologies deliver, A32 As growing numbers of devices networked, Internet-enabled and that take action without human interv Please select only ONE. Please select only ONE. intervention, whichnetworked, term most closely Internet-enabled describes compared to what action was expected? Select only one. A32 As growing numbers of your devices are networked, Internet-enabled and take without interv bers of devices are and takecurrent action without human intervention, which term most closely organization's use of the "Internet of Things" (IoT)? human your organization’s current numbers usedescribes of theInternet-enabled “Internet of A32 As growing of devices are networked, Internet-enabled and take actionwhich without human interv Driven by ITand leadership ers of devices are networked, take action without human intervention, termorganization's most closely your use of the "Internet ofbenefit Things" (IoT)? scribes your current use of organization's the "Internet Things" (IoT)? Things” (IoT)? Driven by ITdescribes leadership Driven by IT leadership ofcurrent Limited to the cost analysis at the initial phase 48.6% term most closely current describes your organization's current use of phase the "Internet ofbenefit Things" cribes your organization's use of the "Internet ofbenefit Things" (IoT)? Limited to the cost analysis at the initial Limited to the cost analysis at(IoT)? the initial phase 48.6% 48.6% 23.6% 39.4% Mature — effective deployments 23.6% 23.6% 39.4% 39.4% 28.0% Mature — effective We have processes in place for exploring emerging technologies 28.0% 28.0% 18.6% deployments Mature — effective deployments We have processes in place for exploring We emerging technologies have processes in place for exploring emerging technologies Almost always have a post-implementation evaluation to measure the suc 18.6% 28.2% Building — in the deployment phase of production for Internet of Things Almost always have a post-implementation evaluation to measure Almost always the success have a post-implementation evaluation to measure the suc 18.6% 28.2% 28.2% 40.2% 24.8% — Things in the deployment phase of production for Internet of Things production for Building Internet of 29.6% 40.2% 40.2% 24.8% 24.8% 33.8% Building in the deployment phase of production for Internet of Things oduction for Internet of— Things 29.6% Driven largely by business leadership 33.8% direction 33.8% Experimenting — pilot projects started or being planned 29.6% Driven largely by business leadership direction Driven largely19.4% by business leadership direction Regular monitoring and assessment at frequent intervals Experimenting — pilot r being planned 23.2% projects started or being planned Regular19.4% monitoring and assessment at frequent intervals Regular monitoring28.2% and assessment at frequent intervals pilot projects started or being planned 19.4% being planned Experimenting — 29.4% 23.2% Investigating — interested in the potential29.4% opportunities Internet of Things offers 29.4%28.2% 28.2% 28.0% 23.2% — interested of Things offers al opportunitiesInvestigating Internet of Things offers in the potential opportunities InternetSpecialized business units28.0% are focused on innovation 28.0% 14.4% Investigating — interested in the potential Internet of Things offers opportunities Internet of 14.4% Things offersSpecialized business opportunities units are focused on Specialized innovation business units are focused on innovation Don’t know/not sure 2.4% Waiting — no action taken yet Don’t know/not sure Don’t know/not sure 14.4% 2.4% 2.4% 8.0% 5.0% Waiting8.0% — no action taken yet 8.0% 5.0% 5.0% 8.0% 10.2% Waiting — no action taken yet 8.0% Other No action planned — not relevant to our business strategy 10.2% 10.2% 8.0% Other Other No action planned — not relevant to our business strategy r business strategy 1.4% 6.2% No action planned — not 1.4% relevant to our business strategy business strategy 1.4% 1.4% 2015 6.2% 1.4% 2015 1.4% 2015 6.2% 2014 2014 2014 2015 2015 2015 2014 2014 2014 8 Disruption in the mid-market: How technology is fueling growth A43 What is the preferred technology approach model for your business? What is the preferred technology approach model for your business? On-premise: systems, hardware and support staff at your physical location 36.8% 35.0% Hosted solutions: pre-built system run, located and operated at a fixed monthly fee 26.2% 23.6% Hybrid: A mix of on-premise, off-premise solutions based on your application and business needs 20.6% 20.6% Off-premise: systems applications run and managed in the cloud using Software as a Service (SaaS) approach 13.4% 14.4% Other 0.0% 0.2% Don’t know 3.0% 6.2% 2015 2014 If you prefer a hybrid approach, is most If your preference is preference off-premise, what is are off-premise, your A46 If you prefer a what hybrid approach, A45 what If your is most important to your compw A44 For hosted solutions, what is important your preference? to your company? goals? A44 For hosted solutions, what is your preference? A44 For hosted solutions, what is your preference? For hosted solutions, what is your preference? On-premise as a fixed price traditional variable licensing Ability to quickly adjust to a business need/change On-premise as a fixed price traditional variable licensing model model 40.8% On-premise as a fixed price traditional 49.6% variable licensing model 46.6% On-premise as a fixed price traditional variable licensing model 49.6% 48.3% 49.6% 48.3% A fixed monthly cost for your hosted 48.3% preconfigured solution Ability to customize Increase flexibility to scale, acquire, divest 44.8% 51.4% Reduce IT CapEx/OpEx costs 28.2% 17.5% A fixed monthly cost for your hosted preconfigured solution solution 33.6% A fixed monthly cost for your hosted preconfigured solution 33.6% 32.2% 33.6% Ability to have IT own your system 32.2% Off-premise leading practice pay-as-you-go pricing 32.2% design solution with little ability to customize and19.4% 38.8% 23.6% Quickly obtain SOX compliance 11.9% 12.5% Off-premise leading practice design solution with little ability to customize and pay-as-you-go pricing 14.5% ability to customize pay-as-you-go pricing Off-premise leading and practice design solution with little ability to customize and 21.4% pay-as-you-go pricing 14.5% 18.6% 14.5% 18.6% Don’t know 18.6% Don’t know 2.3% Don’t know 2.3% 0.8% 2.3% 0.8% 0.8% 2015 2015 2014 2015 2014 2014 Greater control over disaster recovery 8.7% 10.7% Other 1.0% 1.0% Readiness for IFRS 4.5% 6.9% Don’t know 0.0% 5.6% Don’t know 1.9% 2.9% 2015 2014 2015 2014 Appendix: full survey results 9 Technology trends (continued) A28 Which of the following technology-related A29 trends Which have of had thethe following most significant technology-related impact on trends your business do you months? Please select thetrends tophave three and rank in theorder next 12importance. months? Please Please select type athe 1,willtop 2,have orthree 3 next andtorank eachino Which of the following technology-related had the Which of the of following technology-related trends do you think most significant impact on your business in the past 12 months? the most significant impact on your business in the next 12 months? Select choices (1 = Top; 2 = Second; 3 = Third) Please type a 1, 2, or 3 next to each of your top choices (1 = Select the top three and rank in order of importance. the top three and rank in order of importance. Information security (cyber intelligence) InformationInformation security (cyber security intelligence) (cyber intelligence) 17.2% 13.6% 17.4% 9.4% 16.8% Analytics Analytics 15.4% Cloud 15.4% 16.2% 17.8% Cloud applications Mobility Mobility 14.2% 15.2% 10.8% 15.6% 13.6% 16.8% 13.4% 15.8% Cloud infrastructure Big data 12.8% 13.6% 13.8% 9.2% 11.4% 13.4% 9.6% 10.4% 14.2% Cloud applications 12.6% Mobility 14.2% Big data above is 2014 Analytics 9.0% 9.6% Analytics 11.2% 16.6% 11.6% 15.6% 8.4% 12.0% Social business 6.4% 7.0% 4.8% 9.6% 8.0% 6.6% Big data Social bu 7 7 9.4% 3D printing (additive manufacturing) 6.8% Big data 13.6% Social business Social business 10.2% 3D print 3.2% 5.0 6.4% 9.0% 3.2% 2.4% 7.4% 8.8% 3.6% 4.0 Internet of Things (IoT) 4.8% 6.6% 4.8% Wearable technologies 2.4% 4.6% 5.8% 3D printing (additive manufacturing) 2.0% Internet of Things Wearable (IoT)technologies 5.0% 7.6% 6.2% 4.0% 2.6% 5.4% 5.0% 5. Top Second Third None of the above 5.8% 0.0% 0.0% 0.0% 0.0% Disruption in the mid-market: How technology is fueling growth 3.0% 4.0% 3.0% 4.4% Top Second Third 2.6% 3.0% Wearable technologies 2.4% 5.4% Wearabl 2.8% 3D printing (additive manufacturing) 2.8% None of the above 10 Cloud 15.8% 12.6% 13.0% Mobility 11.4% 14.2% 13.6% Cloud infrastructure 14.6% 14.2% 13.2% Informat 22.2% Top Second Third Top Seco Third 30 Which of the following technology-related trends A31 are Which having of the thefollowing most significant technology-related impact on your trends workforce are hav select the top three and rank inareorder of importance. select the top three and rank inareorder ofmost importance. Which of the following technology-related trends having the Which of the following technology-related trends having the most significant impact on your workforce? Select the top three significant impact on your customers? Select the top three and rank in Please type a 1, 2, or 3 next to each of your top Please choices type (1 = a 1, Top; 2, 2 or = 3 Second; next to each 3 = Third) of your top choices (1 = T and rank in order of importance. order of importance. Mobility Information security Information (cybersecurity intelligence) (cyber intelligence) 17.4% 16.4% Information security (cy 13.8% 17.6% 11.0% 12.6% 13.4% 12.6% 10.0% 12.4% 13.0% 12.0% Information security (cyber intelligence) Mobility Cloud 14.6% 11.2% 11.0% 14.6% Analytics Cloud 15.4% 15.6% 15.2% 11.6% 15.0% 12.6% 14.8% 13.8% Social businessMobility 13.0% 13.2% 10.4% Big data Cloud applications 9.0% 11.4% 14.0% Social business Big data 7.8% 9.8% Cloud applications Analytics 9.4% 8.8% Social business 7.0% 10.0% Internet of Things 3D printing (IoT) (additive manufacturing) 6.0% 5.6% 8.0% 3D printing (additive manufacturing) 3.0% 3.2% 3.6% 3.0% Wearable technologies 3.8% 3.2% 4.2% 5.2% Wearable technologies 5.6% 5.2% 5.4% Top Second Third Top Second Third 3D printing (additive manufacturing) 3.2% 4.4% 3.6% None of the above 9.0% 0.0% 0.0% 0.0% 0.0% Top Second Third 3D printing (additive ma 5.8% 11.2% 3.8% 8.0% 14.2% 1.6% 8.8% 4.0% None of the above 12.8% 8.8% 4.0% Cloud infrastructure Wearable technologies 6.2% Social business 10.8% 1.8% 4.2% 16.4% 12.6% 12.2% 6.4% Internet of Things (IoT) 11.4% 8.2% 8.6% 5.8% 16.0% 11.6% 16.0% 7.2% 4.8% 10.0% 15.8% 2.8% 4.6% Big data Analytics 11.2% Big data 14.6% 11.4% 7.0% Wearable technologies above is 2014 13.6% 7.2% 9.2% 16.6% 13.6% 11.2% 8.8% 11.4% 8.2% 12.6% 10.4% 12.2% 9.4% 13.8% 9.2% Analytics Cloud infrastructure 28.2% 13.0% 9.6% 8.0% Mobility 10.4% Top Second Third Appendix: full survey results 11 Analytics A47 Is your company using business analytics? A48 If your company is not using business analytics, wha Is your company using business analytics? If your company is not using business analytics, what is the primary reason? Yes Our company is not at the scale or maturity level where we can benefit from analytics 80.2% 27.3% 31.3% 65.2% No Not sure where to begin to capture the most value 13.2% 22.4% Don’t know/Not sure 22.7% 25.0% Too complex a topic to digest at our current stage of growth 6.6% 12.4% 21.2% 13.4% Don’t see the business value 2015 2014 13.6% 17.9% Other 3.0% 2.7% Don’t know 12.1% 9.8% 2015 2014 Related to 47 A51 Which of the following delivery models are you using or lik that orapply. using likely to use within your company’s Whichbusiness of the following deliveryfor models are youanalytics? A49 What would you describe as the most important need using What would you describe as the most important business need for using analytics? analytics efforts? Select all that apply. Influencing business strategy and operational priorities Use of basic reporting analytics to support business operations and strategy 34.4% 29.8% Providing metrics, information and tools needed for sound business decisions 49.3% 38.2% Develop predictive modeling analytics solutions to guide business growth 34.0% 32.6% Forecasting and reporting business results 49.1% 28.8% Design and implement integrated enterprise analytics solutions 20.6% 20.6% Predictive client, customer, or business behavior analysis 46.8% 28.6% Outsource managed analytics services and/or platform 8.4% 9.4% Other 30.2% 20.4% Subscription-based analytics with analytical scoring and results 0.2% 0.4% Don’t know 2.4% 7.2% 28.6% 21.4% Other 0.0% 0.4% Don’t know 2015 2014 6.2% 14.6% 2015 2014 12 Disruption in the mid-market: How technology is fueling growth business areas are using or leveraging Whatregard company’s biggest hurdlePlease in within A52 How would you describe yourWhich A53 organization’s Which business level of areas maturity are using with leveraging toisanalytics? analytics select your on c A54isoryour What your company’s biggest hu analytics within your company? Select all that embarking upon analytics? Select only one. A54 What is your company’s biggest hu apply. A54 What is your company’s biggest hu How would you describe your organization’s level of maturity with regard to analytics? Select only one. Piloting Sales/customer management 14.3% 13.8% 60.1% 42.2% Early implementation stage Marketing 30.2% 27.0% Used in certain departments 49.1% 34.2% Finance/tax 28.8% 29.0% Used more broadly 42.4% 33.0% Human resources 14.1% 12.4% Delivering value throughout the organization 32.9% 18.6% Manufacturing 10.1% 7.2% Don’t know 2.5% 10.6% 2015 2014 32.7% 30.0% Other 2.1% 3.0% Don’t know/not applicable 2.1% 11.2% 2015 2014 Technology challenges dealing with structured data vs. Technology challenges dealing with structured data vs. unstructured data unstructured data Technology challenges dealing with structured data vs. unstructured data 38.0%with structured data vs. unstructured data Technology challenges dealing 38.0% 27.2%38.0% 27.2%38.0% 27.2% standardization Data harmonization and standardization Data harmonization and standardization 18.4% and standardization Data harmonization 18.4% 18.4% 22.6% 18.4% 22.6% Understanding 22.6% how to apply the data used for business value Understanding how to apply the data used for business value value 17.8% Understanding how to apply the data used for business value 17.8% 17.8% 20.6% 17.8% 20.6% Obtaining organizational understanding and buy-in 20.6% Obtaining organizational understanding and buy-in buy-in 15.0% Obtaining organizational understanding and buy-in 15.0% 15.0% 18.4% 15.0% 18.4% Availability of18.4% appropriately skilled resources to support business needs Availability Availability of of appropriately appropriately skilled skilled resources resources to to support support business needs 6.4% business needs Availability of appropriately skilled resources to support business needs 6.4% was not offered in prior surveys.] [This response 6.4% was not offered in prior surveys.] [This response [This response was not offered in prior surveys.] Other Other 0.2% Other 0.2% 0.2% 1.4% 0.2% 1.4% 1.4% Don’t know Don’t4.2% know Don’t4.2% know 4.2% 9.8% 4.2% 9.8% 9.8% 2015 2015 2014 2015 2014 2014 Appendix: full survey results 13 Analytics (continued) A50 What would you describe as the top barriers for expanding the use of analytics? Please select the top t What you describe as the topdescribe barriers for as the How would you describe the quality of data within What your organization see your as theselect greatest A55the How would you describe the quality A56would What of data would within your organization organization? seet A50would would you top barriers for expanding the use of analytics? Please the top ou describe asWhat the top barriers for expanding use of analytics? Please select the top three and rank in order typeyour athe 1,How 2, orwould 3 next to each ofyour your top (1 Top; 2your = Second; 3 =ana Th A55 How would you A55 quality of data you within describe theorganization? quality of data within organization? A56choices What would your organization see expanding theof useimportance. of analytics? Select Please the topdescribe three organization? value of analytics? A56 What would your organization see as=the greatest value of in order of importance. Please type athe 1,How 2, orchoices 3What next to ofyour top (1as=within Top; 2your = Second; Th nce. Please type a 1, 2, orwould 3 nextyou to each ofA55 your top (1each =describe Top; 2your =the Second; 3ofsee = data Third) A55 How describe quality of data within organization? A56choices What would your organization would you quality organization? A56 would your organization the greatest value 3of=see ana and rank in order of importance. Quality of existing data Fragmented and no clear structure or format across business areas Increased operational effectiveness Quality of existing data and no clear structure or format across Fragmented Fragmented business areas and no clear structure or format across business areas Increased operational effectiveness Increased 20.4%operational effectiveness 38.5% 20.0% Fragmented no clear structure or format across business areas Increased operational effectiveness Fragmented and no clear structure 38.5% or format across business areas Increased operational effectiveness 20.4% 20.4% 38.5% 20.0% and 22.6% 22.6% 15.8% 15.8% 20.4% 23.8% 23.8% Need moderate data cleansing Need moderate data cleansing 26.8% Cost Cost 19.8% 19.8% 14.0% 23.8% 20.4% 23.8% 28.0% 28.0%38.5% 28.0% 38.5% Need moderate 23.8% data cleansing 28.0% Ability to predictively manage aspects of the business 28.0% Need moderate cleansing manage aspects of the business Ability to predictively manage aspects of the business Abilitydata to predictively 26.8% 27.0% Ability to predictively manage aspects of the business Need moderate data Ability tocleansing predictively manage aspects of the business 26.8% 27.0% 27.0% 28.2% 26.8% 28.2% 26.8% 28.2% 28.2% 32.8% 27.0% 32.8% 27.0% 32.8% Data cleansed but 28.2% need to structure for efficient use and validation Greater competitive edge in understanding customer trends and patterns 32.8% 32.8% Data cleansed but need to structure for efficient useData and validation cleansed but need to structure efficient use and validation Greater competitive edge in understanding customer trends and patterns Greater competitive edge for in understanding customer trends and patterns 31.0% 26.0% 14.0% 15.2% Data cleansed but need to structure for efficient use Data and validation Greater edge in understanding customer trends and patterns cleansed but need to structure forinefficient use andcustomer validation Greater competitive edge understanding trendscompetitive and patterns 31.0% 31.0% 26.0% 26.0% 15.2% 31.0% 29.0% Understanding how to best capitalize 29.0% on the value of analytics how to best capitalize on the e on the value Understanding of analytics Data ready for broad analytics usevalue of analytics 17.6% Data ready for18.4% broad analytics use 17.6% 17.6% 18.4% 17.6% 12.0% 17.4% 17.4% 12.0% Other Other Internal IT capability 0.2% limitations Internal IT capability limitations 0.2% [This response was not offered in prior surveys.] ace 13.2% 13.2% [This response was not offered in prior surveys.] 14.6% Don’t know/not sure 14.6% 14.4% Don’t3.2% know/not sure 14.4% 3.2% 6.6% Availability of talent in the marketplace 6.6% Availability of talent in the marketplace 10.4% 2015 10.4% 11.6% 2015 2014 11.6% 15.4% 2014 15.4% 29.0% 25.2% 26.0% 31.0% 25.2% 26.0% 29.0% 25.2% Data ready for broad analytics25.2% use Increased customer intimacy derived from available relevant information 25.2% 29.0% Data readyIncreased for broad analytics use Increased customer intimacy derived from available relevant information information 18.4% customer intimacy derived from available relevant 6.9% customer intimacy derived from available relevant information Data ready for broad analytics Increased customeruse intimacy derived from available Increased relevant information 18.4% 6.9% 6.9% 12.0% 6.2% 6.9% 18.4% 6.9% 12.0% 6.2% 6.2% Other 12.0% 6.2% Other 6.2% Other Other 0.2% Other 0.2% Other Other Other 0.2% 0.2% 0.2% [This response was not offered in prior surveys.] [This response was not offered in prior surveys.] 0.2% [This response not offered in prior surveys.] 0.2% [This response was not offered in prior surveys.] 0.2% [Thiswas response was not offered in prior surveys.] Don’t know/not sure [This response was not offered prior surveys.] [This response was in not offered in prior surveys.] Don’t3.2% know/not Don’t sure know Don’t3.2% know/not sure Don’t 1.4%know 6.6% 3.2% 6.6% 6.6% 2015 2015 2014 2015 2014 2014 1.4% 7.4% 7.4% 2015 2015 2014 2014 Don’t know was not offered in prior surveys.] [This response Don’t know 1.4% Don’t know 1.4% 7.4% 1.4% 7.4% 7.4% 2015 2015 2014 2015 2014 2014 Management buy-in Management buy-in 9.4% 9.4% 10.0% 10.0% 12.0% 12.0% barriers None — I don’t believe we face any barriers None — I don’t believe we face any barriers A58 In which areas do predictive (cogni A57 Which term most closely describes your organization’s curren A57describes Which term closely describes curren A57 Which term most closely yourmost organization’s currentyour use organization’s of predictive (cognitiv A57 Which term closely describes organization’s curren A57 Which term most closely describes yourmost organization’s current your use of predictive (cognitive 0.0% 5.2% 5.2% 0.0% 0.0% 0.0% Which term most describes your do predictive In which do predictive (cognitive) analytics A58 Inareas which areas do predictive A58 Inclosely which areas (cognitive) analytics hold the (cogni most apply. A58 which do predictive (cogni organization’sA58 currentIn usewhich of predictive (cognitive) hold theIn most promise areas for youranalytics business? Select all areas do predictive (cognitive) hold the mo apply. apply. analytics? that apply. apply. apply. Mature — successful deployments (e.g. ERP, DRM, HR) Managing large amounts of data (customers, patients, members, etc.) successfullarge deployments (e.g. ERP, DRM, HR) patients, Managing large amounts of data (customers, patients, members, etc.) Mature — successful deployments (e.g. ERP, DRM, HR) Mature — Managing amounts of data (customers, members, etc.) Don’t know 21.4% 52.6% Mature — successful deployments (e.g. ERP, DRM, HR) Managing large amounts of data52.6% (customers, patients, members, etc.) Mature — successful deployments (e.g. ERP, DRM, HR) Managing large amounts of data (customers, patients, members, etc.) Don’t know 21.4% 21.4% 52.6% 4.4% Building — in the deployment phase of production for predictive Identifying (cognitive) business analytics investment/expansion 21.4% 52.6% opportunities 21.4% 52.6% 4.4% in the deployment phase of production for predictiveIdentifying (cognitive)business analyticsinvestment/expansion opportunities 0.0% Building — in the deployment phase of production for Building predictive— (cognitive) analytics Identifying business investment/expansion opportunities 41.5% 51.6% 0.0%Building — in the deployment phase of production for predictive Building (cognitive) — in the deployment phase of production for predictive (cognitive)business analyticsinvestment/expansion Identifying opportunities analytics Identifying business investment/expansion opportunities 0.0% 41.5% 51.6% 41.5% 51.6% Experimenting — pilot projects started or being planned Predicting disruptive business events (equipment breakdowns, security bre 0.0% 41.5% 51.6% 41.5% 51.6% Experimenting — pilot projects started or being planned Predicting disruptive business events (equipment Experimenting — pilot projects started or being planned Predicting supply shortages, etc.) breakdowns, security bre 18.2%disruptive business events (equipment breakdowns, security breaches,39.2% — pilot projects started or being planned disruptive events (equipment security bre Experimenting — pilot projects started or being planned Experimenting Predicting disruptive business events (equipment Predicting breakdowns, securitybusiness breaches, supply shortages,breakdowns, etc.) 18.2% 39.2% 18.2% 39.2% Investigating 18.2% — interested in the potential opportunities predictive Talent (cognitive) recruitment analytics and retention offer 39.2% 18.2% Top 39.2% Investigating —recruitment interested inand theoffer potential opportunities predictive (cognitive) analytics offer Talent recruitment and retention Investigating — interested in the potential opportunities predictive (cognitive) analytics Talent retention Top 12.0% 30.0% Second Investigating —Talent interested in the potential opportunities predictive (cognitive) analytics offer Talent recruitment and retention Investigating — interested in the potential opportunities predictive (cognitive) analytics offer recruitment and retention 12.0% 30.0% 12.0% 30.0% Second Third Waiting — no action taken yet Other 12.0% 30.0% 12.0% 30.0% Waiting — no action taken yet Other Third Waiting — no action taken yet Other 5.3% 0.6% Waiting — no action Other Waiting — no action taken yet Other taken yet 5.3% 0.6% 0.6% 5.3% No action planned — not relevant to our business strategy No action planned — not relevant to our business strategy 5.3% 0.6% 5.3% 0.6% No actionNo planned — not relevant to our business strategy No action planned — not relevant to our business strategy No action planned — not relevant to our business strategy action planned — not relevant to our business strategy 1.6% 5.8% No action planned — notplanned relevant— to not our relevant businessto strategy action planned — not relevant to our business strategy No action planned — not relevant to our business strategy No action our businessNostrategy 1.6% 5.8% 1.6% 1.6% 14 1.6% Disruption in the mid-market: How technology is fueling growth 5.8% 5.8% 5.8% The cloud A37 For each of the following functions, please describe each function’s relationship to the cloud For each of the following functions, describe each function’s relationship to the cloud. Financials and accounting 37.8% 20.1% 15.6% 6.8% 19.7% Customer Relationship Management (CRM) 33.8% 23.5% 23.3% 8.8% 10.6% Sales Force Automation (SFA) 24.9% 31.9% 20.2% 10.1% 12.8% Data warehouse/analytics 27.1% 29.5% 18.3% 10.5% 14.6% 15.1% Supply Chain Management (SCM) 27.0% 22.7% 26.1% 9.2% 22.5% 25.7% 10.9% Knowledge Management Systems (KMS) 26.8% 14.1% Enterprise Performance Management (EPM) 24.5% 25.7% 23.2% 11.1% 15.5% Enterprise Resource Planning (ERP) 32.3% 25.5% 18.0% 8.6% 15.6% Human resources 24.5% 22.6% 20.6% 14.4% 17.8% Manufacturing Resource Planning (MRP) 20.0% Already cloud-based 29.0% In the process of moving to the cloud 22.2% Considering moving to the cloud 10.9% Considering moving select systems to the cloud 17.9% No interest in moving to the cloud Appendix: full survey results 15 The cloud (continued) A38 What do you consider to be the A39greatest Which challenge term mostinclosely deploying describes A40 or using What your cloud-based is organization’s the most services? significant currentPlease factor use of Which term most closely describes your What isuse the most significant factorthe influencing theof your A40factor What is the most significant factor A40 What is the most significant influencing pace A39 Which term most closely A39 describes Which your term organization’s most closely describes current your of cloud-computing organization’s current resources? use or of ONE. ONE. services? Please select only organization’s current use ofmost cloud-computing pace of your organization’s adoption of ONE. A40 What is the current most significant factor A40 What is the most significant factor influencing the pace of your or A39 Which term closely describes your organization’s current use of A39 Which term most closely describes your organization’s current use of cloud-computing resources? services? Please select services? Please select only ONE. ONE. ONE. resources? Select only one. cloud-based services? Select only one. only ONE. services? Please select only ONE. services? Please select only ONE. ONE. ONE. What do you consider to be the greatest challenge in deploying or using cloud-based services? Select only one. Ensuring data integrity and reliability Mature — successful deployments (e.g., ERP, CRM, HR) Issues concerning data privacy and security risks Mature — successful — successful 35.3% deployments (e.g., ERP, CRM, HR)Mature 21.2% deployments (e.g., ERP, CRM, HR) concerning data 35.5% privacy andERP, security — successful (e.g., CRM,risks HR) Mature — successful deployments (e.g., ERP, CRM, HR) MatureIssues 21.2% 21.2% deployments 37.8% 21.2% 14.0% 30.0% 14.0% 9.2% 14.0% 21.2% 14.0% 9.2% 14.0% 9.2% 9.2% 9.2% Issues concerning data privacy and security risks Issues concerning data privacy and security risks 35.5% Issues concerning data privacy and security risks 35.5% 34.4% 34.4% 38.4% 35.5% 34.4% 35.5% 34.4% 38.4% 34.4% 38.4% 38.4% 38.4% Confidence in information security Building — in the deployment phase of production for cloud computing Integrating services with existing applications and infrastructure with existing applications and infrastructure Integrating with existingphase applications and infrastructure Integrating Building — in33.5% the deployment phase of production for cloud Building computing — in the services deployment of production for cloud computing services 28.3% 42.4% with existing applications and infrastructure Integrating with existingphase applications and infrastructure Integrating Building — in the deployment of production for cloud computing services Building — in the deployment phase of production for cloud computing services 28.3% 29.0% 28.3% 42.4% 34.4% 28.3% 42.4% 23.4% 34.4% 26.0% 23.4% 34.4% 25.3% 26.0% 26.0%25.3% 42.4% 42.4% 34.6% 34.4% 34.4% 26.0% 26.0% Complexity of integration with core systems Experimenting — pilot projects started or being planned Funding, staffing and talent Experimenting — pilot projects started or being plannedExperimenting — pilot projects started or being planned 18.1% 21.9% Funding,—staffing and talent pilot projects started or being planned Experimenting —21.9% pilot projects started or being planned Experimenting 15.0% 21.9% 22.5% 23.8% 20.2% 21.9% 23.8% 20.6% 20.6% 23.8% 15.0% 21.9% 13.0% 23.8% 20.6% 13.0% 23.8% 10.3% 20.6% 10.3% 20.6% 23.4% 28.3% 23.4% 25.3% 23.4% 25.3% 25.3% Funding, staffing and talent Funding, staffing and talent 15.0% Funding, staffing and talent 15.0% 13.0% 15.0% 13.0% 10.3% 13.0% 10.3% 10.3% Business processes and workflow management Investigating — interested in the potential opportunities cloud computing Understanding offersbusiness drivers and value proposition of cloud-based servi Understanding business drivers and value proposition of cloud-based servi business andopportunities value proposition cloud-based services Investigating — interested in the potential opportunitiesInvestigating cloud Understanding computing — interested offers in thedrivers potential cloudofcomputing offers 7.8% 11.6% 14.7% Understanding business drivers and value proposition of cloud-based servi Understanding business drivers and value proposition of cloud-based services — interested Investigating — interested in the potential opportunities Investigating cloud computing offers 14.7% 14.7% in the potential opportunities cloud computing offers 11.6% 7.7% Cost 13.2% 12.9%11.6% 13.2%21.2% 21.2% 2.5%No action — still waiting to take concrete steps No action 2.5%— still waiting to take concrete steps [This response was not 2.5% 6.8% offered in prior surveys.] 6.8%13.6% 13.6% Lack of maturity 2.2%No action — don’t have a need No action — don’t have a need 0.4% [This response was not 0.4%surveys.] offered in prior 7.8% 7.8% 9.4% 9.4% 2015 2014 2015 2014 2013 2015 2014 2013 2013 16 11.6% 13.2% 14.7% 11.6% 15.8% 13.2% 21.2% 15.8% 13.2% 12.9% 21.2% 15.8% 14.7% 15.8% 12.9% 15.8% 12.9% 12.9% 12.9% 21.2% No action — still waiting to take concrete steps Need for greater “speed to value” in terms of traditional on-premise IT imp for greater “speed to value” in terms of traditional on-premise IT imp Need for greater “speed to value” in terms of traditional Need on-premise IT implementation No action 2.5% — still waiting to take concrete steps 4.2% for greater “speed to value” in terms of traditional on-premise IT imp Need value” insteps terms on-premise No action — for stillgreater waiting“speed to taketoconcrete of traditional Need 4.2% IT implementation 2.5% 6.8% 4.2% [This 4.2% response was not 4.2% 2.5% 6.8% [This response not [This response was not 13.6% offered in priorwas surveys.] 6.8% [This response not offered in priorwas surveys.] [This offered response in priorwas surveys.] not 13.6% offered in prior surveys.] offered in prior surveys.] 13.6% No action — don’t have a need No need at this time No need at this time No— need at this No0.4% action don’t havetime a need 2.0% No need at this time No — need at this No action don’t havetime a need 2.0% 2.0% 0.4% 7.8% 2.0% 0.4% 7.8% 9.4% 7.4% 7.8% 13.1% 9.4% 7.4% 13.1% 9.4% 7.4% 2.0% 7.4% 13.1% 7.4% 13.1% 13.1% 2015 2015 2014 2015 2014 2013 2014 2013 2013 2015 2015 2014 2015 2014 2013 2014 2013 2013 Disruption in the mid-market: How technology is fueling growth 2015 2015 2014 2014 2013 2013 A42 If you are using or considering more than one cloud-based application or package, what would you say is the mo If you are using or considering more than one need? application or package, what would cloud-based you say is the most important need? Integration across all packages 36.8% 43.4% The ability to manage multiple cloud vendors 26.3% 25.2% Management of differing cloud upgrade cycles 18.5% 12.8% Resource knowledge 12.1% [This response was not offered in prior surveys.] Other 0.2% 2.0% Don’t know 6.0% 16.6% 2015 2014 Appendix: full survey results 17 Cyber and information security 25 Which of the following best describes the current state of cyber security within your organization? Which of the following best describes the current state of cyber security within your organization? Of your Of company’s spend, what A27 yourtechnology company's technology spen We have the most up to date and robust security measures in place percentage is tied to information security? Select only We have the most up to one. date and robust security measures in place 49.8% 52.6% We acknowledge the importance but do not have the right infrastructure/resources We acknowledge the importance but do not have the right infrastructure/resources 39.4% 31.8% We find it difficult keeping up with the evolution of cyber threats There is a lack of awareness and preparation within our organization 4.4% 11.4% There is a lack of awareness and preparation within our organization Currently it is not a priority 3.6% 2.8% Currently it is not a priority 2.0% Don’t know/Not sure Our spend is negligible (<1% of revenue): 20.6% Between 1-5%: 56.6% Above 5%: 19.4% Don’t know/Not sure: 3.4% 2.2% above is 2014 A26 How does your company handle information security risks? Please select all that apply. How does your company handle information security risks? Please select all that apply. We have a plan in place to manage external information security threats 66.6% We have a plan in place to manage internal informational security threats 60.8% We have governance structures and procedures in place concerning information security threats 47.4% We encrypt sensitive information 44.0% We offer education and training on information security matters 29.6% Don't know/Not sure 4.0% Survey respondent dem 18 Disruption in the mid-market: How technology is fueling growth Social and mobile media A59 Please indicate how you view the potential of mobile computing to disrupt parts of your busin A60 ofWhich of the following is your most important to your company with regard to soc Which the following is most important to select only ONE. company with regard to social/mobile platforms for Please indicate how you view the potential of mobile computing to disrupt parts of your business? Select only one. your customer interactions? Real-time communication 35.8% 38.6% Greater integration/intimacy 25.8% 17.0% Monitoring and understanding consumer sentiment Transformative: 16.0% Competitive advantage: 54.6% Highly disruptive: 6.4% No significant impact: 17.6% Don’t know: 5.4% 18.4% 14.4% Automation in customer response/relationship processes 13.2% 18.6% Other 1.0% 1.6% Don’t know 5.8% 9.8% 2015 2014 Appendix: full survey results 19 Survey respondent demographics Approximately how many full-time staff aredollars? Which of the following describes your level describes A1 What was your company’s 2014 A6. annual Approximately revenue in U.S. how many full-time A3 Which staff of the arefollowing employed by your yo What was your company’s 2014 annual revenue in U.S. dollars? employed by your business? Between $100 million and $249.99 million Fewer than 100 22.4% Between $250 million and $499.99 million 3.8% 100-499 23.0% Between $500 million and $749.99 million 18.6% 500-999 22.8% Between $750 million and $1 billion 26.4% 1,000-2,999 19.8% Over $1 billion of knowledge regarding your organization’s information technology? 27.2% 3,000 or more 12.0% 24.0% I am very knowledgeable about our information technology: 61.7% I am somewhat knowledgeable: 38.3% A2 Which of the following best describes your title? Which of the following best describes your title? Owner/partner 12.8% Board member 1.2% CEO 10.2% President 3.0% CFO 6.0% CIO 7.4% COO 3.0% CTO 4.8% Survey respondent demographics Other C-level 2.0% Senior vice president/vice president 10.4% Head of business unit 3.8% Head of department 7.2% Controller 1.6% Senior director/director 8.8% Senior manager/manager 17.8% 20 Disruption in the mid-market: How technology is fueling growth Survey respondent dem If private, which category best describes your which does your company operate? A7 Is your company public or private? A8 If private, which category best In A9 describes Insector which your sector company? does your company Is your company public or private? company? Consumer & Industrial Products 32.4% Energy & Resources 10.0% Financial Services 17.2% Life Sciences & Health Care 7.6% Public: 24.4% Private: 75.6% Technology, Media & Telecommunications Family-owned: 27.2% Closely held (excl. family-owned): 36.0% Private equity owned: 32.5% Venture capital backed: 2.4% Other: 1.9% 19.2% Other 13.6% A10 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.) WA 13 OR 2 MT 2 ID 2 MN 9 UT 3 CA 66 CO 7 MI 13 IA 3 NE 3 IL 30 KS 3 PA 31 OH 20 IN 5 KY 3 MO 13 OK 5 AZ 8 WV 1 AL 5 VA 6 NC 12 TN 5 AR 1 NH 2 MA 16 NY 60 WI 8 SD 1 WY 1 NV 3 VT 1 ME 1 NJ 23 RI 1 DE 1 CT 5 DC 2 MD 5 SC 5 GA 12 Survey respondent demographics Survey respondent demographics Survey respondent dem TX 31 LA 7 FL 42 AK 2 Appendix: full survey results 21 Contacts Roger Nanney 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] Stephen Keathley National Technology Leader Deloitte Growth Enterprise Services Deloitte Consulting LLP [email protected] Adnan Amjad Vigilant Cyber Threat Management Practice Leader Partner Deloitte & Touche LLP [email protected] David Moore NetSuite Practice Leader Principal Deloitte Consulting LLP [email protected] Rich Penkoski Principal Deloitte Consulting LLP [email protected] Bob Rosone Director Deloitte Growth Enterprise Services Deloitte LLP [email protected] Research and editorial lead Janet Hastie Senior Marketing Manager Deloitte Services LP Report design Isaac Brynjegard-Bialik Senior Manager Deloitte LLP 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 © 2015 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
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