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TRANSCRIPT
October 2014
MARKETING RESEARCH
EMPLOYEE ENGAGEMENT
A WORLD OF INSIGHTS
Presented on behalf of:
The SMB Business Environment
2
Overview
A WORLD OF INSIGHTS
This study of 100 SMBs in the US and Canada was conducted to gain a better understanding of the business challenges and
opportunities facing small to mid-sized companies in wholesale, retail, distribution and related verticals. More specifically the
research strives to explore the business challenges SMBs in these three industries have with regard to areas such as collecting business insights, integrating new technologies, and rapidly
analyzing data to drive decision-making (among others). It also explores the likelihood of investing in new technologies to address
these challenges.
3
Methodology/Scope
A WORLD OF INSIGHTS
SampleField Work October 14 – 15, 2014
Total Respondents 100
Qualifiers Director level and higher titles in IT and LOB functions at SMBs with 10-500 employees. Quota sampling was employed to ensure 85% of aggregated responses were from the US, and 15% from Canada. Also, qualified responses came only from three industries: Consumer Goods, Food & Beverage; Manufacturing; and Retail, Wholesale, and Distribution
Geography US (85); Canada (15)
Collection Online Questionnaire
Number of Questions 13
Method
Executive Summary
A WORLD OF INSIGHTS
Technology Investments as a Tool for Addressing Key Business Challenges
SMBs widely report making investments in technology to address these key business challenges. The areas SMBs are most frequently making technology investments in include: collecting business insights to drive decision making (76%), integrating new technology with legacy systems to have a single view of the business (68%), and using mobile technology to make sales and customer service more efficient. Three out of ten SMBs cite a desire to increase business efficiency as the most critical outcome from these technology investments, while just over ¼ note they place equal importance on increased business efficiency as well as growth, increased visibility and improved integration. The biggest barrier to technology investments? Not knowing which technology solution will help them achieve their goal and determining which vendor is the right fit for the business.
Regardless, the vast majority of SMBs are reporting improvements from these technology investments in the areas of focus. For example, 100% of the SMBs investing in technology to collect business insights have seen an improvement in that area, while 82% report improvements in integrating new technology and mobile initiatives around sales and customer service. While not in the top 3 for investment, 61% of SMBs made technology investments over the last 2 years to rapidly analyze/connect business insights to drive decision making and 95% of those SMBs saw improvement as a result of those technology investments. While this level of demonstrated success is strong evidence of the positive ROI from technology investments, ¼ of SMBs still note that lack of a clear ROI is a barrier to technology investment demonstrating ongoing need for help from vendor partners to articulate the ROI and build the business case for investment.
Executive Summary (continued)
A WORLD OF INSIGHTS
Trends in Technology Spending
Looking at technology investments made by SMBs over the last 2 years compared to the investments they are likely to make over the next 2 years reveals some interesting shifts by vertical.
Within the retail, wholesale, distribution sector, SMBs most frequently invested in technology over the last 2 years to address the need to collect business insights (#1), leverage CRM to manage new sales opportunities (#2), and use mobile technology to makes sales/customer service more efficient (#3). Going forward, interest in making technology investments around collecting business insights and using mobile to improve sales/customer service efficiencies remains high but relatively flat. What’s changing? Investing in technology to improve the efficiency of warehouse logistics/accuracy of order fulfillment is #1 on SMB’s list of priorities for the next 2 years (jumping from 65% investing in tech here over the last 2 years to 85% likely to over the next 2 years). Another big shift, investments to improve supply chain visibility and collaboration were at the bottom of the list for the last 2 years (just 45% indicating they were investing in technology here) but going forward 70% note plans to invest in technology to improve supply chain visibility and collaboration.
Executive Summary (continued)
A WORLD OF INSIGHTS
Trends in Technology Spending (continued)
Within the consumer goods, food & beverage sector, SMBs most frequently invested in technology over the last 2 years to address the need to collect business insights (#1), integrate e-commerce and mobile channels with ERP (#2), and use mobile technology to makes sales/customer service more efficient (#2). The top three areas of focus for the next 2 years for SMBs in this sector are integrating new technology with legacy systems (#1 up from #4), rapidly analyzing/connecting business insights to drive decision making (#2 up from #7) and leveraging CRM to manage new sales opportunities (#3 up from #11). Please note, just 14% of the respondent base is in this sector so these results are largely directional.
Among manufacturers, SMBs most frequently invested in technology over the last 2 years to address the need to collect business insights (#1), integrate new technology with legacy systems (#2), automate business processes to better manage cash flow (#3), and use mobile technology to make sales/customer service more efficient (#3). Going forward, interest in making technology investments around collecting business insights and using mobile to improve sales/customer service efficiencies remains high but relatively flat. What’s changing? Investing in technology to integrate e-commerce and mobile channels with ERP is #2 on manufacturing SMB’s list of priorities for the next 2 years (jumping from #11 on list with 59% investing in tech over the last 2 years to 72% likely to invest over the next 2 years).
Executive Summary (continued)
A WORLD OF INSIGHTS
High Performing SMBs
What can we learn from SMBs with the highest revenue growth year over year?
These high performing SMBs (defined as those with year-over-year revenue growth of more than 10%) represent 15% of the SMBs responding to the survey. They are significantly more likely than their peers to note that they are experiencing the following challenges in the daily operation of the business: rapidly analyzing/ connecting business insights to decision making, improving supply chain visibility, integrating e-commerce and mobile channels with ERP, and using mobile technology to make sales/customer service more efficient.
While all companies are investing in technology to address key business challenges, high performing SMBs are significantly more likely to report seeing an improvement from those investment on their ability to integrate new technology with legacy systems and improve supply chain visibility. These SMBs are also significantly more likely to invest in technology to address 3 areas over the next 2 years: rapidly analyzing/connecting business insights to drive decision making, integrating new technology with legacy systems to provide a single view of the business, and using mobile technology to make sales and customer service more efficient.
Survey Findings
A WORLD OF INSIGHTS
9 A WORLD OF INSIGHTS
Base: 100
CHALLENGES TO DAILY OPERATION OF BUSINESS: To what extent is your company experiencing challenges in the following areas in the daily
operation of your business? (5-point scale where 5 = To a significant extent; 3 = To a moderate extent; 1 = To no extent)
Larger SMBs with 100 to 500 employees are significantly more likely than SMBs with 10 to 99 employees to be experiencing challenges in these areas.
65%
62%
60%
59%
59%
59%
58%
57%
56%
47%
44%
Integrating new technology with legacy systems to havea single view of the business
Using mobile technology to make sales and customerservice more efficient
Improving supply chain visibility and collaboration
Collecting business insights (e.g., profitability, freightcosts, customer data) to drive decision making
Optimizing inventory management & demandforecasting
Automating business processes to shorten paymentcycles and better manage cash flow
Improving the efficiency of warehouse logistics & theaccuracy of order fulfillment
Leveraging customer relationship management tomanage new sales opportunities
Rapidly analyzing/connecting business insights to drivedecision making
Integrating e-commerce and mobile channels with ERPand other business management software
Ensuring compliance with Sarbanes Oxley and othergovernment reporting
Percentages represent those selecting a 4 or 5 in each area
10 A WORLD OF INSIGHTS
Base: 100
CHALLENGES TO DAILY OPERATION OF BUSINESS (BY INDUSTRY): To what extent is your company experiencing challenges in the following areas in the daily
operation of your business? (5-point scale where 5 = To a significant extent; 3 = To a moderate extent; 1 = To no extent)
71%
71%
64%
64%
79%
50%
64%
64%
36%
43%
36%
59%
57%
63%
63%
59%
72%
54%
57%
61%
52%
48%
70%
65%
55%
53%
53%
48%
60%
55%
58%
43%
43%
Integrating new technology with legacy systems to havea single view of the business
Using mobile technology to make sales and customerservice more efficient
Improving supply chain visibility and collaboration
Collecting business insights (e.g., profitability, freightcosts, customer data) to drive decision making
Optimizing inventory management & demandforecasting
Automating business processes to shorten paymentcycles and better manage cash flow
Improving the efficiency of warehouse logistics & theaccuracy of order fulfillment
Leveraging customer relationship management tomanage new sales opportunities
Rapidly analyzing/connecting business insights to drivedecision making
Integrating e-commerce and mobile channels with ERPand other business management software
Ensuring compliance with Sarbanes Oxley and othergovernment reporting
Percentages represent those selecting a 4 or 5 in each areaConsumer Goods, Food & Beverage Manufacturing Retail, Wholesale, Distribution
79%
71%
71%
Optimizing inventorymanagement & demand…
Integrating new technology withlegacy systems to have a single…
Using mobile technology tomake sales and customer…
Top 3 Challenges for Consumer Goods, Food & Beverage
72%
63%
63%
Automating business processesto shorten payment cycles and
better manage cash flow
Improving supply chain visibilityand collaboration
Collecting business insights (e.g.,profitability, freight costs,
customer data) to drive decision…
Top 3 Challenges for Manufacturing
70%
65%
60%
Integrating new technology withlegacy systems to have a single
view of the business
Using mobile technology tomake sales and customer service
more efficient
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Top 3 Challenges for Retail, Wholesale, Distribution
11 A WORLD OF INSIGHTS
Base: 87
CHALLENGES TO DAILY OPERATION OF BUSINESS MOST LIKE TO FIX: Of the key business challenges that your company faces today, which one would your
organization most like to address or fix?
16%
14%
13%
11%
11%
11%
8%
8%
5%
2%
0%
Integrating new technology with legacy systems to havea single view of the business
Rapidly analyzing/connecting business insights to drivedecision making
Optimizing inventory management & demandforecasting
Collecting business insights (e.g., profitability, freightcosts, customer data)to drive decision making
Automating business processes to shorten paymentcycles and better manage cash flow
Using mobile technology to make sales and customerservice more efficient
Improving supply chain visibility and collaboration
Improving the efficiency of warehouse logistics & theaccuracy of order fulfillment
Leveraging customer relationship management tomanage new sales opportunities
Integrating e-commerce and mobile channels with ERPand other business management software
Ensuring compliance with Sarbanes Oxley and othergovernment reporting
Top Challenge Most Like To Have Fixed
19%
19%
17%
Using mobile technology tomake sales and customer…
Optimizing inventorymanagement & demand…
Integrating new technology withlegacy systems to have a single…
Top 3 Challenges Most Want To Fix For Orgs with 10-99 Employees
22%
16%
16%
Rapidly analyzing/connectingbusiness insights to drive…
Integrating new technology withlegacy systems to have a single…
Collecting business insights (e.g.,profitability, freight costs,…
Top 3 Challenges Most Want To Fix For Orgs with 100-500 Employees
12 A WORLD OF INSIGHTS
Base: 100
17%
0%
25%
0%
17%
17%
0%
17%
0%
8%
0%
18%
20%
8%
13%
10%
15%
0%
8%
3%
5%
3%
3%
11%
23%
6%
14%
6%
0%
6%
3%
20%
9%
Collecting business insights (e.g., profitability, freightcosts, customer data)to drive decision making
Rapidly analyzing/connecting business insights to drivedecision making
Integrating new technology with legacy systems to havea single view of the business
Improving supply chain visibility and collaboration
Optimizing inventory management & demandforecasting
Automating business processes to shorten paymentcycles and better manage cash flow
Ensuring compliance with Sarbanes Oxley and othergovernment reporting
Improving the efficiency of warehouse logistics & theaccuracy of order fulfillment
Integrating e-commerce and mobile channels with ERPand other business management software
Using mobile technology to make sales and customerservice more efficient
Leveraging customer relationship management tomanage new sales opportunities
Top Challenge Most Like To Have FixedConsumer Goods, Food & Beverage Manufacturing Retail, Wholesale, Distribution
25%
17%
17%
Integrating new technology withlegacy systems to have a single
view of the business Collecting business insights (e.g.,
profitability, freight costs,customer data) to drive decision…
Optimizing inventorymanagement & demand
forecasting
Top 3 Challenges Most Want To Fix for Consumer Goods, Food & Beverage
20%
18%
15%
Rapidly analyzing/connectingbusiness insights to drive
decision making
Collecting business insights (e.g.,profitability, freight costs,
customer data) to drive decision…
Automating business processesto shorten payment cycles and
better manage cash flow
Top 3 Challenges Most Want To Fix for Manufacturing
23%
20%
14%
Integrating new technology withlegacy systems to have a single
view of the business
Using mobile technology tomake sales and customer service
more efficient
Optimizing inventorymanagement & demand
forecasting
Top 3 Challenges Most Want To Fix for Retail, Wholesale, Distribution
CHALLENGES TO DAILY OPERATION OF BUSINESS MOST LIKE TO FIX: Of the key business challenges that your company faces today, which one would your
organization most like to address or fix?
13A WORLD OF INSIGHTS
76%
68%
68%
63%
62%
61%
59%
59%
56%
56%
55%
100%
82%
82%
84%
87%
95%
85%
80%
79%
66%
87%
Collecting business insights (e.g., profitability,freight costs, customer data)to drive decision…
Integrating new technology with legacy systemsto have a single view of the business
Using mobile technology to make sales andcustomer service more efficient
Leveraging customer relationship management tomanage new sales opportunities
Automating business processes to shortenpayment cycles and better manage cash flow
Rapidly analyzing/connecting business insights todrive decision making
Optimizing inventory management & demandforecasting
Improving the efficiency of warehouse logistics &the accuracy of order fulfillment
Improving supply chain visibility and collaboration
Ensuring compliance with Sarbanes Oxley andother government reporting
Integrating e-commerce and mobile channels withERP and other business management software
Made an investment last 1-2 years Saw improvement as a result of investment
Base: 100
INVESTMENTS IN TECHNOLOGY AND IMPROVEMENTS SEEN: Have you made an investment in technology in the last 1-2 years to address any of the areas
below? Did you see an improvement in your business from the investments you made to address each of the areas below?
Larger SMBs with 100 to 500 employees are significantly more likely than SMBs with 10 to 99 employees to be experiencing challenges in these areas.
14 A WORLD OF INSIGHTS
71%
64%
64%
57%
57%
57%
50%
50%
36%
36%
36%
100%
89%
78%
88%
75%
88%
100%
57%
60%
60%
100%
Collecting business insights (e.g.,profitability, freight costs,
customer data)to drive decision…
Integrating e-commerce andmobile channels with ERP andother business management…
Using mobile technology to makesales and customer service more
efficient
Integrating new technology withlegacy systems to have a single
view of the business
Optimizing inventorymanagement & demand
forecasting
Automating business processesto shorten payment cycles and
better manage cash flow
Rapidly analyzing/connectingbusiness insights to drive
decision making
Improving supply chain visibilityand collaboration
Ensuring compliance withSarbanes Oxley and other
government reporting
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Leveraging customer relationshipmanagement to manage new
sales opportunities
Investments and Improvements for Consumer Goods, Food & Beverage
Made an investment last 1-2 years
Saw improvement as a result of investment
76%
74%
70%
70%
67%
65%
63%
63%
61%
61%
59%
100%
74%
91%
78%
77%
63%
93%
76%
96%
86%
85%
Collecting business insights (e.g.,profitability, freight costs,
customer data)to drive decision…
Integrating new technology withlegacy systems to have a single
view of the business
Automating business processesto shorten payment cycles and
better manage cash flow
Using mobile technology to makesales and customer service more
efficient
Improving supply chain visibilityand collaboration
Ensuring compliance withSarbanes Oxley and other
government reporting
Optimizing inventorymanagement & demand
forecasting
Leveraging customer relationshipmanagement to manage new
sales opportunities
Rapidly analyzing/connectingbusiness insights to drive
decision making
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Integrating e-commerce andmobile channels with ERP andother business management…
Investments and Improvements for Manufacturing
Made an investment last 1-2 years
Saw improvement as a result of investment
78%
73%
68%
65%
65%
65%
55%
55%
53%
48%
45%
100%
90%
89%
93%
63%
77%
77%
82%
71%
90%
89%
Collecting business insights (e.g.,profitability, freight costs,
customer data)to drive decision…
Leveraging customer relationshipmanagement to manage new
sales opportunities
Using mobile technology to makesales and customer service more
efficient
Rapidly analyzing/connectingbusiness insights to drive
decision making
Integrating new technology withlegacy systems to have a single
view of the business
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Optimizing inventorymanagement & demand
forecasting
Automating business processesto shorten payment cycles and
better manage cash flow
Ensuring compliance withSarbanes Oxley and other
government reporting
Integrating e-commerce andmobile channels with ERP andother business management…
Improving supply chain visibilityand collaboration
Investments and Improvements for Retail, Wholesale, Distribution
Made an investment last 1-2 years
Saw improvement as a result of investment
INVESTMENTS IN TECHNOLOGY AND IMPROVEMENTS SEEN BY INDUSTRY: Have you made an investment in technology in the last 1-2 years to address any of the areas
below? Did you see an improvement in your business from the investments you made?
15 A WORLD OF INSIGHTS
Base: 100
LIKELY TO INVEST IN NEXT 1-2 YEARS: Is your company likely to invest in technology in the next 1-2 years to address any of the areas below?
Organizations with 100 to 500 employees are significantly more likely than organizations with 10 to 99 employees to invest in this area (80% vs. 53%)
72%
71%
69%
67%
66%
65%
64%
64%
61%
60%
53%
Collecting business insights (e.g., profitability, freightcosts, customer data) to drive decision making
Improving the efficiency of warehouse logistics & theaccuracy of order fulfillment
Using mobile technology to make sales and customerservice more efficient
Integrating new technology with legacy systems to havea single view of the business
Integrating e-commerce and mobile channels with ERPand other business management software
Rapidly analyzing/connecting business insights to drivedecision making
Automating business processes to shorten paymentcycles and better manage cash flow
Leveraging customer relationship management tomanage new sales opportunities
Improving supply chain visibility and collaboration
Optimizing inventory management & demandforecasting
Ensuring compliance with Sarbanes Oxley and othergovernment reporting
Top Areas Most Likely To Invest In Next 1-2 Years
Organizations with 100 to 500 employees are significantly more likely than organizations with 10 to 99 employees to want to invest here (76% vs. 53%) and here (71% vs. 49%)
67%
63%
61%
Improving the efficiency ofwarehouse logistics & the…
Collecting business insights (e.g.,profitability, freight costs,…
Using mobile technology tomake sales and customer…
Top 3 Areas Likely To Invest For Orgs with 10-99 Employees
80%
80%
76%
Collecting business insights (e.g.,profitability, freight costs,…
Integrating new technology withlegacy systems to have a single…
Rapidly analyzing/connectingbusiness insights to drive…
Top 3 Areas Likely To Invest For Orgs with 100-500 Employees
16 A WORLD OF INSIGHTS
71%
64%
64%
57%
57%
57%
50%
50%
43%
43%
21%
Integrating new technology withlegacy systems to have a single
view of the business
Rapidly analyzing/connectingbusiness insights to drive
decision making
Leveraging customer relationshipmanagement to manage new
sales opportunities
Collecting business insights (e.g.,profitability, freight costs,
customer data) to drive decision…
Integrating e-commerce andmobile channels with ERP andother business management…
Using mobile technology to makesales and customer service more
efficient
Improving supply chain visibilityand collaboration
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Optimizing inventorymanagement & demand
forecasting
Automating business processesto shorten payment cycles and
better manage cash flow
Ensuring compliance withSarbanes Oxley and other
government reporting
Likely Investments for Consumer Goods, Food & Beverage Over Next 1-2 Years
76%
72%
67%
65%
65%
65%
65%
61%
61%
57%
57%
Collecting business insights (e.g.,profitability, freight costs,
customer data) to drive decision…
Integrating e-commerce andmobile channels with ERP andother business management…
Using mobile technology to makesales and customer service more
efficient
Rapidly analyzing/connectingbusiness insights to drive
decision making
Integrating new technology withlegacy systems to have a single
view of the business
Automating business processesto shorten payment cycles and
better manage cash flow
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Optimizing inventorymanagement & demand
forecasting
Leveraging customer relationshipmanagement to manage new
sales opportunities
Improving supply chain visibilityand collaboration
Ensuring compliance withSarbanes Oxley and other
government reporting
Likely Investments for Manufacturing Over Next 1-2 Years
85%
75%
73%
70%
70%
68%
68%
65%
65%
63%
60%
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Using mobile technology to makesales and customer service more
efficient
Collecting business insights (e.g.,profitability, freight costs,
customer data) to drive decision…
Improving supply chain visibilityand collaboration
Automating business processesto shorten payment cycles and
better manage cash flow
Integrating new technology withlegacy systems to have a single
view of the business
Leveraging customer relationshipmanagement to manage new
sales opportunities
Rapidly analyzing/connectingbusiness insights to drive
decision making
Optimizing inventorymanagement & demand
forecasting
Integrating e-commerce andmobile channels with ERP andother business management…
Ensuring compliance withSarbanes Oxley and other
government reporting
Likely Investments for Retail, Wholesale, Distribution Over Next 1-2 Years
LIKELY TO INVEST IN NEXT 1-2 YEARS BY INDUSTRY: Is your company likely to invest in technology in the next 1-2 years to address any of the areas below?
Retail, Wholesale & Distribution organizations are significantly more likely than manufacturing organizations and consumer goods, food & beverage organizations to make technology investments over the next 1-2 years to improve the efficiency of
warehouse logistics & the accuracy of order fulfillment (85% vs. 65% and 50%, respectively).
17A WORLD OF INSIGHTS
76%
68%
68%
63%
62%
61%
59%
59%
56%
56%
55%
72%
67%
69%
64%
64%
65%
60%
71%
61%
53%
66%
Collecting business insights (e.g.,profitability, freight costs, customer
data)to drive decision makingIntegrating new technology withlegacy systems to have a single
view of the businessUsing mobile technology to makesales and customer service more
efficientLeveraging customer relationship
management to manage new salesopportunities
Automating business processes toshorten payment cycles and better
manage cash flowRapidly analyzing/connecting
business insights to drive decisionmaking
Optimizing inventory management& demand forecasting
Improving the efficiency ofwarehouse logistics & the accuracy
of order fulfillment
Improving supply chain visibilityand collaboration
Ensuring compliance with SarbanesOxley and other government
reportingIntegrating e-commerce and mobile
channels with ERP and otherbusiness management software
Made an investment last 1-2 years
Base: 100
#1
#8
#3
#3
#11
#6
#4
#5
#10
#8
#10
#1
#2
#3
#4
#5
#6
#8
#8
#9
#10
#11
Collecting business insights (e.g.,profitability, freight costs, customer
data)to drive decision makingImproving the efficiency of
warehouse logistics & the accuracyof order fulfillment
Using mobile technology to makesales and customer service more
efficientIntegrating new technology withlegacy systems to have a single
view of the businessIntegrating e-commerce and mobile
channels with ERP and otherbusiness management software
Rapidly analyzing/connectingbusiness insights to drive decision
makingLeveraging customer relationship
management to manage new salesopportunities
Automating business processes toshorten payment cycles and better
manage cash flow
Improving supply chain visibilityand collaboration
Optimizing inventory management& demand forecasting
Ensuring compliance with SarbanesOxley and other government
reporting
Made an investment last 1-2 years
PAST/FUTURE TECHNOLOGY INVESTMENTS
YOY RANK ORDERINVESTMENT TRENDS
18 A WORLD OF INSIGHTS
71%
64%
64%
57%
57%
57%
50%
50%
36%
36%
36%
57%
57%
57%
71%
43%
43%
64%
50%
21%
50%
64%
Collecting business insights (e.g.,profitability, freight costs,
customer data)to drive decision…
Integrating e-commerce andmobile channels with ERP andother business management…
Using mobile technology to makesales and customer service more
efficient
Integrating new technology withlegacy systems to have a single
view of the business
Optimizing inventorymanagement & demand
forecasting
Automating business processesto shorten payment cycles and
better manage cash flow
Rapidly analyzing/connectingbusiness insights to drive
decision making
Improving supply chain visibilityand collaboration
Ensuring compliance withSarbanes Oxley and other
government reporting
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Leveraging customer relationshipmanagement to manage new
sales opportunities
Investments for Consumer Goods, Food & Beverage
Made an investment last 1-2 years
Likely to invest in the next 1-2 years
76%
74%
70%
70%
67%
65%
63%
63%
61%
61%
59%
76%
65%
65%
67%
57%
57%
61%
61%
65%
65%
72%
Collecting business insights (e.g.,profitability, freight costs,
customer data)to drive decision…
Integrating new technology withlegacy systems to have a single
view of the business
Automating business processesto shorten payment cycles and
better manage cash flow
Using mobile technology to makesales and customer service more
efficient
Improving supply chain visibilityand collaboration
Ensuring compliance withSarbanes Oxley and other
government reporting
Optimizing inventorymanagement & demand
forecasting
Leveraging customer relationshipmanagement to manage new
sales opportunities
Rapidly analyzing/connectingbusiness insights to drive
decision making
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Integrating e-commerce andmobile channels with ERP andother business management…
Investments for Manufacturing
Made an investment last 1-2 years
Likely to invest in the next 1-2 years
78%
73%
68%
65%
65%
65%
55%
55%
53%
48%
45%
73%
68%
75%
65%
68%
85%
65%
70%
60%
63%
70%
Collecting business insights (e.g.,profitability, freight costs,
customer data)to drive decision…
Leveraging customer relationshipmanagement to manage new
sales opportunities
Using mobile technology to makesales and customer service more
efficient
Rapidly analyzing/connectingbusiness insights to drive
decision making
Integrating new technology withlegacy systems to have a single
view of the business
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Optimizing inventorymanagement & demand
forecasting
Automating business processesto shorten payment cycles and
better manage cash flow
Ensuring compliance withSarbanes Oxley and other
government reporting
Integrating e-commerce andmobile channels with ERP andother business management…
Improving supply chain visibilityand collaboration
Investments for Retail, Wholesale, Distribution
Made an investment last 1-2 years
Likely to invest in the next 1-2 years
PAST/FUTURE TECHNOLOGY INVESTMENTS (BY INDUSTRY)
19 A WORLD OF INSIGHTS
#6
#8
#11
#1
#3
#3
#8
#11
#6
#6
#11
#1
#3
#3
#6
#6
#6
#8
#8
#10
#10
#11
Integrating new technology withlegacy systems to have a single
view of the business
Rapidly analyzing/connectingbusiness insights to drive
decision making
Leveraging customer relationshipmanagement to manage new
sales opportunities
Collecting business insights (e.g.,profitability, freight costs,
customer data)to drive decision…
Integrating e-commerce andmobile channels with ERP andother business management…
Using mobile technology to makesales and customer service more
efficient
Improving supply chain visibilityand collaboration
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Optimizing inventorymanagement & demand
forecasting
Automating business processesto shorten payment cycles and
better manage cash flow
Ensuring compliance withSarbanes Oxley and other
government reporting
Investments for Consumer Goods, Food & Beverage
Made an investment last 1-2 years
Likely to invest in the next 1-2 years
#1
#11
#4
#2
#4
#10
#10
#8
#8
#5
#6
#1
#2
#3
#7
#7
#7
#7
#9
#9
#11
#11
Collecting business insights (e.g.,profitability, freight costs,
customer data)to drive decision…
Integrating e-commerce andmobile channels with ERP andother business management…
Using mobile technology to makesales and customer service more
efficient
Integrating new technology withlegacy systems to have a single
view of the business
Automating business processesto shorten payment cycles and
better manage cash flow
Rapidly analyzing/connectingbusiness insights to drive
decision making
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Optimizing inventorymanagement & demand
forecasting
Leveraging customer relationshipmanagement to manage new
sales opportunities
Improving supply chain visibilityand collaboration
Ensuring compliance withSarbanes Oxley and other
government reporting
Investments for Manufacturing
Made an investment last 1-2 years
Likely to invest in the next 1-2 years
#6
#3
#1
#8
#11
#2
#6
#6
#8
#10
#9
#1
#2
#3
#5
#5
#7
#7
#9
#9
#10
#11
Improving the efficiency ofwarehouse logistics & the
accuracy of order fulfillment
Using mobile technology to makesales and customer service more
efficient
Collecting business insights (e.g.,profitability, freight costs,
customer data)to drive decision…
Automating business processesto shorten payment cycles and
better manage cash flow
Improving supply chain visibilityand collaboration
Leveraging customer relationshipmanagement to manage new
sales opportunities
Integrating new technology withlegacy systems to have a single
view of the business
Rapidly analyzing/connectingbusiness insights to drive
decision making
Optimizing inventorymanagement & demand
forecasting
Integrating e-commerce andmobile channels with ERP andother business management…
Ensuring compliance withSarbanes Oxley and other
government reporting
Investments for Retail, Wholesale, Distribution
Made an investment last 1-2 years
Likely to invest in the next 1-2 years
PAST/FUTURE TECHNOLOGY INVESTMENTS (BY INDUSTRY)RANK ORDER
20 A WORLD OF INSIGHTS
Base: 100
INVESTMENT BARRIERS: What are the two biggest obstacles your company faces or would face in making purchase
decisions for these new technology solutions?
Organizations with 100 to 500 employees are significantly more likely than organizations with 10 to 99 employees to cite this area as a barrier (35% vs. 14%)
36%
31%
29%
25%
22%
21%
1%
5%
Not knowing which solution is right for your organization
Lack of available budget for new technology investments
Not knowing which vendor to choose from
Lack of a clear ROI for business problem the solution issupposed to address
Internal disagreement about which business problems toaddress first
Lack of in-house resources to implement & learn thesolution
Other
None
Top Two Barriers To Investments
39%
35%
33%
Not knowing which solution isright for your organization
Lack of available budget for newtechnology investments
Not knowing which vendor tochoose from
Top 3 Areas Likely To Be Barriers For Orgs with 10-99 Employees
35%
33%
27%
27%
Lack of a clear ROI for businessproblem the solution is supposed
to address
Not knowing which solution isright for your organization
Lack of available budget for newtechnology investments
Internal disagreement aboutwhich business problems to
address first
Top 3 Areas Likely To Be Barriers For Orgs with 100-500 Employees
21 A WORLD OF INSIGHTS
50%
29%
29%
14%
14%
14%
0%
7%
Lack of available budget for newtechnology investments
Lack of in-house resources toimplement & learn the solution
Internal disagreement aboutwhich business problems to
address first
Not knowing which solution isright for your organization
Not knowing which vendor tochoose from
Lack of a clear ROI for businessproblem the solution is supposed
to address
Other
None
Barriers To Investments for Consumer Goods, Food & Beverage
35%
33%
33%
28%
24%
17%
0%
4%
Lack of a clear ROI for businessproblem the solution is supposed
to address
Not knowing which solution isright for your organization
Lack of available budget for newtechnology investments
Not knowing which vendor tochoose from
Internal disagreement aboutwhich business problems to
address first
Lack of in-house resources toimplement & learn the solution
Other
None
Barriers To Investments for Manufacturing
48%
35%
23%
23%
18%
18%
3%
5%
Not knowing which solution isright for your organization
Not knowing which vendor tochoose from
Lack of in-house resources toimplement & learn the solution
Lack of available budget for newtechnology investments
Lack of a clear ROI for businessproblem the solution is supposed
to address
Internal disagreement aboutwhich business problems to
address first
Other
None
Barriers To Investments for Retail, Wholesale, Distribution
INVESTMENT BARRIERS BY INDUSTRY: What are the two biggest obstacles your company faces or would face in making purchase
decisions for these new technology solutions?
22 A WORLD OF INSIGHTS
Base: 100
MOST CRITICAL OUTCOMES OF NEW INVESTMENTS: When making technology investment decisions to address key business challenges, which of the
following outcomes is most critical for your company?
29%
20%
16%
9%
26%
Increased business efficiency
Optimizing for growth
Increased business visibility
Increased business integration
All of the above equally
Most Critical Outcomes Of New Technology Investments
22%
18%
14%
6%
39%
Increased business…
Optimizing for growth
Increased business visibility
Increased business…
All of the above equally
Orgs with 10-99 Employees
35%
22%
18%
12%
14%
Increased business…
Optimizing for growth
Increased business visibility
Increased business…
All of the above equally
Orgs with 100-500 Employees
23 A WORLD OF INSIGHTS
43%
21%
14%
7%
14%
Increased businessefficiency
Increased businessvisibility
Optimizing forgrowth
Increased businessintegration
All of the aboveequally
Needed Outcomes for Consumer Goods, Food & Beverage
30%
26%
15%
9%
20%
Increased businessefficiency
Optimizing forgrowth
Increased businessintegration
Increased businessvisibility
All of the aboveequally
Needed Outcomes for Manufacturing
23%
23%
15%
3%
38%
Increased businessvisibility
Increased businessefficiency
Optimizing forgrowth
Increased businessintegration
All of the aboveequally
Needed Outcomes for Retail, Wholesale, Distribution
MOST CRITICAL OUTCOMES OF NEW INVESTMENTS: When making technology investment decisions to address key business challenges, which of the
following outcomes is most critical for your company?
Respondent Profile
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78%
75%
75%
69%
66%
37%
0%
Approve/authorize purchases
Determine the business need
Evaluate solutions
Determine requirements
Recommend and select vendors
Sell internally (e.g., outside of the IT team)
None of the above
Base: 100
Purchasing Responsibility: In which of the following ways are you involved in purchasing decisions regarding business management/ERP software used to support
key operations (e.g., accounting, sales, customer service, inventory) at your company? Do you: (Please check all that apply.)
26 A WORLD OF INSIGHTS
0%
49%
28%
21%
51%
22%
29%
0%
Less than 10 Employees
(NET) 10 - 99 Employees
10 - 49 Employees
50 - 99 Employees
(NET) 100 – 500 Employees
100 - 249 Employees
250 - 500 Employees
More than 500 Employees
Base: 100
Size of Organization: Considering all locations or business units, please estimate the total number of employees in your entire company.
The average company size represented in the US is 156 employees, while the average size represented in Canada is 255 employees.
The average company size among the total sample is 171 employees.
The average company size by Industry:-Manufacturing = 213 employees-Retail, Wholesale, Distribution = 138 employees-Consumer Goods, Food & Beverage = 130 employees
58%
25%
18%
27%
33%
40%
C-level/executivemanagement
SVP/VP/GeneralManager
Director
US Canada
Country
53%
26%
21%
C-level/executive management
SVP/VP/General Manager
Director
27 A WORLD OF INSIGHTS
Base: 100
Job Title or Level: Which of the following best describes your job title/level within your company?
Respondents to this survey were screened by the job titles below
Total
65%
22%
12%
41%
29%
29%
C-level/executivemanagement
SVP/VP/GeneralManager
Director
Job Title by Company Size
10 - 99 employees 100 - 500 employees
43%
36%
21%
39%
30%
30%
73%
18%
10%
C-level/executivemanagement
SVP/VP/GeneralManager
Director
Job Title by IndustryConsumer Goods, Food & Beverage
Manufacturing
Retail, Wholesale, Distribution
28A WORLD OF INSIGHTS
46%
40%
14%Manufacturing (includingautomotive, construction,engineering, chemicals, metals &mining)Retail, Wholesale, Distribution
Consumer Goods, Food &Beverage (food processing/re-sell)
Base: 100
Vertical industry: Which of the following best describes your company’s primary business or industry?
29 A WORLD OF INSIGHTS
56%
20%
36%
42%
22%
15%
5%
2%
(NET) Less than $15 million
Less than $1 million
million to less than $15 million
(NET) $15 million and above
million to less than $50 million
$50 million to less than $100million
Over $100 million
Don't know
Total RevenueAverage Total Revenue = $26.87
Base: 100
TOTAL REVENUE: Which of the following ranges best represents your company’s annual revenue for its most
recently completed fiscal year?
11.97
40.6
10 - 99 employees
100 - 500 employees
Average Revenue (in millions) by Company Size
10.14
16.04
40.78
ConsumerGoods/Food &
Beverage
Retail, Wholesale,Distribution
Manufacturing
Average Revenue (in millions) by Industry
16.45
28.19
Revenue was flat ordeclined
Revenue Improved
Average Revenue (in millions) by Revenue Outcome vs. Previous
24.05
27.38
Canada
US
Average Revenue (in millions) by Country
30 A WORLD OF INSIGHTS
88%
15%
33%
40%
11%
5%
6%
0%
0%
1%
(NET) Improved
Improved more than 10%
Improved 6%-10%
Improved 1%-5%
(NET) Flat or Declined
Flat or close to 0%
Declined 1%-5%
Declined 6%-10%
Declined more than 10%
Don’t know
Consumer Goods/Food & Beverage companies are the most likely industry to have seen a net improvement in revenues (93%) compared to Retail/Wholesale/Distribution (90%) and Manufacturing (85%).
Base: 100
REVENUE COMPARED TO PREVIOUS YEAR: How did your company’s revenues at the end of your most recently completed fiscal year compare
to that of the previous year?
The majority of respondents (about three in four) reported revenue increases at their organizations in the 1% to 10% range.
US respondents are more likely than Canadian respondents to report their companies saw a net improvement in revenues compared to the previous year (89% vs. 80%).
31
IDG Research Services specializes in marketing and media-related research for technologymarketers. As a division of International Data Group (IDG), the world's leading technologymedia, research, and event company, IDG Research Services brings the resources andexperience of a large, global company to its clients in the form of a small, customer-focusedbusiness. For more information please visit our website.
Janet KingSVP/GM
Office: 508-766-5601Mobile: 207-807-4806
Email: [email protected]
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