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October 2014 MARKETING RESEARCH EMPLOYEE ENGAGEMENT A WORLD OF INSIGHTS Presented on behalf of: The SMB Business Environment

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Page 1: The SMB Business Environment › wp-content › uploads › 2016 › 09 › IDG-Sag… · challenges. The areas SMBs are most frequently making technology investments in include:

October 2014

MARKETING RESEARCH

EMPLOYEE ENGAGEMENT

A WORLD OF INSIGHTS

Presented on behalf of:

The SMB Business Environment

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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.

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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

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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.

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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.

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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).

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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.

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Survey Findings

A WORLD OF INSIGHTS

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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

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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

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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

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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?

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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.

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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?

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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

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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).

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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

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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)

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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

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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

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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?

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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

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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?

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Respondent Profile

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25A WORLD OF INSIGHTS

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.)

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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

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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

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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?

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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

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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%).

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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]

A WORLD OF INSIGHTS