technology priorities, core strategies and near-term ... priorities, core strategies ... force...

1 • The Mighty Mid-Market Growth Leaders Survey

Growth Leaders SurveyTechnology Priorities, Core Strategies and Near-Term Investment Plans

Exclusive research insights on high growth drivers and challenges

The Mighty Mid-Market


Table of ContentsExecutive Summary: Investment Drives Growth .........................3

How Technology Enables Execution ..............................................5

Security Permeates a Customer-First Culture ..............................7

Cloud Levels the Playing Field ........................................................9

Data-Driven Benefits Span Multiple Functions .......................11

Sustaining Growth Requires Overcoming Challenges ...........12

Conclusion .......................................................................................13


The National Center for the Middle Market (NCMM) at The Ohio State University Fisher College of Business defines the U.S. mid-market as 200,000 companies with revenues ranging from $10 million to $1 billion. These companies employ close to 48 million people and represent one-third of the private sector GDP.1

“They are private and public, family-owned, and sole proprietorships, geographically diverse, and span almost all industries,” according to NCMM.2 “The health of these businesses and their respective outlook serve as a solid indicator for the greater U.S. economy.”

Time Warner Cable Business Class (TWCBC is now Spectrum Enterprise) sponsored the Mighty Mid-Market Growth Leaders Survey to gather and share insight into these unsung heroes of business resilience. (Consider that during the financial crisis of 2007-2010, mid-market companies actually added 2.2 million jobs across U.S. sectors and geographies.3)

It’s our hope that our customers and the mid-market business community at large can use the findings from this survey to build strong business practices that spawn healthy and sustainable growth.

High growth leaders value data-driven analytics to add new value for customers and drive productivity and better decisions. Clouds apps and services also are top-of-mind, as is security.

E xecutive Summary: Investment Drives Growth


The survey results reveal that high growth mid-market leaders say that IT investment and a sharp focus on customers are top drivers of more sales, geographic expansion and better product offerings. The results also reveal that these companies view network-enabled collaboration and communication as must-have capabilities for both internal and customer-facing work.

Supporting View: Technology Is Critical To Growth

of mid-market companies said technology is critical to their growth strategy, vs. in 2014.

—2015 Mid-Market Technology Survey, Deloitte4

48% 41%MIGHTY MID-MARKET SURVEY HIGHLIGHTS*

48%

41%

*Please note, all sets of figures in this research report do not add up to 100% because of multiple choice responses.

More Sales, More Locations

78% Customer-first culture is most important to growth

60% Adding new locations

46% Growing between 10%-40%

21% Growing between 41%-76%+

Prioritizing Technology

70% Investing in network technology over the next 12 months

48% Investing in cloud apps and services over the next 6 to 12 months

41% Investing in web-based collaboration over the next 6 to 12 months

23% Average increase of network technology investment


High growth mid-market companies clearly view technology as a critical enabler based on their IT investment priorities. They plan near-term investment in cloud apps and services, and digital collaboration and communication tools – all known for lowering cost, simplifying processes and enhancing one-on-one experiences, whether internal or customer facing.

Meanwhile, behind the scenes, network infrastructure is what keeps traffic moving and communications flowing smoothly and securely. Network infrastructure as the No. 1 investment choice indicates a mature understanding of modern business technology. The network influences business-wide technology ROI because without network reliability and security, the performance of all other technologies suffers.

Supporting View: Mid-Market Leaders Increase Technology Spend

of respondents say their company’s technology spend is higher than last year.

indicate their technology spend is more than of revenue – up from in 2014.

5%

—Middle Market Indicator 2Q 2015, National Center for the Middle Market, in collaboration with The Ohio State University Fisher College of Business and GE Capital5

19%

30%

2/3

How Technology Enables Execution


PERFORMANCE OUTWEIGHS COST

High growth leaders emphasize reliability, speed and security over low cost when making decisions about their business network.

WHAT’S IMPORTANT TO YOU WHEN MAKING DECISIONS ABOUT YOUR BUSINESS NETWORK?

1. Reliability

2. Speed

3. Security

4. Low Cost

WHERE WILL YOU PRIORITIZE INVESTMENT IN THE NEXT 6 TO 12 MONTHS?

Network infrastructure

Cloud apps and services

Web-based collaboration solutions

Voice, data, video/TV solutions

Managed services

58%

48%

41%

29%

20%

NETWORK INVESTMENT TOPS PRIORITIES

High growth leaders understand that the business network is the foundation of critical enablers, such as cloud apps, managed services and web-enabled communications.


Mid-market growth leaders say a customer-first culture is their most critical differentiator. Security of data is also a priority and was identified as the No. 1 technology investment driving customer engagement and one of the top three technology investments driving productivity internally.

Cyber crime is a growing threat capable of both top- and bottom-line harm, as a breach can break trust from vendors, employees and customers; force operations offline for an extended period; and lead to costly litigation and penalties.

Supporting View: Mid-Market Companies Prioritize Security In Near Term

“Midsized enterprises are putting more of a focus on data security. More than three-quarters say they plan to increase investments in data security over the next 12 months. A similar number (75%) require data-security training for employees.”

—American Express Survey of Midsized Companies, 20156

Security Permeates a Customer-First Culture


WHY MANAGING RISK MATTERS

Maintaining critical differentiators that contribute to growth requires intense use of digitally-driven capabilities, such as cloud-hosted applications, anytime/anywhere access and 24/7 customer support services. High growth leaders understand that this intense use also makes them more vulnerable to cyber crime, so they’ve made security a priority.

TOP 3 TECHNOLOGY INVESTMENTS DRIVING CUSTOMER ENGAGEMENT

1. Security

2. Data-analytics capabilities

3. 24/7 support services

LEARN MORE ABOUT CYBER-RESILIENCY

“Promoting Cyber-Resiliency through Situational Awareness and Outreach Programs”

By Richard Harman, Manager of Spectrum Enterprise Security Operations

GET THE ARTICLE


High growth companies rely on the cloud to match the capabilities of their larger competitors and embed scalable solutions into their IT infrastructure. They are using the cloud for multiple applications, such as hosting email exchange and telecommunication services, but the most critical role cloud plays is for data management.

Supporting View: Scalability Is a Game Changer

“The ability to store company data in a system that can always scale up to meet rising needs is a game changer, especially for midsized companies with little room for error in their IT expenditures. What’s more, the various cloud functionalities available from third-party applications allow mid-market firms to battle larger competitors on a more equal footing in critical areas, including data analytics that help inform research and development, sales, marketing and customer service.”

—”Building a Cloud Technology Blueprint for Your Company,” Rob Carey, National Center for the Middle Market7

C loud Levels the Playing Field

TOP 5 REASONS FOR USING THE CLOUD

1. Data storage

2. Data backup

3. Hosted email exchange

4. Data redundancy and restoration

5. Telecommunications services


As companies’ processes, correspondence and outreach increasingly move to the digital realm, management and protection of vital flows and vast repositories of data become more critical to maintaining competitive advantage.

TOP 3 TECHNOLOGY INVESTMENTS DRIVING PRODUCTIVITY

1. Collaborative applications and tools

2. Cloud solutions that support anytime/anywhere access

3. Security


More than half of the high growth leaders chose data-driven decision-making as the No. 2 most important differentiator feeding growth (after No. 1, customer-first culture). They report powerful benefits. For example, half of the growth leaders said data analytics have enabled them to provide better products/services, and 38% said data analytics improved prospect targeting and/or helped open new markets.

More customized or higher-quality products/services to customers

Improved productivity through more strategically aligned measures

Faster decision-making based on predictive data modeling

Better targeting of prospects and/or new market opportunities

Better decision-making based on predictive modeling

75%

73%

71%

70%

70%

ANALYTICS CAPABILITIES

% doing or planning to adopt soon

D ata-Driven Benefits Span Multiple Functions

TOP 3 DIFFERENTIATORS MOST CRITICAL TO GROWTH

1. Customer-first culture

2. Data-driven decision-making

3. Ongoing cost control

Our survey is one of several documenting interest in the benefits of data analytics among mid-market companies. A 2015 American Express4 survey asked mid-market leaders to choose what they see as data’s greatest value for their organizations. The top four choices were: increased operational effectiveness; ability to predictively manage aspects of the business; greater competitive edge in understanding customer trends and patterns; and increased customer intimacy derived from available relevant data.


High growth mid-market companies are not immune to challenges impacting larger and smaller businesses. All of the challenges high growth leaders identified have been lingering for years with no easy fixes emerging. In fact, NCMM’s quarterly survey of mid-market companies also lists staff/employees as the No. 1 challenge to growth.9 The best response is to get in front of the challenge. For example, make sure as many infrastructure investments as possible are scalable so that processes align smoothly as you grow; and, look for opportunities to tap outside expertise to fill skills gaps and control costs.

Business value propositions have become so specialized that at a certain inflection point, it makes sense for mid-market companies to narrow human capital investment to roles directly supporting value creation, while outsourcing non-core competencies. In fact, high growth respondents that use IT Managed Services and those that don’t both identified “IT can focus on more strategic priorities” as the top benefit of outsourcing network management.

Access to employees with the right skills

Controlling costs while maintaining quality

Internal alignment around strategic goals

Scalable technology solutions

Insight into market changes/needs

66%

62%

42%

39%

39%

CHALLENGES TO OVERCOME

Which of these will be most critical to sustain growth in the future?

S ustaining Growth Requires Overcoming Challenges


ConclusionSustained and profitable growth doesn’t just happen at mid-market companies. As this survey of high growth leaders portrays, companies must invest in technology, new locations and competitive capabilities to rise to the top.

The most critical technology investment is the business network, which is the foundation for growth-driving technologies, such as cloud apps and services and web-based collaboration solutions. About 70% of survey respondents plan to invest in their business network over the next 12 months. Highly valued capabilities, such as data analysis and cloud-based data management, also need a reliable, scalable secure network.

The outcome of these smart technology investments is a customer-centric culture, which leaders identify as the most critical corporate attribute for growth. The leaders also report that security is essential to maintaining high-availability of crucial customer-facing and internal-productivity technology.

In summary, mid-market companies must get technology right to get growth right. Using these survey findings as benchmarks and guideposts is a wise first step to evaluating where your company is on the growth-potential scale.

We can help you use this survey to benchmark your technology road map against that of growth leaders. Relying on the right technology solutions and a partner can help push you into the ranks of the Mighty Mid-Market high growth leaders.

Contact your local Spectrum Enterprise representative today. GET GROWING

END NOTES1 National Center for the Middle Market, in collaboration with The Ohio State University Fisher College of Business and GE Capital, Middle Market

Indicator 2Q 2015, middlemarketcenter.org2 ibid3 ibid4 Deloitte, 2015 Mid-Market Technology Survey as highlighted in “Perspectives: Disruption in the mid-market, How technology is fueling growth” http://

www2.deloitte.com/us/en/pages/deloitte-growth-enterprise-services/articles/disruption-in-the-mid-market-how-technology-is-fueling-growth.html5 National Center for the Middle Market, in collaboration with The Ohio State University Fisher College of Business and GE Capital, Middle Market

Indicator 2Q 2015, middlemarketcenter.org6 American Express, American Express Survey of Mid-sized Companies, September 9, 2015 www.businesswire.com/news/home/20150909006142/en/7 Carey, Rob. “Building a Cloud Technology Blueprint for Your Company,” August 17, 2015 www.middlemarketcenter.org/expert-perspectives/building-a-

cloud-technology-blueprint-for-your-company8 American Express, American Express Survey of Mid-sized Companies, September 9, 2015 www.businesswire.com/news/home/20150909006142/en/

9 National Center for the Middle Market, in collaboration with The Ohio State University Fisher College of Business and GE Capital, Middle Market Indicator 2Q 2015, middlemarketcenter.org

About the Survey

The 2015 Mighty Mid-Market Growth

Leaders Survey was conducted by

Decision Tree Labs and sponsored by

Time Warner Cable Business Class.* It

invited previously identified high growth

companies with 25-500 employees and

$50 million-$500 million in revenue.

Responding titles included Owner, CEO,

COO, CTO, CIO, CSO, IT Director, VP

of IT, Systems Administrator, Systems

Engineer, Database Administrator and

Department Director. The survey received

290 responses.

About Spectrum EnterpriseSpectrum Enterprise, a division of Charter Communications, is a national provider of scalable, fiber-based technology solutions serving many of America’s largest businesses and communications service providers. The broad Spectrum Enterprise portfolio includes Internet access, Ethernet access and networks, Voice and TV solutions extending to Managed IT solutions, including Application, Cloud Infrastructure and Managed Hosting Services offered by its affiliate, Navisite®. Our industry-leading team of experts works closely with clients to achieve greater business success by providing these right fit solutions designed to meet their evolving needs.

For more information, visit enterprise.spectrum.com.

Time Warner Cable Business Class and the TWCBC logo are trademarks of Time Warner Inc., used under license. * TWCBC is now Spectrum Enterprise. © 2016 Charter Communications. All rights reserved.

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