appendix—full survey results technology in the mid-market ......from july 14 to july 24, 2017, a...

Appendix—Full survey resultsTechnology in the mid-market—Closing the gapA Deloitte Growth Enterprise Services reportNovember 2017

From July 14 to July 24, 2017, a Deloitte survey of mid-market companies was conducted by OnResearch, a market research firm. The survey examined technology trends taking place in this market segment to determine the role that technology plays and how it influences business decisions.

The 500 survey respondents represented mid-market companies with annual revenues ranging from $100 million to a little over $1 billion. Half of the respondents were C-suite executives, while the remaining executives held other management roles. Seventy-nine percent of the respondents represented companies that are privately held, while the remainder were publicly-traded firms. Thirty-four percent of the respondents were from consumer and industrial products companies; 25 percent represented technology, media and telecommunications companies; the remainder were divided among energy and resources, financial services, life sciences and health care, and other industries.

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

The report based on these survey findings, Technology in the mid-market—Closing the gap, can be found on our website at www.deloitte.com/us/mid-market-technology.

Technology in the mid-marketClosing the gap

3

Technology in the mid-market—Closing the gap

4

Business environment

Technology survey charts August 2017 9

31% or higher

21% - 30%

16% - 20%

11% - 15%

5% - 10%

1% - 4%

0%

Negative 1% - 4%

Negative 5% - 9%

Negative 10% or lower

Over the past 12 months, my company’s revenue growth has been:

4.4%

13.8%

16.2%

19.2%

32.2%

9.2%

0.6%

2.6%

1.2%

1.0%

2.6%

17.2%

16.6%

21.4%

29.8%

8.4%

0.4%

2.2%

0.8%

0.6%

6.0%

8.6%

20.2%

24.2%

25.8%

10.0%

1.4%

2.4%

0.8%

0.6%

20162017

2015


Highly optimistic

Cautiously optimistic

Neutral

Pessimistic

Highly pessimistic

My company's business outlook over the next 12 months appears to be:

31.8%

57.4%

8.6%

1.8%

0.4%

35.8%

52.2%

8.8%

2.2%

1.0%

34.4%

52.0%

10.8%

2.2%

0.6%

20162017

2015


5

Role and value of technology


Business leaders (CEO, CFO, COO, business unit leaders, supporting functions)

IT leaders (CTO, CIO, IT department leaders)

Both Business and IT

Other

Who leads the adoption of new and emerging technologies within your company?

23.2%

43.0%

33.6%

0.2%


They are leading the charge

They are actively engaged

They are passive, but willing to be engaged

They have bigger fish to fry

They are actively obstructing change

Not applicable/don’t know

How would you describe the role of executive leadership in your organization with regard to emerging and next-generation technologies (including cloud, mobile, and social)?

26.6%

57.4%

12.8%

2.0%

0.8%

0.0%

31.0%

59.0%

7.4%

1.6%

1.0%

0.0%

32.9%

45.7%

17.0%

3.2%

0.4%

0.8%

20162017

2015


Enable new ways to interact with customers

Streamline or reduce operational cost

Help create new lines of services/business

Increase worker productivity

Improve business process alignment

Speed the pace of transactions and business interactions

What do you expect will be the most significant impact of digital disruption on your organization in the next 12 months?

20.0%

17.8%

17.2%

16.6%

15.4%

12.8%


Enable new ways to interact with customers

Streamline or reduce operational cost

Help create new lines of services/business

Increase worker productivity

Improve business process alignment

Speed the pace of transactions and business interactions

What do you expect will be the most significant impact of digital disruption on your organization in the next 12 months?

20.0%

17.8%

17.2%

16.6%

15.4%

12.8%


6

Role and value of technology (cont.)


Information security

Keeping up with new technology

Budget to implement new technology

Integrating with legacy systems

Technical complexity

Business partners investing at the same pace as our organization

Not having the right talent/skill set

Tactical hurdles

Leadership support

Understanding ROI

Other

What is the biggest IT challenge faced by your organization? Select only one.

26.2%

18.6%

17.8%

14.6%

9.8%

7.0%

5.4%

0.0%

0.0%

0.0%

0.6%

28.0%

19.2%

18.8%

4.4%

10.8%

9.6%

0.1

0.0

30.2%

22.2%

10.0%

16.8%

9.6%

9.6%

1.6%

*Response not offered in 2015

20162017

2015

Response not offered in prior years.



Response not offered in 2015.


Information security

Keeping up with new technology

Budget to implement new technology

Integrating with legacy systems

Technical complexity


Not having the right talent/skill set

Tactical hurdles

Leadership support

Understanding ROI

Other

What is the biggest IT challenge faced by your organization? Select only one.

26.2%

18.6%

17.8%

14.6%

9.8%

7.0%

5.4%

0.0%

0.0%

0.0%

0.6%

28.0%

19.2%

18.8%

4.4%

10.8%

9.6%

0.1

0.0

30.2%

22.2%

10.0%

16.8%

9.6%

9.6%

1.6%

*Response not offered in 2015

20162017

2015







Which of the following statements is true about your IT department’s involvement with the end customer of your organization? Select all that apply.

Our IT department is focused on delivering seamless/integrated customer experiences

We are actively building technology platforms to better engage with customers

Our IT department is involved in designing of products and customer solutions

Our corporate strategy emphasizes customer acquisition, retention and loyalty

Gathering and analyzing customer data is a priority for the IT organization

Technology and Marketing departments have established joint processes and governance

Our IT department has no involvement with the end customer*

None of the above

51.8%

47.2%

44.4%

43.0%

41.4%

30.6%

3.2%

0.4%

50.2%

47.0%

45.0%

42.4%

39.4%

34.0%

3.2%

0.2%

48.4%

51.0%

45.0%

38.6%

41.8%

31.8%

3.8%

*Response not offered in 2015.

20162017

2015


7

Role and value of technology (cont.)


Mature with established processes

Building and developing IT governance and processes and structures

Investigating IT process and improvement, but no formal governance in place

Little to no formal IT processes, structures, or awareness

Don’t know/Not sure

How would you describe the current state of IT governance within your organization?

21.4%

46.2%

24.0%

8.4%

0.0%

37.0%

51.2%

9.8%

2.0%

0.0%

34.2%

46.8%

13.8%

3.6%

1.6%

20162017

2015


Mature with established processes

Building and developing IT governance and processes and structures

Investigating IT process and improvement, but no formal governance in place

Little to no formal IT processes, structures, or awareness


How would you describe the current state of IT governance within your organization?

21.4%

46.2%

24.0%

8.4%

0.0%

37.0%

51.2%

9.8%

2.0%

0.0%

34.2%

46.8%

13.8%

3.6%

1.6%

20162017

2015

Investigating IT process and improvement,but no formal governance in place


8

Technology spend


We do not currently have a separate, identifiable spend

Our spend is negligible (< 1% of revenue)

We spend between 1-5% of revenue on technology

Our spend is above 5% of revenue

Don’t know

What is your company’s current “spend” on technology?

5.0%

9.2%

50.2%

35.6%

4.6%

7.7%

17.0%

47.8%

27.6%

0.8%

9.0%

13.8%

47.4%

29.9%

9.2%

20162017

2015


Significantly higher

Higher

About the same

Lower

Significantly lower

Compared to last year, my company’s current level of technology spend is:

11.5%

58.4%

28.6%

1.5%

0.0%

19.4%

54.1%

24.7%

1.5%

0.2%

14.6%

52.3%

30.9%

1.7%

0.5%

20162017

2015


9

Technology spend (cont.)


What areas were the focus of your company’s information technology budget spend in the past 12 months? Select all that apply.

Implementation of new information security processes

Investing in hardware to mitigate security risks

Threat prevention (monitoring/ detection)

Investing in software to mitigate security risks

Educating employees about risks and adhering to security protocols

Hiring or contracting with cybersecurity specialists to address security risk

60.5%

55.1%

54.1%

52.0%

51.0%

19.9%

61.2%

46.2%

53.5%

51.4%

53.5%

12.6%

20162017


10


What will be your organization’s top three technology priorities for the next 12 months? Select up to three.

Managing cyber-security and information security risk

Business innovation - developing new products and services

Reducing IT costs and simplifying IT architecture

Aligning business processes to capitalize on technology-enabled opportunities

Using analytics to anticipate business trends and/or predict business outcomes

Simplifying IT architecture, infrastructure, and applications

Moving toward a cloud-first (or cloud-only) architecture

Redesigning current IT operating and talent model

Other

48.0%

35.6%

35.2%

34.0%

33.4%

32.4%

29.8%

18.2%

0.4%











Other

48.0%

35.6%

35.2%

34.0%

33.4%

32.4%

29.8%

18.2%

0.4%

Technology trends











Other

48.0%

35.6%

35.2%

34.0%

33.4%

32.4%

29.8%

18.2%

0.4%




Given the rapid pace of change in technology architecture, which IT investment has the potential to produce the greatest benefit for your company?

Business innovation – developing new products and services






Simplifying IT architecture, infrastructure and applications


16.2%

15.0%

14.0%

13.8%

12.2%

11.8%

11.2%

5.8%











16.2%

15.0%

14.0%

13.8%

12.2%

11.8%

11.2%

5.8%











16.2%

15.0%

14.0%

13.8%

12.2%

11.8%

11.2%

5.8%











16.2%

15.0%

14.0%

13.8%

12.2%

11.8%

11.2%

5.8%




11

Technology trends (cont.)


Which response best describes your organization’s plans to use blockchain?

Storing and securing digital records (providing control of both data and assets)

Executing smart contracts (automates contracts and compliance streamlining business processes)

Exchanging digital assets (transferring ownership without banks or payment processors)

We are not planning to use blockchain technologies

Other

Don’t know/not sure

33.6%

24.4%

18.8%

14.0%

0.4%

8.8%


12



Information security (cyber intelligence)

Cloud infrastructure

Analytics

Big Data

Cloud integration (cloud-to-cloud package integration)

Social business/social media

Mobility

Internet of Things (IoT)

Cloud ERP or hybrid cloud applications

Legacy (core) system modernization

Machine intelligence (hardware/device-based AI)

Artificial intelligence

Mixed reality (virtual and augmented reality combined with IoT)

3D printing (additive manufacturing)

Wearable technologies

None of the above

Which of the following technology-related trends had the most significant impact on your business in the past 12 months? (Top ranked responses shown.)

14.8%

11.4%

9.6%

8.4%

7.6%

5.8%

5.8%

5.8%

5.4%

5.4%

5.4%

4.0%

2.4%

2.0%

1.2%

5.0%

We change the response categories every year, so I’m skipping the comparison – it’s virtually meaningless




Analytics

Big Data



Mobility









None of the above


14.8%

11.4%

9.6%

8.4%

7.6%

5.8%

5.8%

5.8%

5.4%

5.4%

5.4%

4.0%

2.4%

2.0%

1.2%

5.0%





Analytics

Big Data



Mobility









None of the above


14.8%

11.4%

9.6%

8.4%

7.6%

5.8%

5.8%

5.8%

5.4%

5.4%

5.4%

4.0%

2.4%

2.0%

1.2%

5.0%








Analytics

Mobility


Big Data









None of the above

Which of the following technology-related trends will have the most significant impact on your business in the next 12 months? (Top ranked responses shown.)

14.2%

10.4%

7.4%

7.4%

7.2%

6.8%

6.2%

5.2%

5.2%

5.0%

4.8%

4.4%

4.0%

3.2%

3.0%

5.6%






Analytics

Mobility


Big Data









None of the above


14.2%

10.4%

7.4%

7.4%

7.2%

6.8%

6.2%

5.2%

5.2%

5.0%

4.8%

4.4%

4.0%

3.2%

3.0%

5.6%






Analytics

Mobility


Big Data









None of the above


14.2%

10.4%

7.4%

7.4%

7.2%

6.8%

6.2%

5.2%

5.2%

5.0%

4.8%

4.4%

4.0%

3.2%

3.0%

5.6%






Analytics



Mobility

Big Data










None of the above

Which of the following technology-related trends currently have the most significant impact on your workforce? (Top ranked responses shown.)

13.4%

11.0%

7.8%

7.6%

7.0%

6.8%

6.2%

6.2%

6.0%

5.8%

5.4%

4.2%

3.4%

2.6%

1.2%

5.4%




Analytics



Mobility

Big Data










None of the above


13.4%

11.0%

7.8%

7.6%

7.0%

6.8%

6.2%

6.2%

6.0%

5.8%

5.4%

4.2%

3.4%

2.6%

1.2%

5.4%




Analytics



Mobility

Big Data










None of the above


13.4%

11.0%

7.8%

7.6%

7.0%

6.8%

6.2%

6.2%

6.0%

5.8%

5.4%

4.2%

3.4%

2.6%

1.2%

5.4%





13





Analytics

Mobility



Big Data









None of the above

Which of the following technology-related trends currently have the most significant impact on your customers? (Top ranked responses shown.)

13.4%

11.2%

9.2%

8.4%

7.8%

6.2%

5.8%

5.6%

5.4%

4.4%

3.8%

3.4%

3.2%

3.0%

1.0%

8.2%





Analytics

Mobility



Big Data









None of the above


13.4%

11.2%

9.2%

8.4%

7.8%

6.2%

5.8%

5.6%

5.4%

4.4%

3.8%

3.4%

3.2%

3.0%

1.0%

8.2%





Analytics

Mobility



Big Data









None of the above


13.4%

11.2%

9.2%

8.4%

7.8%

6.2%

5.8%

5.6%

5.4%

4.4%

3.8%

3.4%

3.2%

3.0%

1.0%

8.2%






Big data

Analytics



Mobility










None

Which of the following technology-related trends have the potential to produce the greatest productivity gains for your organization? Select all that apply.

37.6%

37.0%

36.6%

33.4%

31.8%

29.6%

28.8%

26.6%

24.6%

24.0%

21.8%

17.2%

15.8%

12.8%

11.2%

0.8%




Big data

Analytics



Mobility










None


37.6%

37.0%

36.6%

33.4%

31.8%

29.6%

28.8%

26.6%

24.6%

24.0%

21.8%

17.2%

15.8%

12.8%

11.2%

0.8%




Big data

Analytics



Mobility










None


37.6%

37.0%

36.6%

33.4%

31.8%

29.6%

28.8%

26.6%

24.6%

24.0%

21.8%

17.2%

15.8%

12.8%

11.2%

0.8%





14

Cyber and information security


Of your company’s technology spend, what percentage is tied to information security? Select only one.

Our spend is negligible (< 1% of overall technology spend)

We spend between 1-5% of overall technology spend on information security

Our spend on information security is above 5% of overall technology spend

Don't know/Not sure

11.0%

59.9%

26.4%

2.6%

15.5%

61.1%

22.1%

1.3%

20.6%

56.6%

19.4%

3.4%

20162017

2015


Phishing and targeted attacks*

Employee-introduced risk compromising data or infrastructure**

Migration to cloud

Integration with external systems (business partners, customers)

Internal access controls

Mobility

Cloud-to-cloud vendor package integration

Leveraging external cloud hosting providers (e.g., Amazon, MS, Google)

What are the data privacy and security risk issues of concern to your company? Select all that apply.

51.4%

48.0%

40.8%

39.2%

30.4%

30.2%

28.0%

26.4%

48.6%

46.8%

41.6%

40.0%

35.4%

36.8%

60.1%

0.0%

47.5%

52.5%

46.2%

38.6%


20162017

2015



15

Cyber and information security (cont.)


How does your company mitigate information security risks? Select all that apply.

20162017

2015

We encrypt sensitive information

We have a plan in place to manage internal informational security threats

We have a plan in place to manage external information security threats

We offer education and training on information security matters

We have governance structures and procedures in place concerning information security threats

We share threat information with law enforcement and industry peers to avoid risk isolation

We do not currently have plans in place to mitigate information security risks

Other

Don't know/Not sure

53.4%

53.4%

50.8%

48.6%

44.2%

30.2%

0.0%

0.0%

0.0%

57.8%

51.0%

52.0%

46.8%

43.6%

1.0%

0.2%

0.0%

44.0%

60.8%

66.6%

29.6%

47.4%

0.0%

0.0%

4.0%



How does your company mitigate information security risks? Select all that apply.

20162017

2015

We encrypt sensitive information

We have a plan in place to manage internal informational security threats

We have a plan in place to manage external information security threats

We offer education and training on information security matters

We have governance structures and procedures in place concerning information security threats

We share threat information with law enforcement and industry peers to avoid risk isolation

We do not currently have plans in place to mitigate information security risks

Other

Don't know/Not sure

53.4%

53.4%

50.8%

48.6%

44.2%

30.2%

0.0%

0.0%

0.0%

57.8%

51.0%

52.0%

46.8%

43.6%

1.0%

0.2%

0.0%

44.0%

60.8%

66.6%

29.6%

47.4%

0.0%

0.0%

4.0%



16

Augmented, virtual and mixed reality


Mature – successful deployments in production

Building – in the deployment phase of an AR/VR solution

Experimenting – pilot projects started or being planned in AR/VR

Investigating – interested in the potential opportunities augmented or virtual reality offers

Waiting – no action taken yet

No action planned – not relevant to our business strategy

Which term most closely describes your organization’s current use of mixed reality (augmented or virtual reality combined with IoT)?

13.6%

33.2%

20.2%

15.8%

9.4%

7.8%


Employee training, education, and learning (e.g., working remotely, virtual meetings, recruiting, learning)

Operations (e.g., field technicians, warehouse workers using IoT-enabled apps tailored to their unique tasks, advanced machine operation)

Communication and collaboration (e.g., virtual meetings, simulated training environments)

Marketing and customer service (e.g., virtual demos, tours, product displays, virtual design walk-through)

Other

How is your company using mixed reality to support its business goals?

52.8%

52.2%

46.3%

43.6%

0.3%


17

Cloud


On-premises: systems, hardware and support staff at your physical location

Hosted solutions: pre-built system run, located and operated at a fixed monthly fee

Hybrid: A mix of on-premises, off-premises solutions based on your application and business needs

Off-premises: systems applications run and managed in the cloud using Software as a Service (SaaS) approach

Don’t know

What is the preferred architectural model/ approach for cloud within your business?

27.6%

36.4%

26.6%

8.4%

1.0%

33.8%

32.8%

21.6%

11.4%

0.4%

36.8%

26.2%

20.6%

13.4%

3.0%

20162017

2015

related series: 42-45








Don’t know


27.6%

36.4%

26.6%

8.4%

1.0%

33.8%

32.8%

21.6%

11.4%

0.4%

36.8%

26.2%

20.6%

13.4%

3.0%

20162017

2015







Don’t know


27.6%

36.4%

26.6%

8.4%

1.0%

33.8%

32.8%

21.6%

11.4%

0.4%

36.8%

26.2%

20.6%

13.4%

3.0%

20162017

2015







Don’t know


27.6%

36.4%

26.6%

8.4%

1.0%

33.8%

32.8%

21.6%

11.4%

0.4%

36.8%

26.2%

20.6%

13.4%

3.0%

20162017

2015







Don’t know


27.6%

36.4%

26.6%

8.4%

1.0%

33.8%

32.8%

21.6%

11.4%

0.4%

36.8%

26.2%

20.6%

13.4%

3.0%

20162017

2015





Increase flexibility to scale, acquire, divest

Reduce IT CapEx/OpEx costs

Readiness for IFRS

Quickly obtain SOX compliance

Don’t know

If your preference is off-premises, what are your goals?

42.9%

33.3%

11.9%

9.5%

0.0%

56.1%

24.6%

3.5%

10.5%

5.3%

44.8%

38.8%

4.5%

11.9%

0.0%


2015


18Technology survey charts August 2017 45

Ability to quickly adjust to a business need/change

Ability to customize

Ability to have IT own your system

Greater control over disaster recovery

Other

Don’t know

If you prefer a hybrid approach, what is most important to your company?

42.9%

21.1%

21.1%

13.5%

1.5%

0.0%

38.0%

26.9%

23.1%

11.1%

0.0%

0.9%

40.8%

28.2%

19.4%

8.7%

1.0%

1.9%


20162017

2015

Cloud (cont.)


19

Cloud (cont.)


For each of the following functions, please describe each function’s relationship to the cloud.

Grouped 41-44

Financials and Accounting

Enterprise Resource Planning (ERP)

Customer Relationship Management (CRM)

Human Resources

Enterprise Performance Management (ERM)

Manufacturing Resource Planning (MRP)

Supply Chain Management (SCM)

Knowledge Management System (KMS)

Sales Force Automation (SFA)

Data Warehouse/Analytics

Mature: successful deploymentsBuilding: in the deployment phase of productionExperimenting: pilot projects started or being plannedInvestigating: interested in the potential opportunitiesNo action/WaitingNo action/No need

44.4% 24.4% 15.6% 9.6% 3.6% 2.4%

22.6% 41.6% 16.4% 10.0% 4.8% 4.6%

26.0% 35.0% 22.8% 9.6% 4.6% 2.0%

26.2% 29.6% 18.4% 17.2% 4.6% 4.0%

23.8% 28.0% 20.2% 13.0% 9.4% 5.6%

15.0% 33.4% 17.6% 15.0% 5.4% 13.6%

22.4% 25.4% 22.0% 13.0% 7.2% 10.0%

19.2% 29.4% 21.8% 14.4% 7.0% 8.2%

24.2% 29.2% 22.2% 9.6% 7.6% 7.2%

25.2% 36.6% 18.8% 10.2% 3.4% 5.8%


20

Cloud (cont.)


Please rank your top three reasons to select cloud-based applications. (Top ranked responses shown.)

Improve speed of implementation (time to value)

Reduce concerns about data security

Reduce operational expenditure

Address growth needs-scaling, M&A activity, etc.

Reduce capital expenditure

Enable global expansion

21.2%

20.2%

17.6%

16.4%

13.2%

11.2%

20.8%

17.0%

15.2%

13.6%

16.2%

15.6%

20162017


What do you consider to be your top three challenges in using cloud-based services? (Top ranked responses shown.)

Confidence in information security

Ensuring data integrity and reliability

Cost

Lack of IT talent with appropriate skill sets

Cloud-to-cloud application integration

Complexity of integration with core systems

Business partner integration

Business processes and workflow management

Lack of maturity of cloud vendor solutions

Don't know/Not sure

15.2%

15.0%

14.6%

11.0%

9.6%

9.2%

8.4%

7.8%

7.8%

0.8%

18.2%

14.6%

18.6%

9.8%

14.0%

6.8%

9.2%

7.4%

1.4%

20162017



What do you consider to be your top three challenges in using cloud-based services? (Top ranked responses shown.)

Confidence in information security

Ensuring data integrity and reliability

Cost

Lack of IT talent with appropriate skill sets

Cloud-to-cloud application integration

Complexity of integration with core systems

Business partner integration

Business processes and workflow management

Lack of maturity of cloud vendor solutions

Don't know/Not sure

15.2%

15.0%

14.6%

11.0%

9.6%

9.2%

8.4%

7.8%

7.8%

0.8%

18.2%

14.6%

18.6%

9.8%

14.0%

6.8%

9.2%

7.4%

1.4%

20162017



21

Cloud (cont.)


Applications (e.g., email, ERP, CRM)

Infrastructure (virtualized servers and data)

Dev Ops or Testing systems

What items are being hosted in the cloud for your organization? Select all that apply.

73.9%

67.2%

39.2%



If you are using or considering more than one cloud-based application or package, what would you say is the greatest challenge?

Integration across all packages

The ability to manage multiple cloud vendors

Management of differing cloud solution upgrade cycles

Resource knowledge (internal or external)

Other


38.2%

21.4%

20.6%

15.8%

0.6%

3.4%

40.0%

20.8%

22.2%

15.6%

0.2%

1.2%

20162017


22

Internet of Things


As growing numbers of devices are networked, internet-enabled and take action without human intervention, which term most closely describes your organization's current use of the "Internet of Things" (IoT)?

Mature — effective deployments

Building — in the deployment phase of production for Internet of Things

Experimenting — pilot projects started or being planned

Investigating — interested in the potential opportunities Internet of Things offers

Waiting — no action taken yet

No action planned — not relevant to our business strategy

14.4%

37.6%

24.0%

15.2%

5.8%

3.0%

19.4%

37.2%

22.0%

15.4%

3.8%

2.2%

18.6%

29.6%

23.2%

14.4%

8.0%

6.2%

20162017

2015


As growing numbers of devices are networked, internet-enabled and take action without human intervention, which term most closely describes your organization's current use of the "Internet of Things" (IoT)?

Mature — effective deployments

Building — in the deployment phase of production for Internet of Things

Experimenting — pilot projects started or being planned

Investigating — interested in the potential opportunities Internet of Things offers

Waiting — no action taken yet

No action planned — not relevant to our business strategy

14.4%

37.6%

24.0%

15.2%

5.8%

3.0%

19.4%

37.2%

22.0%

15.4%

3.8%

2.2%

18.6%

29.6%

23.2%

14.4%

8.0%

6.2%

20162017

2015


Machine intelligence sensors (products that provide cognitive contextual monitoring and self-aware data capture)

Industrial devices (e.g., HVAC, environment sensors, chemical sensors, smart metering, logistics or supply chain tracking)

Wearable devices provided to employees for work or health tracking (e.g., health/activity sensors, trackers, or security devices like body cams, etc.)

Other

What type of device or sensor-aware products is your company deploying that can be linked to the “Internet of Things?”

62.4%

57.1%

37.1%

0.8%


Machine intelligence sensors (products that provide cognitive contextual monitoring and self-aware data capture)

Industrial devices (e.g., HVAC, environment sensors, chemical sensors, smart metering, logistics or supply chain tracking)

Wearable devices provided to employees for work or health tracking (e.g., health/activity sensors, trackers, or security devices like body cams, etc.)

Other

What type of device or sensor-aware products is your company deploying that can be linked to the “Internet of Things?”

62.4%

57.1%

37.1%

0.8%


23

Social media


We have teams that monitor messages about our brand (e.g., online mentions on social platforms, tracking social shares)

We engage internally through surveys, polls, contests, etc.

We evaluate online mentions on a case-by-case basis, but don’t have a defined strategy

We use automated tools to monitor messages about our brand

We engage externally through surveys, polls, contests, etc.

We do not have a dedicated team that manages our social strategy

Other

How does your organization manage its social media reputation?

48.2%

37.8%

34.4%

33.6%

33.0%

15.8%

0.4%


Greater customer intimacy (e.g., sales responsiveness, connectivity)

Monitoring and addressing consumer feedback around product experience

Monitoring and addressing consumer feedback around brand

Delivery and reinforcement of marketing messages

Other

Which of the following is most important to your company with regard to the use of social platforms for your customer interactions?

34.2%

24.6%

22.4%

18.6%

0.2%


Greater customer intimacy (e.g., sales responsiveness, connectivity)

Monitoring and addressing consumer feedback around product experience

Monitoring and addressing consumer feedback around brand

Delivery and reinforcement of marketing messages

Other

Which of the following is most important to your company with regard to the use of social platforms for your customer interactions?

34.2%

24.6%

22.4%

18.6%

0.2%


24

Analytics


How is your company using data analytics? Select all that apply.

Increase accuracy in forecasting and reporting business results

Predictive client, customer, or business behavior analysis

Understanding internal operational patterns and behaviors

Exposing the value of data to make sound business decisions


We do not use data analytics

64.8%

56.4%

52.4%

50.0%

0.0%

0.6%

61.2%

54.2%

52.4%

52.0%

1.2%

1.4%

20162017


Sales/customer management

Marketing

Manufacturing

Finance/tax

Human resources

Other

Don’t know/not applicable

Which business areas are using or leveraging data analytics within your company? Select all that apply.

57.6%

46.0%

41.8%

31.4%

31.4%

2.4%

0.0%

57.9%

43.9%

40.8%

38.8%

35.7%

1.6%

0.8%

60.1%

49.1%

32.7%

42.4%

32.9%

2.1%

2.1%

20162017

2015


25

Analytics (cont.)


Within Human Resources, which are the areas where your company leverages data analytics? Select all that apply.

Performance and productivity

Workforce planning

Compensation and benefits

Talent retention and attrition prediction

Talent sourcing and acquisition

Leadership talent recognition

66.2%

52.9%

49.0%

44.6%

43.9%

39.5%

62.6%

59.8%

54.0%

59.2%

20162017




Within Human Resources, which are the areas where your company leverages data analytics? Select all that apply.

Performance and productivity

Workforce planning

Compensation and benefits

Talent retention and attrition prediction

Talent sourcing and acquisition

Leadership talent recognition

66.2%

52.9%

49.0%

44.6%

43.9%

39.5%

62.6%

59.8%

54.0%

59.2%

20162017




Cognitive insights

Cognitive engagement

Cognitive automation

We don’t anticipate using cognitive machine intelligence in the next 24 months

Cognitive insights: Machine intelligence that can provide deep, actionable visibility into what has already happened, what is currently happening, and what is likely to happen next, to help augment worker performance/task.

Cognitive engagement: Automated systems that engage with people (e.g., voice-based billing, customer or field service automation).

Cognitive automation: Machine learning, robotic process automation, and other cognitive tools that can help develop deep domain-specific expertise (e.g., by industry, function, or region) and then automate related tasks.


That said, which one of the following approaches could be most beneficial in your organization in the next 24 months?

43.2%

32.8%

17.8%

6.2%



Cognitive insights

Cognitive engagement

Cognitive automation


Cognitive insights: Machine intelligence that can provide deep, actionable visibility into what has already happened, what is currently happening, and what is likely to happen next, to help augment worker performance/task.

Cognitive engagement: Automated systems that engage with people (e.g., voice-based billing, customer or field service automation).

Cognitive automation: Machine learning, robotic process automation, and other cognitive tools that can help develop deep domain-specific expertise (e.g., by industry, function, or region) and then automate related tasks.


That said, which one of the following approaches could be most beneficial in your organization in the next 24 months?

43.2%

32.8%

17.8%

6.2%

Machine intelligence requires a new way of thinking about data analysis, more as a way to automate tasks and gain efficiencies. Which one of the following approaches could be most beneficial in your organization in the next 24 months?


Automating the analysis of data to anticipate business outcomes

Cognitive interpretation of images, text, or data to create outcomes to support data categorization, mapping, and retrieval.

Robotic process automation to mimic human behaviors or tasks

Natural language engines to interpret spoken words to accelerate processing

Other

We are not currently using machine intelligence

Don’t know/not

How is your company using machine intelligence?

62.0%

53.7%

33.3%

32.4%

0.2%

4.3%

0.4%


Automating the analysis of data to anticipate business outcomes

Cognitive interpretation of images, text, or data to create outcomes to support data categorization, mapping, and retrieval.

Robotic process automation to mimic human behaviors or tasks

Natural language engines to interpret spoken words to accelerate processing

Other

We are not currently using machine intelligence

Don’t know/not

How is your company using machine intelligence?

62.0%

53.7%

33.3%

32.4%

0.2%

4.3%

0.4%

Cognitive interpretation of images, text, or data to create outcomes to support data categorization, mapping, and retrieval


26

Survey respondent demographics


Between $100 million and $249.99 million



Between $750 million and $1 billion

More than $1 billion

What was your company’s 2016 annual revenue in U.S. dollars?

22.4%

22.6%

23.2%

21.0%

10.8%


Owner/partner

CEO

President

CFO

CIO

COO

CTO

Other C-level

Senior vice president/vice president

Head of business unit

Head of department

Controller

Senior director/director

Senior manager/manager

Chief Diversity/Inclusion Officer

Which of the followingbest describes your title?

9.4%

13.8%

1.8%

2.8%

8.6%

1.2%

9.6%

1.0%

5.4%

2.8%

7.8%

0.4%

12.0%

21.6%

1.8%


Fewer than 100

100-499

500-999

1,000-2,999

3,000 or more

Approximately how many full-time staff are employed by your business?

3.2%

17.0%

24.6%

31.4%

23.8%


Consumer & Industrial Products

Energy & Resources

Financial Services

Life Sciences & Health Care

Technology, Media & Telecommunications

Business Services

Other

In which sector does your company operate?

33.8%

5.4%

18.8%

11.6%

25.4%

2.8%

2.2%


Consumer & Industrial Products

Energy & Resources

Financial Services

Life Sciences & Health Care

Technology, Media & Telecommunications

Business Services

Other

In which sector does your company operate?

33.8%

5.4%

18.8%

11.6%

25.4%

2.8%

2.2%


27

Survey respondent demographics (cont.)


Which of the following describes your level of knowledge regarding your organization’s information technology?

I am somewhat knowledgeable: 20.2%

I am very knowledgeable aboutour information technology: 79.8%


Is your company private or public?

Public: 21.2% Private: 78.8%


If private, which category best describes your company?

Closely held (excl. family-owned): 31.5%Family-owned: 20.1%

Other: 1.0%Private equity owned: 47.5%


In which state is your company’s headquarters located? (Number of respondents shown.)

AZ9

CA95

CO7

CT4

FL30

GA17

IN8

IL21

KS5

KY3

MA17

MI13

MN7

MO8

NC9

NE1NV

8

NY66

OH13

OR3

PA21

SC2

TX27

UT1

VA12

WA14

WI6

AL4

LA2

DC3

OK5

DE2

SD4

NH2

AK1

AR5

HI1

NM3

NJ18

MI4

RI2

TN4

MD9



AZ9

CA95

CO7

CT4

FL30

GA17

IN8

IL21

KS5

KY3

MA17

MI13

MN7

MO8

NC9

NE1NV

8

NY66

OH13

OR3

PA21

SC2

TX27

UT1

VA12

WA14

WI6

AL4

LA2

DC3

OK5

DE2

SD4

NH2

AK1

AR5

HI1

NM3

NJ18

MI4

RI2

TN4

MD9



AZ9

CA95

CO7

CT4

FL30

GA17

IN8

IL21

KS5

KY3

MA17

MI13

MN7

MO8

NC9

NE1NV

8

NY66

OH13

OR3

PA21

SC2

TX27

UT1

VA12

WA14

WI6

AL4

LA2

DC3

OK5

DE2

SD4

NH2

AK1

AR5

HI1

NM3

NJ18

MI4

RI2

TN4

MD9


28

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

Please visit our Perspectives library on the Deloitte Growth Enterprise Services website (http://www.deloitte.com/us/perspectives/dges) to view additional material on issues facing mid-market companies, including private enterprises.

AcknowledgmentWe would like to thank all survey respondents and interviewees for their time and the insights they shared for this report , Technology in the mid-market—Closing the gap.

29


Roger NanneyNational Managing Partner Deloitte Growth Enterprise Services Deloitte [email protected]

Doug BeaudoinNational Consulting Leader Deloitte Growth Enterprise Services Deloitte Consulting LLP [email protected]

Anthony StephanTechnology Strategy and Transformation LeaderDeloitte Consulting [email protected]

Chris JacksonChief of StaffDeloitte Growth Enterprise ServicesDeloitte Consulting [email protected]

Research and editorial leadJanet HastieSenior Marketing ManagerDeloitte Services LP

Report designIsaac Brynjegard-BialikSenior ManagerDeloitte LLP

Matt LawCloud Market Offering leaderDeloitte Consulting [email protected]

John LittleNational Risk and Financial Advisory LeaderDeloitte Growth Enterprise ServicesDeloitte Transactions & Business Analytics [email protected]

Eric PisciniGlobal FSI Digital Transformation

and Blockchain LeaderDeloitte Consulting [email protected]

Bob RosoneManaging DirectorDeloitte Growth Enterprise Services Deloitte [email protected]

Contacts

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

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

Copyright © 2017 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited

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