It’s impossible to deny that technology is reshaping business in extreme and exciting ways, but is the speed of IT innovation too much for the midsize market? In this IDC Report, Midsize Enterprise Summit: Key Findings and Insights, IDC and The Channel Company team up to explore the world of midmarket enterprise IT and examine how these businesses are looking to and investing in the future of IT.
A survey of Midsize Enterprise Summit (MES) participants, particularly CIOs and IT executives, provides insight into the mindset of midmarket businesses and how they are adapting to rapidly evolving and increasing digital demands. The assumption is that midmarket organizations are falling behind larger corporations when it comes to embracing and executing their own digital transformations. The results of the survey, however, tell a different story about a motivated midsize market willing and able to modernize and thrive alongside their larger counterparts, leveraging new technologies and strategizing for the future of IT.
These midsize enterprises were built on deep, intimate partnerships and old-fashioned business relationships that were established over time. In conjunction with new technologies and innovation, this traditional foundation could be the edge midsize organizations need to keep up with the major competitive changes that will accompany digital transformation. In fact, midmarket CIOs estimate that 33% of their business, on average, is digitally derived, with an expected increase to 49% in the next three years – a 50% increase overall.
What this tells us is that midsize enterprises are dedicated to digital expansion, with strategies already in place to continue this trend. Notably, this growth is likely to happen more organically than for their larger competitors, which could mean greater sustainability in the long run. Over 60% of respondents cited hiring quality IT professionals and talented staff as a major business goal for the next five years. The midsize market’s commitment to understand and engage with digital platforms through IT expertise is aligned with the goals of some of the largest, most sophisticated organizations in the world.
A recent IDC econometric study predicts that 46% of global economic activity by 2020 will consist of digital products and services. Feedback from the MES survey confirms that midmarket organizations are aware of these progressions and are making the necessary, strategic moves to ensure future success.