Growth-focused mid-size companies are thriving with digital transformation

Today’s market is filled with manifold challenges ranging from economic uncertainties, inflation, supply chain issues and so on. In the midst of these challenges there are companies that have not only survived economic and market pressures, but are also thriving. What do they have that distinguishes them from their counterparts and makes them market leaders? A recent research study surveying high-growth mid-size companies commissioned by SAP and conducted by IDC called, A Guide to Growth: A global analysis of the defining characteristics of leading mid-size companies analyzed the key factors that differentiate leading and fast-growing mid-size companies from others, and identified their business practices and strategies for growth. 

Levels of maturity

The responding mid-size companies were categorized into four levels of maturity such as leaders, progressing, evolving and aspiring based on their revenue and market share increase, status of digital transformation and the effectiveness of their response to disruptions. 

Having defined a set of characteristics and actions of leaders in the mid-market, A Guide to Growth emerged basis a list of eight actionable recommendations that can help other companies chart their growth path for the long-term. 

These eight recommended actionables include:  

• Evolving business models 
• Diversifying supply chain
• Dedicating resources to digital transformation
• Investing in sustainability
• Focusing on employee efficiency
• Prioritizing employee happiness
• Refining the customer experience
• Tracking return on investments 
  
  

Leveraging technology for growth

The survey findings showed that leaders across high-growth companies prioritize greater use of technology for, among others, better supplier change management and diversification of the supply chain. Supply chain management strategies also include sourcing local suppliers that in turn contributes to sustainability.  The key desired benefits of a digital supply chain include improving supply chain reliability, reducing costs, increasing supply chain responsiveness, visibility and traceability of the supply chain, improving stock control, access to a better set of suppliers and products, time accuracy and better go-to-market readiness. 

Growth strategy that includes dedicating resources and funds for digital transformation include using technology for both front- and back-ends to adapt to current consumer preferences. As more and more customers prefer to interact digitally with companies, it is paramount to have a digital strategy for growth. Eighty one percent of leading mid-size high-growth companies have completed digital transformation and 36 percent of aspiring mid-size companies have made significant progress on the same.  

The benefits of adopting ERP

The technologies used by high-growth companies include ERP (enterprise resource management) and CRM (customer relationship management) solutions, data management and analytics, e-commerce and digital sales, supply chain management, procurement solutions and so on. Of all the midsize companies, 67 percent use ERP to save time and improve efficiency, automation of processes for improved productivity, boost customer experience, reduce costs and make timely and informed decisions based on real-time data.

Sustainability initiatives for growth and reputation

With consumers demanding sustainable practices, growth-focused companies are exploring sustainability initiatives across the board – from sustainable procurement to hiring and retaining talent to preparing for regulatory compliance. Some of the key sustainability initiatives implemented by leaders in the mid-market include waste reduction and management, supply chain traceability, usage of low-carbon materials, reduction in environmental impact in the company’s areas of operation, offset carbon emissions, partnership with green suppliers, and supplier diversity and proximity. The many desired benefits gained from these initiatives include improved efficiency, cost reduction, increase in revenue and most importantly positive reputation. 

Employee experience is a key strategy 

Another top priority for high-growth companies is employee efficiency and the strategies to drive productivity include employee-experience based initiatives, talent management, offering training programs and upskilling opportunities so employees can provide better service to customers, implementing ERP, business intelligence and data analytics solutions as well as automation via RPA (robotic process automation), AI and ML technologies. 

Thriving companies’ growth strategies prioritize employee happiness. Given a competitive market, talent is hard to attract and recruit, and mid-size companies cannot offer the same compensation as compared to large companies. Therefore, keeping employees motivated and engaged in a work environment that focuses on well-being is top priority for leaders in the midmarket. Strategies to recruit and retain talent include adoption of technologies and software applications for recruiting and onboarding for better candidate experience, leverage recruitment portals better, improve company culture and work-life balance, improve learning and development opportunities and act on employee feedback. 

Enhance customer experience 

Growth-companies constantly enhance customer experience by adding a personal touch. They lead by building loyalty with local connection and personalized service, customer-centric employees as ways to serve better and create competitive advantage. Above all, they leverage powerful technologies to reap the benefits of real-time data to connect with customers at various touchpoints, and provide an omni-channel experience and improve their products and services. 

Leverage SAP’s cloud-based ERP  

A focus on digital investments for growth requires a planned strategy to meet expectations on automation of current operations and future innovation. Leveraging a cloud-based platform like SAP’s public cloud ERP is strategic for this growth path and can not only help to avoid unnecessary risks but also pave the way for flexibility, agility and extensibility. 

If you are keen to have your IT landscape assessed and would like to know more about how Exalogic Consulting is helping growing companies leverage the power of data, automation, machine learning and artificial intelligence and transform into intelligent, sustainable enterprises, get in touch with us here. 

Source: 
A guide to growth: A global analysis of the defining characteristics of leading mid-size companies by IDC