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Building a Foundation for Business Growth May , 2018 Laurie McCabe Cofounder & Partner, SMB Group www.smb-gr.com www.lauriemccabe.com #smbgroup #lauriemccabe 5/24/2018 © SMB Group 1
Building a Foundation for Business Growth
May , 2018
Laurie McCabe
Cofounder & Partner, SMB Group
www.smb-gr.com
www.lauriemccabe.com
#smbgroup #lauriemccabe
5/24/2018 © SMB Group 1
Introduction
Laurie McCabe
Cofounder & Partner, SMB Group
SMB Group
• Technology industry research, analysis and consulting firm
• Focus on SMB technology adoption and trends
• Founded in 2008
• Recognized for thought leadership, research and expertise in SMB markets
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Building a Foundation for Business Growth
• Business As Usual: A Recipe for Failure
• Staying Ahead of the Curve
• Get Organized, Automated and Integrated for Growth
• Summary
• Q&A
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Business As Usual: A Recipe for Failure
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20%
24%
26%
29%
30%
31%
32%
46%
47%
Meeting compliance/regulatory requirements
Reacting to changing market conditions
Improving cash flow
Attracting & retaining quality employees
Improving customer experience and retention
Improving employee productivity
Maintaining profitability
Growing revenue
Attracting new customers
Seeking Growth is a Business Constant
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Top SMB Business Goals
Source: SMB Group’s 2017 SMB Routes to Market Study
But the Rules Are Changing
Power has shifted from
sellers to buyers
The bar for businesses keeps rising
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Customer Expectations Are Rising
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89%• Expect companies to understand their needs
and expectations
82%• Agree that technology makes it easier than
ever to take their business elsewhere
81%• Demand improved response time
68%• Anticipate organizations will harmonize
consumer experiences
Sources: State of the Connected Customer,” Salesforce Research; IBM Institute for Business Value
The Amazon Effect Keeps Multiplying
Using technology to provide convenience, lower prices and faster fulfillment than incumbents
• 1995: Started selling books online
• 2018: Disrupting:
o Retail
o Groceries
o Cloud computing
o Video streaming
o Package delivery?
o Healthcare?
o Real estate referrals?
o Auto parts?
o Fashion?5/24/2018 8as © SMB Group
The Creative Destruction Cycle Is Speeding Up
20
15
Sample companies entering and exiting
the S&P 500 between 2013 - 2017
OUT
IN
Regeneron
MGM Resorts
PayPal
UnderArmour
???Yahoo!
Dupont
Staples
Urban Outfitters
Starwood Hotels
???
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Average company lifespan on &P Index(in years; rolling 7-yebar average)
S
What Customers Want
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Understand my needs
and preferences
Provide me with a
smooth, easy purchaseprocess
Offer great service—
24x7—from presales topost sales
Get me what I need--
when, where and how we
want it
Innovation to adapt to
my changing needs
Staying Ahead of the Curve
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Digital Transformation: No Longer If, But When and How
Digital transformation: how businesses use digital technologies to create new and/or modify existing business processes, practices, models, culture and customer experiences to meet changing business and market requirements
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You Need to Put Technology to Work to Grow
• Agree/strongly agree that digital technology is reshaping our industry
76%
• Agree/strongly agree that using new technology effectively is key to our company’s survival and growth
74%Source: SMB Group’s 2017 SMB Digital Transformation Study
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76%
•of SMBs currently investing in technology to support new business initiatives forecast revenue growth
55%
•of SMBs planning to invest in technology to support new business initiatives forecast revenue growth
46%
•of SMBs with no plans to invest in technology to support new business initiatives forecast revenue growth
But It’s Not Easy to Plan and Execute
14%
20%
24%
27%
27%
31%
33%
34%
34%
We don't have enough time to focus on this
Unsure about how to execute to achieve goals
It's not a priority for decision-makers
People are resistant to change
Security concerns regarding new technologies
Difficult to figure out which solutions will work best
Inadequate IT resources to support new technology
We don't have enough money to adequately fund it
Hard to integrate new technology with existing…
Source: SMB Group’s 2017 SMB Digital Transformation Study
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What are the top three challenges to using new technology solutions to transform your business?
strongly agree that
they have a well-
defined strategy to use
new technology
solutions to transform
their businesses
Building on a Bad Foundation Is Never a Good Idea
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• Most SMBs use a mix of on-premise and cloud-based spreadsheets and point solutions that don’t talk to each other
• Creates a drag on the business
• Difficult to see what’s really what’s going on in with your customers
• Impossible to personalize customer experience as you grow
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Trying To Grow Your Business with Disconnected ApplicationsIsn’t a Good Idea
Get Organized, Automated and Integrated to Grow
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Business Growth Starts with a Solid Foundation
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Automate Integrate
Visibility
and Insights
Agility and
Flexibility
Grow Your
Business
The Cloud Makes It Easier to Add New Applications
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More flexible
Easier/faster to deploy
More cost effective
Improves business agility
Source: SMB Group’s 2017 SMB Routes to Market Study
0%
20%
40%
60%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Clo
ud
Dep
loym
ent
SMB Accounting/ERP
Collaboration Marketing automation
Contact and customer relationship management Workforce and/or payroll management
Business intelligence and analytics
But Hasn’t Always Made It Easier to Integrate Them
• After-the fact” integration is difficult, costly and hard to manage
• One-off manual data entry (via spreadsheets) or point-to-point integrations can work with a couple of apps--complexity, cost and manageability issues escalate quickly as you add more apps
• Third-party integration tools are often complex and expensive
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12%
23%
32%
52%
Third-party integration solutione.g. Dell Boomi, Actian Pervasive,
Scribe, MuleSoft, Jitterbit, etc.(done by internal IT staff)
Pre-built integration from businesssoftware vendor(s)
Custom code (written by internalIT staff or by a consultant)
Manual data entry via Excel orother batch file uploads (by
internal IT staff)
What method(s) do you currently use to integrate applications?
*Multiple responses allowed
Source: SMB Group 2017 Routes to Market Study
Advantages of Integrated Solution Suites
• Much easier to use a solution that already looks and feels integrated
• Saves you time and money
• Improves user productivity
• Gives you getter visibility into your customers and business processes so you can be proactive and make better decision making
• Less heavy lifting and IT costs for integration
• Easier to expand as your business grows
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Integrate Applications to Focus on Growth, Not Grind
Source: SMB Group 2017 Routes to Market and Digital Transformation Studies
54%
25%
14%
29%
29%
31%
25%
31%
22%
Fully integrated
Partially integrated
Not at all integrated
Increase Stay the same Decrease
Revenue Expectations
Level of In
tegra
tion
Integrated Solutions Suites are a Springboard to Growth
• Technology backbone to automate and integrate your applications now
• Flexibility to add new capabilities as needed in an incremental and integrated way
• Consistent interface makes it easier for users to get productive with new applications
• On ramp to new technologies that you’ll want to use—artificial intelligence, machine learning, voice, blockchain and more
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Minimize the heavy-lifting!
Thank You
For more information:
www.smb-gr.com
www.lauriemccabe.com
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