Research Report: Trends - Inside The MIndset Of The Midmarket Buyer rwang0 Tue, 02/22/2022 - 07:58
Data Shows Priority Shifts From Pre-Pandemic To Post-Pandemic
Midmarket executives have always been challenged by a culture of scarcity. Limited access to funds, talent, and innovation has often created a barrier to entry into and exit from new markets, industries, and ecosystems. During the COVID-19 pandemic, these leaders have made shifts in their buying behaviors and technology investments. Constellation’s latest midmarket analysis chronicles these findings and identifies the shifts during the 2020-to-2022 budget cycles. This emerging postpandemic strategy signifies the first steps to the Great Refactoring ahead.
Prior to the pandemic, midmarket leaders invested tech budgets primarily in operational efficiency and cost. During the pandemic, both operational efficiency and cost (41.6%) and regulatory compliance (31.5%) saw higher-than-normal investment. The shift to a focus on revenue and growth (24.0%) in 2022 comes as reductions in investment for operational efficiency and cost (31.5%) and regulatory compliance (25.8%) drop from 2021 peak highs (see Figure 1).
This budget shift to revenue and growth and strategic differentiation indicates an optimism for those enterprise that survived the economic onslaught of the pandemic. Winners and survivors have seen the impact of digital channels, digital business models, and digital monetization. Constellation believes this frameshift from old models to new models built on analytics, automation, and artificial intelligence (AI) will play out in continued investments in technology and platforms.
Figure 1. Operational Efficiency Drives Budget Decisions As Revenue And Growth Gain Steam
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