Industry executives and experts share their predictions for 2024. Read them in this 16th annual VMblog.com series exclusive.
5 Ways Mid-Market Companies Can Use Technology to Remain Competitive
By Kevin
Beasley, CIO at VAI
As mid-market companies gear up for the
challenges and opportunities that 2024 brings, the ever-evolving technology
landscape continues to shape their strategies, with a significant focus on
automation and cybersecurity. To remain competitive in the year ahead,
businesses should aim to find value through technology integration, as it can
be a key differentiator across sectors.
Here are the five priorities for businesses in
2024.
1. Ransomware Resurgence and Cloud
Ransomware attacks extorted at
least $449.1 million globally during the first half of 2023, and it's projected that 2024 will be their second most
profitable year, according to the U.S. Department of Homeland Security's
Homeland Threat Assessment 2024.
With expanding digital
footprints and an ongoing cybersecurity talent shortage, these companies should
turn to cloud solutions and managed services as a shelter for the evolving
threats.
2. Regulatory Environment Driving Blockchain and IoT Adoption
Small and medium businesses in heavily
regulated industries, particularly the food and pharmaceutical sectors, will
expand their digital footprints to better comply with increasingly stringent
requirements in 2024.
As they expand their reach, they find
themselves sitting on larger data volumes. In the coming year, this sector
should expect the widespread adoption of blockchain and IoT technologies to
achieve end-to-end traceability. This move will ensure compliance regulations
and position these growing companies as leaders in leveraging technology for
enhanced transparency and accountability.
3. Mobile Technologies and AI Addressing Labor Shortages
In today's evolving landscape, small and
mid-market businesses proactively seek innovative solutions to navigate labor
shortages and bolster their capabilities. Emerging from the pandemic, these
firms are struggling to find and hire employees due to a shortage in the labor
market. In response, they should turn to technology, incorporate AI into
business processes, and adopt mobile adoption to streamline operations.
Persistent labor shortages, likely to continue
through 2024, will propel mid-market companies to accelerate automation across
various business functions, from warehouses to field or office operations.
Tools such as RF guns and mobile tools, particularly Android-based devices, can
play a crucial role in tasks like order scanning and picking in warehouses and
overall workforce expansion. Automation will help tackle labor shortages and
enhance efficiency in repetitive tasks. Integrating tools and automation facilitates
the training and onboarding process.
4. Data Governance Challenges Amidst Data Boom
According to Gartner, worldwide
IT spending is projected to reach $5.1 trillion in 2024, an increase of 8% from 2023, with investment in AI driving
overall IT spending growth. The challenge lies in determining who has access to
data, who can modify it, and how to ensure robust protection against external
threats.
Amid these complexities,
mid-market companies find themselves encountering the challenge of
incorporating AI into their operational framework. As it's the early days of
AI, a clear path or roadmap is yet to exist, leaving many firms of all sizes
navigating the early stages of understanding and implementing AI applications.
5. Security as a Key Indicator for Growth
Recognizing security as a cornerstone for
tech-driven success will drive mid-market companies to strengthen their
cybersecurity position actively. The adoption of predictive analytics, AI, and
other emerging technologies will be driven by results-driven approaches,
focusing on the total cost of ownership (TCO) and business value. To address
the challenges at hand, companies should anticipate seeking partnerships with
experienced data governance providers, recognizing the need for robust data
management practices. In navigating this landscape, partnerships with managed
service providers will be key in building and maintaining resilience against
cyber threats, especially as the use of AI in operations continues to evolve.
As the industry prepares for an even more
dynamic landscape in 2024, mid-market companies stand at the intersection of
technological innovation and security. As such, they must embrace automation,
fortify cybersecurity, leverage predictive AI, and optimize data management for
businesses to remain secure and profitable. The integration of predictive
analytics into inventory management and purchase forecasting directly enhanced
these efforts by contributing to generating business value. Taking early action
and a proactive approach to address labor shortages, embracing technology, and
forming strategic partnerships will determine companies' success in the coming
year.
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ABOUT THE AUTHOR
As CIO at VAI, Kevin Beasley oversees both the corporation’s technology strategy in conjunction with product development and the internal information technology initiatives that support the goals of the company. He has decades of ERP, SCM, and WMS consulting experience and extensive experience in the IT space.