The Australian mid-market sector continues to thrive, fueled by a strong commitment to innovation, efficiency, and growth. MYOB’s latest research underscores the pivotal role of technology in empowering these businesses to reach new heights. Here’s a look at the trends shaping the mid-market landscape.
The Innovation Imperative
Innovation remains a top priority for mid-sized businesses. According to the report, over the next five years the top priority is the use of AI tools, with 34% of respondents emphasising its importance. Other significant areas include the Internet of Things (IoT) and digital security, both prioritised by 23%, as well as resource extraction efficiency and data analytics/big data, each at 22%.
In contrast, the focus for innovation investment in the next 12 months shifts toward immediate and practical applications, with new product development leading at 31%, followed closely by digital security (30%). Additional areas of investment include supply chain development (26%), engineering processes (25%), and enhancing customer relationships (23%).
Technology’s Role in Business Transformation
As mid-market operations expand, cloud technology has become indispensable. Businesses are leveraging cloud-based solutions for essential functions including Asset and Inventory Management (43%), Project Management (43%), Finance and Accounting (40%), Supply Chain Resource Management (39%) and Customer Relations (34%).
Looking ahead, businesses are prioritising tech upgrades to further enhance operations and drive growth. CRM solutions (45%) top the list of planned upgrades, signaling a focus on strengthening customer relationships. ERP software and finance/accounting software, both at 44%, reflect an emphasis on improving operational integration and financial accuracy. Payroll software (33%) and business document/file storage software (26%) also feature prominently, showcasing the ongoing need to optimise administrative and storage systems. Together, these trends highlight the increasing dependence on technology to achieve business goals and maintain competitive advantages.
MYOB mid-market report also provided insights into the timeframes businesses experience a positive impact or return on investment (ROI) following a software upgrade. The majority of businesses (34%) see results within 6 to 12 months, highlighting this as the most common period for ROI realisation. Additionally, 27% of businesses experience a positive impact within the first six months, while 21% take one to two years. A smaller proportion of organizations report seeing results either immediately (7%), within two to three years (9%), or beyond three years (2%). These findings emphasise that most businesses expect measurable benefits within the first year of upgrading their software, underscoring the efficiency of modern solutions in delivering value relatively quickly.
Preparing for a Secure Digital Future
Interestingly the survey also found that the majority of Australian mid-market are planning substantial investments in innovation over the next 12 months, with nearly 30% allocating between $200,000 and $500,000 and another 25% committing $100,000 to $200,000. This indicates a strong focus on innovation, as over half of the respondents are dedicating significant budgets to drive progress and improvement. In contrast, only a small percentage plan to invest under $60,000, showing that the primary emphasis is on mid-to-high investment levels. This trend underscores the growing importance of innovation as a strategic priority for the Australian mid-market.
The Road Ahead
Australia’s mid-market businesses are harnessing innovation and technology to adapt to changing dynamics and secure their growth trajectory. By prioritising digital transformation, they are setting the stage for sustainable success in an increasingly competitive environment.
Read the full MYOB Mid-Market Insight report here
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