Significant investment in technology becomes essential
Undeterred by the challenges they face, virtually all family enterprise executives (98%) say their companies will be making significant investments in technology in the coming year.
One in four say they will use technology, artificial intelligence (AI) and automation in their talent strategies — three times higher than in 2018. Investment priorities are spread across several areas. Family enterprises want to improve internal efficiencies and financial data access and analysis, and they are also looking to improve customer experience and create new products and services.
Middle-market family enterprises are particularly keen on using AI to improve personalization of products and services as well as the customer experience. More than three in four (83%) say they will be developing their AI capabilities in-house, partly to address compatibility with legacy systems and partly as a means of gaining a competitive advantage.
The percentage of middle-market family enterprises investing in technology for risk management, including cybersecurity, is also up, more than tripling from 5% in 2018 to 18% in 2019.
Near-term strategies have middle-market family enterprises looking at several options to achieve double-digit growth
In the months ahead, we expect middle-market family enterprises to implement a multi-prong strategy for achieving their double-digit growth objectives. Companies cite a diversified focus, developing new products or services while also expanding their businesses into overseas markets, domestic markets and adjacent sectors.
At the same time, middle-market family enterprises will continue their investments in new and emerging technologies to help them gain a competitive advantage in attaining and retaining new customers.