Several interesting pieces of research were published this week. Deltek continues to publish its Clarity reports. Last week it published its fourth annual EMEA and APAC report for the AEC industry. It also published the 44th report looking at the US AEC Market. Other research came from Jitterbit, Qualtrics, Rootstock, Salesforce, SOCI, UIPath and Xero.
Deltek
The 44th annual Deltek Clarity Architecture & Engineering Industry Study revealed after a banner year in 2022, firms are optimistic and expect another year of strong growth. However, despite continued growth and strong pipelines, the industry still faces challenges, particularly when attracting and retaining talent, combined with increasing labour costs and rising inflation. Key findings include:
- Firms project 10.2% net revenue growth in 2023, down from 17.6%, and reported a significant increase in operating profit on net revenue – up 5.6 percentage points year-over-year.
- 85% of firms anticipate a big jump in digital maturity in the next five years to the “advanced or mature” stages (69% in 2022)
- Cybersecurity and legacy IT infrastructure are top challenges
- Firms struggle to fill positions and onboard people fast enough to meet demand. 36% of respondents cited candidate competition as a concern when attracting and retaining talent.
- After a strong year financially, Firms expect another strong year based on forecasts, with a 10% growth forecast expected for 2023. Nearly 70% of respondents also noted that finding time to nurture client relationships is a top challenge.
Megan Miller, Director of Product Marketing at Deltek, commented, “The architecture and engineering industry had a great year financially last year and has a very optimistic outlook for the year ahead. Firms also have aggressive digital transformation goals, which is great to see.
“However, this year’s report highlights a lack of confidence in managing projects, specifically around schedule management, and a shift to career planning and upskilling rather than just recruiting. Now is the time to focus on process improvement, improved visibility, and collaboration to better position firms for success in the year ahead.”
Jitterbit
Jitterbit announced the results of its “2023 State of Automation: How Low-Code Application Platforms Disrupt the IT Status Quo and Ignite Digital Growth” survey.
- 85% of survey respondents, building low-code applications is a top organizational priority.
- IT executives largely support non-IT-built applications and data flows but share concerns about solving key business challenges.
- Marketing and HR executives prioritise building, deploying, or maintaining low-code applications to help accelerate key initiatives.
Vito Salvaggio, senior vice president of product management at Jitterbit, said, “Low-code application platforms are becoming increasingly vital to accelerate automation initiatives and keep up with the rapid pace of business. To stay competitive, executives recognize the need to prioritize LCAPs, however, they still remain cautious about the security, accessibility of data, and overall success of low-code applications.
“Robust LCAP solutions must address these concerns while meeting organizations’ needs for easy maintenance and deployment, simplicity of use, reduction of manual labor and lowered costs. When organizations can leverage LCAP solutions with confidence, their ability to drive digital innovation will be unmatched.”
Qualtrics
Qualtrics published an analysis of the recently published US Bureau of Labor Statistics data and a study of 3,000 employees. 25% of US employees believe they would struggle to find a new job if they lost theirs. The Great Resignation is fading into the rearview mirror as the job market tightens. Women feel more secure in their current jobs than men, even if they are worried about an uncertain economy.
Dr Benjamin Granger, Qualtric’s Chief Workplace Psychologist, said, “In an uncertain economy, job security is king. More employees staying put eases some of the pressure on employers after two years of worker shortages.”
Rootstock
Rootstock Software published the “2023 State of Manufacturing Technology Survey” from IDC. The key findings from the report included:
- 75.2% plan to boost their software spending over the next 12 months, and 37.8% planning double-digit increases.
- Top of mind are initiatives to improve security, operational performance, and sustainability, as well as to maximize the value of data and enable collaboration across the enterprise.
- 62.6% of respondents foresee the need to upgrade their ERP solutions.
- The most tech-savvy manufacturers are already on the cloud, as they recognize the value and competitive benefits a Cloud ERP platform and its associated ecosystem can deliver.
- Manufacturers feel the biggest consequence of not engaging in digital transformation (DX) is the continued disconnection caused by data silos; as such, improving connectivity enterprise-wide is the first task many manufacturers must tackle.
- Since manufacturers feel they lack the digital competencies to transform, they may decide to upskill existing staff or lean on vendors and consultants for DX expertise.
David Stephans, CEO at Rootstock Software, commented, “Today, manufacturers have in their sightlines the key factors that could most dramatically impact their businesses, including operational efficiency, inflation, a desire to protect their margins, and reshoring for resilience.
“Market volatility is also seen as a continued threat; nearly twice as many respondents said they were concerned about keeping pace with increased orders over those worried about diminishing demand. What’s clear is that manufacturers see software investments, including those made in Cloud ERP, as a way to address and alleviate critical challenges.”
Reid Paquin, research director for IDC Manufacturing Insights’ IT Priorities and Strategies, added: “The manufacturing environment is changing faster than ever before, making the ability to adapt operations essential to success.
“Manufacturers have encountered many challenges in their efforts to become more resilient, but one of the most cited issues are outdated/legacy systems. Cloud-based ERP solutions, like those offered by Rootstock Software, can help manufacturers build the digital infrastructure needed to thrive in the face of continual disruption and evolving market conditions.”
Salesforce
Salesforce published a Consumer Goods Industry Insights Report. The report found that data, deep personalization, and direct-to-consumer (DTC) models are becoming even more critical in a rapidly-evolving consumer landscape.
- 93% of consumer goods industry decision-makers are using data to optimize prices and promotions.
- 92% are using it for profitable growth.
- 77% expect to increase their marketing spend, with social media to see the largest boost.
- DTC channels account for more than 10% of overall revenue for nearly all (99%) CPG companies that have them. Still, respondents see an even bigger opportunity in the data and personalization opportunities these models bring.
Kishan Chetan, SVP & GM, Retail & Consumer Goods, Salesforce, commented, “As the consumer goods industry strives for profitable growth, leaders are leaning into data for increased visibility and better insights.
“This first-party, proprietary data will become increasingly important in the very near future as generative AI becomes standard across customer relationship management platforms. The combination of AI, data, and CRM will allow every brand to connect with their customers in a whole new way.”
SOCi
SOCi unveiled data from its 2023 Local Visibility Index (LVI) detailing how retailers are “ghosting” more than half of all customers online when they give feedback, ask questions or leave reviews. This striking finding results in a $2.4 billion annual loss for the US retail industry.
- The average brand ignores 54% of online feedback, reviews, and questions across platforms like Google, Facebook, Instagram, and Yelp.
- 92% of customer questions posted on retailer Google profiles go unanswered.
Monica Ho, CMO of SOCi, commented, “Retailer ‘ghosting’ is an alarming phenomenon with serious implications for brand reputation, customer loyalty, and online visibility. When retailers ignore their customers online, they inadvertently send a message that the customer experience isn’t a priority. It’s akin to retail employees ignoring shoppers in-store, and this type of behavior has a significant impact on revenue and sales.”
“Addressing online customer feedback – ranging from questions to reviews – should be an integral component of a retailer’s overall omnichannel digital marketing strategy. Thankfully, AI and automation present a game-changing opportunity for retailers and marketers to tackle the issue of ghosting customers online.
“By implementing these technologies, they can deliver timely and personalized responses to feedback, reviews, or questions, at scale, while enhancing customer satisfaction and fostering a more positive online experience.”
UiPath
A survey commissioned by UiPath found that nearly 60% of respondents believe that automation can address burnout and improve job fulfilment, and 57% report that they view employers that use business automation to help support employees and modernize operations more favourably than those that do not.
Worldwide, 29% report feelings of burnout – more staffers are leaning on AI tools to provide relief, giving rise to the Automation Generation. 31% of all respondents are already using business automation solutions at work. Other findings included:
- Automation Generation workers desire flexibility, upward mobility, and focus time at work
- Global workers are increasingly looking for automation and AI-powered tools to help with mundane, repetitive tasks
- Younger employees are more receptive to the potential of AI-powered automation in helping them at work
Brigette McInnis-Day, Chief People Officer at UiPath, said, “Disruption in the workplace and macroeconomic factors often mean employees are asked to bear that burden by doing more with less—but it doesn’t need to be that way. The employees of Automation Generation are embracing AI-powered automation so they can better manage their workloads, excel in their careers, and improve their work-life balance.
“Businesses that deploy AI in an open, flexible, and enterprise ready way are best positioned to attract and retain the types of employees that will help them thrive in an automation-first world. Automation is a key differentiator for companies to attract and retain by empowering employees and driving engagement.”
Xero.
Xero’s sixth State of South African Small Business report found that small businesses are determined to face a challenging economic environment with optimism and resilience. 74% have grown over the past year – (2022:62%). Growth drives optimism, with more than 95% expecting to survive the coming year and nearly 90% in the next five years.
The top concerns are:
- Political and economic instability (70%)
- Revenue loss due to load-shedding (46%)
- Crime, poverty, and civil unrest (19%)
To address these challenges, SMBs are turning to technology and their accountants. They are also investing in technology skills for their employees. 48% allocate budget to train their team in technology use and implementation.
Colin Timmis, Xero South Africa Country Manager, said: “These findings signal the grit and tenacity of small businesses in the face of incredible challenges and how they’re equipping themselves with the tools they need to succeed and grow.
“As well as most (74%) small firms using generators to survive load-shedding, they also count on new technologies to automate manual processes, operate and sell online, as well as reach new customers – and on their accountants to navigate regulations and complex tax requirements.”
