Unlocking Growth A study of winning formulas for making the decisions and investments critical for business growth - NetSuite
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Unlocking Growth A study of winning formulas for making the decisions and investments critical for business growth
Oracle NetSuite Unlocking Growth
Foreword
More than half of respondents to a major new
survey say their business is data driven and
exceeding growth targets
he Unlocking Growth report ed by the data available to them.
T sets out to explore what is fuel- They understand that data is vital
ling, and inhibiting, business
growth across Europe, the Middle East 43% to decision-making, but are over-
whelmed by the sheer volume of
and Africa (EMEA). It investigates the it flowing through the business. In
links between business growth and the some cases, respondents admit the
factors that influence it, especially how right tools aren’t always available to
of organisations say
decisions are made and where invest- they have become them. Many even report that they
ment bets are placed, which is particular- more data driven in trust their colleagues to advise them
ly crucial when set against the challenges the past 12 months on important business decisions over
of an ever-changing economic, techno- machines. This varies across region
logical and political backdrop. and industry.
To provide insight across key But here’s the critical point: more
85%
business functions in a variety of than half of those who claim they’re
industries, we spoke to 1,050 senior data driven are exceeding their
stakeholders, manager level and growth targets.
above, towards the end of 2019. The With all this optimism, it’s im-
respondents were based in business- perative to understand how these
of organisations
es of $5 million to $200 million, with would describe
organisations expect to unlock the
300 participants based in the UK and their expectations growth they’re expecting. The re-
the rest evenly divided – 150 in each for growth as the search highlights how businesses are
territory – across five other EMEA re- same or better for favouring investment in the customer
the next two years
gions: France, Germany, United Arab experience, demonstrating their value
compared to the
Emirates, Benelux and the Nordics. previous two years to their established customers. Many
Primary among our findings is that of them, of course, are looking for
there is a wealth of optimism amongst efficiencies within the business.
businesses, and the opportunities for All this is happening in bigger
growth, if measured, are substantial. Many doses than traditional growth tech-
respondents expect to hit their growth niques, such as mergers and acqui-
targets, with those in retail, manufacturing sitions (M&A), and new investments
and software industries leading the pack. in products and expanding into new
This kind of performance will require markets. However, this varies by
effective decision-making, which in turn company size and type.
will be determined by how effectively We’ll explore all of these topics
these businesses can gather, understand further, along with evolving compet-
and react to external and internal data. itive business dynamics set against a
Indeed, the findings show that backdrop of political, regulatory and Nicky Tozer
many organisations feel conflict- economic change. Vice president, EMEA, NetSuite
2Oracle NetSuite Unlocking Growth
Contents
and key
findings
Page 5 Positive outlook across EMEA Page 7 Determining what
drives growth
Most senior managers expect revenue growth for their For many, growth is expected to come from their
company in the current fiscal year existing customer base
10% growth or more
6% of respondents think
generating more sales
33%
from existing customers
Between 5 and 10% growth
27%
is a high impact factor
for driving growth
Between 1 and 5% growth
44%
Page 9 Know your risks Page 12 Financial forecasting
53%
What are the biggest risks for organisations? Lessons from the finance function for decision-making
think political
uncertainty, making
business planning
difficult, is the first
17% or second biggest
external threat
of respondents from the finance function rated their organisation as
good at decision-making, compared to 40 per cent on average
3Oracle NetSuite Unlocking Growth
Page 13 Defining ‘data driven’ Page 14 Information
overload
1in3
What does being data driven really look like? At work, employees often feel overwhelmed by the
amount of data available to them
20 %
Overwhelmed all the time
respndents define their business as
highly data-driven (33%)
54 %
Sometimes overwhelmed
Page 18 Local attitudes towards
business growth
Regional differences in opinion emerged about whether individuals
saw their organisation as highly effective at decision-making
20 %
29%
UAE
Very occasionally
overwhelmed
5%
25% Germany
Never overwhelmed
21% Page 19 Trust in times of
UK
business growth
13%
Who do people trust most to help them
Nordics
make critical business decisions?
France
12% 21%
Industry peers
Benelux
12% 17%
39% Third-party
expertise
4%
Page 21 Page 22
Colleagues
AI/machines
Key takeaways Demographics and 19%
methodology Senior management
4Oracle NetSuite Unlocking Growth
Positive outlook
across EMEA
Fear of change and the unknown can affect business more inclined to look for the benefit,
for the hope, the potential new op-
forecasts, but executives have a largely positive outlook portunities that it might bring,” says
chief executive James Davidson. “We
do gain new opportunities even if as
a business community we’re more
concerned logically about what we
might lose.”
espite economic and politi-
D
Meanwhile, organisations in
cal uncertainty, businesses France are the least optimistic on
across EMEA say they average as only 49 per cent expect
remain generally optimistic about growth in the next two years, possibly
the future, matching the IMF’s World related to global trade tensions and a
Economic Outlook prediction for ten- series of nationwide protests against
tative stabilisation across advanced the government. Nevertheless, the
economies (figures 1 and 2). French government has declared a
UK businesses are most positive good and solid economic outlook.
about their growth; 63 per cent of UK Looking at industries across
respondents believe their organisa- EMEA, those in software and tech-
tion will grow in the next two years, nology, and professional services
compared with an average of 56 per have a much more optimistic outlook
cent across the rest of EMEA. This than other sectors. That optimism
is despite GDP growth warnings and is backed by industry analysts, with
concerns over political developments Gartner forecasting IT spending in
in the UK. EMEA will return to growth at $798
In addition, more UK companies billion in 2020, an increase of 3.4 per
expect growth of at least 10 per cent cent from 2019.
than those across the rest of EMEA, In addition, businesses in retail,
although most anticipate between 1 manufacturing, and software and
and 5 per cent average growth. technology were the most likely to
Tails.com, which has grown from report hitting their targets.
turnover of £400,000 in 2014 to The research also underscores
£20.8 million in 2019, is predict- the link between business growth
ing continuing success. and good decision-making. Looking
“For me it comes down to at organisations by revenue, lower
the psychology that arises from revenue generating companies are
a sense of hope. Perhaps because we less likely to consider their organisa-
are the ones instigating the change, tion a good decision-maker – 31 per
who have chosen it, and so we’re cent for companies in the $5-million
5Oracle NetSuite Unlocking Growth
to $9.99-million revenue bracket,
compared with 45 per cent for $50
Revenue expectations are strong Figure 1
million to $200 million – and are People’s expectation for revenue for their company in their current fiscal year, by region
more likely to be failing to achieve
organisational targets. Average UK France Germany UAE Nordics Benelux
However, it’s worth considering 6% 9% 7% 4% 5% 6% 3%
10% growth or more
whether bad decisions are making
the company perform poorly or
whether the poor performance is Between 5 and 27% 22% 25% 33% 42% 23% 23%
making decisions look bad. 10% growth
Elsewhere, organisations forecast- Between 1 and
ing 10 per cent growth or more expect 44% 46% 45% 45% 38% 36% 48%
5% growth
higher earnings growth versus revenue
growth, indicating they anticipate their 10% 10% 9% 6% 8%
Flat 11% 19%
businesses will become more efficient.
Organisations in the $50-million to 5% 3% 6% 3% 3%
Between -1 and
$200-million revenue bracket are the 7% 7%
-5% decline
most confident in their growth, com-
pared with smaller companies. Between -5 and 2% 1% 1% 2% 2% 3% 4%
“Some larger companies typically -10% decline
can make efficiency savings, which
-10% decline or more 1% 1% 1% 1% 0% 1% 1%
may mean they can actually sell less,
but make more profit,” says Shaun
Thomson, chief executive of UK
business growth training company Respondents who feel positive about the future Figure 2
Sandler Training. Respondents who who agree with the following statements, by company turnover
“New technology can make a big
difference here so that companies can, $5 - $9.99m $10 - $49.99m $50 - $200m
for example, use 5G technology to
78%
80%
82%
70%
72%
74%
68%
75%
79%
78%
80%
87%
70%
74%
81%
have real-time access to what is sold
in stores around the country allowing
them to purchase and transport ‘just in
time’ and hence save storage costs.”
The findings also highlight the
difference in attitudes towards growth
based on company size and type, says
Craig Sullivan, Oracle NetSuite group
vice president of product management.
“Larger companies tend to be
public companies that have stake-
holders with a different view of what
it means to be achieving growth.
They’re looking for a larger return
on investment, through stock price
increase or dividends,” he explains,
adding that it is therefore necessary
for individuals to understand all
aspects of the business, including
shareholder expectations.
“To have access to all the relevant
key metrics in the business be-
comes a more important factor, not
necessarily just because of the size I have a good This company is This company is Our customers This is a good time
of the business, but because of the working relationship innovative good at capitalising love our products for our business
stakeholders of that business.” with my boss on new opportunities and services
6Oracle NetSuite Unlocking Growth
Determining
what drives
growth
Companies may be it is perhaps not capital intensive, at Businesses with revenue of $10 mil-
adopting a conservative least until any lingering uncertainty is lion to $49.99 million
resolved. Here we examine what differ- According to the survey, the top driver
stance to growth, ent sized organisations across EMEA for mid-sized companies is generating
generating increased believe is fuelling their growth (figure 3). more sales from existing customers.
sales from existing “This is all about the maths,” says
customers, amid a Businesses with revenue of $5 million Tony Morreale, chief financial officer at
business climate of to $9.99 million La Fosse Associates, one of the largest
continuing uncertainty Organisations in this category believe
expanding their existing marketing
technology recruitment companies in
Europe. “It costs five times more to at-
campaigns into new markets is key to tract a new client than it does to nurture
their growth, more than anything else. and develop one you already have.
“When you are a smaller compa- “We currently work with over 700
his report endeavours to ny, you always feel like there is more clients and while there is a plethora of
T understand the factors behind
successful business growth.
business you could be doing even with
your existing footprint, driving more
organisations out there that we have no
existing relationship with, we are not in
But the fact is there is no single answer or eyeballs and more customers, so the the business of chasing the buck for the
definition. Much can depend on where an number-one priority of marketing sake of a quick win here and there.
organisation is in its development; indeed makes a lot of sense,” says Oracle “This approach has stood us in good
small, mid-sized and large organisations NetSuite’s Sullivan. stead, with revenues and headcount
vary drastically in their opinions. Second most important to growth both enjoying significant year-on-year
For example, while there are some in this revenue band is launching new growth of 25 per cent over the last five
drivers that apply to any sized business, marketing campaigns and third is years. By nurturing the business and
such as a reliance on marketing, others generating more sales from existing people you already have, and continually
are more specific, based on how estab- customers; something common across providing the best possible service to
lished the company is or the success of businesses of all sizes. your existing customer base, you will by
the business. “Companies are not just looking default generate word of mouth and new
However, across the board, it at international growth now, but also business referrals. Good news always
appears companies are adopting more at growing organically from what they travels fast.”
of a conservative stance when it comes already have, in the countries where of respondents feel Part of nurturing customers,
to growth, using marketing to sell what they already exist, through better their organisation is of course, is focusing on customer
they have and investing in doing more productivity and more efficiency within exceeding targets service, which happens to dominate
for existing customers. This suggests the business,” says Nicky Tozer, vice investment across all organisations,
that while these businesses see growth, president of EMEA, Oracle NetSuite. with 37 per cent of respondents iden-
7Oracle NetSuite Unlocking Growth
tifying customer service as a top-three
investment. 78 per cent of people feel Factors expected to drive growth in businesses, Figure 3
their company is customer focused by revenue segment*
and 82 per cent think their customers
$5 - $9.99m $10 - $49.99m $50 - $200m
love their product and services. If so,
they’re well positioned to achieve the
Launch new product/services lines
goal of generating more sales from
5.47
existing customers. 6.04
“Most companies recognise that it’s 6.53
so easy now for customers to publicly
Launch new or improved products/services within existing lines
expose them for poor customer service,
5.59
that it’s impossible to operate in this 6.19
kind of world without a decent level of 6.64
customer service,” says Tozer.
Expand sales into new markets nationally
5.7
Businesses with revenue of $50 6.28
million to $200 million 6.69
Generating more sales from existing
Expand sales into new markets internationally
customers is also most important to 5.22
larger businesses. This is followed by 6.17
expanding existing marketing cam- 6.59
paigns into new markets, launching new Generate more sales from existing customers
marketing campaigns and developing 5.88
new distribution or sales channels. 6.54
“When you’re operating at a larger 7.08
scale, you’ve probably been through Expand existing marketing campaigns into new markets
that initial phase of growth. At this 6.04
point you’re looking at entirely new 6.43
vehicles for distributing your product, 6.74
transitioning to a new kind of service Launch new marketing campaigns
or entering into a new market, so that’s 5.98
more of a step-function in growth, 6.29
as opposed to a more linear growth 6.74
trajectory, which you would see at the Partner with other companies to offer improved products or services
smaller businesses,” says Sullivan. 5.43
“Obviously, that’s a bigger, more 6.23
capital-intensive, more-time inten- 6.46
sive decision. It requires you to really Develop new distribution or sales channels
understand the opportunity, have the 5.88
people, the systems, the partners, the 6.49
sourcing in place to support that.” 6.74
At the other end of the scale, tradi- Retire underperforming offerings/focus on highly successful offerings
tional growth techniques, such as M&A, 5.8
new investment and new products, are 6.43
6.58
considered the least important factors.
“Given some of the political Acquire companies (M&A)
landscape we’ve experienced, maybe 4.95
businesses aren’t comfortable taking 6.11
6.09
risks at this point in time,” says Tozer.
“If a business is thinking, ‘we’re not Gaining new investment (PE and VC)
sure what the impact of some of 5.29
these political decisions might be 6.19
6.54
over the next year, two, three, five
years,’ then let’s not add more risk 4 5 6 7
into our portfolio.” *Respondents ranked factors on a scale of 0 to 10, where 0 = Not a factor and 10 = Extremely high impact
8Oracle NetSuite Unlocking Growth
Know your risks
Perception of business risk varies depending on your lens.
The following data examines how risk differs based on
company size, region, industry sector and job function
Top risk to business, by company size Figure 7
External Internal
$5 - $9.99m $10 - $49.99m $50 - $200m
17% Political uncertainty
makes business
planning difficult
32% Government
regulations and
tax reform
29% Political uncertainty
makes business
planning difficult
17% 28% 28%
We lack the capital Senior leadership Senior leadership
to optimise products fails to offer a cogent fails to offer a cogent
and services plan for success plan for success
Top risk to business by region Figure 8
External Internal
27% 25%
UK
Political uncertainty makes Senior leadership fails
business planning difficult to offer a cogent plan
for success
19% 18%
Nordics
Government regulations We underspend
and tax reform on R&D
36% 29%
Germany
Political uncertainty makes We lack customer focus
business planning difficult
25% 23%
Benelux
New tariffs make our We face an overall labour/
products/offering less skills shortage
competitive in key markets
32% 30%
UAE
Government Regulations We face an overall labour/
and Tax Reform skills shortage
25% 25%
France
Climate change disrupts Senior leadership fails to offer
our business model a cogent plan for success
9Oracle NetSuite Unlocking Growth
Top risk to business, by job function Figure 9
External Internal
21% Economic weakness in key markets reduces demand for products Operations Senior leadership fails to offer a cogent plan for success 21%
24% Government regulations and tax reform Legal Senior leadership fails to offer a cogent plan for success 21%
24% Government regulations and tax reform Administrative We face an overall labour/skills shortage 22%
25% Economic
Economicweakness
weaknessin
inkey
keymarkets
marketsreduces
reduces demand for products
products Marketing Senior leadership fails to offer a cogent plan for success 24%
28% New regulations threaten our business model Commercial We face an overall labour/skills shortage 29%
Supply
34% Climate change disrupts our business model chain and Senior leadership fails to offer a cogent plan for success 28%
procurement
37% Economic weakness in key markets reduces demand for products Finance Senior leadership fails to offer a cogent plan for success 30%
Talent,
37% Political uncertainty makes business planning difficult personnel We fail to take advantage of new product or service opportunities 33%
and HR
Top risk to business, by sector Figure 10
External Internal
Retail
Government regulations and tax reform 27%
We face an overall labour/skills shortage 27%
Manufacturing
Political uncertainty makes business planning difficult 27%
Senior leadership fails to offer a cogent plan for success 24%
Wholesale distribution
Political uncertainty makes business planning difficult 31%
Senior leadership fails to offer a cogent plan for success 26%
Software and technology
Economic weakness in key markets reduces demand for products 32%
We face an overall labour/skills shortage 29%
Professional services
Government regulations and tax reform 29%
We face an overall labour/skills shortage 26%
Non-profit (excluding government and education)
Political uncertainty makes business planning difficult 16%
Senior leadership fails to offer a cogent plan for success 19%
Advertising, media, publishing
Economic weakness in key markets reduces demand for products 27%
We underspend on R&D 27%
10Oracle NetSuite Unlocking Growth
While all factors emerged as fairly
consistent in importance, interesting
distinctions are apparent when looked
at in terms of company size, region, job
function and sector.
For example, those in a human
resources capacity (figure 9) are far
more likely to find political uncertainty
a top external threat (37 per cent), while
finance professionals, perhaps unsur-
prisingly, are worried about economic
weakness in key markets reducing
demand for products (also 37 per cent).
The internal threat cited by the
most respondents is that senior leader-
ship fails to offer a cogent plan for suc-
isk factors seem evenly cess (24 per cent), showing businesses
R spread across businesses,
but interesting distinctions
are troubled by their leaders ability to
deliver growth. This view is most widely
emerge when looked at from the per- held in manufacturing, wholesale dis-
spective of company size, region, job tribution, the non-profit sector and in
function and sector. larger organisations surveyed ($10-mil-
When asked what they consider lion to $49.99-million and $50-million
on average to be the greatest external to $200-million revenue businesses).
threats to their business, responses Those in professional services (26
were revealing: 25 per cent say political per cent), retail (27 per cent), and soft-
uncertainty, which makes business ware and technology (29 per cent) say
planning difficult; 25 per cent cite their main concern is a labour and skills
economic weakness in key markets shortages. This is to be expected; it is
reducing the demand for products; estimated that by 2030, the global talent
and again for 25 per cent, government shortage could reach 85.2 million people,
regulations and tax reform are most costing companies trillions of dollars in
likely to be considered of high concern. lost economic opportunity, according
This should come as no to management consultancy firm Korn
surprise, with the prospect of Ferry. Closer to home, the European
global trade wars and political Commission believes there could be as
volatility across the region many as 756,000 unfilled jobs in the
creating a sense of insecurity European ICT sector alone this year.
among businesses, despite their On a regional level (figure 8), those
positive outlook. in Germany are the most likely to con-
In addition, introduction of new, sider political uncertainty the biggest
stricter regulations, the most well- threat (27 per cent), and much more
known being the European Union’s likely to think economic weakness in
General Data Protection Regulation, key markets (22 per cent) and new
and governments’ ongoing efforts competitors (22 per cent) to be threats.
to introduce digital systems, such as Interestingly, 28 per cent of
Making Tax Digital in the UK, means respondents felt that more people
companies feel under pressure have become involved in the deci-
to ensure their compliance, while sion-making process in the last 12
attempting to navigate economic months, which may indicate another
uncertainty. Adjusting business plans internal barrier to overcome. This
based on market realities is also a could reflect how individual depart-
difficulty, indicating organisations mental line-of-business executives
struggle to keep up with a quickly now have more say on internal deci-
changing business landscape. sion-making and purchasing.
11Oracle NetSuite Unlocking Growth
Financial
forecasting
The research shows finance leaders who take a
360-degree view of the business are generally
the most confident in decision-making
ifty-three per cent of re-
F
So what makes the finance function
spondents within a finance different? Tony Morreale, chief financial Finance function Figure 6
function rate their firm as officer at La Fosse Associates, believes has an optimistic outlook
good at decision-making, compared it is the 360-degree view of the busi-
with an average of 40 per cent across ness. “When you consider the role of Respondents from the finance
other job functions. the chief financial officer, it is clear why function expecting a growth in
Similarly, finance has a more many are so positive. For instance, earnings for their company in
positive outlook on growth of all kinds. central to what we do is to speak with the current fiscal year
Across EMEA, 20 per cent of those each team within the business to
in finance expect to see growth of 10 understand the sectors in which we
per cent or more in their current fiscal operate, the trends taking place, and
20%
year, 24 per cent anticipate between both the threats and opportunities that are anticipating
5 and 10 per cent, and 35 per cent might lie ahead over the next 12 to 18 10 per cent
growth or more
foresee 1 to 5 per cent growth. months,” he says.
“We look at what has happened
over the last 12 months and take a
data-driven approach to developing
as accurate a forecast as possible. This
of respondents
23%
from the finance then gives us the confidence to accu-
are anticipating
function rated rately predict the outcomes for the year a 5 to 10 per
Technology has their organisation ahead because we have the underlying cent growth
the potential to as good at
decision-making,
data to do so.”
Technology, as it does across
help the financial compared to
40 per cent the rest of the business, is not only
team add greater on average enabling the finance team to perform
tasks, such as processing, account-
value to the
35%
ing and reporting, faster and more are anticipating
business through efficiently, but also has the potential a 1 to 5 per
cent growth
to help them add greater value to the
better decision- business through better decision-mak-
making and insight ing and insight.
12Oracle NetSuite Unlocking Growth
Defining ‘data driven’
Organisations exceeding growth targets are highly data driven
when it comes to making critical business decisions
third of organisations in
A EMEA claim to be “data
driven” in that they make
decisions based almost exclusively on
the business data available to them.
Although 43 per cent of organisa-
tions say they have become more data
driven over the past 12 months, 59 per
cent categorise themselves only as
data aware, which means they consider
data along with senior management
intuition when making a decision.
A further 8 per cent admit to being
business data unaware, following the
intuition of senior management with
little regard for the data.
Germany is the most likely to be
highly data driven (41 per cent), and
UK and Nordics the least (both at 28
per cent). Some sectors are leverag-
ing data much more than others; per-
haps unsurprisingly a software and
technology organisation is more than
twice as likely to class themselves
as highly business data driven than
a non-profit (40 per cent compared
with 17 per cent).
There is an interesting correlation
between the different descriptors
and how companies are perform-
ing against their growth targets.
Fifty-seven per cent of organisations as much access to the data as you can
that are exceeding their growth to become more aware. Despite this, it
targets claim to be highly business
data driven and only 4 per cent are 57% is vital organisations not only provide
access to data, but also help individuals
A software and business data unaware. Conversely, correctly manage it.”
technology 50 per cent of those failing to meet
their growth targets are business data
Interestingly, when making a de-
cision, the most common behavioural
organisation is more unaware and only 25 per cent are
of organisations
that are exceeding trait identified by respondents across
than twice as likely highly business data driven, some-
thing Oracle NetSuite’s Sullivan says
their growth targets
claim to be highly
sectors was to go with a less risky
option, even if the returns may not be
to class themselves is “too big a result to ignore”. business data driven
as rewarding. The next most common
as highly business If you are data unaware, he says: response is to go with gut instinct,
“You’re so far away from having too again relying on intuition rather than
data driven than a much information, you should make business data when it comes to the
non-profit any immediate corrective steps to have decision-making process.
13Oracle NetSuite Unlocking Growth
Information
overload
Without the necessary technology and ability to use it
effectively, analysis paralysis can set in when decision-
makers are overwhelmed with what seems to be too
much data
echnology has taken giant Similarly, one in five people think
T leaps forward in recent
years, enabling greater
more data increases the pressure
when making decisions and it is
business insight and capabilities far more likely to slow down deci- One in five people think more
across all industries. However, these
technological advances have created
sion-making (28 per cent) than speed
it up (17 per cent), (figure 11).
data increases the pressure
an unexpected problem in an excess “Every online and digital interac- when making decisions and it
of information that some compa-
nies feel ill-equipped to process and
tion offers a business unique insight
to help them understand consumer
is far more likely to slow down
extract meaning from. behaviour and preferences, espe- decision-making
Leveraging data is crucial for cially when subjected to advanced
decision-making; according to analytics, machine-learning or when
Gartner, by 2022, 90 per cent of fed into platforms powered by artificial
corporate strategies will explicitly intelligence (AI),” says Rachel Aldigh- At work, employees often feel overwhelmed
mention information as a critical ieri, managing director of the Data & by the amount of data available to them
enterprise asset and analytics as an Marketing Association.
essential competency.
Our research shows that across
“While this can lead to a vast
amount of information being fed
20%
EMEA, data is regarded as having into the business, it is essential to Overwhelmed
the highest impact on an individu- only process data that adds value to all the time
54%
al’s ability to make decisions (35 per both your business and your custom-
cent), followed by time (26 per cent)
and personal liability (13 per cent),
ers. Individuals from within organisa-
tions using data have a responsibility
5%
(figure 12). However, 94 per cent to know what they need to under- Never
overwhelmed
occasionally feel so overwhelmed stand from the information and that
Sometimes
20%
by the amount of data available to it is aligned to furthering the busi- overwhelmed
them that they are unable to make an ness’ objectives.”
effective or well-informed decision, James Chisham, senior director
Very occasionally
almost a form of analysis paralysis. of international products, EMEA, at
overwhelmed
Moreover, one in five people feel this Oracle NetSuite, says information
way all the time. overload is symptomatic of having
14Oracle NetSuite Unlocking Growth
More data slows down decisions Figure 11
How does access to more data impact people’s decision-making?
More than
Increases pressure Decreases pressure Slows down decision-making
three quarters
Accelerates decision-making No impact
of respondents
reported feeling
19% 18% 21% 18% 16% 24% 12% 22% 14% more pressure when
making critical
decisions at work
compared with big
30%
33%
decisions in their
30% personal lives
25% 28%
27%
30%
26%
25%
fragmented data sources across the
organisation. “One of the challenges
we see with a lot of organisations
is multiple pots of data sitting in
different places. We still talk about the
‘hairball’ of having lots of different
28% 33%
sources of information. That’s when
28% 25% 32% you tend to be inundated with lots
26% 28% 36% of data coming at you from different
angles and it’s how you can harness
23%
that. ‘What does that mean?’ ‘How
does that relate to my sales?’”
Importantly, the research points
to a worrying gap between what
people need to do their jobs and the
tools available to them. This appears
to lead to anxiety. More than three
quarters of respondents (78 per cent)
reported feeling more pressure when
17% 20% making critical decisions at work
17% 21% 16% compared with big decisions in their
17% 22%
16% personal lives.
8% Elsewhere, some respondents
indicate a potential tendency to use
Supply chain and procurement
2% data to rely on confirmation bias, with
Talent, personnel and HR
16 per cent saying they only use data
14% 14% and insights to validate their hypoth-
12% esis. More than half (55 per cent) still
Administrative
9% 9% 10% rely on experience and knowledge
Commercial
8%
Operations
Marketing
7% primarily, and only 25 per cent will
Finance
Average
5% analyse all the data and insights
Legal
available to them.
15Oracle NetSuite Unlocking Growth
Avoiding information overload Software can help identify any
The problem of information overload unusual or unexpected correlations
Availability of information is a Figure 12
is inextricably tied up in the level of between a decision and a positive powerful influence on decision-making
data intelligence within an organisa- outcome. “That can be far reaching,
Top factors impacting people’s ability to effectively
tion. Almost two thirds of companies like the butterfly effect where a small
make decisions
that are exceeding growth targets change in the business can have a
35%
are highly data driven (see box). very big impact in a positive, or in
So how can organisations achieve some cases negative, impact else-
data-driven status and avoid infor- where in the business,” says Oracle
mation overload, while ensuring their NetSuite’s Sullivan. Availability of
people are armed with the tools and “So use the machine not to nec- information
information to help them make effec- essarily make the decisions for you,
26%
tive decisions, and fast? but make recommendations per-
Some high-growth startup organ- haps, and then capture and measure
isations are already getting ahead of the decisions. Organisations should
Time
the problem, says Chisham. “They seek to implement good practice
13%
truly understand all the data, where business analytics, to help ensure
it’s coming from, and they can access the organisation is taking advantage
it from one source, which makes of those correlations between deci-
them very data driven and highly sion and outcome.” Personal liability
aware of the information coming into Sullivan adds that beyond the data
the business,” he explains. itself, it is important to understand
95%
IDC claims demand for “better, every aspect of the business to make
faster and more comprehensive decisions about what data or informa- of respondents feel they can
access to data and related analytics tion is most helpful for driving growth. occasionally be overwhelmed
and insights” is driving the market “Whatever market companies are by the amount of data available
for technology solutions that can playing in, they should be looking at to them that they are unable
to make an effective or well-
harness the power of data. However, what the opportunity is within the
informed decision
it is important to understand that space and using external data sourc-
1in5
technology is effective when com- es to help them understand that. A
bined with human insight. combination of external data – ana-
For example, companies can use lysts, research, industry associations,
software platforms to identify supply trade publications – and internal
chain trends, flagging suppliers that data sources can help them figure
don’t deliver on time or consistently out the most efficient and effective feel this way all the time (20 per cent)
late-paying customers. But human ways to grow their business within
intervention is needed, as there may their sector,” he says.
be a valid explanation for late pay- “Coupled with the data being
ment or another reason why chasing captured in their business systems,
them would potentially damage the that’s where real business insight and
business relationship. strategic excellence will come from.”
say they only use data and insights to validate
16%
their hypothesis
don’t believe they have the tools they need to do
18%
The problem of information their job
overload is inextricably tied up
in the level of data intelligence
don’t think they have the data they need to do
19%
within an organisation their job
16Oracle NetSuite Unlocking Growth
Local attitudes
towards growth
How do attitudes towards growth
differ around the world?
Growth differs around the world Figure 14
Per capita nominal GDP (US$) according to the World Bank 2018
Finland
Iceland
49,960
73,191 Norway
81,807 Sweden
54,112
UK Denmark
42,491 60,596
Netherlands
52,978
Germany
Belgium 48,196
46,556
Luxembourg
114,341 France
41,464
Key
$40,000-$50,000
$50,001-$60,000
$60,001-$70,000
$70,001-$80,000 UAE
$80,001-$90,000 43,005
$90,001+
17Oracle NetSuite Unlocking Growth
Benelux Luxembourg, Netherlands and Belgium France
People in the Benelux region are more likely Access to data decreases pressure for French respondents
to trust an AI for business decisions than
anywhere else
82% felt they are sometimes, or
51%
more often, overwhelmed by
29%
the data available to them
7% would trustt an AI or machine
primarily for business decisions, have tendency to
believe a robot or
machine will help
36%
more than any other region demonstrate anxiety them make critical felt that access
when making decisions more in to more data
a decision the next year decreases pressure
Germany Nordics Norway, Iceland, Denmark, Sweden and Finland
German respondents have a clear picture of Enterprise agility is a growth opportunity for Nordics respondents
their company’s growth strategy
24%
33% 50% 35%
felt a risk averse culture
was an internal threat
93%
felt they have a clear
understanding of
their business's don't think their think their companies don't think their company
growth strategy management listens when are leaders is good at capitalising on
they have suggestions in their markets new opportunities
UAE UK
While employees are very happy in their work, a relatively low number of UAE respondents The UK has the most positive outlook on growth
feel their organisations are exceeding growth targets for the next two years than any other region
29% 43% 90%
63%
think their organisation’s growth
will improve in the next two
felt their organisation think their company is love working for
years, compared to 56 per cent
was exceeding good at capitalising on their company
on average
growth targets new opportunities
18% don't love working for
their company
18Oracle NetSuite Unlocking Growth
Trust and
Unlocking Growth research shows
that when seeking help making critical
business decisions, colleagues are the
most trusted source rather than senior
management (figure 15).
behaviour
Respondents in the Nordics are
much more likely to trust their col-
leagues (49 per cent compared with
39 per cent on average) and those in
retail say they trust their colleagues,
more than any other industry (46 per
cent). However, respondents from the
UAE were far more likely to trust their
managers to help them make critical
Organisations exceeding growth targets are much business decisions (35 per cent).
Crucially, organisations exceeding
more likely to trust their colleagues to help them their growth targets are also much more
make critical business decisions likely to trust their colleagues to help
them make critical business decisions
(45 per cent). This is directly correlated
to how organisations are performing
eople have a problem with say they want chief executives to take
P
against growth targets; only 1 per cent
trust, driven by “a loss of faith the lead on change instead of waiting of those failing to meet targets say they
in traditional authority figures for government to impose it. More exhibit trust in colleagues.
and institutions”, according to the 2019 importantly, 73 per cent believe a
Edelman Trust Barometer. company can take actions that both Beyond AI hype
The barometer claims this has increase profits and improve economic Despite the hype, our research shows
led people to shift their trust to the and social conditions in the community people remain reluctant to trust AI or
relationships within their control, most where it operates. machines to help them make deci-
notably their employers. More than But what does trust looks like in sions, which comes in last across all
three quarters of those questioned periods of business growth? The demographics. This isn’t set to change
over the next 12 months either, with
almost 59 per cent of respondents
People trust colleagues over senior management Figure 15
claiming they don’t expect to turn to
Who do people trust most to help them make critical business decisions? a robot or a machine in their deci-
sion-making in that time.
Colleagues Industry peers Third-party expertise AI/machines Senior management
According to Gartner, only 37 per
Average cent of businesses have implemented
39% 21% 17% 4% 19% some form of AI, so some scepticism
around respondents’ familiarity with
Retail 3% the technology is required.
46% 20% 14% 17% As we’ve seen elsewhere in this
Manufacturing report, businesses are wary of relying
30% 24% 15% 4% 27% too heavily on technology such as AI
Wholesale distribution 3% as it won’t necessarily understand all
40% 19% 20% 18% the nuances of a business relationship.
Software and technology However, according to Accenture’s 2019
36% 26% 16% 5% 16% Tech Vision report, the post-digital era
Professional services 1% offers tremendous opportunities and
36% 21% 14% 28% value for business if enterprises proceed
responsibly and strengthen trust.
Non-profit (excluding government and education)
“The power of cloud and artificial
44% 14% 22% 8% 11%
intelligence will continue to advance.
Advertising, media, publishing
When combined with technologies
39% 22% 16% 6% 17%
such as distributed ledger, extended
19Oracle NetSuite Unlocking Growth
reality and quantum computing, they will have to make people feel included, your
reshape not only the business sphere, own people as well as your customers. People understand Figure 17
but also the relationships with individuals We could talk about change manage- their business’s growth
– customers, employees and ecosys- ment and how people are resistant to strategy and their role in it
tem partners – that are critical to future change, so you do have to focus on
growth,” Accenture notes. Perhaps some inclusion and make people part of the To what extent do people think they
day our respondents will think so too. decision-making process, and make have a clear understanding of their
sure even your customers are included, business growth strategy?
Gaining employees’ trust that they’re engaged,” he says.
So how can business leaders en-
sure employees are aligned on their
“For us, when we engage customers
very closely, they’re much more recep-
38%
Strongly agree
business journey? Oracle NetSuite’s tive. Transparency and inclusivity in
Sullivan believes transparency is vital. how you treat people; if you don’t have
“Be transparent with your employ- those things, people get suspicious
ees, with your customers, with the
market in general about who you are
and you lose any trust you have.”
Engaged employees invest more
50%
as a business and what you stand for discretionary effort, progress faster Somewhat agree
when you go about executing your and stay longer, says Tim Oldman,
business. This is at a macro level as chief executive of Leesman, which
well as a micro level; transparency is
key,” he says.
helps organisations understand how
their workplaces support organisa-
11%
Oracle NetSuite’s Chisham says the tional performance. Somewhat
focus should also be on inclusivity. “You “Developing engaged employees disagree
is good business practice, because
Men appear more confident Figure 16
staff turnover is an expensive prob-
lem,” he says. “Employee inertia, 2%
in their organisation a side effect of discontent, is also Strongly
costly. That’s why talk about employ- disagree
People who agree that their business ee experience being the foundation
is good at making decisions of engagement should interest every
43% employer. Encouraging knowl-
edge-sharing and ensuring individu-
To what extent do people think the
decisions they make at work have a
als feel they belong to the collective
Male direct impact on their organisation’s
are vital when it comes to promoting
business growth?
39% trust, particularly during periods of
Female
business growth.”
The good news is 88 per cent of
30%
people currently, to some extent, believe Strongly agree
they have a clear understanding of their
business growth strategy and 79 per
cent think the decisions they make at
49%
People who think their business has become work have a direct impact on their or- Somewhat
ganisation’s business growth (figure 17). agree
more data driven in the past year
48%
Sullivan concludes: “When you em-
power your employees, you also need 5%
to be able to have confidence they will Somewhat
Male behave in a way that’s consistent with disagree
39% 2%
your company values, your culture.
This is something that systems can
measure, to communicate and, when Strongly
Female disagree
necessary, enforce, because it can’t be
13%
growth at all costs. It has to be con-
sistent with who you are as a business
and how you want your customers to Not Sure
perceive you.”
20Oracle NetSuite Unlocking Growth
Key takeaways
Unlocking Growth reveals valuable
insights into businesses in EMEA,
encapsulating their thoughts, attitudes
towards growth, decision-making, and
what they consider the greatest threats
and opportunities in a sometimes unpre-
dictable political and economic climate.
All this against a backdrop of increasing
government regulation. Here are some
key takeaways.
01 Every organisation’s
growth is different
As the research demonstrates, business-
es across regions, sectors and sizes all
acknowledge different drivers of, and
threats to, their growth.
As we’ve seen, there are common
activities fuelling growth, such as
investment in marketing and customer
satisfaction. We can also see how, as a
company grows, they look to expand
their distribution channels, and effec-
tively their sales team, or look at different 02 Avoid information
overload 03 Building trust
is crucial
methods for selling, giving customers
more choice of how they buy.
While data is vital to help organisations
make decisions, and will become even
15% As you embark on your growth journey,
it is important to ensure you establish
All these actions require you under- more so in the future, if not properly trust, whether that’s with employees,
stand where your business is efficient, translated, it can create more problems customers, partners, suppliers or share-
where it isn’t and what you can do to than it solves. of respondents holders. It is clear in today’s ever-chang-
move the needle when it comes to busi- A flood of data flows into organi- believe there has ing and virtual world that honesty and
been less human
ness growth. You need to be data driven sations every minute, often ending up transparency in the workplace is vital.
involvement in the
to understand what factors are impacting hidden away in data silos where it offers decision-making Colleagues are the most trusted
the business, followed by a combination no value to the business. But with the process in the source of information when it comes to
of instinct and business experience in volume and number of data sources last year making decisions, more so than senior
exploiting that data. they encounter, most people end up management, with organisations that
feeling overwhelmed, unable to make exceed their growth targets much more
Next steps an effective or well-informed decision. likely to trust their colleagues to help
Whether you are expanding interna- We’ve seen that data can even increase them make critical business decisions.
tionally through acquisition or looking to the pressure around decision-making The research also shows that
drive more efficiency within your existing rather than alleviate it. individuals aren’t yet ready to put their
business, it is important to establish what trust in AI or machines to help them
growth looks like to you and consider Next steps make decisions.
what your bespoke growth journey is. It is important to establish how a busi-
Endeavour to understand spe- ness can best manage this to ensure Next steps
cific key performance indicators as information-sharing is helping and not To build trust in business you need
they relate to customer acquisition hindering individuals. Organisations two things: transparency and inclu-
and growth, measuring and testing must look at integrating previously siloed sivity. Clearly convey who you are as
customer satisfaction, for example, data and ensure they have the right tools a business and what you stand for,
or customer churn. Use behavioural and systems in place throughout the your company values and your culture.
and historical data to discover what business that can present the right data Where possible, involve all stakehold-
customers are buying and what influ- at the right time. These include analytical ers in the decision-making process.
ences them on their buying journey. and reporting tools that present data in Engaging employees and ensuring
Understanding these metrics is a great easy-to-understand formats, ensuring individuals feel they belong is impor-
place to start and will ultimately drive individuals across the organisation can tant when promoting trust, particularly
more profit from the business. extract the most value from data. during periods of business growth.
21Oracle NetSuite Unlocking Growth
Demographics
he Unlocking Growth 2020 Raconteur, in partnership with iResearch, to were based in businesses of $5 million to
T research was undertaken to
provide insight across key
conduct an independent online survey of
1,050 senior individuals, with fieldwork held
$200 million, with 300 participants based
in the UK and the rest evenly divided (150)
business functions where individuals had between October and November 2019. across five other EMEA regions: France,
critical stakes in supporting the growth of This research defines “senior”people as Germany, United Arab Emirates, Benelux
a business. Oracle NetSuite commissioned manager level and above. The respondents and the Nordics.
In which of the following regions are you based? Which sector or industry most
applies to your company?
14% 15% 15% 15% 14% 14% 14% 13%
Germany
29%
UK
14%
Non-profit (excluding government and education)
France
Advertising, media, publishing
14%
Software and technology
Wholesale distribution
Nordics
Professional services
14%
Manufacturing
UAE
14%
Retail
Benelux
What is your business What is your job function?
size, by revenue?
24% 23% 12% 12% 11% 7% 7% 4%
Operations Administrative Talent, Finance Marketing Commercial Supply chain Legal
personnel and procurement
and HR
33%
$50m-$200m
(125.00)
35%
$10-$49.99m
(30.00)
32%
$5m-$9.99m
(7.50)
22For more than 20 years, Oracle NetSuite has helped
organisations grow, scale and adapt to change. NetSuite
provides a suite of cloud-based applications, which includes
financials/enterprise resource planning, HR, professional
services automation and omnichannel commerce, used by
more than 19,000 customers in 203 countries and dependent
territories.
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