Report Cites Operational Efficiency Challenges in Channel

Published On: May 21, 2018Categories: Buzz, Uncategorized

As channel partners continue to shift their focus towards service-centric business models, they are finding complex operational challenges that affect the bottom lines, according to a recent research report.

In a survey of 400 US-based IT firms conducted by CompTIA, an industry association based in suburban Chicago, 45 percent said that business operations have become more complex than they were just two years ago.

Among the key factors, 53 percent of respondents said they have more streams of data to manage and analyze. About half cite expansions into new business lines and models; the introduction of emerging technologies into their portfolios; and customer engagement as other main contributors. Just 20 percent of surveyed firms assess the current state of their operations as very efficient. Another 39 percent consider themselves to be mostly efficient.

“How well, or how poorly you run your business has a direct impact on your profit margin,” said Carolyn April, senior director of industry analysis, at CompTIA. “If you’re captaining a leaky ship, it may be the difference between a 10 percent margin and a 25 percent margin for the year.”

The number of firms that reported experiencing a high-degree of business transformation nearly doubled between 2013 and 2017, while the percentage of those acknowledging a low-degree of transformation dropped nearly 10 points.

Momentum around cloud computing was cited by 53 percent of firms as the reason they’re changing their business model in some fashion. Another 49 percent cite emerging technologies such as artificial intelligence, virtual reality, and block chain.

“The most important thing is to do is make an honest gut check of how well you run your operations today,” April added. “If you’re running a loose operation currently, if you don’t shore up how you run things today, you won’t be in a position to survive tomorrow.”

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