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While every midsize business strives to be as cutting-edge as possible, most organizational leaders are challenged to find the time, budget, and resources to build and sustain business innovation. But those who center their growth strategy around a culture of business innovation (and remain faithful to that mindset as they expand) are the ones that ultimately win in the favorable and harshest economic conditions.

Business innovation is necessary for survival today.  It is now known that technology innovations provide enterprises with new opportunities for value creation. From 1955 to 2011, it took Fortune 500 companies an average of 20 years to reach a billion-dollar valuation. Now, digital startups are getting there in four years or less.

Overall midsize businesses are aware of the immense potential of cloud technology; however, most of them are only scratching the surface. A recent report from McKinsey foresees that more than $1 trillion in value will be enabled by cloud adoption by the end of this decade. And most of that value will come from business innovation and optimization, rather than IT cost reduction.

Strengthen the heart of ongoing growth

The companies that will win and grow fast are the ones that drive change, tackling three common yet critical issues:

  1. Create new business models

Developing new business models help avoid industry disruption. The introduction of new business models allows the creation of new revenue streams. Otherwise, businesses plateau while watching their more innovative competitors bring ideas that disrupt the industry and their company.

  1. Drive new operational efficiencies

Midsize companies must drive efficiencies and reinvest them into their growth. By taking advantage of new technologies for process automation such as artificial intelligence, they can gain a competitive advantage over their competitors.

  1. Modernize without disruption

Mission-critical systems need to be transformed without interruption.

In a culture of innovation, business leaders and employees are collaboratively engaged and empowered to drive business innovation together  ̶  sharing insight, ideas, and inspirations in real time. They not only communicate emerging customer trends and sales opportunities but also recognize customer needs and ask challenging questions to weigh their options and evangelize the value of their efforts.

Midsize companies are generally a lot more agile than larger organizations. They have more straightforward business models, fewer silos, and closer customer relationships. But sometimes, they unintentionally hold themselves back by delaying the adoption of more modern technology. The cloud can be a huge help.

Cloud solutions enable organizations to consistently move with an innovation mindset since they can quickly and strategically pivot their operations in response to new opportunities, risks, and demands. With a “try fast, try often” mentality, people of all roles are invited to experiment with no risk and amplify the business’s competitive edge faster.

Accelerate business innovation with cloud ERP

As past economic recoveries have shown, companies grow best when they re-innovate business models, products, and services faster and differentiate them with outcomes that customers want and competitors cannot replicate easily. The availability of cloud ERP is making this reality easier to achieve by driving agile processes that increase business resiliency, profitability, and sustainability.

With a more cost-efficient consumption model, organizations move to a modern, safeguarded ERP in the cloud to support continuous innovation and operational scalability with a low total cost of ownership. Shifting technology investments from a one-time, big-ticket capital expenditure to an incremental, ‘pay-as-you-go’ operational expense allows the entire company to champion cost savings while gaining more flexibility.

Take, for example, intelligent automation embedded in cloud ERP. The capability positions organizations to counteract soaring supply chain costs, as well as talent shortages and a steady stream of disruption, by gradually improving productivity with new levels of efficiency and personalized insight. Meanwhile, instant access to knowledge across business operations allows people to analyze, collaborate, prepare, plan, and act immediately  ̶  confidently and from anywhere.

Furthermore, as unpredictable changes continue to impact product demand, production capacity, and supply chain delivery, organizations can use cloud ERP to plan dynamically and frequently to pivot at market speed. They can reallocate resources against new mission-critical priorities and adapt to disruptions responsively while driving business operations in real time.

Reimagine today, lead tomorrow

For midsize businesses looking to out-pace the competition, disruptive business innovation must be a priority. But they can only take their innate agility so far in their efforts to keep up with larger enterprises that continue to find new ways to pivot faster and more cost-effectively. A culture of innovation should become the heart of ongoing growth to help companies to compete on the leading edge of their industry.

Cloud ERP is well-designed for a moment like this. Organizations can explore and leverage a new competitive differentiator that can take their growth to the next level ̶ continuously and confidently.