Three Insights from the Fed's Latest Economic Snapshot

 Three Insights from the Fed's Latest Economic Snapshot

Growth Figures, Housing Boom, Groceries to Become Cheaper

The Benefits of A Professional Financing Partner

 

We just returned from the very successful Automate Conference in Detroit.  In speaking with many of the vendors at the show, I was surprised by how many leave the financing decision up to their customer, in other words, they don't proactively take control of the sale by bringing in an expert that is an advocate for them to accelerate sales cycle and close the deal.  There is a "real" need for vendors and sales representatives to own the financing process from the top of the sales cycle.  Below represent some of the main qualities and value points that we bring to the table:

• A professional who understands all aspects of the financing and leasing process.
• A professional who can simplify the process but is willing to explain the complexities when needed.
• A professional who is fully available when needed to train, encourage, and support vendor sales professionals.
• A professional who is capable of pre-qualifying transactions to save time and money for all parties.
• A professional who is willing to think and act outside of the commodity box and offer unique services and products.

Contact me to discuss how our customer financing programs add significant value to help leverage and close more sales.  Dean Morrison, 954-224-3390, dmorrison@dimensionfunding.com

Top Trends Driving Technology Providers in 2022

 

The top trends driving technology providers in 2022

GUEST COLUMN BY RAJESH KANDASWAMY

SHAR

Technology’s impact on society and national economies continues to intensify, in turn increasing the business responsibilities of technology service providers and what their customers expect from them.

This deeper entrenchment in business has also made technology providers much more sensitive to factors beyond information technology. It’s no longer sufficient for them to address client needs and provide quality products. Rather, they have to be aware of the broader economic, social and technological forces that have come to form a large bearing on their business.

Such forces make up this year’s top trends for technology service providers, or TSPs for short (below).

 

Co-innovation ecosystems

Technology innovation is at the heart of every TSP. However, in the digital world — with much stronger interconnections among technology providers, customers, partners and governments — traditional siloed innovation practices such as research and development and basic product development will not be enough to survive.

Instead, a co-innovation ecosystem is an emerging approach that accelerates the development of solutions to industry problems, spreads risk and cost across the participants, and drives adoption of the end solution. It enables internal, external, collaborative and co-creative ideas to be converged and directly tied to value creation with the “shared revenue/value” among ecosystem stakeholders and participants.

Engagement, co-creation and compelling experiences for value creation are at the core of co-innovation. Product development and the value of co-innovative organizations are thus difficult to replicate by competitors.

In fact, by 2023, 30% of all revenue-bearing emerging technology solutions will be developed via co-innovation ecosystems, enabling vendors to become more competitive and expand into new markets.

Sustainable business

Sustainable business is a strategy that incorporates environmental, social and governance or ESG factors into decision-making. It is underpinned by sustainable technology, a framework of solutions that enable ESG outcomes.

Growing sustainability-driven product investments and deployments are taking place across numerous categories such as sustainable IT — for example, cloud sustainability or green software development — smart energy infrastructure and circular product innovation.

In the end, tech providers that can quantify their offering’s positive contribution to customers’ sustainability objectives will increase their win rate by 20% by 2025.

Talent agility

The post-pandemic pace of TSPs’ business can no longer be accommodated by rigid and fragmented talent management processes. This is where talent agility comes in – the ability to support talent needs for business agility through a combination of skills and talent supply analysis, and by connecting fragmented existing and new talent pools without borders.

Talent agility will affect six key areas of TSP business: products and services, customers and buyers, operations and processes, competitive landscape, and partners and ecosystems.

By 2025, 30% of TSPs will create a single talent network to connect up to six separate talent pools, up from fewer than 5% today.

 Techno-nationalism

Digital sovereignty laws and regulations are growing in scope and accelerating in most major markets, giving a short-term window for market expansion to solidify a presence for TSPs.

As competition across country borders and purview declines, and more restrictive digital usage laws expand, prices are expected to increase, creating revenue opportunities for those with scale and reach. Governments, too, will become increasingly aware of the value of citizen data.

By 2026, nationalistic and protectionist value-based economic systems will grow 10 times globally, disrupting more than 80% of all technology companies’ go-to-market and product strategies. Product leaders will need unique, digitally distinctive operating architectures that are compliant to social, legal and economic zones by region.

Democratization of technology

The democratization of technology empowers non-IT workers to select, implement, produce and custom fit their own technology. Product leaders must embrace the new opportunities this trend offers and meet the needs of a new set of citizen developers and business technologists, or struggle to deliver compelling solutions and experience eroding market positions.

After all, by 2024, 80% of technology products and services will be built by those who are not full-time technical professionals.

Intelligent applications

Intelligent applications use data and machine learning to generate a continuous learning system that provides adaptive and contextualized experiences. For example, emerging intelligent applications might generate new financial products and services based on customer data or create new customer experiences such as autonomous business operations in retail stores or automated workflows and fleets within mining.

Enterprise stakeholders intuitively embrace the principles and promises of intelligent applications, and will only continue to do so. In a recent Gartner end-user survey focused on emerging technology adoption, the mean investments in intelligent applications over the past 12 months was $408,000, and the mean value of planned investments in intelligent applications within 2022 is $618,000.

Distributed enterprise

Organizations are shifting toward “distributed enterprise” to support hybrid work, remote delivery and digital experience at all touch points. In this business model, there is growing demand for technology solutions and tools that can support a predominantly non-office workplace and accelerated digital transformation initiatives to support distributed delivery for clients.

Tech providers must respond to these shifts by prioritizing technologies and product capabilities that blend the digital and physical worlds. By 2023, 75% of organizations that exploit distributed enterprise benefits will realize revenue growth 25% faster than competitors.

Composable business

Composable business is a concept where leaders can quickly build new business capabilities by assembling digital assets in an organization that is architected for real-time adaptability and resilience in the face of uncertainty. It impacts all facets of tech providers’ business as it enables enterprises ability to respond to the market and seize digital opportunities faster and cheaper.

Seven percent of respondents in the 2022 Gartner CIO and Technology Executive Survey indicated that they have already invested in composable enterprise, but an additional 60% expect to have done so by the end of three years.

Composable business is certainly a market shift but does open up new markets for TSPs.

Beyond intellectual property

Historically, protecting and controlling ideas and inventions equaled advantage. IP strategies such as patents represented a powerful way of generating value and are the cornerstone of traditional high-tech strategies. But their role is changing.

“Beyond IP” recognizes the rise of alternative approaches for realizing value from ideas, inventions and other proprietary assets. Rather than creating proprietary IPs with finite boundaries to be defended, new leaders seek a pool of ideas and insight with fluid boundaries whose value increases through application that builds the next set of ideas.

IP and intellectual capital or IP/IC protection strategies based on “fixing ideas” into patents and so forth will reduce the value of the IP/IC by up to 50% over the next five years.

Unlimited capital

Unlimited capital is the trend in which there is such an abundance of capital competing for investment in private companies, that tech providers have access to virtually unlimited amounts of capital at a low cost. Startups that can successfully demonstrate product market fit can raise dramatically larger rounds of financing at earlier stages of development, allowing them to accelerate growth without regard to capital efficiency or risk.

Rajesh Kandaswamy (@rajeshakan) is a distinguished analyst vice president and fellow at Gartner Inc. who advises C-level executives and product leaders on the strategic impact of emerging technologies. He wrote this article for SiliconANGLE. Join Rajesh and his colleagues at the Tech Growth & Innovation Conference, taking place virtually July 12-13, 2022.

Benefits of Using Proactive Customer Financing at "Point of Sale"

 

Increase Your Business by Offering Point of Sale Financing

When it comes to manufacturing and reaching your customers, business-to-business sales tend to be a little different than business-to-consumer. Your product, whether it’s vehicles, equipment, or software, is essential for businesses to operate. However, manufacturers often run into a problem. Small businesses that need the product or equipment your business is manufacturing often cannot afford the entire upfront cost of your product or it would negatively impact their working capital. This barrier not only hurts the small business who could significantly use your business to expand their own, but it also creates a barrier to your sales and ability to reach all business owners in your market.

One solution to expanding your business-to-business sales is to offer financing at the point-of-sale for your clients. According to a Forrester Research Study, businesses that offer to finance can expect up to a 32% increase in their sales. Like any business, the one you own could surely benefit from a nearly one-third increase in your sales, right? The problem is, how can your business afford to offer credit or financing to your customers and let the product walk out the door without full payment? Third-party financing vendors can help you!

Benefits of Point of Sale Financing to Businesses

Your business owner customers love POS financing because they can get a quick decision due to expedited underwriting and an electronic application process. Many customers also see benefits through these financing methods compared to trying to secure a small business loan outside of your company through traditional lending.

How often do you have customers checking out your equipment, fleets, software, or other business products, just to leave empty-handed when they find out the cost of what they need? Many of these business owners plan to obtain a small business loan to make a large purchase; however, how often do they return? Offering customers the ability to immediately purchase the equipment, software, or technology they need to grow their business through POS financing is a surefire way to increase your sales and customer base.

Another benefit of capturing the sale through POS financing is the added opportunity to up-sell the business owner. When customers obtain financing from some third-party financing companies, they can turn the large upfront costs into a monthly payment. Manufacturers have the opportunity to offer the business owner a chance at better technology, the upgraded model they were eagerly eyeing, or adding on the bonus of automatic yearly or multi-year subscription software services to the sale. The Forester Study referenced early also showed that most of your business clientele would increase their order value by up to 75% when they qualify for POS financing.

Business owners also have the opportunity to secure funding without having to jump through the hoops of mountains of paperwork and applications, compiling information that lenders suggest, and dedicating the extra time to securing a loan. Through POS financing under $500,000, a business owner can often skip most of the paperwork in many cases and get approval with just a one-page financing application.

The ability to increase your average transaction dollar amount without reducing your margins substantially adds to the profitability of a manufacturing company or wholesaler.

Manufacturing companies often need a large amount of working capital in order to offer their customers in-house financing programs. However, there are third party financing vendors that your manufacturing or wholesale company can partner with to leverage these financing options at the point of sale.

Benefits of Using Third-Party Vendors for Financing

One of the most significant benefits of using a third-party vendor for your point-of-sale financing is the shortened time between the sale and collecting the total payment. When companies use third-party vendors for financing, there is usually no wait time between the sale agreement and payment in full. The business-owning customer is making their payments to the financing vendor who, in turn, fronts the payment to your business for the customer. The third-party vendor will make money from interest rates while you have peace of mind that you captured a more significant sale and a loyal customer through financing.

Another significant benefit of using third party financing vendors is the ability to approve customers for loans who may not qualify under traditional financing guidelines through banks or other lending institutions. Third-party vendors understand that not every business has working capital and cash flow that allows them to make large purchases. When business owners cannot qualify or get turned down by banks for traditional business loans, they usually think their options for financing are limited. Third-party vendors open up brand-new doors for your customers to expand or upgrade while also building their business credit and reputation.

Another difference between financing companies and a bank is that the bank usually requires a UCC on all of the business’ assets. Financing companies are generally unsecured because they only have the purchased equipment or software as collateral. Purchasers generally are not eager to have all of their business assets as security for a bank loan.

If your business is ready to take the plunge to finance business owners at the point of sale, and you want more information on how to make this possible through third-party vendors, contact Dean Morrison, 954-224-3390 or by email at dmorrison@dimensionfunding.com

A fundamental shift in the way businesses view their technology

 

In this blog post from Erik Mcfrazier – CEO at Pacific IT Support, and one of my colleagues from BCPA and IAMCP - he very clearly connects the dots to make the case that businesses are spending on IT as an investment and not as a cost.  

“Many businesses no longer see IT as a cost. They embrace it as an investment. They can see the direct correlation between creating robust, safe, and flexible systems – and their teams’ abilities to achieve more. Owners and managers are also placing more value on excellent, proactive technology …”  

Your ability to include creative and timely financing programs provides your clients with the ability to make these important investments in their business….I’m here to help you create messaging that will resonate with your clients and leverage more…and more profitable sales! Dean Morrison, 954-224-3390  

 

Businesses are spending more on IT this year

Posted by Pacific IT Support On April 29, 2022

By Erik Mcfrazier

 

As a business owner or manager, you know how important good IT is. Your business couldn’t function without it.  

Your IT isn’t just about computers and data. It’s everything from your phone system to your printers, to where you access your documents.

 And that’s without going into the measures you must take to keep your data and infrastructure safe and secure from cyber criminals. So, we weren’t surprised by a new forecast from IT research and consultancy firm, Gartner, which predicts businesses will spend more on technology this year.

 In fact, the global IT spend could reach an enormous $4.4 trillion. That’s despite rising inflation, the Russian invasion, and shortages in both chips and IT talent.  We believe there’s been a fundamental shift in the way businesses view their technology.  

  Two years ago, at the beginning of the pandemic, companies were forced to take unexpected urgent action to help employees work from home. In many cases that meant a large investment in devices, rapid changes to systems, and the adoption of new technology.

 And it’s worked out well for most. Businesses have adapted quickly, and many have embraced the changes on a more permanent basis. But it’s also made business leaders realize they need to be better prepared to respond to future potential disruption.

 This is the difference between a flexible and agile business… and one that stumbles at the first hurdle.

 Many businesses no longer see IT as a cost. They embrace it as an investment. They can see the direct correlation between creating robust, safe, and flexible systems – and their teams’ abilities to achieve more. Owners and managers are also placing more value on excellent, proactive technology support from a trusted partner.  

 To not only plan and execute big development projects. But also, to help reduce downtime and ensure systems are secure and running as they should be. If you’re reviewing your spend on technology and support, we can help.