Article by Fernando Florez, Chief Revenue Officer at Making Sense
Today, more mid-sized companies are embracing digital transformation to improve efficiency, productivity, and customer experiences. A recent Deloitte survey of tech leaders in mid-market enterprises revealed that over half identified “efficiency” and “productivity” as their primary goals, with 34% also prioritizing “innovation” and “growth.” Key technologies driving this shift include cloud computing and AI tools designed to streamline operations and scale businesses effectively.
The potential of these technologies is enormous. PwC data shows that 60% of senior executives believe digital transformation is essential for growth, while according to a study conducted by the Digital Marketing Institute, one in three companies view it as a matter of survival. However, digital transformation is not without challenges, companies must carefully navigate obstacles such as outdated systems, insufficient data quality, and unclear ROI strategies.
Let’s dive into these challenges and how successful companies overcome them.
Key Challenges in Digital Transformation
The Importance of High-Quality Data
AI tools are only as effective as the data they analyze. High-quality, diverse, and unbiased data is critical to achieving meaningful insights and operational improvements. Yet, many companies adopt a reactive approach, layering AI onto outdated systems instead of transitioning to modern, integrated solutions. Research shows that 41% of SMBs use this patchwork strategy, while only 23% invest in purpose-built platforms with robust data infrastructures.
This fragmented approach often results in inconsistent data insights, hindered automation efforts, and slower progress. The solution requires more than upgrading technology; it demands a holistic strategy—replacing legacy systems, streamlining workflows, and optimizing costs.
Strategic Planning and ROI Assessment
Modernization efforts must be carefully planned to balance costs, risks, and benefits. Without a well-defined ROI strategy, businesses risk wasting resources or disrupting daily operations. Successful digital transformation requires aligning technology investments with clear business goals to ensure tangible, sustainable results.
Lessons from Esquire’s 40% Productivity Boost
Esquire, a leading legal services provider, achieved a 40% increase in productivity through digital transformation. Esquire started with a centralized platform to drive its acquisition strategy and improved data synchronization across departments, eliminating silos, enabling faster decision-making and enhanced collaboration.
Another way they increased their productivity was upgrading their ERP systems, ensuring seamless operations during workforce transitions, such as vacations or departures, improving overall visibility and efficiency. And they’ve also automated repetitive tasks, like service provider assignments. This allowed Esquire to scale operations without compromising service quality. Human oversight remained in place for critical decisions, ensuring high standards were maintained.
The result? Esquire managed to handle more cases and integrate acquisitions without increasing headcount, demonstrating how thoughtful technology integration can drive both efficiency and scalability.
Other Mid-Market Scaling Success Stories
In traditional industries like manufacturing, companies use IoT sensors and AI to monitor equipment performance, detecting issues before they cause downtime. This proactive maintenance approach reduces costs and increases productivity. Additionally, machine learning improves demand forecasting, enabling just-in-time inventory strategies that optimize production and reduce excess stock.
In Mumbai, a transportation company used AI to design personalized travel plans for passengers. This led to a 95% switch from standard monthly passes to tailored plans, increasing ridership by 55% and boosting revenue by 25%.
The same applies to call centers or car loan refinancing companies. An AI-powered data pipeline streamlines customer interactions, where agents access real-time information. This improves response accuracy and customer satisfaction while addressing inefficiencies in workflows.
Driving Transformation for Growth
For mid-market businesses, digital transformation is no longer optional—it’s essential to scale, streamline processes, and remain competitive. Success lies in modernizing infrastructure, aligning technology with strategic goals, and committing to high-quality data practices. As demonstrated by companies like Esquire and others, thoughtful integration of AI, automation, and data-driven platforms can significantly enhance productivity, improve customer experiences, and position businesses for sustainable growth. Transformation is a journey, but with the right strategies and tools, it’s one that delivers immense value.