The findings give office technology dealers a roadmap for identifying opportunities.
For the fourth consecutive year, U.S. Bank conducted a comprehensive survey, delving into the minds of finance leaders to uncover their top concerns, outlooks, and strategies. After all, understanding the priorities and risks faced by finance professionals is crucial for anyone, including office technology dealers, whose clients are some of the companies or industries employing those very same financial leaders.
The information derived from the survey helps U.S. Bank better understand its clients and potential clients, their top priorities, and risks. This information is then distributed to the company’s clients. “It’s about helping our clients stay on top of these trends,” said Phil Buysse, SVP, general manager, Office Equipment Vendor Services, U.S. Bank.
In a recent interview with Buysse, we discussed some of the survey results, focusing on their relevance to the office technology dealer channel. The following findings are particularly noteworthy.
1. Cost Reduction
Cutting costs within the finance function and across the entire business is a top priority for 44% of finance leaders, more than double the 2021 percentage. However, the emphasis on cost reduction is less about cutting jobs, even though 21% of respondents, compared to 40% four years ago, view that as an option. “What’s interesting is that on more than a two-to-one basis, they are looking to create efficiencies through technology versus layoffs,” noted Buysse.
Because of this, Buysse emphasized that dealers should lead with efficiency and cost-cutting measures. There are many opportunities for dealers to bring cost efficiency to the equation, he added, identifying helping the customer get a reduced payment through an upgrade or a new contract with an extended term, outsourcing managed network services, and providing them with workflow solutions and software such as PaperCut.
2. Top Investments
Data analytics (52%), AI (51%), and investment in technology (47%) represent the three leading strategic investments for reducing costs. The emergence of AI as a key area for investment is particularly noteworthy as it mirrors current trends in the office technology arena and beyond. Among finance leaders, AI tools are viewed as key investments for mitigating risk (42%), identifying fraud (41%), and automating processes (37%), particularly in vertical markets such as insurance, oil and gas, and life sciences/pharmaceuticals.
3. Improving Risk Identification and Mitigation
Alongside cost reduction, improving risk identification and mitigation has steadily climbed in importance, now ranking as the third most common priority among finance professionals. This reflects a growing awareness of the need to anticipate and address potential risks in an unpredictable economic landscape.
Among the top risk areas identified by finance leaders that should resonate with office technology dealers are talent shortages (41%), the pace of technology changes (39%), and high inflation (25%). Talent shortages mirror similar findings in The Cannata Report’s Annual Dealer Survey. Meanwhile, 39% of finance leaders are not confident in their ability to manage and mitigate new risks effectively. “This highlights the need for proactive measures and strategic planning to address emerging challenges,” said Buysse, who again referenced AI as a viable strategy.
Geopolitical tensions and war have emerged as the fourth-most cited top risk, signaling a shift in global dynamics that finance leaders must navigate. While inflation is still a concern, it has decreased in prominence compared to previous years, though it remains a significant consideration for leaders in certain industries.
Surprisingly, driving revenue growth has taken a back seat, emerging as the fifth most prevalent priority this year. This shift in focus underscores the importance of operational efficiency and streamlining processes in increasingly competitive markets.
4. Digital Transformation
Digital transformation is one of the hottest trends impacting organizations and industries, and 34% of respondents reported that they are exploring emerging technologies that will help drive their digital transformation, including helping them reduce costs. “More respondents believe new technology is easier to implement,” reported Buysse. “There’s less reluctance and resistance to taking on a transformative project or change, which is great for dealers.”
Equally notable for office technology dealers is that 46% of survey respondents are unsatisfied with their organization’s progress toward digital transformation. “For the most part, they don’t feel their organization has a good overall strategy,” said Buysse. “There’s this feeling that we better step up, or we’re going to get left behind.”
According to Buysse, this represents another opportunity for office technology dealers—helping clients define a strategy for their customers, including presenting examples of other customers who have been successful in digitally transforming their organizations.
5. Environmental, Social, and Governance (ESG) Factors
Sixty-four percent of U.S. Bank survey respondents said their function should play an important role in addressing ESG issues, compared to 51% last year. Also, climate change was identified by 24% of respondents as one of their top three business risks. “Dealers should be thinking about ESG as part of their proposals,” said Buysse. “Think about paper and energy reduction opportunities dealers can bring to businesses.”
Future Outlook According to the U.S. Bank Survey
Despite concerns about the broader economic outlook, finance leaders have a relatively positive outlook for their own businesses. While 33% hold a negative view of the economy for the rest of 2024, only 15% maintain a negative outlook on the U.S. economy over the next three years. This optimism is reflected in their view of their own businesses, with 45% optimistic about their financial prospects over the next 12 months and an even higher percentage—61%—expressing optimism over the next three years.
That optimism spells an opportunity for office technology dealers.
