The Biggest Growth Challenges in a Competitive Market
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If you want your company to grow, you will inevitably face several challenges. Sometimes, insights from other industries hold the key to accelerating growth. Recent research in the martech industry—a sector at the forefront of artificial intelligence (AI) usage—shows that rapidly growing companies strengthen their competitive position through AI, data, and strategic CRM utilization.
Challenges
These are challenges I have encountered repeatedly over the years while working with various companies on their next growth step. What can we learn from these rapidly growing organizations? Although they primarily operate in the martech industry, many of their lessons are broadly applicable.
A study by McKinsey reveals that nearly 60% of tech companies expect a significant increase in demand for their services. At the same time, only 30% anticipate hiring more staff. This underscores the importance of efficiency: companies that fail to support their growth with smart automation risk losing customers to competitors who can deliver more effectively.
Among the top 10 challenges for these rapidly growing organizations, three key pain points stand out:
- High Costs (40%) – Operational expenses strain profitability and limit investment capacity. This includes legacy software costs.
- Intense Competition (33%) – Companies must differentiate themselves through innovative solutions and strong customer relationships.
- Data Security & Compliance (31%) – Stricter regulations and increasing cyber threats make data control essential.
Inefficiency Due to Legacy Software
Only 21% of marketing leaders state that their current technology delivers a high return on investment (ROI). Companies use an average of over 15 tools to manage customer interactions, leading to wasted time and increased costs.
A major cause of inefficiency is outdated technology. Companies that cling to legacy systems risk falling behind competitors investing in modern solutions. Outdated technology can slow down processes, limit scalability, and increase maintenance costs, significantly hindering overall business operations. The high operational costs associated with this severely restrict growth and innovation.
Innovation Drives Growth
Companies investing in more efficient technology and AI tools, such as data analytics and automation, can save up to €10,000 per employee annually.
Organizations leveraging technologies like AI and automation can make significant progress. AI tools help recognize patterns in customer behavior, enabling companies to anticipate customer needs more effectively. A specific example is AI usage in internal processes, such as inventory management or resource planning. AI can predict when stock levels will run low or where personnel is most needed, leading to better business results and reduced waste.
Data Integration Provides Insights
Competition is intensifying. For example, the martech industry grew by 28% in 2023, with more than 14,000 available apps. This makes it harder for companies to stand out.
Companies that differentiate themselves do so by strengthening customer relationships and using data to refine their strategies. A data integration platform helps consolidate data from various sources into one central environment. This creates a unified and up-to-date overview, essential for strategic decision-making and efficient operations. Consider an organization that combines sales data with inventory management and customer insights to offer the right products in the right location in real-time.
Structuring and making data accessible correctly not only improves operational efficiency but also reduces the risk of data breaches and non-compliance. Proper integrations enable automated monitoring, identifying and addressing anomalies immediately. Thus, data integration not only presents growth opportunities but also ensures compliance with increasingly stringent data management regulations.
AI plays a crucial role in tackling these challenges. It can automate routine tasks, enhance customer insights, and optimize the overall customer experience. Companies that embrace AI often see improvements in customer satisfaction and operational efficiency.
PAQT Helps
To grow in a competitive environment, companies must be willing to invest in technology and demonstrate adaptability.
By opting for modern systems, AI, and data-driven strategies, organizations can not only work more efficiently but also build sustainable customer relationships and strengthen their competitive position.
Do these challenges sound familiar? At PAQT, we have experience analyzing legacy software, innovating business processes, and integrating data. We would love to explore the best first step towards further growth for your organization.
Contact us
At PAQT, we have extensive experience analyzing legacy software, innovating business processes, and integrating data. We are eager to collaborate with you to determine the best first step toward further growth for your organization
Igor Brouwers
