On the flip side of the record pace of mergers and acquisitions over the last couple of years is the rapid growth in companies divesting of product lines. Seeking to drive greater focus on core products, meet financing needs, and keep pace with market changes, companies are pursing divestitures at a record pace– with more than half of those surveyed in Deloitte’s M & A Trends Report, 2016 Edition reporting that they expected their companies to divest business lines over the next 12 months. That’s up from 39 percent last year.
The 21st century economy can be described with plenty of amazing superlatives. We enjoy high-speed wireless networks almost everywhere people live and work, miniaturization that brings tremendous computing power to an astounding array of devices, and untold access to life-prolonging inventions.
Every high-growth business grapples with decisions around the best business system to manage its expanding operations. Proper planning of an integrated business management software system often takes a back seat to short-term revenue acceleration goals. As a consequence, various disparate applications are installed at different points in time in various functional areas, resulting in business process inefficiencies and software integration challenges. But how did these problems arise in the first place, and how can they be avoided?
The coming year once again promises challenges and change across the retail sector. Yet, where those previous challenges were often met with technological advances or new approaches to consumer interactions, the best way for retailers to confront the trends of 2017 is with a close evaluation of their foundation. This involves consolidating their core systems and initiating a one-system approach. With a one-system approach, back-end enterprise resource planning (ERP), customer relationship management (CRM) and order and inventory management systems will reside on one platform. Retailers can then get a single source of the truth for customer, order and inventory data in real-time, making that data available to all existing and future front-end, customer-facing systems.
Every year brings change to the software industry but with a new administration, amendments to revenue recognition rules and ongoing business model evolution, 2017 promises to be especially challenging. Tech companies will be faced with even more unique challenges including adapting to new accounting standards in preparation for ASC 606, embracing hybrid business models with a myriad of billing options, and meeting the compliance requirements associated with an IPO. While the backdrop for the software industry is quite bright, the challenges associated with sustaining and managing growth have never been more daunting.