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Innovation and digitalization of Mid-Caps, how to identify new growth levers?

26 October 2016
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Publié par Philippe Millot

Capture d’écran 2016-03-09 à 11.44.25The 3500 Mid-Caps and Family Owned Companies play a vital role in the French economy. Thanks to their long-term vision, they sustain their economic cycles and invest durably. They contribute to innovation, creation of value and employment in our country.

 

How do Mid-Caps approach the digital transformation of the economy?

ARROWMAN Executive Search, who carries out 35% of its recruitment missions of executives and directors for Mid-Caps and Family Owned Companies, has noticed that Mid-Caps, who are traditionally more innovative than firms, are rather behind on these subjects.

By conducting a more in-depth analysis, we’ve observed that the situation is quite heterogeneous and essentially depends on the dynamic generated by the Leaders. Consequently, Mid-Caps are very prudent in their technological choices.

Why are Mid-Caps so prudent in their approach of such crucial issues?

The directors of Mid-Caps perfectly perceive the evolution of the market, the emergence of DATA, of IOT and of the Digitalization as a whole. However, they lack benchmarks and information in order to serenely advance and make the right choices.

More concretely, firms have anticipated these evolutions by establishing closer links with start-ups in order to create a wider range of mixed skills internally and externally. Therefore, the newly created positions of Chief Innovation Officers or Chief Transformation Officers, structure these gateways with the Start-up environment.

Mid-Caps are more reluctant. Prudent, they purposely let the current fashion trends pass them by and are hesitant to recruit sufficiently high profiles by fear of a cultural difference. By recruiting profiles that do not have the level to tackle strategic challenges (Project Managers, etc.), they take the risk of being unable to achieve a successful transformation and of neglecting new growth levers.

ARROWMAN Executive Search’s team, who’s positioning is focused on innovation and entrepreneurship, proposes Mid-Cap leaders to benefit from its experience with innovative groups and start-ups.

You can consult several examples of missions that were carried out by ARROWMAN Executive Search’s consultants.

 

ARROWMAN Executive Search’s team, invites Directors and Managers of Mid-Caps, who are interested in these questions, to join our LinkedIn group in order to exchange information on these subjects: ARROWMAN – Mid-Caps & Family-Owned Companies.

 

You can also contact Philippe Millot or Jean-Pierre Scandella for tailored advice.

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