The “buzz” at a recent Dow Jones Equity Analyst convention was all about the mid-market: mid-market funds and midmarket companies. While there are many reasons for this, one is the ‘trickle down’ from large and mega-firms .
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CASE STUDY
In this special section, we take a look at who is investing and why, the new metrics for value creation that are driving investors, and some tools and resources for evaluating new strategies.
THE NEW METRICS
In short, opportunity moves from the ‘early adopters’ to the mid market, as new strategies are created, tested and applied. As the larger firms see the benefits of ideas that save money, spur innovation and manage risk, they begin to require those practices througout their supply chain. One need only look at computers to see how soon corporate buyers wanted computerized data.
INVESTING
The ‘trickle down’ starts as corporations bring new ideas and approaches in-house, moving away from the consultancies that helped them through complex transitions. Meanwhile, the consultancies start to package their best-of-class ideas into training, frameworks and processes that are accessible to the mid-market, and eventually to small busiensses.
CASH CRUNCH
As in any technology shift, the ‘early adopters’ are large corporations that have the resources to try out new things by hiring consultants or taking on new staff. For companies with fewer resources — but whose business will be impacted by technological and economic shifts — adopting ideas proven by market leaders is just smart business.
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