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The Interconnected Enterprises

How holistic management concepts help midsize organizations provide value?

Findings from SAP and Oxford Economics Research

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It has been more than a year since we have been fighting with COVID-19. While this global health disaster’s long-term effects may take years to comprehend fully, its immediate impacts have already altered our environment. According to the World Bank, in 2020, the world economy shrunk by 4.3 percent, considering millions of deaths, worldwide lockdowns, and lost trillions. Under these conditions, businesses were also directly affected. While the smaller ones took it more challenging to handle these drastic changes, statistics show that midsize firms worldwide have demonstrated incredible tenacity and ingenuity. Financial risk, employee retention, and innovation potential were shown as some of the main challenges enterprises have to fight during this tragedy.

A management philosophy commonly referred to as “systems thinking” that focuses on digital companies linked to nature is one way to handle the difficulties faced by businesses. This entails seeing relationships both within and outside the organization’s firewall as parts that must work together to form a coherent plan. Enterprises must use some crucial features, such as choosing data-driven technologies to identify interconnections between different aspects of the business, adapting dynamically to the demands of customers and employees, and optimizing procedures for internal and external collaboration.

According to new research conducted by Oxford Economics and SAP with data collected from 5,000  executives from small and midsize organizations, from small to large businesses, all of them have been managing a problematic year. However, staying competitive necessitates leveraging the characteristics that make midsize organizations naturally suited to holistic, interconnected management, such as agility, insight into all aspects of the organization, and intimate relationships with employees and partners.

According to their findings, midsize businesses are:

  • Considering interconnections between functions and thinking holistically about their organization and its relationships.
  • Adapting methods to be more sustainable, improve transparency, and better identifying customer demands and expectations.
  • Using collaboration-enhancing software, those who analyze and share data, in particular within and between organizations.

Organizations that have progressed the most in their adoption of an integrated management style have better employee productivity, customer engagements, and revenue development. To achieve similar levels of success, midsize enterprises can look to the management strategies adopted by these successful enterprises.

The executives’ answers for the question: “To what extent are your organization’s business functions integrated into the following ways?


Oxford Economics, SAP. (n.d.). How midsize businesses achieve value through holistic management strategies. THE INTERCONNECTED BUSINESS. https://www.sapvirtualagency.com/Orgs/Search.aspx.

SAP. (n.d.). A guide to becoming an interconnected business. Success in the New Era of Manufacturing. https://www.sapvirtualagency.com/Orgs/Search.aspx.