Samsung research revels an increasing ‘productivity gap’ in large organisations


The new report, ‘Big and Small: How to do Bigger Things in Business’ found that bigger companies are now less productive compared to a decade ago

A report from CCS Insight firm, commissioned by Samsung Electronics, found an increasing ‘productivity gap’ in large organisations and a lack of security knowledge among start-ups.

Large companies are often burdened by set process, legacy technology, IT cost constraints and rising security concerns. The average company loses about one quarter productive output, equivalent to losing of $3 trillion (£2.2 trillion) a year in the US.

One-third of decision makers in large firms believe IT provisions do not meet their needs, double the number than in small businesses, which are highly agile, innovative and better connected, often via personal technology.

Digital Darwinism

However, the report warns in order to thrive in the era of ‘digital Darwinism’ new technologies are crucial. Internet of things (IoT), mobility, and artificial intelligence will rapidly shape business, companies of all sizes need to leverage technology in order to stay competitive.

It is also noted that start-ups display different approaches to mobile technology investments, which has become increasingly important with the growing prevalence of mobile working. One-third of workers in developed countries now fall into the ‘mobile worker’ category and by 2020, 48 per cent of the workforce in developing economies will also be classified as mobile, rising to 70 per cent among small businesses.


Samsung Europe head of B2B Phil Lander said: “Progressive technology can be part of the solution by allowing large businesses to collaborate with start-ups successfully and securely yet this report indicates that large organisations are still lagging behind in terms of both innovation and productivity.”

Lander continues: “The continuing digitalisation of business, combined with the rise in mobile working, highlights the importance of a platform like Samsung Knox and powerhouse smartphones like the new Galaxy Note8. Striking the right balance between open, flexible and mobile working and security will remain of fundamental importance as we move further towards a data-driven digital business culture.”

CCS Insight Enterprise Research Vice President Nick McQuire comments: “Our report underlines how both types of organisations’ future successes will lie in how well they understand one another, bridge their differences and work together.

“There are some shared attributes to success, such as the pressing need to prioritise device functions that make employees more productive on the move and specific lessons too. Large organisations must have greater tolerance for personal and new technologies and startups must prioritise security in their mobile strategies.”