Platforms for growth: unlocking mid-market success with AI

Mid-market companies are racing against time to embrace AI, with 85% of leaders acknowledging they risk losing their competitive edge if they don't act quickly, according to 'Trendlines 2025' - a survey of more than 4,000 mid-market IT and business professionals from Avanade, a leading expert on Microsoft that delivers AI-driven solutions to mid-market organisations.

Organisations must transform their operations to leverage new technologies and emerging opportunities, particularly as the landscape of artificial intelligence rapidly evolves.

Efforts to accelerate are being tempered by AI fundamentals – nearly half of respondents (48%) say they are working on a business case, while 44% are stuck at proof-of-concept stage with many grappling with people, data and tech readiness.

With two-thirds of respondents agreeing that poor data governance and quality are inhibiting AI acceleration according to Avanade, companies must focus on how new technologies and ways of working can help them achieve their goals today while incrementally improving their underlying systems and data.

By applying this philosophy to the following five areas, they can improve operational efficiency while building the technological foundations needed to thrive in an AI-driven future. 

Unlocking opportunities with infrastructure modernisation

Modernisation starts with identifying an organisation's priorities, and then selecting the technology needed to achieve them.

“You might have a new idea, opportunity, product or service that will help grow the organisation, but it is just too complex to deliver it with your existing systems,” says Aaron Reich, chief technology and innovation officer at Avanade. “So we try to take a step back and look at what the overall objective is for the organisation and then look at how well the technology they have in place is supporting that.”

That could involve assessing your existing cloud infrastructure and optimising across providers to better serve organisational objectives.

Many organisations now operate in multi-cloud environments, requiring solutions that can unify and modernise their applications across platforms.

With modern cloud platforms, leaders can enhance their existing applications or develop cloud-native ones that better serve their organisational goals – including leveraging advanced AI capabilities across their entire cloud ecosystem.

In fact, AI’s ability to automate rote processes, deliver next-level customer experiences and provide real-time insights can be game-changing for mid-market companies, allowing them to “rethink some of the ways they’ve been operating,” says Reich.

Breaking down data siloes is key for AI success

A strong data foundation can help companies make the most of AI. But having spent years collecting reams of data that support specific functions, many mid-market organisations are saddled with siloed and fragmented data today.

One solution is to shift data and analytics workloads on Microsoft Fabric, which can help organisations of all sizes to unify and manage their data across multiple public and private clouds, creating a single source of truth for data and – crucially – ensuring it can be trusted.

However, Reich emphasises that while companies can leverage AI with imperfect data - particularly given generative AI's ability to process unstructured information - they must first establish robust data governance and permission frameworks to ensure responsible deployment.

One retailer Avanade recently worked with was able to draw on data from multiple systems to create single-sentence customer summaries for their call centre agents – which deepened their understanding of previous interactions with the customer while on a call with them.

“We brought data from multiple source systems together and then used GenAI to understand the context of it,” explains Reich. “So although they had a lot of different systems and platforms…we were able to surface the data and utilise it.”

He also highlights the critical role of governance in trusting and utilising data effectively.

“The key work that we do still involves putting in place the right platform, so making sure that your data sits within the organisation in the right way,” he explains.

“But the bigger piece of work is actually how you’re governing that data across the organisation, and then having the ability to surface it for the different processes and workflows that need it.”

Achieving goals with business applications

Modern business applications are a critical part of any organisation's strong digital core. Moving to a new customer relationship management (CRM) system, for example, can unlock a wide range of benefits for mid-market companies, from a better understanding of customer behaviour to improved marketing and ultimately greater customer retention.

Avanade’s deep expertise with Microsoft Dynamics 365 means they are often asked to implement the platform for companies undergoing transformation.

In many cases, this is just the start of a wider journey toward a modern, future-proof infrastructure that supports key organisational goals.

“We might say: ‘Okay, the reason you’re putting in that new CRM system is because you’re trying to change your customer experience. Maybe your customer satisfaction scores are low because your data is not where it needs to be’ – so we encourage them to focus on the outcomes they’re trying to achieve, and that helps them to prioritise what they want to achieve next,” says Reich.

Rethinking collaboration in a modern workplace

As an early adopter and expert in Microsoft Copilot, Avanade helps mid-market companies transform their workplace collaboration and boost employee productivity through AI-powered tools.

“It’s not about taking the worker out of their current workflow, but fitting AI into that workflow to help them achieve what they’re trying to do,” Reich explains.

By putting the right AI foundations in place now, companies will also ensure their workforce can take advantage of emerging technologies like Agentic AI.

These next-gen agents can proactively complete tasks, make decisions or alert you to anomalies without needing constant prompts or input.

“Those agents are going to need data to flow in the right way and have the right permissions to be able to work effectively,” says Reich. “So part of our work is setting up the ability for organisations to tap into these agentic capabilities.”

In future, designated power users within specific functions will be able to create and manage agents relevant to their workflows, while also establishing reusable ones for organisation-wide tasks.

Companies may also shift from integrating the technology into existing workflows to reimagining and reinventing these workflows entirely.

“How many approvals could actually be automatic approvals?” says Reich. “It’s about stepping back and going, ‘What could that process look like?’”

Plan for tomorrow with robust cybersecurity

The volume and sophistication of cyber threats are increasing along with attack surfaces. An enhanced cyber security posture is therefore a crucial element of any successful transformation.

Microsoft’s cybersecurity solutions, including Security Copilot, provide mid-market companies with the means to detect threats in real-time among a sea of false positives, suggest actions to mitigate them and ultimately keep vital data and intellectual property safe from harm.

As a member of the Security Copilot Advisory Council, Avanade also plays a leading role in exploring AI innovation to transform security operations.

“We have access to a lot of Microsoft's innovation early on,” says Aarthi Krishna, global security lead at Avanade, “which means we can help clients plan for today and the future.”

“Microsoft consistently introduces new features and improvements, and they work with us very closely on those. They have also been prioritising security to ensure its product offerings and roadmap provide comprehensive coverage across the cyber ecosystem.

The message is clear: harness the power of modern technologies today while also preparing your systems, people and processes for an AI-driven future. And for that, it is crucial to find the right partner which leverages leading Microsoft expertise and deep experience in transformation projects.

New technologies can create vast opportunities for organisations - from boosting productivity to delighting customers. However, organisations can only realise these benefits when leaders actively work to harness innovation's potential.

According to Avanade, 94% of mid-market IT and business professionals recognise that data security can make or break their organisational reputation with AI - highlighting a crucial truth that organisations must ensure their platforms, processes, and people are prepared to harness new technologies effectively.

Many enterprises are sitting on data goldmines they can't access. Scattered across departmental siloes and legacy systems, valuable data and insights often remain out of reach.

Without a unified, trustworthy data and analytics foundation, data trapped in organisational siloes and legacy systems obscures visibility, slows insights and can hamper optimal decision-making.

Building trust in technology

While mid-market IT and business professionals rely on AI for high-risk decisions, research from Avanade suggests that only 26% actually trust its results – exposing the need for a unified, trustworthy data and analytics foundation.

Leaders who are unprepared to modernise their organisations’ data and analytics ecosystem may find they have to invest a lot of workforce hours into organising and cleansing data to create the models and reports they need to drive transformational insights.

Without a clear inventory, workers can lose huge amounts of time simply finding data, and then cannot always clear that the data they have found is viable.

Poor data foundations can create a ripple of doubt, making every decision and product development questionable. Are your insights drawn from complete data or just what's easily available? Without knowing if you're seeing the full picture, how can you trust the choices you make?

Strengthening data foundations

Organisations need to create a stronger AI-powered data foundation to ensure that they have the strategies, processes and technologies that drive trust and innovation. Organisations that can modernise their data estates can ensure that their data is secure, organised, accurate, reliable, fair and trustworthy.

Rather than expending extra effort to get ad-hoc results from organisational, leaders should invest in platforms that allow anyone across the company to access and understand the data they need. These platforms should also follow data governance principles to ensure employees only access the data they are authorised to see.

As much as strong data foundations are about choosing the right technology to unify and simplify data access and analysis, they’re also about a cultural shift.

Aligning data strategy across siloes

Given the increasingly significant role data plays in fuelling an organisation's operations, leaders must ensure that its importance is understood throughout the organisation. This message needs to be one that comes from the top down.

There is little point in leadership investing time and money in transitioning data to a new platform if, in a year, they discover siloes across the organisation are using different tools and platforms to solve short-term problems at a long-term cost.

An organisationally aligned approach to data drives cost savings and competitive advantages by eliminating redundant processes while enabling faster, deeper insights across the organisation.

This unified approach creates compounding benefits as data volumes grow, giving aligned organisations an increasing edge over competitors and reducing risks.

It can also help to accelerate innovation by enabling teams to build on shared knowledge and insights. Even organisations that feel they aren't ready to fully embrace emerging technologies like AI should be looking at their overall data strategy.

The reality is that managing disparate legacy data sources and siloes is in itself costly, particularly in terms of the team hours needed. Transitioning to a modern, integrated platform can bring considerable efficiencies and savings, even if it can feel initially daunting.

Building a robust data foundation can help organisations unlock benefits across the organisation, from more efficient operations to better strategic decision-making - and beyond. A defined data strategy is fundamental to the success of any organisation and doubly so if it hopes to maximise investments in AI and other new technologies.

In today’s talent market, digital tools - especially those powered by AI like Microsoft Copilot - are increasingly fundamental to employee effectiveness and satisfaction.

Organisations that provide equip their teams with the right technology and AI tools can see more than a boost in productivity – they are actively creating environments in which talent can thrive and deliver meaningful impact.

The benefits cascade throughout the organisation. Streamlined internal systems reduce friction in daily workflows, enabling teams to collaborate more effectively and respond faster to opportunities.

This operational excellence translates directly to wider performance – from faster project delivery to more responsive customer service. While upgrading internal systems may appear less urgent than customer-facing initiatives, these foundational improvements can have compounding benefits throughout the organisation. By investing in employee-centric technology, leaders build the capabilities needed to outpace competitors and deliver superior results across all organisational objectives.

Platforms such as CRM and Enterprise Resource Planning (ERP) are often the technological backbone of an organisation, threading across functions from accounting to HR to manufacturing.

The possibilities offered by AI improvement, including agentic AI, can unlock myriad benefits across an organisation - from automating report generation and customer support functions to using machine learning algorithms to forecast demand and optimise spend.

Transforming ways of working

McKinsey's State of AI report suggests that some firms have already made savings of nearly one-fifth by implementing automation technology.

And it can change how people work - improving decision-making, streamlining communication and taking on routine tasks to free up staff so that they can spend more time on high-value creative work.

With technology taking on manual tasks, employee job satisfaction often improves as individuals can focus on more strategic , higher-value work.

Ensuring employees are able to use the latest tools can also have a real impact - Microsoft found that less time was being spent on mundane tasks, and on average users were saving over an hour a week – and that was within the first year of the tool’s introduction. Notably, 30% of those surveyed said that access to Copilot would make a difference when thinking about future employers.

As AI assistants become more sophisticated, this will lead to entirely new ways of working. For example, AI agents - advanced AI systems that use reasoning and planning to autonomously solve complex problems in real time – can help proactively and collaborate with teams, making them highly effective in optimising business operations.

Equipping staff with effective tools not only boosts efficiency but can enhance retention and attract talent by demonstrating a commitment to employee success. Well-supported employees are more likely to feel valued and find their work rewarding, making them more likely to stay with the organisation long-term.

Streamlining CRMs with AI

In customer service, 43% of reps said they felt “overwhelmed by the number of systems and tools needed to complete work” – dealing with a customer’s problem might involve navigating multiple record-keeping systems, checking for solutions in multiple places (on and offline), all the way eating up their time and leaving other customers stuck in a queue.

With better tech resources, such as AI-powered CRMs, team members can further maximise their client-facing time and deliver more value. This means the business benefits not only from better customer personalisation and identification sales opportunities from the CRM platform but staff are freed up focus on what matters most - delivering the human touch that technology can't replicate.

Investing in essential behind-the-scenes technology then can fundamentally transform how employees operate within an organisation.

By upgrading the digital infrastructure that powers daily operations, organisations can demonstrates a commitment to employee enablement, equipping staff with the tools, data and resources to perform at their best.

While flashy customer-facing tech often takes priority, forward-thinking leaders recognise that empowering employees with advanced tools unlocks deeper organisational value, transforming how staff work and empowering them to deliver better customer experiences.

Given the pace of technological change, few organisations can afford to ignore new innovations and the opportunities they offer for transformation. Yet as mid-market companies become more reliant on the cloud and the value contained in their data, they also face a critical challenge.

They must ensure they are fully protected from cyber attacks in an ever-expanding threat landscape. Attackers are already using GenAI to develop more sophisticated deepfake and phishing scams, for example, and automate the creation of malware.

“We’ve seen an increase in attack frequency and volume since GenAI came into the picture, and many of these attacks are also very difficult for humans to detect,” says Aarthi Krishna, global security lead at Avanade, a leading global consultancy with deep expertise in Microsoft technology.

“Bringing connectivity into more aspects of their organisation, like supply chain and logistics, also means that firms are expanding their attack surface.”

Mid-market organisations face mounting cybersecurity challenges as their attack surface expands across cloud services, remote work, IoT devices and mobile applications.

With cybercriminals deploying more sophisticated and frequent attacks, these organisations must protect sensitive data, employees, applications and intellectual property despite limited security budgets and a shortage of cybersecurity talent.

“Mid-market companies lack the resources – particularly the budgets – to invest in advanced cyber security tools,” says Krishna.

“Coupled with the skills shortage we have in cyber security, it means that many mid-market organisations are behind in terms of adopting a strong cyber security posture.”

AI tools can help to augment their current security practices by improving pattern and behaviour analysis.

“The data you’re trying to analyse, the behaviours you’re trying to analyse – they have just exploded and it is nearly impossible for a human being to begin to look at that and identify those patterns,” says Krishna. “So AI really has really helped in accelerating the pattern identification process.”

The AI tools Avanade helps firms to deploy, such as Microsoft Security Copilot, can analyse vast amounts of security data from various sources and prioritise threats based on their severity and impact. It can even recommend appropriate responses, thereby helping mid-market companies to make effective use of limited resources.

“If an incident happens, AI is also able to take certain actions in response,” Krishna adds. Microsoft Security Copilot, for example, can isolate infected devices, block malicious IP addresses and implement certain security controls.

It can also proactively search for and identify advanced threats that could be hidden within a firm’s systems, assess its overall security posture and help address any vulnerabilities.

Secure-by-design approach

While AI is a powerful tool for cyber security professionals, human oversight remains critical in areas such as strategy development, alignment with overall organisational and IT priorities and the selection of the right solutions for the firm's needs – particularly if cyber security skillsets are in limited supply.

“Do you really need to have five different vendors, which could overload the few resources you have by requiring your people to learn five different technologies? Or are you better off going with a couple of technologies that integrate well with each other, and then making sure that your people are well trained on them?” says Krishna.

She argues that mid-market companies that are already heavily invested in the Microsoft Dynamics 365 ecosystem or Azure, for example, stand to benefit from further adoption of Microsoft’s security solutions.

“It makes a lot of sense for them to go with a Microsoft security solution as it provides holistic integration across a number of different areas,” she explains.

Microsoft also partners with 15,000 security vendors which gives firms flexibility to integrate other tools if they so wish.

“You still have a big  pool of security vendors to integrate with if you know you have requirements that go above and beyond what Microsoft can provide,” Krishna explains.

By implementing modern identity solutions based on zero trust principles, Avanade ensures that every identity and access request across clouds, platforms and devices is protected and verified.

Indeed, it’s ultimately essential to embed cybersecurity into every layer of an organisation, from business applications to productivity tools and new ways of working.

Firms should therefore adhere to a “secure-by-design” approach that integrates security into every stage of product development, from ideation to release. “It’s about the organisation coming together – the product teams, the engineering teams, the services teams, the IT teams and even financial – to enable that,” says Krishna.

Partnering with Avanade, mid-market firms can create resilient security infrastructure tailored to their specific needs – including making the most of limited resources.

Even as cyber threats grow more sophisticated and attack surfaces expand, organisations can effectively protect their digital environments with the right strategic support and expertise.