PPAI Magazine October 2024

Must Read | The State of Innovation 2024 TABLE 6: How does your firm ensure compliance with relevant IT governance and data protection regulations? (Select all that apply): Audits Data Protection Officer Role Employee Training Software Other PPAI 100 Distributors 80% 77% 89% 64% 23% Distributors $100M+ 83% 78% 83% 72% 44% Distributors $50M-$100M 70% 100% 80% 40% 30% Distributors $25M-$50M 100% 63% 100% 88% 0% Distributors $5M-$25M 71% 63% 92% 54% 17% Distributors $1M-$5M 25% 25% 75% 13% 38% Distributors Under $1M 29% 10% 38% 24% 19% In a promising sign for the future of the promo industry, employee training seems to be the most popular method among distributors for ensuring compliance with relevant IT governance and data protection regulations. TABLE 7: Does your firm have a formal digital transformation strategy? (Select one): Yes, Documented Yes, Undocumented In Development No PPAI 100 Distributors 67% 14% 16% 4% Distributors $100M+ 72% 28% 0% 0% Distributors $50M-$100M 40% 10% 40% 10% Distributors $25M-$50M 88% 13% 0% 0% Distributors $5M-$25M 60% 12% 24% 4% Distributors $1M-$5M 25% 50% 13% 50% Distributors Under $1M 8% 21% 17% 54% Nearly 20% more PPAI 100 distributors have a documented digital transformation strategy than PPAI 100 suppliers. Conversely, nearly five times the number of small suppliers have such a strategy compared to small distributors. TABLE 8: What percentage of your total revenue is allocated toward IT? Percentage % PPAI 100 Distributors 6% Distributors $100M+ 4% Distributors $50M-$100M 6% Distributors $25M-$50M 8% Distributors $5M-$25M 5% Distributors $1M-$5M 2% Distributors Under $1M 5% Brown is intrigued by mid-tiered distributors having the highest percentages in this area. “At that $50M-$100M level, you’ve left the small business arena and are expected to have the latest and greatest resources, platforms, etc.,” she says. “I’d compare IT services to a brigade of little minions securing your assets – a must!” 38 • OCTOBER 2024 • PPAI

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