This report provides a management summary of AMI's 2005-2006 Canada Small Business IT Adoption-Based Segmentation.
AMI-Partners defines small businesses (SBs) as companies that have fewer than 100 employees, are non-residential and non-governmental organizations, and are not a franchise of a larger corporation. Small businesses span the demographic horizon, with a high degree of variability in terms of employee size, vertical market affiliation, geographic location, and business processes. In order to fully understand this complex yet rewarding market, a segment-based approach is required - one that facilitates the targeting of specific segments by focusing on their IT-adoption-based characteristics.
AMI-Partners' long-term experience in analyzing small business market behavior has proven that the most actionable and distinguishable method of segmenting the SB market is by IT adoption. This is defined as a business's propensity to adopt, or absorb, IT solutions as a means to grow and manage the enterprise. High adopters of IT are those who embrace more advanced solutions (LAN, e-commerce, mobile PCs, servers, etc.), while low adopters are those who resist, or do not express a need (whether real or perceived) for more sophisticated IT products and services. By segmenting the SB market using an IT-adoption algorithm, AMI-Partners is able to accurately profile businesses across a spectrum of attributes, including business characteristics, decision making, attitudes, business processes, and IT usage - leading to actionable go-to-market strategy development. This report includes a comprehensive section on methodology that provides additional details regarding AMI's data collection and segmentation practices.
Reference is made in the report to four distinct groups within the segmentation, called tiers, ranging from the highest IT adopters (tier 1), to the lowest adopters (tier 4). These four distinct segments are designated AMI Tier 1 SBs (Enterprise Adopters), AMI Tier 2 SBs (Early Adopters), AMI Tier 3 SBs (Value Adopters), and AMI Tier 4 SBs (Need-Help Adopters).
Based on proprietary surveys of small businesses in the United States, Europe, Asia-Pacific and Latin America, AMI-Partners' segmentation reports are presented in a highly actionable, graphical format with go-to-market insights and analysis. For more information, use the "Contact Us" option on the navigation bar above, or call us directly.
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