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2001 U.S. Small Business IT Adoption Based Segmentation Strategic Overview

Product Type: Market Research Report
Published by: AMI-Partners, Inc.
Published: December 2001
Product Code: R149-269
Description
AMI-Partners defines Small Businesses as having 1-99 employees, non-home bound, and non-franchise of a larger company of over 99 employees, non-government, and for-profit organization. Small Businesses span the demographic horizon, with a variety of employee sizes, vertical market affiliation, and in various geographic locations with a high degree of variability in terms of business processes. In order to fully understand this complex, yet rewarding market, a segment-based approach in targeting specific segments through their IT adoption characteristics is needed.

AMI-Partners proposes the most actionable and distinguishable method to segment the small business market is by IT adoption. IT adoption is defined as a business' propensity to adopt, or absorb, IT solutions as a means to grow and manage their business. High adopters of IT would be those who are embracing more advanced IT solutions (LAN, e-commerce, mobile PCs, servers, etc), while low adopters are those that are resisting, or do not have a need (whether real or perceived) for IT solutions including a PC (which many low adopters do not have). 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. For a more in-depth view of the data collection and segmentation methodology see the methodology section of this report.

This report provides a management summary of the AMI-Partners' US Small Business IT Adoption Based Segmentation. Reference will be made to four segments within the segmentation, called tiers, from the highest adopter of IT (tier 1), to the lowest adopter (tier 4). Thus, these four distinct segments have been named by AMI-Partners as AMI Tier 1 SBs, AMI Tier 2 SBs, AMI Tier 3 SBs, and AMI Tier 4 SBs - from the highest (AMI tier 1 SB) to lowest (AMI Tier 4 SB) adopters of IT.
Table of Contents
Introduction
Introduction & Segmentation Model Overview
High-Level Segmentation Profiles
Utilizing This Report with the Topline Appendix



Individual Segment Summary Breakouts
AMI Tier 1 SBs - Premium IT Solutions Adopters
Market Size
IT Adoption Profile
IT Expenditure Profile
Attitudes and IT Adoption Drivers/Mindset
Demographic Profile
Vertical Industry Considerations
Solutions Recommendations
AMI Tier 2 SBs -Value Priced/Early Adopters
Market Size
IT Adoption Profile
IT Expenditure Profile
Attitudes and IT Adoption Drivers/Mindset
Demographic Profile
Vertical Industry Considerations
Solutions Recommendations
AMI Tier 3 SBs -Mainstream Businesses
Market Size
IT Adoption Profile
IT Expenditure Profile
Attitudes and IT Adoption Drivers/Mindset
Demographic Profile
Vertical Industry Considerations
Solutions Recommendations
AMI Tier 4 SBs -IT Laggards
Market Size
IT Adoption Profile
IT Expenditure Profile
Attitudes and IT Adoption Drivers/Mindset
Demographic Profile
Vertical Industry Considerations
Solutions Recommendations
Segmentation Implications - Target Market Benefits and Challenges
Marketing Strategy Implications



AMI 2001 US Small Business Enterprise Market Opportunity Assessment: Statement of Methodology
Interview Methodology and Survey Instrument Overview
Sampling Pool & Recruitment Criteria
Incentives, Follow-Up Calls and Return Rate
Weighting Factors
Margin of Error



Small Businesses Defined



AMI-Partners 2001 IT Adoption Based Segmentation: Statement of Methodology
Segmentation Methodology
Variables Used
Cluster Analysis
Discriminant Analysis/Reclassification Testing



List of Figures



Figure 1: Survey Methodology Overview
Figure 2: Survey Coverage
Figure 3: Weighting Factors By Employee Size
Figure 4: Margin of Error
Figure 6: Segmentation Variables Used
Figure 7: U.S. MB Segmentation Process Overview
Figure 8: Distribution of MBs by Segment
Figure 9: U.S. MB IT Spending Ratios
Figure 10: Key Ratios
Figure 11: IT Horizontal Spending by Category
Figure 12: Key Technology Penetration
Figure 13: Key Technology Penetration (Continued)
Figure 14: Average Annual Spending Per Business by Segment
Figure 15: Average Annual Spending Per Business by Segment (Continued)
Figure 16: Demographic Summary
Figure 17: Near-Term Business Outlook and Mindset by Segment
Figure 18: Near-Term Business Outlook and Mindset by Segment (Continued)
Figure 19: IT/Telecom Spending Comparisons
Figure 20: Segment Profile/Salient Characteristics - Tier 1
Figure 21: Segment Profile/Salient Characteristics - Tier 2
Figure 22: Segment Profile/Salient Characteristics - Tier 3
Figure 23: Segment Profile/Salient Characteristics - Tier 4
Figure 24: Demographics - Comparison Across Segments
Figure 25: Telecommunications - Comparison Across Segments
Figure 26: Computing- Comparison Across Segments - Hardware, Software, Printers & Peripherals
Figure 27: Computing Software and Operating Systems - Comparison Across Segments
Figure 28: Networking and Servers - Comparison Across Segments
Figure 29: Internet, Online & e-Business - Comparison Across Segments
Figure 30: Breakout of MBs by Industry - Comparison Within Segments
Figure 31: Breakout of MBs by Industry - Comparison Across Segments
Figure 32: Hierarchy of MB IT Needs Hierarchy
Figure 33: Vertical Industry Proportions by Tier
Figure 34: Horizontal Tier Proportions per Industry
Figure 35: U.S. MB Segmentation Snapshot - 2001
Figure 36: Required Channel Core Competencies to Address All Segments
Figure 37: The SB Ecosystem
Figure 38: Segmentation IT & Telecom Spending Forecast (2000-2003)
Figure 39: Segmentation IT & Telecom Spending Forecast Breakout (2000-2003)
Figure 40: Segmentation IT & Telecom Spending Forecast Breakout (2000-2003) (Continued)
Ordering and More Information
Price and Delivery Options



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