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2005-2006 U.S. Small and Medium Business Applications & Solutions Market Segmentation Report

Product Type: Market Research Report
Published by: AMI-Partners, Inc.
Published: September 2005
Product Code: R149-370
Description
This report analyzes U.S. SMB adoption of key business solutions, including customer relationship management (CRM), enterprise resource planning (ERP), accounting and other business applications, using AMI-Partners' tiered segmentation methodology. This segmentation enables AMI to characterize a business's propensity to adopt IT solutions as a means to grow and manage the enterprise. By segmenting the SMB 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, enabling actionable marketing strategy development.

The study examines SMBs' adoption and plans to adopt business applications and solutions based on this segmentation model, which categorizes customers into four distinct segments: AMI Tier 1 SMBs (Enterprise Adopters), AMI Tier 2 SMBs (Early Adopters), AMI Tier 3 SMBs (Value Adopters), and AMI Tier 4 SMBs (Need-Help Adopters). Based on proprietary research with more than 1,000 SMBs, the report analyzes, by SMB tier:
  • Attitudes toward business software and solutions
  • Spending data and comparisons
  • Internet adoption and trends
  • Adoption and plans for accounting, ERP/SCM, and CRM/SFA solutions
  • Business software channel and delivery preferences
  • Adoption and plans for software-as-services and outsourcing
  • Demographics and methodology
AMI-Partners defines small businesses (SBs) as companies that have 1 to 99 employees, and medium businesses (MBs) as companies that have 100 to 999 employees. Both SBs and MBs must also be non-residential and non-governmental organizations, and not a franchise of a larger corporation.

This report is presented in a highly actionable, graphical format with go-to-market insights and analysis.
Table of Contents
2004-2005 U.S. Small and Medium Business Applications & Solutions Market Segmentation Report



Section 1: - SMB Segmentation Methodology



AMI U.S. SMB Definition



AMI Business Definition by Vertical Industry



AMI-Partners’ Market Segmentation



AMI-Partners SMB Segmentation Methodology



Segment Proportions



AMI Segmentation Identifies Four Distinct SMB Tiers



Section 2: Executive Summary



Executive Summary - SMB Attitudes Towards Business Application and Solutions Adoption



Executive Summary - Key Demographics By Tier



Executive Summary - IT Attitudes and Influencers



Executive Summary - U.S. SMBs - Managing More with Less



U.S. Total IT Spending by Market Segment - 2005-2005



Executive Summary - U.S. SMB Aggregate Software Usage and Spending



Executive Summary - U.S. SMB Spending Segmentation Dynamics



Executive Summary - U.S. SMB Internet Adoption



Segmentation Trends



Executive Summary - U.S. SMB Accounting Segmentation Trends



Executive Summary - U.S. SMB ERP/SCM Segmentation Trends



Executive Summary - U.S. CRM/SFA Segmentation Trends



Executive Summary - U.S. SMB Software Channel



Executive Summary - U.S. SMB Outsourcing Dynamics



Section 3: Attitudes Towards Business Software and Solutions



U.S. SMB Importance of selected IT elements



U.S. SMB Purchase Decision Making - Level of Involvement for IT/Telecom-Related Purchase

29-30



U.S. SMB Technology Management Across Locations



Section 4: Spending Data & Comparisons



U.S. SMB 2004 - 05/Universe Spending Ratio



U.S. SB Software Spending by Software Category



U.S. MB Software Spending by Software Category



U.S. SMB Software Spending by Software Category by Tier



U.S. SMB Total IT Spending vs. Total Software Spending vs. Total Outsource Spending



Section 5: Internet Adoption & Trends



U.S. SMB Internet -Related Technologies/Services Penetration



U.S. SMB Total Market Spending on Web Sites



U.S. SMB Top Five Web Sites Features



U.S. SMB Current Web Sites Feature by - Tier



U.S. SMB Intranet Penetration & Spending



U.S. SMB Penetration of e-Commerce Sites



U.S. SMB e-Commerce Revenues



U.S. Current Applications and Business Processes Use Via the Internet

46, 47



Section 6: Accounting Solutions



U.S. SB Accounting Software - A Summary



U.S. SB ‘True’ Accounting (Excluding Excel) Software



U.S. MB Accounting Software - A Summary



U.S. MB ‘True’ Accounting Software



Section 7: ERP/SCM Solutions



U.S. SB ERP/SCM Adoption - A Summary



U.S. MB ERP/SCM Adoption - A Summary



U.S. SMB Top ERP/SCM Brands By Business Size



U.S. SMB ERP/SCM Brand Preference by Tier



U.S.SMB 2004 - 2005: ERP/SCM Businesses Compared to Spending



Section 8: CRM/SFA Solutions



U.S. SB CRM/SFA Adoption-A Summary



U.S. MB CRM/SFA Adoption-A Summary



U.S. SMB Top CRM/SFA Brands



U.S. SMB CRM/SFA Brand Preference By Tier



U.S. SMB 2004 - 2005: CRM/SFA Businesses Compared to Spending



Section 9: Software Channel and Delivery Preferences



U.S. SMB Channel Preference For Productivity & Utility Applications by Tier



U.S. SMB Channel Preference For Finance and Accounting Software by Tier



U.S. SMB Channel Preference For Business Process Automation by Tier



U.S. SMB Factors Impacting Purchase/Upgrading Software



U.S. SMB Factors Impacting Purchase/Upgrading Software



U.S. SMB Hosted Applications/Software-as-Services (SaS) Adoption and Plans By Tier



U.S. SMBs Hosted Applications/Software-as-Services (SaS) Spending and Plans



U.S. SMB Hosted Applications/Software -as-Services (SaS) Current Use by Application and Tier



U.S. SMB Hosted Applications/Software -as-Services (SaS) Plan by Application and Tier



Section 10: Outsourcing



U.S. SMBs Current Use of Outsourcing for Business Functions

76, 77



U.S. SMB Total Spending on Outsourced Business Services



U.S. SMB OffShore Outsourcing of Business Functions



U.S. SMB Payroll Outsourcing



U.S. SMB Spending for Outsourced Payroll Processing Services



Section 11: Background Demographics



U.S. SB Total Share of PC Enterprise by Segment



U.S. MB Total Share of PC Enterprise by Segment



U.S. SMB Demographic Summary



U.S. SB: Demographic Summary



U.S. MB Demographic Summary



U.S. SMB Electronic Billing/Invoicing Adoption



U.S. SMB: Respondent’s Profile
Ordering and More Information
Price and Delivery Options



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