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Vertical insights into IT decision-making (Customer Focus)Product Type: Market Research ReportPublished by: Datamonitor Published: December 2006 Product Code: R313-18846 Description IntroductionVendors need a clear understanding of the way the procurement process for IT products and services works on the end-user side. Gaining this understanding is not straightforward, since the decision rarely rests in the hands of a single executive and since the degree of influence that executives have varies by vertical market. Scope *This brief provides a view of the relative influence of key executives on IT procurement decisions across vertical markets. *Highlights the differences in IT influencers' power between verticals and provides an analysis of the factors giving rise to these differences. *Compares different types of executives' influence on technology choices and budget sign-off. Highlights Several roles have varying degrees of influence on IT purchasing and budget sign-off, but the key influencers for both are the Chief Information Officer (CIO)/IT manager and the Chief Executive Officer (CEO). Most enterprises have a two-phase process for deciding on IT spending: the first phase consists of an initial selection that is led by the CIO and is primarily influenced by technical considerations; the second phase, which corresponds to budget sign-off, is influenced by return on investment, cost, and other business considerations. Reasons to Purchase *Improve your ability to impact your customers by fine tuning your messaging to resonate with the most influential executives in each vertical. *Learn how to make your marketing more precise, and consequently more streamlined and efficient. *Gain insights into the reasons underlying the variation in IT decision-making by vertical market. Table of Contents DATAMONITOR VIEW 1CATALYST 1 SUMMARY 1 METHODOLOGY 1 ANALYSIS 2 In all vertical markets, several executives influence organizations' IT purchasing behavior 2 IT investment decisions are primarily made by CIOs and CEOs with variations in their relative influence 3 IT spending decisions are made in two phases, with the CEO having greater influence on the sign-off phase 3 The CEO's influence is greater in verticals that are process-oriented and cost-oriented 5 The CIO has the final say in IT decisions in the majority of enterprises except manufacturers 6 Manufacturing is the only vertical market where the CEO has the final say in IT decisions 7 Vendors who are trying to sell to government or education need to get their message across to CIOs 7 Targeting the right person with the right message will give vendors a competitive edge 8 APPENDIX 9 Definitions 9 Definition of topics covered in the Tech Trends service 9 Extended methodology 10 Further reading 10 Ask the analyst 10 List of Tables Table 1: How much influence do the following roles in your organization have on IT decision-making? 3 Table 2: How much influence do the following roles in your organization have on IT budget sign-off? 5 Table 3: Who is the most important executive with regards to IT decision-making in your organization? 7 List of Figures Figure 1: The CIO has the most influence on IT decision-making in all vertical markets 2 Figure 2: Both the CEO and the CIO influence budget sign-off, with more CEO influence in some verticals 4 Figure 3: Manufacturing is the only vertical market where the CEO has the final say in IT decisions 6 |
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