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Phase II Quantitative Study Sept, 2001. Conducted by. Summary of Phase I Key Findings. Economic Realities Increased scrutiny on technology initiatives to “make or save money” IT Professionals Most Influential in Process for All Technologies - PowerPoint PPT Presentation
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Conducted by Conducted by Phase II Quantitative Study Sept, 2001Phase II Quantitative Study Sept, 2001
Business Technology Research
Business Technology Research
Summary of Phase I Key FindingsSummary of Phase I Key Findings
Economic Realities– Increased scrutiny on technology initiatives to “make or save money”
IT Professionals Most Influential in Process for All Technologies• Infrastructure = Everything “invisible or transparent” and “what it takes to power applications”
(servers, network hardware, bandwidth, collocation, OS, etc.)
• Back-office/network software = “Intelligence. Make it work.” (decision support, security, ERP, databases, content management, web site monitoring, etc. )
• Customer facing applications = “What users see and touch ” (CRM, HR or benefits, financial applications, ecommerce, etc. )
Importance of Functional IT/Specifiers for all Technologies– Critical in all steps of infrastructure purchases and in RFP/RFI stages of all other
purchases
Executive Management and Steering Committee Involvement Limited to 30,000 Foot View– Involved in setting strategic vision and in approval of large IT expenditures, not involved in
choosing brands and products
Business Technology Research
Business Technology Research
IntroductionIntroduction
Methodology and Audience– Research conducted by Gartner Griggs-Anderson on behalf of
CMP BTG
– Quantitative, phone interviews of 492 business technology professionals fielded July 15 – August 28, 2001.
– Respondents:
• Split between corporate and IT management.
• Recruited using CMP lists for IT professionals and D&B lists for corporate respondents.
• Screened for involvement in purchase process for specific technologies in the last six months.
• Reflect a variety of industry and company size– 40% 50-499 employees– 30% 500-4,999 employees– 30% 5,000+ employees
Business Technology Research
Business Technology Research
Why IT Projects are OverruledWhy IT Projects are OverruledBusiness ReasonsBusiness Reasons
0%
10%
20%
30%
40%
50%
60%
70%
80%
Budget Cuts Recommendationnot strategic
Poor businesscase
Lack of synergy w/other initiatives
Initiative cancelled No customer value
Small (<$100M revenues) Medium ($100M-$999M revenues) Large ($1B+ revenues)
Q: Under what circumstances did executive or corporate management, or a steering committee overrule the recommendation?
N= 182N= 182
Business Technology Research
Business Technology Research
IT is Feeling the HeatIT is Feeling the HeatYet, Companies Lack Formal Metrics
0%
10%
20%
30%
40%
50%
60%
Increased Remained the same
IT Corporate
Q: Has the need to measure ROI for IT projects increased, decreased or remained the same as compared to what it was 6 months ago?
IT N=162 corporate N=93
IT N=162 corporate N=93
Q: Does your company have a formal ROI measurement system or informal payback scenarios?
0%
10%
20%
30%
40%
50%
60%
70%
Formal Measurement Informal Measurement
N=240 N=240
Business Technology Research
Business Technology Research
Money Still Being Spent Money Still Being Spent Budgets, Increasing or Remaining the Same?Budgets, Increasing or Remaining the Same?
Q: Do you anticipate that your total IT budget will increase, decrease or remain the same in 2001 as compared to 2000?
N=321N=321
46%
25%
29%
Increase Decrease Remain the Same
NOTABLE DATA
Average increase: 26%
Average decrease: 22%
• 50% of mid-size companies expect an increase. The average increase is 18%.
• 31% of large companies. expect decreases. The average is 14%.
NOTABLE DATA
Average increase: 26%
Average decrease: 22%
• 50% of mid-size companies expect an increase. The average increase is 18%.
• 31% of large companies. expect decreases. The average is 14%.
Business Technology Research
Business Technology Research
0% 10% 20% 30% 40% 50% 60%
Digital convergence
Service providers and outsourcing
Mobile and wireless
Consultants
Network and system management
Back-office applications
E-Business
Customer-facing applications
Security
Data management and storage
Infrastructure hardware
Continued investment
Cancelled or put on back-burner
Q: In light of the current economy, what technologies are you continuing to invest in? What technologies do you consider “must buys” in the next 6 months? Q: What specific technology investments or projects have recently been cancelled or put on the back burner?
““Must Buys” versus “Back-Burner”Must Buys” versus “Back-Burner”Keeping the Business RunningKeeping the Business Running
N=492N=492
Business Technology Research
Business Technology Research
Business Initiatives Driving Technology:Business Initiatives Driving Technology: Must Make Money or Save MoneyMust Make Money or Save Money
Q. What are the top business initiatives driving the purchase of technology in the next 6 months for your company?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Developing new products
Shortening time to market
Developing/deploying E-business initiatives
Developing new saleschannels and markets
Connecting withcustomers, suppliers
Giving employees betteraccess to information
Driving revenue
Increasing profit margin
Reducing costs
N=492N=492
Business Technology Research
Business Technology Research
Specific Technology ModulesSpecific Technology ModulesPurchase Process Involvement• Respondents involved in purchasing specific
technology in the last six months• Addressing (insert modules)
•Back-Office Applications
•Customer-Facing Business Applications
•Digital Convergence
•Infrastructure Hardware
•Security
•Back-Office Applications
•Customer-Facing Business Applications
•Digital Convergence
•Infrastructure Hardware
•Security
•Consultants
•Data Management and Storage
•Ebusiness
•Network Systems Management
•Mobile & Wireless
•Service Providers
•Consultants
•Data Management and Storage
•Ebusiness
•Network Systems Management
•Mobile & Wireless
•Service Providers
Business Technology Research
Business Technology Research
Information Sources Information Sources Used to Make Technology Decisions Used to Make Technology Decisions
• Business Publications• Conferences or Seminars• Consultants• Consumer Publications• Educational Institutions• E-mail Newsletters• General Daily Newspapers• Peers or colleagues• Radio• Research firms (reports)
• Business Publications• Conferences or Seminars• Consultants• Consumer Publications• Educational Institutions• E-mail Newsletters• General Daily Newspapers• Peers or colleagues• Radio• Research firms (reports)
• Research firms (consulting)
• Technology B-to-B Publications• Television (technology programs)
• Television (technology advertising)
• Trade Shows (vendor sponsored)
• Trade Shows (non-vendor sponsored)
• Web Sites (media or news)
• Web Sites (vendor)
• Research firms (consulting)
• Technology B-to-B Publications• Television (technology programs)
• Television (technology advertising)
• Trade Shows (vendor sponsored)
• Trade Shows (non-vendor sponsored)
• Web Sites (media or news)
• Web Sites (vendor)
Business Technology Research
Business Technology Research
Q: Which one of the following information sources do you find most valuable to you when you are [STAGE]?
Information Sources Used to Information Sources Used to Make Technology Decisions At Different StagesMake Technology Decisions At Different Stages
(Top 4 out of 18 )(Top 4 out of 18 )
IT Corporate IT Corporate IT Corporate IT Corporate1. Technology
B2B Pubs1. Peers or Colleagues
1. Technology B2B Pubs
1. Peers or Colleagues
1. Vendor Web Sites
1. Peers or Colleagues
1.Vendor Web Sites
1. Peers or Colleagues
2. Vendor Web Sites
2. Consultants2. Peers or Colleagues
2. Business Pubs
2. Peers or Colleagues
2. Vendor Web Sites
2. Tech/News Web Sites
2. Vendor Web Sites
3. Tech/News Web Sites
3. Vendor Web Sites
3. Business Pubs
3. Technology B2B Pubs
3. Technology B2B Pubs
3. Consultants3. Technology
B2B Pubs3. Consultants
4. Business Publications
4. Technology B2B Pubs
4. Vendor Web Sites
4. Consultants4. Tech/News
Web Sites4. Technology
B2B Pubs4. Peers or Colleagues
4. Technology B2B Pubs
Evaluating and Specifying Products
Setting Business Objective Determining NeedDetermining Features and
Requirements
Business Technology Research
Business Technology Research
Q: Which one of the following information sources do you find most valuable to you when you are [STAGE]?
Information Sources Used to Information Sources Used to Make Technology Decisions At Different StagesMake Technology Decisions At Different Stages
(Top 4 out of 18 )(Top 4 out of 18 )
IT Corporate IT Corporate IT Corporate IT Corporate1. Vendor Web Sites
1. Peers or Colleagues
1. Vendor Web Sites
1. Peers or Colleagues
1. Vendor Web Sites
1. Peers or Colleagues
1. Peers or Colleagues
1. Peers or Colleagues
2. Tech/News Web Sites
2. Vendor Web Sites
2. Tech/News Web Sites
2. Consultants2. Peers or Colleagues
2. Consultants2. Vendor Web Sites
2. Consultants
3. Peers or Colleagues
3. Technology B2B Pubs
3. Peers or Colleagues
3. Technology B2B Pubs
3. Tech/News Web Sites
3. Vendor Web Sites
3. Technology B2B Pubs
3. Vendor Web Sites
4. Technology B2B Pubs
4. Consultants4. Technology
B2B Pubs4. Business
Pubs
4. Technology B2B Pubs
4. Business Pubs
4. Business Pubs
4. Tech/News Web Sites
Recommending Products
Recommending Brands Authorizing or ApprovingEvaluating and Specifying
Where to Buy
Business Technology Research
Business Technology Research
Phase II FindingsPhase II FindingsSteering Committee/CXO Work with IT Executives in Setting Priorities and Direction
– Executive IT and corporate management determine strategy and vision which IT management translates into actionable technology initiatives.
– Steering committees/CXOs not involved in product or brand recommendations.
Centralization of Technology Budgets– Majority of companies have centralized IT budgets. Many have moved to centralization recently.
Companies Increasing Budgets; Focus on Back to Basics– Majority of companies report increased budgets, yet companies are evaluating initiatives according to
returns: “Makes Money or Saves Money”.
IT Professionals Most Influential in All Technology Categories– Purchase process changes based on technology, yet IT management and staff is involved in all
technologies and “own” core enterprise technologies.
B2B Technology Publications, Internet Sites and Peers/Colleagues Most Valuable Information Sources During Purchase Process