Gartner Research

Market Trends: The Rising Importance of the Business Buyer — Fact or Fiction?

Published: 20 December 2013

ID: G00258700

Analyst(s): Derry Finkeldey

Summary

A technology provider's market success is enhanced by its ability to address complex buying processes that span not only CIOs, but also influential business decision makers. Three consecutive years of further decentralized IT spending confirm the growing value of a vertical go-to-market strategy.

Table Of Contents

Introduction

  • Hypothesis 1: Proven
  • Hypotheses 2 and 3: In the Process of Becoming

Market Trends

  • The CIO still oversees and controls the majority of IT spending, but the buying process is more complex, with greater input from the line of business
    • There has been a trend away from highly centralized IT buying decisions over the last three years
    • Operations controls the greatest amount of IT spending outside of IT
    • Business leaders touch IT spending in every industry
  • Business unit influence is being seen in decision-making structures rather than in an outright shift to the business units
    • Business buyers are involved earlier in the relationship
    • Business buyers are involved in both vertical-specific and horizontal purchases
  • Business buyers want providers to deliver measurable business impact
    • Cost is still the leading purchase consideration in most industries, but demonstrated industry knowledge features highly
  • The buyer and the targeted business outcomes vary by industry
    • Manufacturing
    • Communications and Media
    • State and Local Government
    • Federal Government
    • Retail
    • Banking and Securities
    • Insurance
    • Healthcare Providers

Contrarian View

  • Pendulums and Black Swans

Vendors to Watch

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