New tech buyers could include machines

Published on the 09/12/2016 | Written by Newsdesk


Vendors need to incorporate new customer types into go-to-market strategies…

That’s the word from Gartner, which said that in a short space of time, technology providers have gone from dealing with one centralised technology buying centre, to having buyers and influencers all over the enterprise. That is probably a reflection of the maturity of the buyer market, with people in all sorts of departments aware of what they want and need to get the job done. But more fascinating than this development is the contention that artificial intelligence may be among those new buyer types.

But back to Gartner, which ran a recent survey which showed that more than half of the respondents from functional areas other than IT are involved in technology purchase decisions, and the rate of involvement appears to be increasing.

These new buyers, said Gartner, have a different idea of what value means to them, and they bring new expectations of the technology buying process. And, according to Derry Finkeldey, research director, the interest and direction these new buyers bring isn’t necessarily a good thing. She said they not only add massive complexity to how enterprises buy technology, but also to how technology and service providers go to market. “It’s harder to differentiate, engage and be found,” she added.

To complicate matters, more change is on the horizon, even for those providers that are already working predominantly with buyers from the line of business. “When we say ‘new buyers of IT’, people immediately think business unit buyers, or maybe even other vendors. But what about when ‘things’ are in the mix? How do you get yourself into the consideration process when devices and smart machines are buying and selling?”

Now there’s a section of AI we hadn’t yet considered – machines deciding what technology to buy. We’re going out on a limb here and going to say ‘don’t fall for the recommendations of a machine which is part of a large conglomerate’. Would a Microsoft machine recommend an Oracle solution, in other words?

In any event, Finkelday said targeting new buyers of IT requires a complete rethink of how to take IT products and services to market. Whether navigating the shift from selling to IT people to business people, or selling to business people and meeting IT as a roadblock, Gartner said one thing is certain: meeting the needs of these new buyers is critical, as the distinctions between IT and business units as technology decision makers are diminishing.

Gartner’s survey showed that the central IT department is leading and implementing IT strategy by itself in only 26 percent of organisations. “There’s no longer one central place or buying centre for IT in organisations,” said Finkeldey. “Technology and service providers that continue to target only IT departments are likely to be leaving money on the table.”

Similarly, it’s not enough to simply change focus to the line of business. Providers must deal with the reality of multiple buying centres in every organisation to which they sell.

While many technology and service providers may be aware of this shift in buying behaviour, the response to these changes with adjustments to go-to-market approaches has been slow.

Speaking directly to vendors, Finkelday said: “To take advantage of the changing buyer landscape, you must be able to demonstrate how your solutions deliver real business value; otherwise you risk irrelevancy. If you aren’t able to engage with these new buyers effectively, it represents as much a lost opportunity as if you hadn’t targeted them at all.”

This article is adapted from a version which originally appeared on Smarter With Gartner.

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