ICT ICT Procurement trends - Enterprise

1. ICT Procurement trends in Manufacturing - Enterprise ICT investment plans One-Stop Shop for Business Information

2. Summary Product SynopsisThis report presents the findings from a survey of 166 manufacturers regarding their approach to Information & Communications Technology (ICT) procurement. The survey investigates the way that manufacturers like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies. Introduction and LandscapeWhy was the report written?To highlight the criteria on which manufacturers select their ICT providers as well as the roles which have influence while making ICT purchasing decisions.

3. What is the current market landscape and what is changing? Manufacturers favour deploying technologies on-site as opposed to hosting. However, preference towards hosted services is slowly gaining traction. What are the key drivers behind recent market changes? Manufacturers are slowly increasing the adoption of hosted model as they look to improve their scalability and reduce costs. What makes this report unique and essential to read? Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Procurement. Very few IT analyst houses will have interviewed 160+ ICT decision makers in the manufacturing industry in H2 2012.

4. Key Features and BenefitsProvides insights into manufacturers’ preferred buying approaches.Comprehend the business objectives that manufacturers are looking to achieve through their IT investment strategy.Appreciate the IT objectives that manufacturers are looking to achieve through their IT investment strategy.Understand the factors that are influencing manufacturers’ decision to select an ICT provider.Understand which organisational roles influence ICT purchasing decisions and signing off budgets. 

5. Key Market Issues The survey reveals that 56% of manufacturers prefer to procure technologies directly from suppliers, followed by through local resellers and national resellers. Kable believes that local resellers are preferred more than national resellers in large part due to their ease of availability, ability to provide timely support services, and competitive pricing. In order to respond to global competitive challenges, manufacturers need to devise effective IT strategies. The survey shows that the IT objectives of ‘better demonstrate the value of IT to the business’ and ‘use IT to support revenue growth’ are the most important factors influencing manufacturers’ IT investment strategies, with average ratings of X on a scale of 1 to 4.

6. Due to the current economic uncertainty, manufacturers have to deal with constrained budgets, which is forcing the need for an optimum utilisation of resources. As a consequence, raising efficiency is considered to be an important business objective amongst manufacturers.According to Kable’s survey, manufacturers consider price to be the most important criteria when choosing an ICT provider.The survey shows that a large proportion of manufacturers believe that their ICT infrastructure is somewhat complex, with several enterprise applications, hardware manufacturers, operating systems, and communications technologies. Key Highlights According to Kable’s survey, 41% of manufacturers are planning to raise their ICT investments in 2013, which is an increase of 7% compared to 2012.

7. Kable’s survey shows that 80% of manufacturers prefer deploying enterprise applications on-site followed by security and content management, as these technologies handle confidential data, and manufacturers want full control over such systems and solutions.Increasing revenues and customer satisfaction also play a key role, as manufacturers are keen to increase their organic growth and recognise the value of consumer recognition for their products, since it will eventually help to increase their sales lines. According to Kable’s survey, manufacturers consider leading-edge technology to be the most important criteria when choosing an ICT provider with an average rating of X on a scale of 1 to 4. Manufacturers rate the CIO/IT department and the CEO as the most influential authorities when making ICT purchasing decisions, with both receiving the highest average rating of X on a scale of 1 to 4.

8. Table of Contents 1 Enterprise ICT investment trends 1.1 Introduction 1.2 Survey demographics 1.3 ICT budget changes 1.4 ICT investment priorities 2 ICT procurement trends 2.1 Introduction 2.2 Purchasing channels 2.3 Business objectives influencing IT investment strategy 2.4 IT objectives influencing IT investment strategy 2.5 ICT provider selection 2.6 Influencers 2.7 ICT infrastructure environment complexity

9. Related Reports • ICT procurement trends in Education - Enterprise ICT investment plans • ICT procurement trends in the Retail Industry - Enterprise ICT investment plans • ICT procurement trends in Utilities - Enterprise ICT investment plans • ICT Procurement trends in Insurance - Enterprise ICT investment plans

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