Abstract
This IDC study shows that over half of the surveyed companies expect to revise their 2008 IT spending plans downward. The same survey also found that customers think it important that vendors have an understanding of industry-specific business issues and often send their business elsewhere if their current vendor does not demonstrate an understanding for industry. During these uncertain economic times, when clients feel their IT budgets must be maximized and used effectively, IT vendors must be able to reach their customers that are feeling the effects of the U.S. downturn and facing potential IT budget cuts or freezes.
According to Monika Kumar, program manager, U.S. Vertical Markets Research, "It will be more important than ever for vendors to have a vertical strategy in the future. Using a ' one size fits all' approach will not be effective on customers that are increasingly seeking vendors with a demonstrated knowledge of industry issues as well as an understanding of the needs of clients of a particular company size."
Lee Levitt, program director, IDC Sales Advisory Service adds, "To connect with customers today, to be invited into an initial conversation with a prospective customer, requires the vendor to truly understand not just the customer' s business, but its business problems, processes, challenges, and key initiatives, all within the context of their industry environment. Vendors that approach the market with any less are starting with a significant competitive disadvantage, and buyers will be merciless in keeping them off their short lists."
Table of Contents
- Table of Contents
- IDC Opinion
- In This Study
- Methodology
- Figure: Profile of Respondents by Technology
- Figure: Profile of Respondents by Company Size
- Table: Respondent Profile: Type of Industry or Vertical Focus
- Situation Overview
- Survey Findings
- The Importance of Having a Vertical Strategy
- Figure: Impact of Not Understanding Industry-Specific Issues
- Figure: Importance of Vendor Sales Understanding Industry-Specific Business Issues
- Figure: Customer Dissatisfaction with IT Vendors' Sales Team
- The Current State of IT Vendors' Vertical Strategy
- Figure: Gap Analysis: Customer Dissatisfaction with IT Vendor' s Sales Team
- Table: Business Challenges Inhibiting IT Vendors' Vertical Strategy
- Lack of Industry Experience
- Figure: Share of Industry Sales Team with Prior Industry Experience
- Figure: Share of Industry Marketing Team with Prior Industry Experience
- Figure: Share of Industry Strategy/Management Team with Prior Industry Experience
- Figure: Share of Industry Engineers/Product Developers with Prior Industry Experience
- Lack of Resources
- Figure: Percent of Marketing Budget Allocated to Verticals
- Figure: Mean Percentage of Marketing Budget Allocated to Verticals by Vendor Type
- Figure: Mean Percentage of Marketing Budget Allocated to Verticals by Company Size
- Figure: Marketing Budget Allocated to Verticals in 2008
- Tracking Vertical Strategy Benefits
- Figure: Tracking of Vertical ROI and Costs/Benefits
- Table: Vertical Strategy Cost and Benefits Metrics
- Organizational and Structural Problems
- Figure: Top Priorities for Sales Customer Segmentation
- Figure: Formal Process to Link Sales with Marketing
- Figure: Formal Process to Link Sales with Marketing by Vendor Type
- Figure: Formal Process to Link Sales with Product Developers
- Partnering Problems
- Figure: IT Vendors with Industry Partnering Programs
- Figure: Mean Percentage of Partners with Vertical Go-to-Market Strategy
- Future Outlook
- Essential Guidance
- Actions to Consider
- Learn More
- Related Research
- Synopsis
