How Digital Transformation Has Changed Enterprise IT Buying Behaviors

By:
04/27/2017
Tech Perspectives

 

Digital transformation has become a marketing buzzword, used to describe the acceleration or transformation of company activities, processes and business models through the deployment of digital technologies.

Everyone from small and midsize businesses to large enterprise companies and governments are now actively undergoing their own digital transformation plans to drive efficiency, improve customer interactions or generate new revenues. This is having a significant impact on how enterprise IT solutions are acquired and deployed.

Smart, digital businesses are changing how they view, buy and implement technology. They are moving away from the bygone era where Chief Information Officers (CIOs) bought and implemented technology, with little to no input from Line of Business (LOB), to today where enterprise IT requires constant cross-department collaboration.

Traditionally, the CIO – the most trusted advisor on IT – has called the shots on purchasing decisions after aligning with the business on its needs and historically this has worked reasonably well. Of course, sometimes it hasn’t worked as well, with the CIO overseeing the acquisition only for the technology solution to lie abandoned or under-utilized by the department acquired for (this is sometimes known as ‘shelf-ware’).

Smart, digital businesses are changing how they view, buy and implement technology. They are moving away from the bygone era where Chief Information Officers (CIOs) bought and implemented technology, with little to no input from Line of Business (LOB)…

CIO and Partners

Digitalization, however, is bringing a more permanent change to the IT buying process, one that brings technology and the CIO to the heart of their organization.

Digitalization is all encompassing, it affects everything from how you manage customers through your CRM and how your fraud and security teams detect security incidents, to how you bring new solutions to market.

IT may well be the liaison for much of this initial change, but it isn’t the sole stakeholder. In fact, digital transformation introduces new players during the tendering process. Chief Marketing Officers (CMOs), Chief Data Officers (CDOs) and potentially Chief Customer Officers (CCOs) will have their say and that marks a challenge for technology vendors more accustomed to selling directly to CIOs and their IT teams.

Digitalization, however, is bringing a more permanent change to the IT buying process, one that brings technology and the CIO to the heart of their organization.

These Tech-Involved LOB will be involved in technology buying, as illustrated in IDG’s Influencing the Influencer: Understanding the Tech-Involved Line of Business Decision-Maker research snapshot, which found that Tech-Involved LOB are an important partner with CIOs for determining business need with Tech-Involved LOB directly influencing 38% of the annual IT budget. The research also identifies that 77% of IT decision-makers say they collaborate with Tech-Involved LOB on a regular basis.

In many ways, non-IT decision makers participating in IT buying is not a new phenomenon. In a 2014 Bain & Company survey of marketing, customer service and supply chain functions, nearly one-third of technology purchasing power had moved to executives outside of IT. According to the survey, this had less to do with IT budgets being reallocated to Line of Business and more to do with non-IT business leaders recognizing the value of IT and transferring investment in traditional services to new technology. In short, thanks to digital transformation, IT’s importance is now recognized by the wider business.



If you need a partner with deep experience and unique understanding of how to build relationships with technology buyers globally, contact us today.

 

Written by Doug Drinkwater 

Doug Drinkwater is the EMEA Content Director for IDG Content Marketing Practice. Doug is particularly interested in how new and emerging technologies are changing our lives, including how we interact as people and businesses. He is fascinated by the role technology is playing in an increasingly digital society, influenced by the likes of Facebook, Twitter and Instagram.

Connect with Doug on LinkedIn.

 

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