Business technology purchases are stalling in Bermuda

BOSTON, June 20, 2024 (GLOBE NEWSWIRE) — Foundry, the media, data and martech division of IDG, today published the Role & Influence of the Technology Decision-Maker 2024 study. In its sixteenth year, the study provides in-depth information on the evolving role and influence of the IT purchasing committee in today’s businesses, especially as the role of technology in business continues to expand. The study looks at who is involved in the many stages of the technology purchasing process, how they prefer to purchase and consume content, and where they need help from technology providers along the way.

“Foundry’s Role and Influence of the IT Decision-Maker research expertly highlights the growing complexity of the technology purchasing process – from an increase in the number of stakeholders to numerous internal headwinds driving decisions,” said Laura Nespoli, Group Strategy Director who leads the Google and Salesforce accounts at Article Group, an agency designed to meet the needs of the modern tech marketer.

With 65% of respondents confirming that the technology purchasing process is becoming increasingly complex (up from 61% in 2023), much of the data in the survey shows that technology buyers are looking to suppliers to simplify the process at multiple purchasing stages, especially in demonstrating support for ITDM’s unique roadmaps and customer requests.

“As the role and influence of IT grows, so does the responsibility of product marketers to provide simple leadership in helping their customers through the process,” Nespoli continues. “This research shows that today’s approach requires a higher level of sophistication to meet buyer expectations for a tailored content experience, collaboration between buying teams and strategic supplier support at scale.”

Buyers need individualized usage support at key stages to overcome the purchase stall

As companies’ technology infrastructure grows to support more key areas within the business, IT decision makers need vendor assistance at multiple stages of the purchasing process. In fact, 94% say they need additional resources or help from suppliers, while 65% say they are working with suppliers to help develop the business case around their investment in the technology. As the complexity of purchasing increases, this year’s research reveals the key barriers and motivating factors in the purchasing process, as well as the stages at which buyers say they need the greatest level of external support.

When asked about barriers to purchasing technology, respondents cited skills shortages as the top internal factor (41%) creating a barrier to purchasing decisions, and identified business need assessment (37%), evaluating products/services (37%) and determining technical needs. requirements (33%) as the phases where the process is most likely to stall. In particular, evaluating products/services (46%) and determining technical requirements (43%) were also the two most important phases. IT buyers said they needed the most help from the vendor; the same two phases were owned internally by the IT/network management staff.

In terms of what motivates technology purchases, this year’s survey found that customer requests are the top external area that accelerates the process (49%), confirming findings from the 2024 State of the CIO survey that improving of the customer experience is a top initiative driving IT investment this year. year. These findings indicate that ITDMs are becoming increasingly hands-on in understanding and implementing their customers’ unique needs and provide an opportunity for vendors to offer information tailored to these customized use cases.

ITDMs weigh trust and reputation against innovation and competition Prices 

As purchasing committees grow larger and require more help from suppliers, trust and reputation continue to play a key role during the purchasing process. When it comes to securing buy-in within the committee, 68% of respondents agree that this is easier when all stakeholders are aware of a brand. Furthermore, 74% of ITDMs are more likely to consume content from trusted brands, and 63% are more likely to trust information recommended by a colleague. Finally, credibility is cited as the most important value metric (41%) for tech content sites, and 72% agree that supplier reputation is one of the most important factors they consider when making purchasing decisions.

However, IT buyers are willing to consider new vendors if they meet certain criteria. Of the 48% of ITDMs who say they will be looking for new suppliers this year, most cite innovation (39%), business needs (34%) and competitive pricing (29%) as catalysts for their search. For new vendors looking to break through, IT buyers say clarity of information (35%) and easily searchable, accessible information (34%) are the most important ways they can provide value during the content consumption stages.

Aside from generational preferences, video content and third-party information sources make up the entire commission

As purchasing committees continue to expand and reach an average of 28 members by 2024, up from 25 last year and 20 in 2022, and executive leadership becomes increasingly involved in the decision-making process, it is clear that suppliers face the challenge of dealing with them to have a conversation. a diverse range of stakeholders during what is now a 6.1-month purchasing journey. To further this task, ITDMs consume an average of seven pieces of content throughout the entire purchasing process.

To navigate these evolving dynamics, companies must prioritize identifying their ideal customer profile (ICP) and addressing internal barriers to purchasing to ensure key stakeholders have the necessary knowledge to make informed decisions . With 41% of ITDMs predicting that internal skills shortages will be a potential barrier to technology acquisitions in the coming year, proactive education and strategic alignment will be essential to overcome these challenges and achieve successful outcomes.

Despite this complexity, one consistent strategy is emerging: video content remains highly effective, with as many as 95% of IT decision makers (consistent across all generations) relying on technology-related videos for business insights.

Finally, buyers ranked the most useful sources of information during the decision-making process, with analyst firms topping the list, followed by technology content sites. In-person meetings with suppliers and third-party market research were both rated as the third most useful. In the current landscape, neutral, information-rich content is reigning supreme, clearly and authentically aligning buyers within the committee throughout their decision-making journey.

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About the role and influence of the technology decision maker study in 2024

Foundry’s research on the role and influence of the 2024 technology decision makers was conducted online among the audiences of Foundry’s B2B brands (CIO, Computerworld, CSO, InfoWorld and Network World) that represent IT decision makers involved in the technology purchasing process for their organization. The results of this study are based on 938 respondents, all involved in the purchasing process of key IT or security products and services, from the 30-question survey across multiple industries and countries.

About Foundry, an IDG company 

Foundry has played a key role in every major milestone, announcement and development in modern technology since 1964. We engage and activate the world’s most influential technology buyers and early adopters through the award-winning journalism and trusted media brands they’ve turned to. decades. Our integrated ecosystem of owned and operated editorial sites, awards, events and technology communities are designed to enable global audience activation through innovative marketing campaigns. Backed by robust audience insights and data from across our network, Foundry sets the standard for delivering business results to help companies grow.

With 38 offices in markets around the world, Foundry is a wholly owned subsidiary of International Data Group, Inc. (IDG), the world’s leading tech media, data, research and marketing services company.

For more information, visit Foundryco.com.