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Taking a Deeper Look at Today’s Empowered Tech Buying Process

Beneaththe Surface

Elisa KochInsights Lead, AU & NZ

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2.3+ millionAPAC LinkedIn members who influence IT

decisions across departments and seniorities

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We surveyed 3,800+technology decision-makers globally

So, what’s beneath the technology purchasing surface?

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Hardware for End Users Hardware for Data Centers Software for Data CentersSoftware for End Users

We looked at 4 key technology subverticals.

The decision making process journey The key influencers on the process The areas of interest and motivation The content they want, when and where they’re looking for it…

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Complication #1:

The buying processis competitive and long.

Complication #2:

Technology buying touches allaspects of business.

Complication #3:

The buying group each have their own agenda.

What we learned: It’s complicated.

Complication #1: The buying process is long, complex and competitive.

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Needs Specs/Funding Vendor Choice Implementation Management Renewal40%

50%

60%

70%

80%

90% Hardware for End Users Software for End Users Hardware for Data Centers Software for Data Centers

Engaged Directly with Vendors – Last 3 Months(% among buyers recently participating in each stage)

Engagement is constant throughout the long journey…

Bases: Technology decision participants (last 3 months) in 11+ person companies across 11 major markets in each market who recently participated in each stageHardware for End Users n=140-173, Software for End Users n=163-199, Data Center Hardware n=142-162, Data Center Software n=132-167

12 months+

27%25%

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It’s more competitive than ever,but opportunities do exist.

Most Competitive Most Open

Hardware for End Users Software for Data Centers Hardware for Data Centers Software for End Users

Technology buying ranges from extremely to very competitive(% who shortlisted a “new” vendor)

21% 42%

Complication #2: Technology buying touches all aspects of business.

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Needs Specs/Funding Vendor Choice Implementation Management Renewal

45%52%

59%51%

62%

50%

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4+ functions(% among buyers participating in each stage)

4+ functional groups can be involved at each stage.

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Hardware for End Users Hardware for Data Centers Software for Data CentersSoftware for End Users

…but the full committee is a complex group

* Each function’s’ importance was ranked across four measures: 1) perceived leadership in six stages of buying; 2) likelihood of being cross-functional partner to a leading role; 3) propensity to be a formal decision maker; and 4) perceived influence on vendor opinion among those involved in Vendor Choice. Gartner source: http://my.gartner.com/portal/server.pt%3Fopen%3D512%26objID%3D202%26mode%3D2%26PageID%3D5553%26ref%3Dwebinar-rss%26resId%3D1871515

ITEngineeringOperationsProg. and Proj. MngmntFinanceBus. DevelopmentSupportAccountingMarketingPurchasingSalesResearchConsulting/Ext. Consultant

Extremely Important 1 Very Important/ Important 2Importance to the decision process*

1 1 1 11 1 1 11 1 1 21 2 2 22 2 1 22 2 2 22 2 2 2

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Complication #3: The buying group each have their own agenda.

What motivates this diverse group of decision-makers?

Proj. Mgmt. Finance Accounting

Top Factors Driving Willingness to Engage

IT Engineering Bus. Dev. Operations Purchasing Sales Support

Bases: N=32-598, recent technology buyers (last 3 months) in key functionsIn general, how important are the following factors in your willingness to engage with sales professionals and other employees of [technology type] vendors? 13

Subject Matter Expertise

Consultation/Education/Tools

Business Model

Costs/Business Impact

User Adoption

Know/Trust Product /Service

Tier 1 audiences Tier 2 audiences

In general, all Audiences in Australia prioritize interacting with sales

professionals they know/trust more so than

other countries

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Top reasons vendors make the short list

(% among those considering “new” vendors)

Base: n=122 Base: n=107 Base: n=86 Base: n=148

Bases: Technology decision process participants (last 3 months) in 11+ person companies across 11 major markets who shortlisted a company that is “new” (i.e., their company never worked with it)

Hardware for End Users

Cost-Price-Terms

Quality-Product

Reputation-Reviews

Support-Service

Hardware for Data Centers

Cost-Price-Terms

Subject Matter Expert-Consult.

Quality-Reliability

References-Trust

Software for Data Centers

Subject Matter Expert-Consult.

Features-Functionality

Cost-Price-Terms

Ease of Doing Business

Software for End Users

Fit Requirements

Materials-Case Study-POC*

Ease of Doing Business

User Experience

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Meet David

• David is part of the decision making process for Data Centre Software

• He is an Information Technology Manager working in a High Tech Company

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A bit about David…

• 17 years in industry covering information technology, engineering and operations

Project Management

Skills

Business Analysis

Change Management B. Science or Commerce

Considering MBA

Edu

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David is using LinkedIn to connect with experts and

engage with relevant content

Website page views

2X

Company Follows

3X

30% more

Content over jobs

7X

Mobile vs. DesktopConnected on LinkedIn

4X

Source: Eccolo Media, “2015 B2B Technology Content Survey Report: Volume 1,” Dec 16, 2014

What is David doing on LinkedIn?

Influencer Follows

2X

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When is he seeking out content and for what needs?

David consumes 2 to 4 distinct pieces of content at

each stage of the buying cycle

Needs Specs VendorSelection

Implementing Managing Renewing

7 7

16

7

16

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Hours spent researching at each stage – Last 3 Months

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What sort of content is he looking for on LinkedIn?

He is actively seeking content to become a better informed decision maker

Cloud Computing

DB2

XML

Information Security

IT Service Mgmt

Mobile Computing

Scalability

Test Automation

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So what does this all mean?

Using the information he finds on LinkedIn, David is

creating his shortlist

1 Subject Matter Expert-Consultation

Top reason data centre software vendors make the short list:

2 Features-Functionality

3 Cost-Price-Terms

4 Ease of Doing Business

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What else is he seeing on LinkedIn?

David is a popular profile

Industries sponsoring content to profiles like David’s in last 6 months

Growth in number of companies targeting profiles like David’s in last 6 months alone

Computer SoftwareInformation Technology & ServicesHigher Education

100+

39%

Top 3

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So what are you doing to reach David?

Know your audience

Take action

Engage with relevance

Thank you