techconnect sydney 15 todays tech buying process research

#inTC15

Kelly Kyer

Global Marketing Lead, Technology Vertical, LinkedIn Marketing Solutions

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Taking a Deeper Look at Today’s

Empowered Tech Buying Process

Beneath the Surface

Not so very long ago, when it came to

technology purchases, IT was at the

helm, but seemingly everything about

the tech market is changing rapidly,

particularly the target audience.

How are you to keep up?

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2.3+ million APAC LinkedIn members who influence IT

decisions across departments and seniorities

6

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 Centers Software for End Users

We looked at 4 key technology subverticals.

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To bring detail and depth of understanding to:

The decision making process and buying journey.

The key influencers on the process and their functions.

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 process

is competitive and long.

Complication #2:

Technology buying touches

all aspects of business.

Complication #3:

Each buyer has their own

agenda and content needs.

What we learned: It’s complicated.

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

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40%

50%

60%

70%

80%

90%

Needs Specs/Funding Vendor Choice Implementation Management Renewal

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 stage

Hardware 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+

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40%

50%

60%

70%

80%

90%

Needs Specs/Funding Vendor Choice Implementation Management Renewal

Hardware for End Users

Software for End Users

Hardware for Data Centers

Software for Data Centers

Bases: Technology decision participants (last 3 months) in 11+ person companies across 11 major markets in each market who recently participated in each stage

Hardware 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

…and there are peak times pre- and post-sale.

78%

of buyers require

education to sustain

or make a change to

their IT ecosystem

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Australian firms reach out to sales more than sales reaches out

26%

17%

I reached out to a salesperson A salesperson reached out to me

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.

45%

52%

59%

51%

62%

50%

Needs Specs/Funding Vendor Choice Implementation Management Renewal

16 16

4+ functions

(% among buyers participating in each stage)

4+ functional groups can be involved at each stage.

IT, Engineering and Operations are the visible players…

Engineering

Operations

IT

Business Development

Purchasing

Support

Sales

Finance

Project Management

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IT is the number one player globally

as well as in Australia, but

Australians actually prioritize

Operations more and Engineering

less, than other countries do.

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

IT

Engineering

Operations

Prog. and Proj. Mngmnt

Finance

Bus. Development

Support

Accounting

Marketing

Purchasing

Sales

Research

Consulting/Ext. Consultant

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

1 1 1 1

1 1 1 1

1 1 1 2

1 2 2 2

2 2 1 2

2 2 2 2

2 2 2 2

2

2

2

2

2

2

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

IT

Engineering

Operations

Prog. and Proj. Mngmnt

Finance

Bus. Development

Support

Accounting

Marketing

Purchasing

Sales

Research

Consulting/Ext. Consultant

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

1 1 1 1

1 1 1 1

1 1 1 2

1 2 2 2

2 2 1 2

2 2 2 2

2 2 2 2

2

2

2

2

2

2

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End-users also have power and influence

70% Users

41%

Decision Making

Body*

¾ of the

enterprise

buyers look outside

the buying committee

for opinions

8 in 10

51%

of decision-makers sought

input on technology

solutions from end-users

Complication #3: Each buyer has their own agenda and content needs.

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 functions

In general, how important are the following factors in your willingness to engage with sales professionals and other employees of [technology type] vendors? 22

Subject Matter Expertise

Consultation/Education/Tools

Business Model

Costs/Business Impact

User Adoption

Product /Service

Tier 1 audiences Tier 2 audiences

Know/Trust

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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Conquering complexity

Go Deep.

Target beyond ITDMs

to educate all of the

decision-makers and

consider their mindset

and motivations when

crafting content.

Go Wide.

Reach the end-users.

Make sure they know

your brand and offering

because they influence

the shortlist.

Go Beyond

the Sale.

Actively create content

to educate and nurture

your customers post-

sale to retain and grow

their business.