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Impulse Shopping for Small Business, Finds IDC

  • 22 November, 2007 15:41

<p>NORTH SYDNEY, 22 November 2007 – IDC's latest study on the purchasing process in Australian Small Businesses reveals that they actually purchase technology in the same way as they conduct business.</p>
<p>Small Businesses (1–99 employees) operate in a highly dynamic environment and success means reacting instantly to changing conditions. IDC's study finds that Australian Small Businesses will often purchase technology as a reaction to change. For SMBs technology is critical, providing competitive advantage and increased productivity. Technology directly impacts their bottom line. So when conditions change, the purchase has to happen quickly.</p>
<p>These businesses purchase technology very differently to enterprise organisations. The chain of command in Small Businesses is short and business managers often move very quickly from need-identification to a purchase-approval.</p>
<p>"A Small Business' entire purchasing process tends to be extremely short and requires huge reactivity from technology providers - the number of touch points a vendor will have with a customer is reduced to an absolute minimum. Busy managers don't have the time to go through lengthy sales cycles," says Jean-Marc Annonier, IDC's Research Manager for Small and Medium Business Markets.</p>
<p>"And when the purchase concerns highly commoditised products such as PCs and printers, the entire sales cycle might be skipped altogether. Decision makers will often go to the closest retail outlet such as Dick Smith Electronics or Harvey Norman and purchase on an ad hoc basis," he adds.</p>
<p>"The current economic conditions are very favourable to Small Businesses, more than 10 years of solid economic growth have put businesses in a financial situation propitious to investment. Technology is one of the major vehicles that will drive future growth for these organisations."</p>
<p>This study, "Understanding How Australian Small Businesses Buy Technology: I Want it and I Want it Now!" examines the purchasing process in Australian Small Businesses (1–99 employees). This market is valued at A$10 billion in 2007 and represents 25% of total Australian information and communication technology (ICT) spend.</p>
<p>The IDC study also finds that:</p>
<p># Vendors struggle to cost-effectively sell to a fragmented small market. Vendors do not solution sell to the small market because it is unrealistic to expect them to cost-effectively develop a relationship and understand every Small Business' pain points.</p>
<p># External advisers have a significant influence. Small Businesses often rely on external sources to get advice and information on new technology products and services. For example accountants represent a valuable way of influencing business managers.</p>
<p># The trusted advisor is prevalent in Small Businesses. Almost half of Small Businesses prefer to use a single source for their IT products and services, with whom they have worked in the past and are satisfied. This result illustrates the importance of establishing a strong business partnership between IT suppliers and customers for long-term business opportunities.</p>
<p>////////////////////////// END</p>
<p>IDC research:
http://www.idc.com/getdoc.jsp?containerId=AU381105P</p>
<p>If you would like further information or to purchase IDC research, please contact Gary Clarke, IDC Associate VP of Sales via email gclarke@idc.com or phone 02 9925 2226.</p>
<p>****************************************************************</p>
<p>For press enquiries please contact:
Jean-Marc Annonier
Research Manager, IT Spending, Vertical Markets and SMEs
Phone: 61 2 9925 2221
Email: jannonier@idc.com</p>
<p>****************************************************************</p>

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