Making good purchasing decisions is very challenging for any IT buyer because it is a world full of inconsistent pricing, uncertainty, and overspending. Recently, buyers have started to use social networking as a way to gain more objectivity and level the playing field with vendors. Through social networks, they are able to access the necessary benchmarking data as well as other vendor insights to aid in complex negotiations.
Using social networking to make smarter purchases seems to be gaining popularity, as demonstrated by a Forrester Research study, entitled "IT Purchasing Goes Social":
60 percent of IT purchasers surveyed have made decisions influenced by social networks
73 percent have engaged with vendors on a social network
58 percent say that learning from trusted peers is a main reason they use social networking
Top reasons to use social networking sites for IT purchasing also include:
To quickly find data
To acquire the necessary context to connect with vendors
To reach a broader network
Some sites are even starting to help make this type of interaction easier for buyers by offering specialized forums. A LinkedIn Group called IT Spend Management provides a platform for purchasing professionals to share insights on vendor pricing, terms, negotiations and other relevant issues.
Fair market value for new technology is a very difficult thing to verify for many IT buyers. During the negotiation phase, vendors are known to offer very different prices from one customer to the next, depending on the circumstances. Social networking is a very powerful tool for buyers because it allows them benchmark pricing and enter into negotiation better prepared.
The influence of social networking on IT purchases is changing the way companies negotiate for new technology solutions. As long as businesses continue to benefit from the much needed objectivity social networks provide, price disparity and unfair terms may soon be a thing of the past.
Using social networking to make smarter purchases seems to be gaining popularity, as demonstrated by a Forrester Research study, entitled "IT Purchasing Goes Social":
60 percent of IT purchasers surveyed have made decisions influenced by social networks
73 percent have engaged with vendors on a social network
58 percent say that learning from trusted peers is a main reason they use social networking
Top reasons to use social networking sites for IT purchasing also include:
To quickly find data
To acquire the necessary context to connect with vendors
To reach a broader network
Some sites are even starting to help make this type of interaction easier for buyers by offering specialized forums. A LinkedIn Group called IT Spend Management provides a platform for purchasing professionals to share insights on vendor pricing, terms, negotiations and other relevant issues.
Fair market value for new technology is a very difficult thing to verify for many IT buyers. During the negotiation phase, vendors are known to offer very different prices from one customer to the next, depending on the circumstances. Social networking is a very powerful tool for buyers because it allows them benchmark pricing and enter into negotiation better prepared.
The influence of social networking on IT purchases is changing the way companies negotiate for new technology solutions. As long as businesses continue to benefit from the much needed objectivity social networks provide, price disparity and unfair terms may soon be a thing of the past.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost management service consulting
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