ICT Media

ICT Procurement trends in Manufacturing - Enterprise ICT investment plans

  • KAB110119
  • 25 Pages
  • December 2013
  • ICT Media
Synopsis
This report presents the findings from a survey of 166 manufacturers regarding their approach to Information & Communications Technology (ICT) procurement. The survey investigates the way that manufacturers like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies.
Scope
Provides insights into manufacturers preferred buying approaches.

Comprehend the business objectives that manufacturers are looking to achieve through their IT investment strategy.

Appreciate the IT objectives that manufacturers are looking to achieve through their IT investment strategy.

Understand the factors that are influencing manufacturers decision to select an ICT provider.

Understand which organisational roles influence ICT purchasing decisions and signing off budgets.
Summary
Why was the report written?
To highlight the criteria on which manufacturers select their ICT providers as well as the roles which have influence while making ICT purchasing decisions.

What is the current market landscape and what is changing?
Manufacturers favour deploying technologies on-site as opposed to hosting. However, preference towards hosted services is slowly gaining traction.

What are the key drivers behind recent market changes?
Manufacturers are slowly increasing the adoption of hosted model as they look to improve their scalability and reduce costs.

What makes this report unique and essential to read?
Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Procurement. Very few IT analyst houses will have interviewed 160+ ICT decision makers in the manufacturing industry in H2 2012.
ReasonsToBuy
The survey reveals that 56% of manufacturers prefer to procure technologies directly from suppliers, followed by through local resellers and national resellers. Kable believes that local resellers are preferred more than national resellers in large part due to their ease of availability, ability to provide timely support services, and competitive pricing.

In order to respond to global competitive challenges, manufacturers need to devise effective IT strategies. The survey shows that the IT objectives of better demonstrate the value of IT to the business and use IT to support revenue growth are the most important factors influencing manufacturers IT investment strategies, with average ratings of X on a scale of 1 to 4.

Due to the current economic uncertainty, manufacturers have to deal with constrained budgets, which is forcing the need for an optimum utilisation of resources. As a consequence, raising efficiency is considered to be an important business objective amongst manufacturers.

According to Kables survey, manufacturers consider price to be the most important criteria when choosing an ICT provider.

The survey shows that a large proportion of manufacturers believe that their ICT infrastructure is somewhat complex, with several enterprise applications, hardware manufacturers, operating systems, and communications technologies.
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