IT purchasing is a task filled with uncertainty, price disparity and overspending. In an effort to find more objectivity and knowledge about new technology solutions, many IT purchasers are turning to an unlikely source - social networking. Here they are able to benchmark pricing and obtain valuable insights from other IT professionals, which can help them bring more leverage to the negotiation table and optimize purchasing.
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 connected with a vendor via social networking sites
58 percent say that learning from trusted peers is a main reason they use social networking
Other top reasons given by the IT decision makers surveyed include:
To find information quickly
To gain insight to interact with vendors
To connect with a larger network
As social networking becomes more and more influential to IT buyers, some sites are realizing the value and helping to facilitate the interactions. For example, IT Spend Management is a LinkedIn Group that provides a platform for peer networking to discuss vendor negotiation points and other business issues.
The biggest challenge for most IT buyers is not knowing if they are overpaying for new technology. Fair market value can be difficult to ascertain when vendors change prices often from one customer to the next. Social networking provides a viable solution by allowing the buyers to connect with others and compare vendor pricing and terms.
Social networking has evolved a great deal from its early days as a simple way to connect to others. Businesses are finding more ways every day to use these sites to grow their revenues and reduce costs. IT purchasing has certainly benefitted and will likely continue to as social networking reduces vendors' advantages in the marketplace.
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 connected with a vendor via social networking sites
58 percent say that learning from trusted peers is a main reason they use social networking
Other top reasons given by the IT decision makers surveyed include:
To find information quickly
To gain insight to interact with vendors
To connect with a larger network
As social networking becomes more and more influential to IT buyers, some sites are realizing the value and helping to facilitate the interactions. For example, IT Spend Management is a LinkedIn Group that provides a platform for peer networking to discuss vendor negotiation points and other business issues.
The biggest challenge for most IT buyers is not knowing if they are overpaying for new technology. Fair market value can be difficult to ascertain when vendors change prices often from one customer to the next. Social networking provides a viable solution by allowing the buyers to connect with others and compare vendor pricing and terms.
Social networking has evolved a great deal from its early days as a simple way to connect to others. Businesses are finding more ways every day to use these sites to grow their revenues and reduce costs. IT purchasing has certainly benefitted and will likely continue to as social networking reduces vendors' advantages in the marketplace.
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 reduction consulting solution service consulting