IT buyers are often at a disadvantage when making purchases due to the widespread price discrepancies, unreliable vendors and complex contracts and negotiations that are all too common in the IT marketplace. To help get back on equal footing, many buyers are looking to social networking to help them gain objectivity and understanding. Social networks have enabled these buyers to get benchmark pricing and consult with others that can give helpful insights and knowledge for better decisions.
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 decision makers say that their purchasing decisions have been influenced by social networking
73 percent say they have engaged with a vendor using social networking
58 percent say they use social networks to learn from other IT professionals
Additional reasons for using social networks for IT decisions are:
To locate information fast
To acquire the necessary context to connect with vendors
To gain access to a broader 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.
Overspending most often occurs because IT buyers are not able to determine fair market value for new technology. Vendors don't make this easy when their prices change frequently for no apparent reason. When buyers are able to compare prices with their peers on a social networking site, they gain much needed leverage for negotiations.
As the influential power of social networks is recognized by more IT purchasers, businesses will continue to benefit from the sharing of valuable information. Buyers will be able to stand on more equal footing with vendors and reduce the uncertainly and overspending so common with IT purchases.
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 decision makers say that their purchasing decisions have been influenced by social networking
73 percent say they have engaged with a vendor using social networking
58 percent say they use social networks to learn from other IT professionals
Additional reasons for using social networks for IT decisions are:
To locate information fast
To acquire the necessary context to connect with vendors
To gain access to a broader 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.
Overspending most often occurs because IT buyers are not able to determine fair market value for new technology. Vendors don't make this easy when their prices change frequently for no apparent reason. When buyers are able to compare prices with their peers on a social networking site, they gain much needed leverage for negotiations.
As the influential power of social networks is recognized by more IT purchasers, businesses will continue to benefit from the sharing of valuable information. Buyers will be able to stand on more equal footing with vendors and reduce the uncertainly and overspending so common with IT purchases.
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 solution
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