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This report presents the findings from a survey of 100 media companies regarding their approach to Information and Communications Technology (ICT) procurement. The survey investigates the way that media companies like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies.
Introduction and Landscape
Why was the report written?
To highlight the criteria on which media companies 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?
Media companies have been optimistic about their ICT investments in 2013, preferring to buy technologies direct from suppliers and deploying them on-site. However, demand for hosted solutions is picking up pace.
What are the key drivers behind recent market changes?
Kable believes that the benefits of flexibility, easier management, and cost savings are expected to drive the demand for hosted services in the coming years.
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 100+ ICT decision makers in the media industry in H2 2012.
Key Features and Benefits
Provides insights into media companies' preferred buying approaches.
Comprehend the business objectives that media companies are looking to achieve through their IT investment strategy.
Appreciate the IT objectives that media companies are looking to achieve through their IT investment strategy.
Understand the factors that are influencing media companies' decision to select an ICT provider.
Understand which organisational roles influence ICT purchasing decisions and signing off budgets.
Key Market Issues
Media companies have a higher preference for buying technologies from local resellers compared to national resellers, as they tend to be in a better position to provide timely support services and also possess vertical expertise.
Media companies are gradually shifting their focus towards hosted deployments, primarily driven by advantages such as reduced IT costs and improved scalability and flexibility. There is an increasing preference for using the hosted model for technologies such as communications and collaboration, content management, and green IT and virtualization.
Media companies are placing a high degree of emphasis on improving efficiency and delivering an improved customer experience. On average, raising the overall efficiency of the organization is assigned a top priority, with respondents rating it X on a scale of 1 to 4, while improving customer satisfaction is next in line with a average rating of X on the same scale.
Media companies are concentrating on aligning IT with their overall business objectives. The survey reflects this trend, with the majority of media companies rating 'align IT with overall business goals' as the most important IT objective influencing their IT investment strategy.
According to Kable's survey, X% of media companies state that they have an ICT infrastructure which is somewhat complex, with several hardware manufacturers, operating systems, databases, applications, and other elements, whilst X% describe their ICT infrastructure as 'very complex' with multiple instances of different technology types.
It is evident from the survey that an average X% of media companies are deploying their ICT solutions on-site, X% of respondents prefer the hosted model.
Business objective relating to increasing customer satisfaction also has significant influence on IT investment strategy amongst media companies, with average ratings of X on a scale of 1 to 4.
The IT objective of 'demonstrate the value of IT to the business' also has a significant influence on companies' IT investments, with average rating of X on a scale of 1 to 4.
Aside from industry expertise, media companies are also placing importance on selection factors including specific functionality expertise/depth, price, and financial stability, assigning each factor an equal average rating of X on a scale of 1 to 4.
Media companies rate the CIO as the most influential authority when making ICT purchasing decisions, with the highest average rating of X on a scale of 1 to 4, followed by the CEO (X) and the CFO/Finance Director (X).