Monday, 29 July 2013

Making Smart IT Purchases With Social Networking

By Joseph B. Kappernick


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.

But, can social networking really help IT buyers make better purchases? Many say yes, as these survey results from a recent Forrester Research study called "IT Purchasing Goes Social" suggest:

60 percent of IT decision makers say that they have made purchases influenced by social networking

73 percent say they have engaged with a vendor using social networking

58 percent use social networking to learn from trusted peers

Top reasons to use social networking sites for IT purchasing also include:

To locate information fast

To gain relevant context to engage 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.

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.




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