Saturday, July 27, 2013

Making Smart IT Purchases With Social Networking

By Joseph B. Kappernick


Making good purchasing decisions is very challenging for any IT buyer because it is a world full of inconsistent pricing, uncertainty, and overspending. Recently, buyers have started to use social networking as a way to gain more objectivity and level the playing field with vendors. Through social networks, they are able to access the necessary benchmarking data as well as other vendor insights to aid in complex negotiations.

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 they have made purchases influenced by social networking

73 percent have connected with a vendor via social networking sites

58 percent use social networking to learn from trusted peers

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

To find information quickly

To acquire the necessary context to connect with vendors

To gain access to a broader network

Social networks are starting to realize the value they can provide to IT purchasers through their sites and are even starting to cater to it. One LinkedIn Group, IT Spend Management, offers a platform that lets peers to share helpful information on complicated negotiation details so they can be better prepared.

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.




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