Tuesday, October 1, 2013

Are You Using Social Networks To Aid In IT Purchasing?

By Joseph B. Kappernick


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 decision makers say that their purchasing decisions have been influenced by social networking

73 percent have engaged with vendors on a social network

58 percent say that learning from trusted peers is a main reason they use social networking

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

Some sites are even starting to help make this type of interaction easier for buyers by offering specialized forums. A LinkedIn Group called IT Spend Management provides a platform for purchasing professionals to share insights on vendor pricing, terms, negotiations and other relevant issues.

Fair market value for new technology is a very difficult thing to verify for many IT buyers. During the negotiation phase, vendors are known to offer very different prices from one customer to the next, depending on the circumstances. Social networking is a very powerful tool for buyers because it allows them benchmark pricing and enter into negotiation better prepared.

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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