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Productization of Services - Challenges and Opportunities in the Small and Medium-Sized Business SegmentPublished by: IDC Published: Jul. 7, 2008 - 22 Pages Table of ContentsTable of Contents IDC Opinion In This Study Methodology Demand-Side Methodology Supply-Side Methodology IDC Methodology Situation Overview Current Industry Dynamics Figure: Asia/Pacific (Excluding Japan) IT Spending Trends: Distribution of Companies by Size and IT Spending Segmentation of the Small and Medium-Sized Business Market Small and Medium-Sized Business Clusters Small and Medium-Sized Business Drivers and Buying Behavior Reasons Small and Medium-Sized Business Space Are Important to Consulting and Systems Integration Figure: Asia/Pacific (Excluding Japan) IT Spending Trends 2008 Forecast: Spending Distribution Table: Estimated Small and Medium-Sized Business Spending on Consulting and Systems Integration for 2007 and 2008 Productization of Services - A Tool to Achieve Long-Term, Sustainable Competitive Advantage Relevance of Productization for Targeting Small and Medium-Sized Businesses Benefits of Productization Table: Comparison of Small and Medium-Sized Business Buying Behavior with Prospective Benefits Associated with Productization Challenges of Productization Vendors and Their Strategies IBM TCS Cisco Future Outlook Industry Impact Table: Asia/Pacific (Including Japan) IT Services Spending by Small and Medium-Sized Businesses, 2008-2012 Forecast (US$M) Challenges Essential Guidance Actions to Consider Learn More Related Research Definitions IT Consulting Systems Integration Custom Application Development Synopsis AbstractThis IDC study assesses the market opportunities and challenges for adoption and implementation of productization in a service environment, as well as its impact on the small and medium-sized business (SMB) segment. It questions the fundamental ideas and assumptions that prevail in the market today, while it engages in the SMB space and provides analysis and critic on the productization concept. This study also analyzes the impact of productization in the industry, as well as the new models that can help drive the bottom-line growth for vendors. It explores the strategic elements around change, transformation, innovation, and channel management. "The key questions answered in this study include: (1) How is the buying behavior of the SMBs evolving?, (2) Why is productization relevant in the SMB context?, (3) What are the vendor strategies?, and (4) How can productization impact the bottom line? Productization should be the preferred route for large service vendors to address the SMB segment because it holds strong prospects for better profitability and sustainable competitive advantage. However, there is a caution that productization is not the panacea. Modularization of people, processes, and technology into assets, as well as their integration and profit and loss (P/L) ownership, will determine the level of success of a productization strategy," says Mayur Sahni, senior market analyst, IT Services Opportunities Research, IDC Asia Pacific. Get Full Details About This Report >> |
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