ICT Procurement Trends in Manufacturing - Enterprise ICT Investment Plans
Published Date » 2013-12-18
No. Of Pages » 25
This report presents the findings from a survey of 166 manufacturers regarding their approach to Information and Communications Technology (ICT) procurement. The survey investigates the way that manufacturers 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 manufacturers 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?
Manufacturers favour deploying technologies on-site as opposed to hosting. However, preference towards hosted services is slowly gaining traction.
What are the key drivers behind recent market changes?
Manufacturers are slowly increasing the adoption of hosted model as they look to improve their scalability and reduce costs.
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 160+ ICT decision makers in the manufacturing industry in H2 2012.
Key Features and Benefits
- Provides insights into manufacturers' preferred buying approaches.
- Comprehend the business objectives that manufacturers are looking to achieve through their IT investment strategy.
- Appreciate the IT objectives that manufacturers are looking to achieve through their IT investment strategy.
- Understand the factors that are influencing manufacturers' decision to select an ICT provider.
- Understand which organisational roles influence ICT purchasing decisions and signing off budgets.
Key Market Issues
- The survey reveals that 56% of manufacturers prefer to procure technologies directly from suppliers, followed by through local resellers and national resellers. Kable believes that local resellers are preferred more than national resellers in large part due to their ease of availability, ability to provide timely support services, and competitive pricing.
- In order to respond to global competitive challenges, manufacturers need to devise effective IT strategies. The survey shows that the IT objectives of 'better demonstrate the value of IT to the business' and 'use IT to support revenue growth' are the most important factors influencing manufacturers' IT investment strategies, with average ratings of X on a scale of 1 to 4.
- Due to the current economic uncertainty, manufacturers have to deal with constrained budgets, which is forcing the need for an optimum utilisation of resources. As a consequence, raising efficiency is considered to be an important business objective amongst manufacturers.
- According to Kable's survey, manufacturers consider price to be the most important criteria when choosing an ICT provider.
- The survey shows that a large proportion of manufacturers believe that their ICT infrastructure is somewhat complex, with several enterprise applications, hardware manufacturers, operating systems, and communications technologies.
- According to Kable's survey, 41% of manufacturers are planning to raise their ICT investments in 2013, which is an increase of 7% compared to 2012.
- Kable's survey shows that 80% of manufacturers prefer deploying enterprise applications on-site followed by security and content management, as these technologies handle confidential data, and manufacturers want full control over such systems and solutions.
- Increasing revenues and customer satisfaction also play a key role, as manufacturers are keen to increase their organic growth and recognise the value of consumer recognition for their products, since it will eventually help to increase their sales lines.
- According to Kable's survey, manufacturers consider leading-edge technology to be the most important criteria when choosing an ICT provider with an average rating of X on a scale of 1 to 4.
- Manufacturers rate the CIO/IT department and the CEO as the most influential authorities when making ICT purchasing decisions, with both receiving the highest average rating of X on a scale of 1 to 4.
Table of Content
1 Enterprise ICT investment trends
1.2 Survey demographics
1.3 ICT budget changes
1.4 ICT investment priorities
2 ICT procurement trends
2.2 Purchasing channels
2.3 Business objectives influencing IT investment strategy
2.4 IT objectives influencing IT investment strategy
2.5 ICT provider selection
2.7 ICT infrastructure environment complexity
3.1 Manufacturers' IT investment strategies are mainly focussed on improving efficiency and aligning IT with their overall business goals
4.2 Further reading
4.3 Contact the authors
List of Tables
Table 1: Manufacturing - enterprise ICT survey geographic breakdown 5
Table 2: Manufacturing - enterprise ICT survey breakdown by size band (number of employees) 6
Table 3: Recent and expected ICT budget changes among manufacturers 7
Table 4: Current and future investment priorities of manufacturers across core technologies 10
Table 5: Manufacturers' preferred approach to buying technologies 13
Table 6: Business objectives which influence manufacturers' IT investment strategy 14
Table 7: IT objectives which influence manufacturers' IT investment strategy 16
Table 8: Factors influencing manufacturers' decision to choose an ICT provider 17
Table 9: Influence of organizational roles in making ICT purchasing decisions and signing off budgets 20
Table 10: Complexity of the ICT infrastructure within manufacturers 21
List of Figures
Figure 1: Manufacturing - enterprise ICT survey geographic breakdown 4
Figure 2: Manufacturing - enterprise ICT survey breakdown by size band (number of employees) 6
Figure 3: Recent and expected ICT budget changes among manufacturers 7
Figure 4: Current and future investment priorities of manufacturers across core technologies 9
Figure 5: Manufacturers' preferred approach to buying technologies 12
Figure 6: Business objectives which influence manufacturers' IT investment strategy 14
Figure 7: IT objectives which influence manufacturers' IT investment strategy 15
Figure 8: Factors influencing manufacturers' decision to choose an ICT provider 17
Figure 9: Influence of organizational roles in making ICT purchasing decisions and signing off budgets 19
Figure 10: Complexity of the ICT infrastructure within manufacturers 21
Prescription Arthritis Treatments Market: Singapore and Indonesia, Market Size, Growth and Industry Analysis
By - Transparency Market Research
METHODOLOGY Our research consists of both secondary and primary research with later constituting the greater portion. We also have a large internal repository and access to a number of external proprietary databases to help address specific requirements of our clients. The research process begins with exhaustive secondary research on internal and external sources being carried out to source qualitative and quantitative information relating to each market. Secondary Research The secondary research sources that are typically referred to include, but are not limited...
Genomics Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2012 - 2018
By - Transparency Market Research
Increasing competition in the pharmaceutical industry to develop new drugs, increasing demand for genetically modified crops and animals, and dropping prices of genomic procedures are some of the major growth drivers for the market. Synthetic biology uses the concepts of genomics as an enabling technology to study the gene sequences of organisms and plants and further research initiatives are taken to invent synthetic cells and DNAs with novel applications. Emergence of such nascent research will help the market grow in the future. The study of the genomes of organisms is...
Animal Feed Enzymes Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019
By - Transparency Market Research
Animal feed enzymes improve the nutritional value of feed and enhance the digestibility of the feed. They are categorized according to the substrate that they act upon. Broadly they are classified as carbohydrases, proteases, and phytase. Phytase accounts for more than 50% of the total feed enzyme production. Feed enzymes helps in extracting more nutrients from the feed and helps in reducing animal waste, hence protecting the environment as it lowers phosphorus and nitrogen in animal excreta. The increasing consumption of meat on a global scale is driving the...
We will be happy to help you find what you need.
Please call us or write us:
Please call us or write us:
866-997-4948 (Us-Canada Toll Free)
Select License type:
Alternative Payment Method
- Global and China Digital Camera Industry 2014 Market Research Report
- Global and China Gypsum Industry 2014 Market Research Report
- Global and China Feldspar Industry 2014 Market Research Report
- Global and China Diatomite Industry 2014 Market Research Report
- Global and China Boron Industry 2014 Market Research Report
- Global and China Other Accessories & Parts Industry 2014 Market Research Report
- Global and China Cement Industry 2014 Market Research Report
- Global and China Microphone Industry 2014 Market Research Report
- Global and China Stickers & Skin Industry 2014 Market Research Report
- Global and China Memory Card Industry 2014 Market Research Report
Solar Power Generation Reaches Record High in the U.S. in 2013
Mar 6, 2014
Solar power accounted for an even larger share in the total volume of electricity generated in the United Sates in 2013. According to a latest report published by the Solar Energy Industries Association along with GTM Research suggests that this form of energy is increasingly becoming a part of the main stream U.S. power grid. So, it is not surprising that the production of solar...
Reynolds focus on Lorillard tobacco bid
Mar 5, 2014
U.S. tobacco giant - Reynolds American has stated a bid for its biggest rival Lorillard in the market. This bid has set quakes on the global tobacco market that is already being remodeled by declining smoking rates and growth of electronic cigarettes. Lorillard shares closed at 9.3 percent at $53.61 early Monday, giving a market value of $19.6bn. Reynolds bid could not be fairly...
Ecommerce to be New Growth Driver in Chinese Economy
Mar 4, 2014
Chinese ecommerce companies are set to make it big in the coming years with the market for ecommerce in China likely to grow to a whopping value of USD 8.17 trillion by 2020. This is what the vice-president of Alibaba estimates. China has largely been an export oriented society and it is online retail that is currently enabling the country to make a shift from this status. The...
Protect fruits from QFF flies
Mar 3, 2014
Queensland Fruit fly (QFF) is considered to be one of Australia’s intensely serious insect pests affecting the horticultural industry in the Central Tablelands and beyond. The Central Tablelands Local Land Services are knee-deep into testing a QFF monitoring program associated with the horticulturists in the Orange area. The authorities of this organization are open to...
Australian Companies Post Higher Profits Beating ExpectationsAustralian Companies Post Higher Profits Beating Expectations
Feb 28, 2014
Several large companies in Australia have beaten expectations by posting higher earnings and profits than expected. This is being regarded as one of the most positive reporting sessions since the last couple of years. The reporting session of February wrapped up with over 50% of the listed companies in Australia posting profits or beating expectations of earnings. Though there...