Monday, May 03, 2010

Forrester - start of 4th wave of innovation - let the good times roll?

In Forresters latest earnings call CEO George Colony summarized the latest IT spending trends and projections. Mr. Colony discussed the positive IT spending growth of 2010, and more importantly, that we are at the start of a 4th innovation wave- a potential 7 to 10 year cycle of technology innovation. Is it time to let the good times roll?

With regard to IT spending growth for 2010, Forrester has been the most aggressive in their projections, with a view that IT spend would grow 8.4% in US, and 7.7% worldwide. While much higher growth projections than more conservative estimates from Gartner and IDC, we believe that these projections are spot on, as organizations realize growth opportunities and quickly allocate discretionary budgets to key IT projects in the second half of 2010.

Impact of this growth for IT sales enablement and demand-gen professionals? Because of the discretionary nature of the allocations, sales and marketing needs to be ahead of the decision making curve:
  1. As customer stakeholders research where to place precious budget dollars on-line and through other sources, marketing execs need to prove the value of their solutions (business benefits, savings and competitive advantage) to cost-conscience economic buyers.
  2. Even though current budgets and priorities may already be set, savvy sales professionals need to have assessments and business case proposals in place proactively in order that their projects get prioritized.
Decision makers will be looking for partners to help them discover opportunities and provide quantifiable proof that the proposed solutions will drive bottom-line impact and competitive cost advantages.

And what about the technology innovation wave? Is it time for all tech vendors to party like its 1999 again? Even though this new wave of 7 to 10 years of higher spending will be extremely positive for technology solution providers, Frugalnomics reigns with customers.

Providers will need to connect their solutions to quantifiable strategic benefits, tactical cost savings and superior value vs. competitive solutions. As opposed to some prior innovation waves, the singularity of the technology bubble burst has fundamentally changed IT spending decision making. Innovation of the 4th wave will not mean wild abandonment of information economics. Alignment, ROI and TCO will be as important as innovation in this 4th new wave.


The earnings call can be heard at: http://biz.yahoo.com/cc/2/112962.html

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