Abstract
This 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.
Table of Contents
- Table 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
- Future Outlook
- Industry Impact
- Table: Asia/Pacific (Including Japan) IT Services Spending by Small and Medium-Sized Businesses, 2008-2012 Forecast (US$M)
- Essential Guidance
- Learn More
- Related Research
- Definitions
- IT Consulting
- Systems Integration
- Custom Application Development
- Synopsis
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