Hyperchanging Tech Markets Demand Smarter Procurement and Agile Evaluation, Says Info-Tech Research Group

News provided by

Dec 02, 2024, 15:53 ET

As technology markets rapidly commoditize, new research insights from Info-Tech Research Group highlight how smarter, more agile procurement methods enable quicker, more efficient purchasing decisions in a market defined by constant innovation and disruption. The recently published resource from the global research and advisory firm offers IT leaders actionable strategies to streamline procurement, reduce evaluation timelines, and maintain a competitive edge.

TORONTO, Dec. 2, 2024 /PRNewswire/ - Global research and advisory firm Info-Tech Research Group explains in a new industry resource that traditional procurement processes are proving inadequate for IT leaders tasked with navigating rapidly commoditizing technology markets. In the firm's new blueprint, Stop Wasting Time Evaluating Commoditized Products and Services, Info-Tech highlights how outdated methods, lengthy evaluations, and resource-intensive approaches can hinder organizations from adapting to fast-paced innovation. The resource will equip IT leaders with the tools needed to streamline procurement cycles to save time, reduce costs, and maintain a competitive edge in a landscape being rapidly shaped by exponential technological change.

Info-Tech Research Group's "Stop Wasting Time Evaluating Commoditized Products and Services" blueprint identifies six distinct stages of technology market evolution, providing IT leaders with a clear framework for navigating the lifecycle of commoditized products and services. (CNW Group/Info-Tech Research Group)

As technology markets accelerate toward commoditization, Info-Tech's resource emphasizes the need for IT leaders to evolve their procurement strategies. The blueprint details how hyperchange affects traditional approaches, urging organizations to embrace agile evaluation methods to stay competitive.

"There's a new word in the IT dictionary – hyperchange. It's not a new concept, though – Moore's Law led to the law of accelerating returns, which very naturally led to what is being called hyperchange," says Mark Tauschek, Vice President of Research Fellowships at Info-Tech Research Group. "It means that the lifecycle time from innovation to commodity in most mainstream technology markets is rapidly shrinking. There have been many examples over the past 20 years, including cloud computing, smartphones, and countless applications. Innovations are even being commoditized from the outset, particularly at the consumer level."

In a recent Forbes article, Tauschek elaborates on the challenges posed by hyperchange and the accelerating commoditization of technology markets and stresses the critical role IT leaders play in recognizing and adapting to these rapid shifts. The article reinforces the importance of rethinking traditional procurement methods to streamline decision-making and align purchasing strategies with business objectives. These insights align with the strategies detailed in the firm's blueprint, which guides IT leaders in developing more efficient procurement processes for commoditized products and services.

The firm's insights demonstrate that effective procurement in commoditized markets requires more than just cost-cutting; it demands a strategic shift toward smarter, faster decision-making aligned with business goals.

"Evaluating and procuring technology solutions has become increasingly time-consuming and resource-intensive, especially in markets where products quickly transition from innovation to commodity," Tauschek explains. "This is where IT leaders need to adopt more agile evaluation methods to prioritize value and eliminate unnecessary complexity."

Six Stages of Technology Market Evolution

Info-Tech's blueprint, Stop Wasting Time Evaluating Commoditized Products and Services, identifies six distinct stages of technology market evolution, providing IT leaders with a clear framework for navigating the lifecycle of commoditized products and services:

Stage 1 – Nascent Market: Emerging technologies with compelling use cases show potential but remain underdeveloped and niche.

Stage 2 – Features Arms Race: Rapid innovation defines this stage as new entrants compete for differentiation and market share.

Stage 3 – Feature Parity: As products achieve similar functionality, differentiation through features becomes negligible.

Stage 4 – Consolidation: Smaller vendors either scale up or are acquired by larger competitors, reshaping the vendor landscape.

Stage 5 – Commoditized Market: Price becomes the primary differentiator as larger vendors dominate the market through low-margin strategies.

Stage 6 – Oligopoly: The market stabilizes, leaving a few dominant players controlling the majority share.

As technology markets continue to evolve at an unprecedented pace, Info-Tech advises that IT leaders must rethink their procurement strategies to stay ahead. By applying the proven methodologies outlined in Info-Tech's blueprint, IT leaders can significantly streamline decision-making, reduce evaluation times, and align procurement practices with business goals. Through the adoption of more agile and targeted approaches, IT teams can navigate the challenges of hyperchange, optimize resource allocation, and drive long-term success in markets that are rapidly becoming commoditized.

For exclusive and timely commentary from Mark Tauschek, an expert in IT infrastructure and operations, and access to the complete Stop Wasting Time Evaluating Commoditized Products and Services blueprint, please contact [email protected].

About Info-Tech Research Group

Info-Tech Research Group is one of the world's leading research and advisory firms, proudly serving over 30,000 IT and HR professionals. The company produces unbiased, highly relevant research and provides advisory services to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

To learn more about Info-Tech's divisions, visit McLean & Company for HR research and advisory services and SoftwareReviews for software buying insights.

Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].

For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.

SOURCE Info-Tech Research Group