2014 Global SRM Research Report - Customer of choice

BUSINESS DRIVERS & VALUE

STATE OF FLUX

2014 GLOBAL SRM RESEARCH REPORT

 IT / HIGH TECH The IT / high tech sector identified the widest range of business drivers considered almost equally important. These included cost reduction and avoidance; service level and quality improvements; end customer experience; and risk reduction. All were seen as a priority by more than eight in ten of respondents. The areas where most respondents are reporting benefits are across cost and risk reduction. Service, quality and end customer experience are not delivering value considering the importance placed on these business drivers. Customer of choice – Surprisingly, less than 60% of IT / high tech companies considered getting more supplier innovation as an important / very important business driver. That said, with around 50% reporting benefits received in this area, the relationship between the business driver priority and benefits being delivered is good. Getting access to, and retaining the best people is important to 60% of respondents but only 12% are seeing this as benefit from their SRM programme.

Figure 1.21. Business drivers versus benefits reported (as % of respondents) – IT / high tech

○ BUSINESS DRIVERS

○ BENEFITS REPORTED

0% 20% 40% 60% 80% 100%

42% of IT / high tech companies are included in our leader, fast follower and follower groups.

 UTILITIES

Figure 1.22. Business drivers versus benefits reported (as % of respondents) – utilities

Utilities focus on risk, cost and operational business drivers. In common with financial services, their most important business driver is risk reduction, said to be important / very important by 91% of respondents. This translates into a benefit for 61% of utilities companies. Cost is also a clear priority with 87%mentioning cost reduction and avoidance. In comparison with other sectors, this is translating quite well into benefits, with 70% reporting cost reduction. Another priority area for utilities is contract compliance. It’s a priority for 83% of respondents and delivering improvement for 52%. Customer of choice – 70% of utilities respondents rate access to, and retaining the best supplier people as an important customer of choice benefit. However, this is only a benefit to 13%. Utilities has the second lowest proportion of respondents reporting supplier innovation as a benefit, at just 30%, compared to 61% rating it as a priority.

○ BUSINESS DRIVERS

○ BENEFITS REPORTED

0% 20% 40% 60% 80% 100%

40% of utility companies are included in the leader, fast follower and follower groups.