An insider’s view of what’s motivating IT decision makers.
In today’s fast-paced world, technology is evolving at an unprecedented rate, making technology-related decisions increasingly complex for businesses. Stats show U.S. businesses spend a significant portion of their revenue on technology expenses, making it essential for decision-makers to maximize their return on investment. However, a staggering 70 percent of these decision-makers fail to see the expected benefits.
Add to that, navigating the deal in a multi-stakeholder universe that includes Marketing, Finance, Operations and other departments beyond IT can seem overwhelming.
We invited an expert with a Ph.D. in the decision making process to explain what’s trending in the minds of key IT decision makers. Don Halloran, a career technology professional who has spent the last three decades focusing on bridging the gap between IT and business, joined us to explain what’s going on in the minds of crucial IT decision-makers.
Q: Let’s start with the obvious: what’s trending in the minds of IT decision-makers?
A: Technology is moving fast, and technology decisions are getting more complex as new options become available. The average U.S. business spends between one and seven percent of its revenue annually on technology-related expenses. Decision-makers want to maximize the return on investment for technology decisions, but 70 percent fail to see the expected benefits. Their number one concern is making the best decision possible because these decisions usually have positive or negative impacts for years after the decision.
Q: What’s driving purchasing decisions today?
A: This is a great and complex question! There are a lot of factors driving purchasing decisions in technology. I like to categorize these factors around the individual(s) making the decision, environmental factors, and the decision criteria. Human factors such as emotions, ego, experience, etc., are significant drivers for the individual(s). However, the environment also drives the decision with such factors as business goals, culture, market conditions, etc. And there are a lot of criteria around the decision/options themselves, including cost, compatibility with existing architecture, risk, etc. Unfortunately, these decisions are highly complex, and knowing the top drivers without asking many questions about that unique situation is challenging.
Q: What are the latest trends in how IT decisions are being made?
A: The AMP’d experience theme of the multi-stakeholder universe is spot on. Technology decisions are no longer only made by “IT people.” A technology decision-maker can be a leader of any functional area of the business or a steering committee with representatives from multiple departments. Sales professionals need to identify the stakeholders and speak with all of them if possible. All these stakeholders rarely have the same priority, so understanding and balancing the needs of the many is crucial to success.
Q: Talk about the role of emotions in these decisions. What’s going on?
A: Research shows that emotions are the dominant driver of significant decisions, and they can impact technology decisions in many ways:
- Willingness to take advice during the decision-making process.
- Groupthink is a phenomenon where individuals forgo their logic to adopt the group’s opinion.
- Escalation of commitment occurs when one or more decision-makers allow emotions and momentum to drive their course of action down a path with negative warning signs instead of using logic and reason.
- Selective perception occurs when individuals only use one or a few pieces of the total number of factors available to them during the decision-making process.
- Concerns about the perceptions of others can cause individuals to alter their approach.
- Forgoing rational decision-making (structured multi-step process) and only using intuition (gut feeling) can have negative impacts. However, both approaches can add value.
Q: You talk about “Data Maturity.” Can you explain what this is and how it impacts purchasing decisions?
A: Data maturity is a term with many definitions. An organization can get the data they need to make crucial decisions quickly. Having this ability is something most organizations struggle with. The ability usually requires an organization to have many pieces in place to have clean data and to have all those pieces integrated to give the complete picture. Organizations also need the skill set and tools to correctly present and interpret the data. Since most organizations struggle with this, it is a significant opportunity to assist them with decisions in this area.
Q: What are some of the common mistakes you are seeing?
A: There are a few common mistakes I see both salespeople and technology decision-makers making. So I put together a Top Five list:
- Rushing Decisions. A rushed decision can have negative impacts for many years.
- Not Considering All Unique Factors. Explore all the factors that lead to success for that unique decision.
- Not Setting Realistic Expectations. No solution is perfect, so aim to understand & communicate all the pros and cons of options.
- Avoid Groupthink. All opinions matter, so pull views out of those not speaking up to make the best decisions.
- Manage Perceptions. Not everyone needs to buy a Ferrari, so explore all the options that meet their needs.
Q: Saying all that, what recommendations do you have for Sales Partners to follow today?
A: I’m glad you asked. I’ve got another list of my Top Five Recommendations.
- Know Your Decision-Makers. Know who the stakeholders are and what is essential to each of them. You will need to talk to all of them to help them make the best decision.
- Understand the Role of Emotion. Technology decision-makers of all backgrounds are pressured to make complex decisions, so be sure to understand the human aspects.
- Speak Their Language. Today’s technical decisions are about strategy, investment, ROI, and competitive advantage. Go beyond the technical talk, and speak the language of the decision-makers.
- Use Supporting Tools. Build trust by using tools and other data sources to increase their comfort level and empower them to have the necessary conversations (tell a story they can share).
- Every Situation is Unique. The best decisions are based on the understanding that all situations are unique. Take the time to understand all the aspects, including their definition of success.
Q: How can our readers get in touch with you with more questions?
A: Readers can reach out to me through various avenues, including email, phone (303.807.9165), LinkedIn, or our company website.
