IT marketing helps IT Departments to understand and anticipate the needs of their internal customers. It also serves to promote the services that IT Departments have to offer. More than ever, in the context of digital transformationCIOs must position themselves as creators of value within their organization. Discover how torefocus CIO marketing around products in 4 key areas.
Why talk about IT marketing?
The extent to which CIOs and other departments value IT's role in corporate strategy varies widely: 46% versus 9% (source: survey Abraxio 2022). This discrepancy is often linked to a negative perception of the department in charge of IT tools, particularly in relation to its reliability.
That's why one of the answers to these problems is to refocus the IT department's offering around designed products. This approach will make it possible to respond specifically to the needs of the company and its users. However, this change requires :
- from building in successive stages to continuously creating and adapting value for the end-user;
- offer only products that make sense for the end-user. Take, for example, the evolution of computer sales. In the early days, enthusiasts bought spare parts and assembled them themselves. This practice was later replaced by package deals. A certain number of IT departments have remained within a "spare parts to assemble" vision, even though they only offer one possibility and their users are not enthusiasts wishing to assemble.
This is why the products offered by the IT department should not be focused on expertise, but on creating value for the user. This requires a transformation of the offering model, which is then reflected in the IT operating model. The products mentioned above must be created on the basis of four pillars :
- product ;
- price ;
- distribution ;
- communication.
ISD marketing must be based on an offer and product strategy that draws on the company's value chain.
First and foremost, the IT department's approach to building its offering and products must be based on the expectations of its customers. Let's take the case of two companies operating in different markets. The hosting offer of a transport company's IT department will not meet the same expectations as the hosting offer of an insurance company.
What's more, consolidating these expectations in a "Voice of the Customer" study is fundamental. This should serve to build an offering strategy consistent with the company's strategy and the expectations of customers and users.
These preliminary reflections enable us to build a strategy that highlights their competitive advantages (technological constraints, sector specificities, price expectations, etc.). To stay with the hosting example, it will be impossible to compete with a GAFA's Cloud offering on a global scale. However, differentiation will enable us to meet specific challenges.
The price of IT products must be considered as part of an overall strategy in line with the service provided
4 à 10%
This is the average worldwide increase in IT costs over the past three years.
(source: Gartner 2023)
With IT costs having risen by an average of 4% to 10% worldwide over the past 3 yearsthe subject of product pricing is often raised by functional departments.
This is why the positioning strategy must enable us to offer prices that are adapted to the value provided. This value must be compared with the market and the company's strategy for a particular product segment:
- Lower than the market, in order to support entities with a particular need or to encourage product adoption. Generally speaking, the market is also considered to be superior to the proposed product from a functional point of view.
- Aligned with the marketwhen the product meets the same standards as those on offer, with a view to mass production.
- Slightly higher, for products that stand out from the market and meet specific needs, justifying a price difference.
- Strongly superior, where the positioning of the offer and the commitments respond to strong and specific challenges, justifying a strong difference with the market.
In addition, it may also be decided to adjust prices according to the level of adoption of a solution by user entities.
Propose distribution channels aligned with the operational expectations of end-users
In order to be as close as possible to the operational expectations of their teams, most IT Departments have set up support initiatives such as IT Kiosks and remote hypercare services. Today, expectations are linked to the speed with which services are delivered, itself linked to the digital work environment and standardized digital products.
Depending on the product, an appropriate distribution strategy must be implemented:
Current physical products
Non-recurring physical income
General digital products
Specific digital products
ISD marketing also means communicating about products, but also about the ISD in the broadest sense, to change its image
Quite often, the most common focus of CIOs on marketing is communication. That's why a growing number of CIOs are implementing best market practices. These actions are designed to bring the company closer to its teams and employees. To achieve this, CIOs need to develop a culture of communication, both internally and externally, in order to change the way they are viewed and to create synergies.
Transparency and presence
- Make yourself known to other employees through targeted actions
- Ensure the transparency of its actions with regard to other businesses
"Brander
the DSI business
- Creating an identity for the IT department
- Improving the external perception of the IT Department through internal influencers
- Organize outreach events
Gain
credibility
- Adopt a proactive communication approach
- Positioning ourselves as a service provider for the trades
- Communicating project successes
Enhancing the role of the IT department
- Highlighting the activity and role of teams
- Emphasize management's role as initiator of value-added projects
Organizational adaptation must go hand in hand with IT department marketing
In conclusion, without being a complete solution, carrying out a review of the IT department's offering and overhauling its marketing will enable it to meet many of its partners' expectations. What's more, these transformations will have a major impact on the IT Department's image. Finally, these actions will also create significant operational gains, notably in terms of :
- d'agility agility,
- innovation,
- price cuts,
- alignment with functional and image expectations,
- the strategic role of the IT Department.
This means that the new products will, in essence, meet broader needs than the expertise previously highlighted in IT service catalogs. As mentioned above, the application of the product mix will also rely on adapting the operating model around product teams.
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