Gartner Research Methodologies

Agenda

In this module we will cover the following topics:

1. Gartner Research methodologies defined and described

2. How our research methodologies provide client value

3. How Gartner research methodologies differentiate Gartner from the competition

4. How to use research methodologies in the sales process

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Definition

“Research Methodologies” [n]:

Proprietary research constructs that effectively

organize and convey information

critical to key IT investment decisions

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Types of Research Methodologies

Magic Quadrants

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Market Scopes Hype Cycles

Vendor Ratings Market Forecasts Market Share

Common Features

Easy to understand visual summaries

Based on detailed analysis

Developed based on extensive testing

Regularly reviewed for ease of use and applicability to clients

Continually refined to meet evolving client needs

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Common Features

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Newer Methodologies have same common features

Critical Capabilities SWOT IT Market Clock

Depth of Research

Clients like simplicity of these reports.

Appearance of simplicity masks the rigorous research needed to generate each report we create.

Reports are based on thorough, careful analysis of a great deal of information.

Make sure your clients understand the unparalleled analyst expertise and depth of analysis that goes into each report.

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Research Processes Behind Methodologies

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Qualitative Insight Research

Quantitative Market Research

Magic Quadrants

MarketScopes

Hype Cycles VendorRatings

MarketForecasts

MarketShare

Magic Quadrants

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Magic Quadrants answer the question:Magic Quadrants answer the question:

““Which technology provider is the Which technology provider is the best partner for my needs?”best partner for my needs?”

Magic Quadrants

Graphical strategic planning models

Position providers based on:

“Ability to Execute”

“Completeness of Vision”

Market specific

Published for over 20 years

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Magic Quadrants

Completeness of Vision- How well providers understand

the future

- Innovation, strategy, business model, match with Gartner’s view.

Ability to Execute- Assessment of operations

- Viability, marketing execution, product development, sales channels, customer experience

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Magic Quadrants

Analysts compile information from:

• Providers

• Clients

• Partners

• Competitors

• Reference checks

• Gartner’s extensive knowledge

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Magic Quadrants Sources

Providers are placed into one of

four “quadrants”:

• Leaders

• Challengers

• Niche players

• Visionaries

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Magic Quadrant: Leaders

High “Ability to Execute” and “Completeness of Vision”

Strong Companies

Satisfied Customer base

More resources

Value-priced

Focused on broadest market

Size and Strength in challenging environment

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Magic Quadrant: Challengers

High “Ability to Execute”

Lower “Completeness of Vision”

No clear idea of market future

Weaker plan for future success

Must develop their vision

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Magic Quadrant: Niche Players

Low “Ability to Execute” and “Completeness of Vision”

Narrow Focus

Less capability or strategic narrow focus

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Magic Quadrant: Visionaries

Low “Ability to Execute”

High “Completeness of Vision”

Vision aligns with Gartner’s market views

Do not have proven capabilities

Often first to introduce new technology

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Magic Quadrant: Interactive

Clients can review the analysis on other providers in the market

Provide individual company analysis in lists of strengths and cautions

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Magic Quadrant: Interactive

Magic Quadrant for Application Delivery Products

When we select Cisco Systems, provider analysis is presented in “strengths” and “cautions”

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Magic Quadrant: Example

Global Enterprise Notebook PCs

Very important to largest clients

Clients use this report to make purchasing decisions

Dell, HP, Lenovo are high in the Leaders quadrant

Fujitsu/Siemens and Toshiba are high on “Completeness of Vision”

Apple and Panasonic are niche players

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Magic Quadrant: Interactive

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Magic Quadrant: Interactive

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Magic Quadrants: Summary

Help end-user clients decide on the best technology provider to meet their needs

Help clients understand their position in the competitive landscape

Help clients make more informed investment decisions.

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Magic Quadrant vs Forrester Wave

• Gartner has produced 5 times of Magic Quadrant than Forrester Wave

• Gartner holds 6 times the number of vendor briefings as Forrester.

• Gartner uses many more data sources to develop Magic Quadrants, which result in more objective analyses.

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Gartner Advantages:

Magic Quadrant vs Forrester Wave

• Forrester outsources their product analysis

• They do not directly control an important data source

• Forrester analysis lacks objectivity

• Relies primarily on inputs from providers who are being evaluated

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Forrester Wave disadvantage:

MarketScopes

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MarketScopes answer the question:MarketScopes answer the question:

““Which technology providers in a new or mature Which technology providers in a new or mature market are the best match for my needs?”market are the best match for my needs?”

MarketScopes

MarketScopes evaluate providers in a specific market space

Magic Quadrants are used in the prime of the market cycle

MarketScopes are used early or late in a market’s evolution

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MarketScopes

MarketScopes help clients understand technology provider options

Rates providers in a limited number of categories

Provide insight into company’s performance against Gartner’s vision for the market

Evaluate the market itself in terms of maturity and long-term viability

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MarketScopes: Example 1

E-mail Systems

The strongest providers is Microsoft

Use caution when considering Open-Xchange

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Benefits of MarketScopes

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Help select the best partners in new or mature markets

Show position and the competitive landscape

Show benefits and risk investing in new or mature markets

Benefits of MarketScopes

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Only Gartner provides this assessment

The only widely used methodology focused on comparing providers in emerging and mature markets

The only methodology that rates the market itself

Hype Cycle

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Hype Cycles answer the question:Hype Cycles answer the question:

““How is this technology going to evolve?”How is this technology going to evolve?”

The Hype Cycle

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Predicts the lifecycle for emerging technologies

Evaluates: Visibility and Maturity

The Hype Cycle is based on five stages.

The Hype Cycle: Technology Trigger

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Technology Trigger

New product or technology is introduced.

Commercial viability is unproven

New technology generates inflated expectations and unrealistic projections

The Hype Cycle: Peak of Inflated Expectations

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Peak of Inflated Expectation

Few successes with technology and many failures

The Hype Cycle: Trough of Disillusionment

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Trough of Disillusionment

Technology has entered mainstream and there is little media attention

Technology only continues if they improve their products

The Hype Cycle: Slope of Enlightenment

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Slope of

Enlightenment

Technology is understood and can be applied

Second- and third-generation products appear

Few remaining bugs to be worked out

The Hype Cycle: Plateau of Productivity

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Plateau of Productivity

Benefits of the technology are accepted

Technology has been adopted by most enterprises

Broad market applicability

The Hype Cycle

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The Hype Cycle: Prediction of Time

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Predicts from “less than two years” to “More than ten years.

Predictions are designated by the shape and pinpoints the hype cycle location

The Hype Cycle: Prediction of Time

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Embedded Cellular Data is moving up the Slope of Enlightenment

It is predicted to be less than two years away from mainstream adoption

The Hype Cycle: Priority Matrix

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Predicts the potential benefit resulting from the technology.

Benefits: Transformational technologies, high and moderate ratings, low benefit rating

Anticipated years to mainstream adoption of the technology.

Priority Matrix: Example

HVDs are predicted to have high benefits to organizations in less than two years

“PC Application-Streaming Technologies” and “PC Virtualization Software” show a longer time before mainstream adoption

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The Hype Cycle: Summary

Help clients to implement new and existing technologies

Help clients get a look into the future to inform product development strategy and investment decisions

Provide insight for marketing messages

Help investment professionals determine which companies are best positioned to benefit from IT trends

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The Hype Cycle: Summary

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A key research methodology that helps differentiate Gartner from others

Gartner provides clients with objective assessments

Vendor Ratings

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Vendor Ratings answer the question:Vendor Ratings answer the question:

““How healthy is a specific How healthy is a specific technology provider organization?”technology provider organization?”

Vendor Ratings

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Rates the provider’s overall corporate financials, organization, management, marketing strategies, and support

Based on assessment of the provider’s strategy and ability to deliver for a product or service.

Vendor Ratings: 5 Point Scale

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Vendor Ratings: Example

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Vendor Ratings: Summary

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Help assess provider’s health, capabilities and markets and services

Provide key support for provider’s purchase and renewal decisions

Companies can see their own perceived strengths and weaknesses, and the strengths and weaknesses of their competitors and suppliers

Help investment professionals make decisions and manage risks

Vendor Ratings Competition

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Gartner looks at the provider as a whole, and not just at a product, division, or subsidiary

Forrester’s Vendor Scorecard evaluates a company only in terms of a particular product

Newer Methodologies

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Critical Capabilities SWOT IT Market Clock

Critical Capabilities

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Critical Capabilities answer the question:Critical Capabilities answer the question:

““Which are the most important product features Which are the most important product features I should consider, and which vendors match I should consider, and which vendors match my needs in the provision of those features?”my needs in the provision of those features?”

Critical Capabilities

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Identifies features of a product or service that differentiate it

Rates each of the products only on those features

Uses weight to classify its importance to the evaluation of the product as a whole

The weights always total 100 percent

Critical Capabilities

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Each product is rated on a scale of one to five

A product viability score is given, assessing a product’s Strategy, Support, Execution, and investment from the vendor

Viability is also rated

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SWOT analysis answer the question:SWOT analysis answer the question:

““Which key strengths and weaknesses should Which key strengths and weaknesses should I focus on, to improve my competitiveness”I focus on, to improve my competitiveness”

SWOT Analysis

SWOT Analysis

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SWOT analysis is created by assessing a provider in the following categories:

•Company or Market

•Product or Service Offerings

•Finance

•Operations

Analysts review and weight each category, then assign to the vendor

The analysis show technology provider where they should focus its attention

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IT Market Clocks answer the question:IT Market Clocks answer the question:

““How should I manage the replacement of How should I manage the replacement of all the products I have?”all the products I have?”

IT Market Clock

IT Market Clock

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IT Market Clock uses a clock graphic to show the position of a product

Allows clients to choose a product replacement strategy

Level of customization is important

IT Market Clock tells clients the optimum time to upgrade

IT Market Clock

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Products or assets are rated in 4 areas

•Level of standardization

•Level of supplier choice

•Ease of access to appropriate skills

•Position in its market life

Helps clients decide when the time is right to implement their plans

Aggressive adopters will make investment before four o’clock

Conservative adopters will be likely to invest between 7 and 9 o’clock

IT Market Clock

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Quantitative Market Research

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Quantitative Market Research

MarketShare

MarketForecast

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Market Shares answer the question:Market Shares answer the question:

““How does my market share compare How does my market share compare to that of the competition?”to that of the competition?”

Market Share

Market Share

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Market Share combines primary survey and secondary source data

Multiple data points ensure the reports are objective and accurately quantify the market

Market Share data is updated quarterly

Market Share: Example

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Five major IT Services providers hadrevenue decline

HP and Accenture have the largest declines at 10.4% and 11.8%

Market Share: Benefits

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Help understand the competitive landscape

Help reduce investment risk

Help investment professionals identify the market leaders

Technology-user firms and technology executive clients typically do not use Market Share

Market Share: Benefits

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Gartner uses primary and secondary surveys to support Market Share data

Gartner cross-checks and validates multiple data points

IDC lacks end-user data points require to validate information

Market Share provides validated data

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Market Forecasts answer the question:Market Forecasts answer the question:

““Where is this market heading?”Where is this market heading?”

Market Forecasts

Market Forecasts

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Provide a view into the future by providing at least 2 years of historical data and projections five years into the future

Predict future growth or reduction for a market

Most Market Forecasts are updated annually

Market Forecasts: Example

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Growth is projected by market segment, not by company

There is a projected increase 19% growth in mobile PC production

Increased production of Notebook PCs of 32.3%

Market Forecasts: Benefits

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Help technology provider companies and professional services firms plan where to focus their development and marketing resources

Help investment professionals where to invest

Market Forecasts: Benefits

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Help inform forecasts and understand buyer trends and user spending

Quantitative and qualitative analyst approach

Gartner research communities understands what will drive and inhibit market growth

Market Forecasts: Competition

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IDC provides data taken directly from technology provider, with no end-user or demand source validation

Only Gartner provides multi-source, validated data

Benefits of Key Research Methodologies

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Gartner research methodologies help clients understand the past, assess the present, and predict the future

Benefits of Key Research Methodologies

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Gartner research has proven to be accurate, insightful and verifiable

Helps clients reduce the decision-making process

Provide clients confidence to make complex decisions

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How can research methodologies help you in the sales process?

Use Gartner methodologies differentiate from competitors

Learn your client’s business concerns and walk them through a relevant methodology report

Show how analysis can help them reach the right decision

Research methodologies are a great tool to better understand your prospect

Sales Process

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Gartner proprietary methodologies provide unparalleled client value

Forrester does sell IT research, but they provide a fraction of the value of Gartner

Gartner has unmatched breadth and depth of coverage that our competitors do not come close to matching

Gartner Research Advantages

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Gartner Research Methodologies

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