Abstract
This IDC study assesses the market opportunities and challenges for adoption
and implementation of productization in a service environment, as well as its
impact on the small and medium-sized business (SMB) segment. It questions the
fundamental ideas and assumptions that prevail in the market today, while it
engages in the SMB space and provides analysis and critic on the productization
concept. This study also analyzes the impact of productization in the industry,
as well as the new models that can help drive the bottom-line growth for
vendors. It explores the strategic elements around change, transformation,
innovation, and channel management.
"The key questions answered in this study include: (1) How is the buying
behavior of the SMBs evolving?, (2) Why is productization relevant in the SMB
context?, (3) What are the vendor strategies?, and (4) How can productization
impact the bottom line? Productization should be the preferred route for large
service vendors to address the SMB segment because it holds strong prospects
for better profitability and sustainable competitive advantage. However, there
is a caution that productization is not the panacea. Modularization of people,
processes, and technology into assets, as well as their integration and profit
and loss (P/L) ownership, will determine the level of success of a
productization strategy," says Mayur Sahni, senior market analyst, IT Services
Opportunities Research, IDC Asia Pacific.
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