About INPUT i INPUT provides planning information, analysis, and recommendations to managers and executives in the information processing industries. Through market research, technology forecasting, and competitive analysis, INPUT supports client management in making informed decisions. Continuous-information advisory services, proprietary research/ consulting, merger/acquisition assistance, and multiclient studies are provided to users and vendors of information systems and services (software, processing services, turnkey systems, systems integration, professional services, communications, systems/software maintenance and support). Many of INPUT'S professional staff members have more than 20 years' experience in their areas of specialization. Most have held senior management positions in operations, marketing, or planning. This expertise enables INPUT to supply practical solutions to complex business problems. Formed as a privately held corporation in 1974, INPUT has become a leading international research and consulting firm. Clients include more than 100 of the world's largest and most technically advanced companies. INPUT OFFICES North America International San Francisco London 1280 Villa Street Piccadilly Flouse CA Mountain View, 94041-1194 33/37 Regent Street Tel. (415) 961-3300 London SW1Y 4NF, England Fax (415) 961-3966 Tel. (071) 493-9335 Fax (071) 629-0179 New Paris York 52, boulevard de Sebastopol Atrium at Glenpointe 75003 Paris, France 400 Frank W. Burr Boulevard Tel. (33-1) 42 77 42 77 Fax (33-1) 42 77 85 82 Teaneck, NJ 07666 Tel. (201) 801-0050 Frankfurt Fax (201) 801-0441 Sudetenstrasse 9 D-6306 Langgons-Niederkleen, Germany Washington, D.C. Tel. (0) 6447-7229 Fax (0) 6447-7327 1953 Gallows Road, Suite 560 Tokyo VA Vienna, 22182 Saida Building Tel. (703) 847-6870 4-6, Kanda Sakuma-cho Fax (703) 847-6872 Chiyoda-ku, Tokyo 101, Japan Tel. (03) 3864-0531 Fax (03) 3864-4114 12/90 0GG053 MARCH 19 9 1 WESTERN EUROPE SYSTEMS OPERATIONS USER ISSUES 1990-1995 INPUT* Piccadilly House 33/37 Regent Street, London SW1Y 4NF 071-493-9335 WESTERN EUROPE, SYSTEMS OPERATIONS USER ISSUES, 1990-1995 INPUT Researched by INPUT Piccadilly House 33/37 Regent Street, London SW1Y 4NF England Published by INPUT 1280 Villa Street Mountain View, CA 94041-1194 U.S.A. — Systems Management Programme Europe Western Europe Systems Operations Userlssues, 1990-1995 Copyright ©1991 by INPUT. All rights reserved. Printed in the United States of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in adata base orretrieval system, withoutthe prior written permission of the publisher. SESUO- 566* 1990 WESTERN EUROPE, SYSTEMS OPERATIONS USER ISSUES, 1990-1995 INPUT Abstract This report evaluates the buying process within the Western European systems operations market. It discusses the driving forces which lead users to adopt systems operations, and identifies the major market seg- ments within the systems operations market. For each market segment, the user’s motivations for adopting systems operations and their vendor selection criteria are identified. The positioning of professional services vendors, management consultancies, and major equipment vendors is evaluated in the light of these criteria, and the most appropriate market segment for each group to target is identified. Levels of user satisfaction and possible vendor switching criteria are also discussed. SESUO ©1991 by INPUT. ReproductionProhibited. Digitized by the Internet Archive 2015 in https://archive.org/details/westerneuropesys5661unse WESTERN EUROPE, SYSTEMS OPERATIONS USER ISSUES, 1990-1995 INPUT Table of Contents Introduction 1 A. Objectives 1 B. Scope 1 C. Methodology 2 D. Report Structure 2 Executive Overview 3 A. Users Reluctant to Consider New Market Entrants 3 B. Market Segmentation 4 C. Vendor Selection Criteria 7 D. Switching Criteria 9 E. Vendor Positioning 12 m The Buying Process 15 A. Pressures for Adopting Systems Operations 15 B. Types of Systems Operations Service 19 1. Market Segmentation 19 2. Operations Management 21 3. Transition Management 22 4 Complete Systems Operations 23 . 5 Public Sector Issues 24 . C. Purchasing Criteria 25 1. Overall Criteria 25 2. Operations Management and Transition Management 27 3. Complete Systems Operations 29 D. Perceived Suitability of Vendors 30 1. Overall Suitability by Vendor Type 30 2. Perceptions of Management Consultancies 31 3. Perceptions of Major Equipment Vendors 32 SESUO © 1991 by INPUT. Reproduction Prohibited. 1 WESTERN EUROPE, SYSTEMS OPERATIONS USER ISSUES, 1990-1995 INPUT Table of Contents (Continued) E. User Satisfaction 33 1. Overall Level of Satisfaction 33 2. Causes of Satisfaction 34 3 Causes of Dissatisfaction 35 . 4 Switching Criteria 36 . 5. Inhibitors to Systems Operations 38 IV Implications for Vendors 41 A. Introduction 41 B. Operations Management 42 C. Transition Management 43 D. Complete System Operations 44 Appendixes A. Definition of Terms 45 A. Overall Definitions and Analytical Framework 45 B. Industry Structure and Delivery Modes 48 INPUT B. Related Reports 53 — C. User Questionnaire Systems Operations 55 •u• ©1991 by INPUT. Reproduction Prohibited. SESUO 1 WESTERN EUROPE, SYSTEMS OPERATIONS USER ISSUES, 1990-1995 INPUT Exhibits — -1 Western European Systems Operations 4 Market Segmentation -2 Western Euro—pean Systems Operations, Operations 5 Management Reasons for Use -3 Western European Systems Operations, Transition 6 — Management Reasons for Use -4 Western European S—ystems Operations, Complete 7 Systems Operations Reasons for Use — -5 Western European Systems Operations Vendor 8 Selection Criteria: Operations Management and Transition Management — -6 Western European Systems Operations Vendor 9 Selection Criteria: Complete Systems Operations — -7 Western European Systems Operations 10 User Switching Criteria — -8 Western European Systems Operations Causes of 1 User Satisfaction/Dissatisfaction — -9 Western European Systems Operations 12 Positioning of Vendors — -1 Western European Systems Operations User Pressures 15 Leading to Use of Systems Operations — -2 Western European Systems Operations Principal 17 Reasons for Adoption — -3 Western European Systems Operations 20 Types of Service — -4 Western European Systems Operations Principal 21 Reasons for Adopting Operations Management — -5 Western European Systems Operations Principal 22 Reasons for Adopting Transition Management — -6 Western European Systems Operations Principal 23 Reasons for Adopting Complete Systems Operations — -7 Western European Systems Operations Reasons for 24 Adoption: Differences Between Public and Private Sectors SESUO © 1991 by INPUT. Reproduction Prohibited. Ill WESTERN EUROPE, SYSTEMS OPERATIONS USER ISSUES, 1990-1995 INPUT Exhibits (Continued) — -8 Western European Systems Operations Major Reasons 25 for Selection of Vendors — -9 Western European Systems Operations Major Factors in 27 Choice of Vendor — -10 Western European Systems Operations Major Factors in 28 — Vendor Choice Operations Management — -11 Western European Systems Operations Major Factors in 28 — Vendor Choice Transition Management — -12 Western European Systems Operations Major Factors in 29 — Vendor Choice Complete Systems Operations — -13 Western European Systems Operations Overall Suitability of 30 Vendor Types — -14 Western European Systems Operations Perceived Suitability 31 by Market Segment — -15 Western European Systems Operations Doubts of Suitability 32 of Management Consultancies — -16 Western European Systems Operations Doubts of Suitability 33 of Major Equipment Vendors — -17 Western European Systems Operations Level of Satisfaction 34 with Service Received — -18 Western European Systems Operations Causes of Satisfaction 35 — -19 Western European Systems Operations Major Reasons for 35 Dissatisfaction — -20 Western European Systems Operations Length of Contracts 36 — -21 Western European Systems Operations User Switching 37 Criteria at End of Contract — -22 Western European Systems Operations Inhibitors to Systems 38 Operations — IV -1 Western European Systems Operations Operations 42 — Management Positioning of Vendors — -2 Western European Systems Operations Transition 43 — Management Positioning of Vendors — -3 Western European Systems Operations Complete Systems 44 — Operations Positioning of Vendors IV ©1991 by INPUT. ReproductionProhibited. SESUO