Capturing The Promise Of Technology Innovation In 2002

By Kevin Murai
President, Ingram Micro North America, Executive Vice President, Ingram Micro Inc.

Throughout the history of the information technology (IT) industry, technology companies have marvelously and sometimes miraculously managed to reinvent themselves and become leaders in their markets. Industry survivors are constantly creating new innovations that process information faster and more efficiently, as well as services that render others obsolete.

The main question we are faced with in this New Year is whether or not the demand slump of 2001 will support this entrepreneurial spirit of technology innovation throughout 2002. As budgets tighten, will businesses spurn the latest bell-and-whistle products, or instead, is the economic crunch an even greater reason to integrate new technologies into daily business practices for financial cost savings and strategic gain against the competition?

I believe that over the long-term, technology innovation will continue be the catalyst for improving business automation and operating efficiency. In the short-term, however, innovation in technology services and bundled product solutions will be the mechanism for growth in 2002. Today more than ever, partners across the IT supply chain must join together to create complete technology solutions with existing and emerging technologies that can help customers improve their businesses.

To that end, the IT industry has quickly realized that pure product sales are a commodity business holding little upside in this shifting economy. In 2002, end customers will hold the keys to our successes. Their restricted budgets and operating cost constraints will drive purchasing decisions, and the IT industry must show end customers how our services and solutions can save their businesses money with improved operations.

As a result, VARs are taking on more of a consulting role, acting as conduits to enable smaller and mid-sized companies to access to the same technology solutions and services that larger companies have used to improve their bottom line performance for many years. For VARs, it is critical to develop vertical market expertise in which they are equipped to deliver a wide array of services and product solutions to build a loyal customer base.

To be successful in this services and solutions environment, VARs must rely on their larger partners, like distributors, for the training, certification and product mix to help them expand business opportunities with new technologies such as wireless networking, managed and hosted services, storage and security. Distributors will need to continue evolving their services to VARs in 2002, assisting with non-traditional business resources such as group medical, legal and financial services that make their businesses run more efficiently.

Because VARs are generally small businesses with limited resources and budgets, it may be difficult to gain access to and pursue the best strategies that render the greatest return on investment. Innovative distributors will fill this void as IT industry advisors. We must be the voice of the IT channel and bring together communities of experts for information sharing, networking and collaboration.

Through these expanded service models to VARs and technology manufacturers, IT distributors will brand their own form of innovation in 2002, evolving the business of distribution from a box-moving, product-based model to a service delivery, go-to-market strategy for the IT channel. Our value is to be the right partner for delivering products and services, as well as providing business resources that link the technology supply chain with efficient go-to-market models.

Distributors will help the channel capitalize on innovative technology solutions. Key IT solutions no longer come in boxes. Software is quickly moving to online delivery and managed services are being conveniently packaged for delivery through the channel to end customers. Distributors have a prime opportunity to aggregate and deliver these solutions as an alternative to large investment in equipment and infrastructure by other channel players.

Each channel player is uniquely positioned to capture this next phase of technology innovation as services and solutions move to the forefront. VARs hold the pulse of small and mid-sized businesses where technology services and solutions are most critical to creating greater automation and business efficiencies. IT manufacturers are the master inventors of products and services for this new age of business challenges. Distributors will ultimately redefine their value to the IT supply chain by bringing together a new breed of technology solutions and supply chain services that enable innovation throughout the IT marketplace.

Last updated: January 15, 2002