Time for the consumer of technology to grow a pair

Nov. 30, 2010 - PRLog -- This, in itself, is not necessarily an issue. But when this consciousness blinds one to the potential value of alternative product, it is a major problem.

The issue here is that when acquiring technology, consumers often seem to discard their discerning sense of judgment and simply go with a brand they recognise. This familiarity equates to a ‘safe’ choice for consumers.

However, in reality, this is a decision that costs local consumers millions per year.

When it comes to the procurement, integration and application of technology, the time has now arrived for consumers to seriously consider whether or not there is genuine value in known brands.

Try to remember what made the specific brand famous in the first place and ask the question – is that what is being purchased? Or, is it just another product that was either acquired or manufactured to capture another portion of the market?  Is this not a desperate attempt to stay alive in a tough competitive market?

We see this on a regular basis where vendors simply venture into a new market and actually pull it off.  They manage to break into new markets simply by flaunting their names/brands.

Slap a brand on a networking switch and there is a long queue of South African consumers with large networks standing, ready to invest. Invest into a seemingly good / reliable product.  The cleverly written datasheet matches the competition, so one would expect it to live up to expectations, right?  Wrong.

A number of tests have proven that the equipment simply does not shape up.  The use of low cost chipsets allows them to sell it at a more competitive rate, but the product cannot perform at the level manufacturers claim, especially not under load.  But, the product is a known brand and therefore represents a ‘safe’ decision and this offer is accepted by 99% of the South African market.

This cowardly approach by IT procurement decision makers allows them to make safe choice to cover their bases and ensure passage on the ‘gravy train’.  These people should be fired on the spot, if only for having a lack of foresight and ultimately costing their company millions, on cost of ownership and performance loss over time.

Would-be investors MUST adopt a more vigilant approach to decision making and determine whether that brand has a track record of reliability and known expertise in the area of technology in which they are trading.

Technology, key to economic growth

The Information communication technology and digital lifestyle markets are major contributors to socio-economic development in South Africa.

The network segment is also growing in complexity. The advent of global trends such as cloud computing, virtualisation and managed service and support, continue to change the dynamics of this environment and the important role it plays in business.

These are ultra-competitive areas that are driven by innovation and the demand for operators to be flexible, multi-skilled and ahead of trends

In order to meet this demand and remain competitive, operators within the ICT supply Channel delve into a number of different areas of commerce - other than what they have demonstrable and proven competency in.

For example there are operators that are known for their network infrastructure and solutions that are now launching cellular and mobile products. There are cellular or telecommunication service providers that are developing and launching personal computers and peripheral devices.

The market features established providers of electronics and consumables that are now developing computing solutions, or producers of ‘white goods’ that are now delving into ICT and digital lifestyle product manufacture and supply.

The extent to which a company will expand its offering or enter into new markets to elevate profiles is incredible. A well known printing company now offers switching and server solutions!

It is not hard to find other examples of how companies and established brands have ventured into unchartered waters as far as trade and commerce is concerned. Whilst many have failed, the South African consumer has always been ready to bail them out by continuing to purchase the new offerings and support their business.

A key characteristic of the local market is that technology vendors have established brands and, in the eyes of consumers, these are ‘safe’ choices. The rationale adopted is that if a brand has worked over the years and has a proven track record in one area, it will have the same results and reliability in another.

However the reality is that because a company has expertise and a thorough understanding of one market segment or various areas of a market, does not necessarily mean they can apply the same level in another.

A company that has earned a reputation for its quality and service in vehicle manufacture cannot necessarily do the same if they decided to go into security solutions production for example.

An alternative perspective

It is really time for the consumer or would-be investor in technology to take a step back and not be blinded by a brand name. Try to solicit as much information about a product or service and consider these facts before making a decision.  Rely on testing forums, preferably that which is not sponsored or paid for by the vendor.

In as much as it is true that established brands are often first-choice amongst consumers, the fact is that there are instances where, by comparison, alternative emerging brands have an even more established track record and level of success.

They can be of even greater benefit to the user.

This is because, in many instances, these alternative brands are developed and introduced by companies with the expertise required to operate in specific areas in which other established brands are simply ‘trying their hand’.

In addition alternative emerging brands have the required connections with support services, suppliers and other key role players within the channel to ensure that they can provide the level of quality and quantity.

This means that they have the resources to offer a more focused approach to service delivery and customer satisfaction. Other benefits include uncomplicated channels of communication and user-friendly warranty systems.

There are less known emerging brands that have introduced campaigns to highlight strengths and future offerings, and have the technology to back it up.  This has taken place long before established brands copped on to this strategy and used the same tactic, claiming it as their own.

Effectively the nature of business in today’s market and the need to keep up with technology means that would-be investors in products tend to adopt a ‘sheep-like’ approach and simply follow what others have done, or what they have done in the past.

Our contention is that this is not the best approach to take.  It now has really become critical to be more open-minded about the value of emerging and alternative trends.