Opportunity Analysis & Forecasting

IPR’s world class Market Intelligence and Forecasting systems bring you “as close to the truth as you can get”.

Over the last thirty years, IPR has worked closely with virtually all of the world’s leading IT companies on market opportunity projects, enhancing each client’s ability to understand the markets they operate in; their place in these markets; and ways in which these markets may change over time – for better or worse. The insights gained through these engagements have enabled our clients to develop fact-based business plans (which include the setting of short-term sales objectives), incentive-based executive compensation plans, and long-term strategic investment plans.

To compete effectively in today’s marketplace, the successful company cannot depend solely on selling a superior technology; short-lived technology advantages are no substitute for long-term market insight. Globalization hasn’t created a single worldwide market – instead it is forcing an understanding of many local markets. Perceptions held by buyers of IT products and services have changed, such that “the next big thing” pales in significance to the ebb and flow of corporate budgets dictated by the many linked business cycles.

As a trusted partner, we have worked with industry leaders to navigate the ever-changing landscape while focusing on identifying the evolving IT market trends across IT Hardware, Software, Services and Solutions categories, including Cloud Computing, Social Media, Mobility, Analytics, and the IoT.

Successful achievement of a world-class strategic planning system is a journey that requires both a collective vision and supporting infrastructure:

Collective Vision:

  1. Commitment: Secure Executive Sponsorship/Team Buy-In, Align w/Business Planning
  2. Cooperation: Identify Stakeholder Needs & Resources, Define Governance Structure
  3. Communication: Specify Process, Define Clear Roles & Responsibilities
  4. Collaboration: Leverage Internal Knowledge + External Experience
  5. Continuous Adaptation: Change Process, Segmentation, Organization

Supporting Infrastructure:

  1. Process: Inputs/Outputs, Stakeholder Review, Collaboration, Governance, Cadence/Timing
  2. Tools: Market Models, Analytical Techniques, Analytical Software, Scenario Planning Capability
  3. Data Sources: Holistic Information System, Primary/Secondary Research, CI
  4. Internal Resources: Planning/MI/CI/Market Research skills, SME Knowledge Base, BU Focal Points

 

How Does IPR Do It?

To meet the complex analytical needs of our clients, IPR has developed a rich toolkit of market modeling techniques. These techniques enable us to address our clients’ business questions, which include forecasting future trends and drilling into specific cross-sections of the market to identify key growth opportunities by product category, industry, size of business, and/or geography, to name a few examples.

IPR has invested heavily in a key software tool to satisfy the market opportunity sizing needs of our clients. This unique software, ISPS, has been crafted over many years. ISPS allows IPR and our clients to construct sophisticated market models that capture the dynamics of the markets in which they operate.

A client typically has many sources of information (such as economic forecasts, end-user surveys, measures of channel activity, estimates of competitive sales, data from industry associations, and company sales figures); these sources are often conflicting and almost always incomplete.

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In fact, our clients are increasingly asking IPR to develop models that estimate demand in markets for which there may be very limited information available. IPR has many years of experience with integrating and rationalizing most of the relevant sources of information measuring the IT industry, and in conducting original research and applying sophisticated modeling techniques to “fill the gaps” in areas for which external data does not provide adequate coverage.

Find out more about IPR’s Opportunity Analysis and Forecasting capabilities.

Benefits of Working with IPR

  • Customized engagements: Each engagement is unique and IPR has built a rich toolkit to tackle a variety of business questions. Our bespoke engagements often develop into longer-term partnerships as our clients value IPR’s highly adaptable market analytics capabilities
  • IPR is a trusted advisor with an outside perspective: We have 30+ years of IT industry experience, working with industry leaders to navigate ever-changing landscape
  • IPR utilizes a data-driven approach: We employ rigorous analysis to enable well-informed business decisions.
  • IPR delivers logical and objective results: Clients feel confident using IPR results and recommendations.  Our logic is transparent – there is no black box.

IPR’s Competitive Advantage

  • IPR’s analytics capability enables us to interpret all information available to the client and deliver actionable insights to support our clients’ strategic planning needs.
  • IPR has many years of experience designing customized analytical frameworks that enable our clients to answer challenging business planning questions.
  • Our methodologies are logic-based and tailored to the specific business question at hand, providing consistency and transparency.
  • All IPR engagements are bespoke and proprietary – we have no syndicated data that we need to sell, allowing us to focus on providing our clients with objective insight into rapidly evolving market dynamics.
  • IPR is considered a trusted partner by many of the world’s top IT companies.
  • IPR is able to transform the data vendors’ segmentation to the client’s view of the market, and move from a supply side-driven view to a demand side-based understanding of underlying market potential.
  • Our methodology ensures that all estimates are reconciled across categories and time.

Examples of IT Market Sizing/Forecasting Model Specifications

Customer segment:

  • Industry (mapping of Standard Industrial Classification codes).
  • Establishment or enterprise size (number of employees).
  • Occupation (mapping of Standard Occupational Classification codes).
  • Government type (national vs. state and local).
  • Education type (K-12 vs. higher education).
  • Home (by income class, education, IT activity).
  • Geography (region, country, state, Metropolitan Statistical Area/MSA, county).

Product segment:

  • Hardware (PCs by form factor; servers by price class, operating system; printers by technology; storage units by capacity, smartphones and tablets by device type, etc.).
  • Software (middleware category, application category, hardware operating system, software operating environment).
  • Services (professional services category, support services category). 

Distribution channel: Direct, value added reseller/VAR, retail by store type, mail order, etc.

Time frame: Calendar year, company fiscal year, quarter, month.

IPR’s IT Data Source Experience

IPR has developed expertise in analyzing and interpreting many types of data, including primary and secondary research, syndicated programs, vendor reporting, economic/demographic data, and internal client data:

Economics/demographics

End-user information

  • Syndicated programs (Harte-Hanks, AMI, TUP, IDC, etc.).
  • Proprietary efforts funded by the client.

Channel information

  • Syndicated programs (NPD, GfK, etc.).

Supply side information

  • Syndicated programs (IDC, Datamonitor, Forrester, Input, etc.).
  • Industry association data-pooling programs (AMSC, LAMSC, EMS, APMSC, etc.).
  • Analyst reports (Goldman Sachs, Merrill Lynch, etc.).
  • Company actuals.

Case Study – IT company

IPR has worked closely with one of the world’s leading IT companies for over twenty years to help guide its transition through a number of market and economic cycles. Our engagement with this client has undergone numerous structural and process changes over the years to keep up with the changing market landscape, acquisitions/divestitures, and client requirements; IPR has been an integral part of the client’s opportunity analysis function thru countless organizational and personnel changes.

Market opportunity estimates developed by IPR are used by the client for quarterly performance evaluation, setting annual revenue targets and budgets, establishing strategic plans, investment decisions, and communications with external communities. Estimates are typically updated on a quarterly or semi-annual basis, according to specifications and definitions that are customized to address the client’s requirements. Detail typically reflected in the estimates includes IT spending by hardware/software/services category, solutions category, country, vertical market, company size, price class, operating system, and/or vendor.

The process used in the development of the estimates is collaborative, but IPR is the final arbiter. We work closely with the client’s business unit representatives and subject matter experts to develop major assumptions, key drivers/inhibitors, and (in some cases) the estimates themselves. A formalized quality assurance process enables client stakeholders to have a “day in court” to voice issues/concerns with the estimates. Our expertise in data integration and market modeling – combined with the seasoned judgment of IPR analysts and client inputs – enables the development of estimates that are “as close to the truth as you can get”.

Case Study – Financial Services Company

IPR has worked with a large financial services company to help it understand better the dynamic global and U.S. consumer financial services markets. Over the course of this engagement, IPR became an integral part of the client’s business intelligence function thru several organizational and personnel changes.

IPR’s access to global financial data/trends/analysis and its ability to intelligently integrate this information in a holistic manner served to increase the client’s ability to compete in all regions and markets. Detail reflected in the estimates provided by IPR included consumer financial services product flows by source region, destination region, product, and vendor.

The process was interactive, with IPR serving as an integral part of the team. IPR built strong and trusted relationships with the key stakeholders to create a “seamless” customer/supplier experience. The objectivity provided by IPR as an “outside party looking-in” allowed for realistic and non-biased feedback to best analyze opportunities and problem areas. The resulting estimates reflected IPR’s expertise in data integration and market modeling, the application of state-of-the-art analytical methodologies, seasoned judgment of IPR analysts, and client inputs.