The Evolution of Analyst Firms – Part 1

As organizations look to analyst firms for guidance often little is offered. Analyst firms of today just validate a decision you have already made and comment on market conditions . As Dennis Howlett says in his post it is time re-evaluate The future of the IT Analyst Game
It is time for analyst firms to evolve their business models and add value to the organizations that are looking for more than to validate an already made decision.  One of the problems with Analyst firms today is they comment and research technology which is useful but it must also be coupled with valuable business insight and real world experience.  The real world experience plays an important part especially by bringing actual project management and product expertise which they are very knowledgeable about which can offer advice and counsel of what to look out for during selections, negotiations and even implementations.

Many of the Analyst firms today are based on the 80/20 model of which 80% of revenue comes from vendors while only 20% comes from organizations.  Analyst firms need real products and services so that the customers they do have can derive valuable information towards things like pricing negotiation, project pitfalls, project planning and implementation experience to draw upon when counseling end users.  As a Business Architect and Business Analyst and Project Manager with real world experience we are the new breed of Analyst/Consulting firm.

At Eval-Source we not only add value to the customer through strategic consulting if they would like but combine the business knowledge with technology solutions that solve what the organizations was originally looking for.  Guidance with business expertise coupled with technology experience mixed in to steer the company to the best possible outcome whether it’s for software evaluation, benchmarking, investment evaluation, outsourced procurement or any other services that they are capable of offering. Our buy-side advocacy ensures that organizations get the best value for the consulting they pay for with real qualitative actionable results.  These expertise have resulted in tangible products for organizations to gain from our experiences that drive immediate value.  We will also be introducing evaluation consulting catered towards the SMB market specifically to allow them to get the best value for their money and the best solution for their company.

Now that Gartner has acquired AMR and gained quality supply chain expertise in the process will they be able to translate that to a changing business model that targets organizations ?  Are organizations devaluing the Gartner recommendations as the pay to play model is being closely examined by companies and not finding much value in the magic quadrant as suggested?   Will there be further consolidation in the Analyst market to force organizations that will only be left with one source to purchase research ?

We will have to see where the market will eventually evolve to, however the new breed of Consulting/Analyst firms should take note and try adapt by possibly being ready for what may become a more end-user oriented arena.  Analysts such as Ray Wang at Constellation Group, Dennis Howlett, Vinnie the Deal Architect, are all ERP advocates for the customer side, is this the new trend that will become the new model.  With the ERP advocates gaining steam we are changing the dynamic of software is bought and sold so that there is a win-win for everyone involved. Disruptive technology even with Social Media is now even changing faster than before.  As software changes these firms must stay apprised of technology trends and how the market is evolving.  It is not only understanding the features and functions but where in the big picture these new technologies fit and how they can bring value to a company within its “big picture” initiatives.