Resource Regions: Central and Eastern Europe

The European cybersecurity landscape is evolving at an unprecedented pace, driven by an increase in cyberthreats, stricter data privacy and GDPR compliance, and the widespread adoption of cloud technologies.

For security vendors, this dynamic environment presents a unique set of challenges and opportunities. A well-defined cybersecurity strategy tailored to the specific needs of European businesses is crucial for success.

Cloud Security: Compliance and Differentiation

As cloud adoption continues to rise, so too does the need for robust cloud security measures. A strong cloud security positioning, aligned with emerging EU regulations, is essential for building trust and credibility with European customers. Vendors should equip their sales teams with buyer intelligence that highlights the strengths of their offerings and demonstrates how their solutions address industry-specific cybersecurity challenges.

Endpoint Security: Tailored Messaging for Maximum Impact

With the increase in remote work, endpoint security has become a top priority for businesses across industries. To resonate with potential customers, security vendors should develop targeted content addressing unique endpoint security concerns in sectors such as healthcare and finance. Training sales teams to effectively address objections related to the complexity and cost of managing endpoint solutions is key to success.

Managed Security Services (MSS): Catering to Diverse Needs

MSS are increasingly in demand as organizations struggle to keep up with the ever-changing threat landscape. To effectively serve the European market, vendors should define a diverse MSS portfolio that caters to both midmarket companies and large enterprises and that addresses their varying resource constraints and needs. Highlighting successful MSS implementations across different European countries, with a focus on compliance and operational benefits, can be a powerful way to demonstrate value and build trust.

IT/OT Convergence: Bridging the Gap

The convergence of IT and operational technology (OT) presents a unique challenge in the cybersecurity landscape. Industrial sectors face unique challenges, and vendors should develop clear road maps to address the integration of IT and OT security. Sales enablement should focus on equipping teams with the knowledge and tools to articulate the value proposition of converged security solutions to IT, OT, and business decision-makers.

Network Security: Staying Ahead of Emerging Threats

As network infrastructure becomes more complex and interconnected, so do the threats targeting it. Security vendors can establish thought leadership by creating content that highlights emerging network security threats, such as 5G vulnerabilities and IoT attacks.

Demonstrating how their solutions effectively mitigate these threats can be a powerful way for vendors to differentiate in a crowded market. Equipping sales teams with ROI calculators can help showcase the cost savings associated with proactive network security measures.

Data Security and Privacy: Adapting to a Changing Landscape

The evolving privacy landscape in Europe, with its focus on data sovereignty and cross-border data transfers, requires a proactive approach to data security. Vendors should align their solutions with the latest European cybersecurity standards and educate prospects on best practices and the legal implications of noncompliance. Webinars, white papers, and other educational content can help build awareness and drive demand for data security solutions.

Conclusion

By following these best practices and leveraging market intelligence, security vendors can effectively navigate the complexities of the European cybersecurity market and achieve long-term success. Building a robust cybersecurity strategy that addresses GDPR compliance, industry-specific challenges, and emerging threats will position vendors as trusted partners in the eyes of European businesses.

Interested in a deeper understanding of the issues discussed here? Contact Dominique Bindels at dbindels@idc.com.

Also, you might be interested in the following complimentary IDC guides:

Increase Customer Lifetime: The B2B Growth Marketing Guide for Tech Vendors
B2B Marketing & Sales Guide to Outcome-Focused Conversations

Don’t miss our webinar “The New Cyber Security Opportunity in an ‘AI Everywhere’ World”

Supply chain disruptions — unpredictable supplies, product shortages, increasing material costs — continue to have a profound impact on manufacturers worldwide. In response, remanufacturing, which has long been a part of the industry, has seen a surge in popularity in recent years.

Companies are turning to remanufacturing as an alternative solution when they face challenges in procuring components or encounter skyrocketing prices. This approach not only helps address immediate supply chain issues but also fosters resilience and mitigates risks by prompting manufacturers to rethink their sourcing strategies and diversify their supply chains.

Moreover, remanufacturing is emerging as a key component of manufacturers’ sustainability strategies. Beyond its role in addressing supply chain disruptions, remanufacturing delivers significant environmental benefits. By reusing raw materials, it conserves resources and minimizes waste, contributing to a more sustainable use of resources.

Remanufacturing also promotes energy efficiency, reduces emissions, and embodies the principles of the circular economy, bolstering its appeal as a sustainable practice in manufacturing. As companies increasingly prioritize sustainability goals, remanufacturing is poised to play a crucial role in achieving these desired outcomes while also addressing supply chain challenges.

What is Remanufacturing?

According to the Remanufacturing Industry Council, “Remanufacturing is a comprehensive and rigorous industrial process by which a previously sold, leased, used, worn, remanufactured, or non-functional product or part is returned to a like-new, same-as-when-new, or better-than-when-new condition from both a quality and performance perspective, through a controlled, reproducible, and sustainable process.”

At the center of remanufacturing lies the concept of the “core.” The core refers to the existing, used, or worn-out part that serves as the starting point for the remanufacturing process. This core component undergoes a series of steps, including tracking, identification, disassembly, cleaning, inspection, repair, and reassembly, to transform it into a product or part that meets the desired quality and performance standards.

Effective core management is essential for manufacturers engaged in remanufacturing. It allows them to maximize the value of core assets, manage costs, and strengthen relationships with customers and suppliers. Additionally, robust core management practices help minimize waste and environmental impact by promoting the reuse of existing materials and reducing demand for new resources.

Closing the Gap: The Need for Remanufacturing Software

Remanufacturers in discrete manufacturing environments face distinct challenges that are not adequately addressed by traditional ERP systems. While ERPs offer essential functionalities like inventory management, testing, and quality control, remanufacturers require specialized core management features tailored to their needs, including:

• Core Tracking and Disassembly: Efficiently collect and inspect individual components or parts for wear, damage, or defects, ensuring thorough assessment and tracking throughout the remanufacturing process.
• Reconditioning, Repair, and Replacement: Address wear, damage, or defects in components through reconditioning or repair processes, or replace them with new or remanufactured parts as needed.
• Reassembly: Reassemble products according to technical specifications, ensuring that the final product matches the quality and performance of the original.
• Complex Product Configurations: Manage complex product configurations, accommodating a mix of old, new, or remanufactured components while maintaining accuracy and consistency.
• Cost Estimation and Pricing: Provide accurate cost estimation and pricing based on the type of components used, enabling transparent and competitive pricing strategies.
• Traceability and Compliance: Ensure traceability and compliance with regulatory requirements by generating reports and documentation necessary for regulatory purposes, maintaining transparency and accountability throughout the remanufacturing process.
• Integration Capabilities: Seamlessly integrate with other systems such as ERP or CRM, enabling data exchange and process synchronization across the organization.

By investing in specialized remanufacturing software, manufacturers can streamline operations, enhance productivity, and ensure compliance while effectively managing the complexities of the remanufacturing process.

Regional Approaches to Remanufacturing

Remanufacturing approaches vary across the globe, with each region displaying unique drivers and focus areas.

Primarily driven by cost savings but also influenced by federal/state regulations, the North American remanufacturing market is well developed. There is growing demand for remanufactured products across automotive, electronics, and aerospace.

In Europe, the growth of remanufacturing is closely tied to circular economy principles. With a strong emphasis on resource efficiency and waste reduction, government policies and initiatives play a significant role in driving adoption.

A key manufacturing hub, Asia holds immense potential to integrate remanufacturing practices into its industrial landscape. Technological advancements and a growing awareness of sustainability issues are driving the region toward embracing remanufacturing as part of its transition to a circular economy.

Cross-regional collaboration and knowledge-sharing initiatives are important for driving progress in remanufacturing practices globally. Leveraging insights and best practices from different regions can accelerate the adoption of remanufacturing and work toward achieving shared sustainability outcomes.

Guidance for End Users: Choosing the Right Remanufacturing Software

Selecting the right remanufacturing software is a critical decision, whether it’s an off-the-shelf (COTS) solution, customized, or a packaged solution offered by vendors. Regardless of the approach, the software should address the specific needs of remanufacturers while complementing existing systems and processes.

1. Identify Your Unique Needs: Consider your remanufacturing business’ unique requirements, including core management, inventory control, quality assurance, cost savings, and regulatory compliance.
2. Comprehensive Functionality: Look for solutions that offer a comprehensive range of functionalities, addressing core management challenges while also supporting traditional manufacturing processes.
3. Ease of Use and Scalability: Prioritize solutions that are user-friendly and scalable to accommodate your business’ growth.
4. Customization and Integration: Evaluate the software’s customization capabilities to tailor it to your specific remanufacturing workflow. Assess its integration capabilities to ensure smooth data exchange with other systems, such as ERP or CRM.
5. Vendor Success Stories: Request case studies or success stories highlighting real-world implementations and measurable improvements achieved by other remanufacturing businesses. This can offer valuable insights into the software’s effectiveness and suitability for your needs.
6. Road Map and Technological Advancements: Inquire about the vendor’s road map for future software developments and how they plan to incorporate the latest technological advancements such as automation, advanced analytics, and AI. Understanding the vendor’s commitment to innovation can help ensure that the software remains relevant and competitive in the long term.

By carefully considering these factors and collaborating closely with software vendors, end users can select remanufacturing software that not only addresses current challenges but also supports future growth and innovation in their operations.

Further reading: IDC MarketScape: Worldwide Remanufacturing Management Software 2024 Vendor Assessment

AI, which is poised to accelerate change more than any technology in history, has finally seized the CEO agenda. For those who viewed AI opportunistically, the introduction of generative AI (GenAI), along with the capabilities of large language models, is serving as a wake-up call to a new era.

According to IDC’s cross-industry Future Enterprise Resiliency and Spending Survey of January 2024, 37% of respondents globally believe GenAI will make a significant impact in the next 18 months. Nearly one-quarter said GenAI was beginning to disrupt their business, with 10% reporting it had already done so. Interestingly, these impacts are being felt most strongly by organizations in Asia/Pacific, followed closely by those Europe and the U.S.

Business competition remains fierce at the regional, national, and organizational levels. Conversations with numerous CEOs and senior managers about their approach to disruptive technologies, particularly AI and GenAI, prompted me to question whether leaders are asking themselves the right questions as they navigate this disruptive landscape.

Leaders of enterprises and medium-sized companies are adopting unique approaches. Some are enthusiastic about the potential productivity offered by innovative technologies. Others take a more cautious approach, advocating a measured strategy until the benefits of these technologies are proven on a broader scale.

This dichotomy often arises in discussions about emerging technologies like AI, cloud computing, and digital twins.

I’ve compiled a dozen key questions leaders should be asking as they guide their organizations through the dynamic — and potentially perilous — landscape of disruptive technologies:

1. Recognizing Disruptive Technology

How can I determine whether it’s just buzz or a truly disruptive technology that our company can benefit from?

It’s crucial to develop a keen ability to distinguish between industry hype and genuinely disruptive technologies. This requires staying informed about emerging trends, engaging with industry experts, and fostering a culture that encourages innovative thinking.

2. Building a Self-Learning Organization

How can I know if we have a self-learning organization whose organizational structure and processes enable us to identify, test, pilot, and objectively assess technology trends?

Organizational structures and processes must be assessed to ensure they foster a self-learning environment. This involves creating channels for identifying, testing, piloting, and objectively assessing technology trends within the company and promoting a culture of continuous learning and adaptation.

3. Balancing Short- and Long-Term Focus

How can we benefit from new technology? Will a short-term focus jeopardize our competitive advantage?

Addressing immediate needs is crucial, but the long-term impact of new technology must also be evaluated. Embracing sustainable and forward-thinking strategies can help organizations avoid a myopic focus on short-term gains and instead build a competitive advantage.

4. Data Protection and Cybersecurity

Personal productivity tools are great — but what about data protection and cybersecurity?

As organizations integrate personal productivity tools powered by AI, data protection and cybersecurity must be prioritized. Implementing robust measures to safeguard sensitive information is essential to reduce potential risks and ensure stakeholder trust.

5. Technology Ecosystem

Do we need to be part of an ecosystem of technology vendors, advisors, and service providers?

Yes, it is critical to have access to a robust and versatile ecosystem of technology vendors, advisors, and service providers to navigate the complexities of emerging technologies. A collaborative approach enhances the organization’s capacity to understand, adopt, and integrate new technologies.

6. Absorbing Innovation

How can I know if my organization has the ability to absorb another innovation? Will we need to create new dedicated positions, teams, or even departments?

Assessing the organization’s capacity to absorb new innovations is critical. Hence, it must be determined if your existing structures can accommodate technological changes or if dedicated positions, teams, or departments need to be created to facilitate a smooth integration.

7. Avoiding Pilot Purgatory

In earlier technology deployment projects, we wound up parked in “pilot purgatory.” How can I know if we have learned from these experiences?

Another stop in “pilot purgatory” is possible if organizations haven’t learned from their previous technology deployment challenges. Organizations should establish clear guidelines and action plans for transitioning from pilot phases to full-scale implementation. This is vital to realize the full potential of tools like AI.

8. Constant Change

Do our leaders need training to help them understand new paradigms and guide the organization in a world of constant change?

A continual education culture should be established to navigate the relentless change associated with emerging technologies. Such training would involve understanding new paradigms, learning how to foster adaptability, and creating a learning culture that supports leaders during times of uncertainty and rapid technological shifts.

9. Balancing Human-Machine Collaboration

Who’s taking the lead: machines or humans?

Assess the roles of machines and humans within the organization. Striking a balance between automation and human involvement ensures harmonious collaboration that leverages the strengths of both, leading to increased efficiency and innovation.

10. Regulatory Aspects

Should regulatory aspects be in our focus from the first discussions of the technology?

Prioritize regulatory considerations from the outset. Proactively addressing regulatory compliance ensures a smoother integration process and mitigates potential legal and ethical challenges.

11. Contingency Planning

If we change or terminate technology at the company level, do we need a contingency plan?

A thoroughly prepared contingency plan should be in place when changing or terminating technology at the company level. This ensures minimal disruption and facilitates a smooth transition in case unforeseen challenges arise during the implementation or adoption process.

12. Talent Management

How can I know if we have the talent to cultivate talent in the coming periods?

Focus on developing and retaining talent capable of driving technological advancement. This involves identifying, nurturing, and empowering individuals who possess the skills and mindset to lead the organization through the evolving landscape of AI and emerging technologies.

The Bottom Line

Being a leader who guides other leaders in transforming and revolutionizing industries and management domains demands a distinct set of skills and qualities, particularly the ability to pose the right questions — both to oneself and to the relevant stakeholders. Sometimes, despite our vantage point at the helm, we fail to anticipate the emergence of the next disruptive technology or product.

Some leaders might assert, “I rely on intuition, experience, and advisors to perceive what others cannot.” I advise caution. When it comes to leveraging technology adoption to gain a genuine competitive advantage, only a select few can keep pace with the relentless influx of new technologies.

It’s akin to a wild goose chase. But initiating the right discussions with yourself and your team can serve as a crucial starting point, potentially leading to the capture of flocks of opportunities!

The world of partnering has never been more complex. Vendor strategies are evolving faster than ever to keep pace with changing customer buying behaviors and partner business models.

Understanding how partner business models are evolving can help vendors build a partnering framework that is robust and flexible enough to reward partner activities while remaining customer-led.

Trend 1: Partners Are Deepening Commitment to their Strategic Vendor Partner

The breadth of a partner’s portfolio can provide an indication of the level of commitment a partner gives to each vendor relationship. Partners with multiple strategic vendor relationships are likely dividing their energy and resources between multiple vendors. Partners that work with just one, two, or three core vendors will likely give greater attention to each relationship.

This is important. While each vendor has visibility into what their partners are doing with them, they may not know how they are engaging with other vendors.

IDC’s EMEA Partner Survey 2024 showed that partners derive more than half of their total revenue from activities connected to their most strategic vendor partner. Just 6% of partners expect the share of revenue connected to their core strategic vendor to decline in the next 12 months, with 45% expecting it to remain at today’s level. Half expect it to increase.

For partners, there are specific benefits from concentrating resources on a single core vendor relationship. At the vendor level, demonstrating commitment can lead to the allocation of more resources, drive new business, launch new technologies, or to co-sell and co-creation activities that drive new customer wins.

For the partner’s business model, deep commitment to a specific vendor’s portfolio and road map can provide clarity in terms of future business development planning and skills development in the organization.

Trend 2: P2P Collaboration Accelerates Within Non-Linear Go-To-Market Motions

Partners traditionally seek to serve as a single point of contact for the end customer. The customer turns to the partner to procure, deploy, and service their IT environment.

However, changes in customer buying behavior and new routes-to-market and deployment models have led to the emergence of non-linear go-to-market motions in which multiple partners can be involved at different stages of a single customer’s journey.

Customers have choices in terms of how they procure, consume, and optimize their IT environments. They can involve a unique combination of marketplaces, platforms, and partners.

IDC’s EMEA Partner Survey 2024 shows that 60% of partner revenues are now direct payments from end customers. This means that 40% of partner revenue is coming from elsewhere — as a sub-contractor through another partner, fund disbursement from a marketplace operator, or payments from vendors.

Trend 3: Looking Beyond the Primary Activity of Partners

Many vendors used to categorize their partner base according to their primary activity. Partners that primarily focused on reselling vendor products and solutions were categorized as VARs. Partners that derived most of their revenue through services were labelled as some form of managed services or consultancy services provider.

Results of our survey suggest there are potential risks in this approach. Most partners now operate multiple partner business models that span sell, service, and build roles for the customer. While only a small number of partners in the survey self-identified as cloud service providers, for example, a significant number offer this as a secondary business model.

It is increasingly important for vendors to consider the activity mix of each individual partner to uncover how they engage with the customer. Vendors that only engage with a partner based on their primary business activity are potentially leaving opportunities on the table to drive additional customer engagement through other areas of expertise and capabilities the partner possesses.

Bottom Line

Gaining a deeper understanding of the activity mix and commitment levels of partners is key for vendors to allocate resources based on partner potential and to look for untapped opportunity within their existing partner base.

Knowing how your partners interact with other vendors and customers — and knowing how important you are to their overall business and what their long-term strategy is — has become critical to inform vendor ecosystem strategies.

To learn more, listen to IDC’s 2024 Channels and Alliances Predictions webcast, or reach out to discover how we can help unlock partner potential for vendors of all sizes.

In today’s digital landscape, where AI can churn out content in seconds, marketers face a unique challenge: How can we create narratives that stand out? Let’s explore strategies for crafting compelling and differentiated stories in the era of generative AI (GenAI).

1. Connecting the Dots

Marketers must start by connecting the dots between their promotional goals, their target audience, and a narrative that sets them apart from competitors. Relying solely on AI-generated content won’t suffice. Instead, strategic architects of brand stories must emerge.

2. The Power of Unique Market Data

Leveraging unique market data is crucial. Dive deep into analytics, trends, and IT buyer behavior. What insights can be gleaned from data that others might overlook or might not have access to? Perhaps hidden patterns or emerging needs exist that GenAI hasn’t discovered yet. Tap into this data to create narratives that resonate.

3. Insights Beyond Algorithms

GenAI analyzes vast amounts of information, but it lacks context. Unique insight comes from understanding not just what the data says but also why it matters and to whom. Ask: What motivates our audience? What pain points do they face? How can our product or service genuinely make an impact?

4. Customer Success Stories

Compelling customer success stories resonate because they’re authentic, relatable, and emotional. GenAI can help write these narratives, but marketers must discover, create, and curate them — and find the right audience.

5. The Art of Storytelling

GenAI generates content, but it can’t create captivating and unique stories. Marketers should not passively rely on GenAI. They should use it as a creative partner, stepping up to the role of the storyteller. Weave together facts, emotions, and aspirations. Whether it’s a blog post, a white paper, or an entire campaign, storytelling remains a uniquely human skill.

Conclusion

In the age of GenAI, marketers are both collaborators and curators. Collaborate with AI tools like GenAI to streamline content creation, but also curate the essence of your brand through unique narratives. By joining the dots, leveraging data, and telling authentic stories, marketers can thrive. Remember: GenAI can write — but marketers create the story.

Interested in a deeper understanding of the issues discussed here? Contact Dominique Bindels at dbindels@idc.com.

Also, you might be interested in the following complimentary IDC guides:

Increase Customer Lifetime: The B2B Growth Marketing Guide for Tech Vendors

AI: Unleashing Strategic Sales – Driving Tech Investments in 2024

B2B Marketing & Sales Guide to Outcome-Focused Conversations

The EU’s new Corporate Sustainability Reporting Directive (CSRD) has thrown a chill on the business processes of organizations: Companies must modernize their applications and data foundations to enhance their reporting capabilities.

The struggle of companies in Europe to comply with the CSRD was on display at the ChangeNOW global summit, held in Paris at the end of March. Participants at the event — which seeks to map sustainable initiatives, best practices, tools, and technologies — revealed that organizations are lagging when it comes to implementing CSRD.

This is in line with results of IDC’s recent European IT Services Survey (N = 700), which found that just 25.6% of European organizations expect to deploy tech to improve sustainability KPIs as a transformation initiative in the next two years.

The CSRD is having a huge impact on organizations: It imposes reporting standards that compel organizations to publish their ESG information, which must then be verified and audited. All industrial sectors, from large accounts to SMBs, are subject to a staggered compliance timetable: The first reports must be published between 2025 and 2026 for large accounts, and in 2027 for SMBs.

Everyone agrees on one point: It’s a race. The timetable is forcing the acceleration of activities in data collection and qualification, methodologies and best practices, to structure and industrialize the creation of these reports.

CSRD weighs heavily at all levels of organizations. It requires a review of business processes and the organizational model, and, therefore, the modernization of core business applications — where the data is. New platforms or custom developments may need to be deployed to consolidate ESG data.

After examining their data lakes and the shift toward new data architectures, many businesses perceive this as a transformational endeavor.

Like any IT project, such complexity brings opportunities for services providers to support organizations with compliance. IDC surveys have shown that 41.2% of organizations expect partners to play a key role in implementing their sustainability strategy and achieving their objectives.

The Scaling Problem of Legacy Finance

Let’s examine where CSRD creates a bottleneck. Among the processes impacted by the CSRD is that of the finance department. Today, the CFO is one of the guardians of the transformation of the finance function, whose scope has been extended to non-financial matters and CSR.

For example, the French bank Crédit Agricole and cosmetics specialist L’Oréal have entrusted the finance department with their CSRD projects. Experienced in standardized financial reporting, the CFO has the difficult task of reproducing and improving processes by integrating CSRD.

Logical, but still difficult to implement. One of the biggest challenges is getting the different personas impacted by CSRD — and the associated data — to sit at the same table to find the right communication channel and vocabulary to communicate.

These human interconnections represent a real challenge in terms of governance but are necessary to deploy an application modernization strategy and convert the new operational model and business processes into a revitalized IT structure.

Financial IT systems are often very mature. CSRD requires them to scale rapidly to support new workloads in only three years. This includes related data initiatives: the mapping of data sets, the overcoming of information silos, increasing automation, and supporting heterogeneous files (PDF or Excel, for the most part).

The legacy must be modernized within the timeframe of the CSRD. But urgency means risks must be controlled. For example, misunderstanding the regulation and the requested data could have a negative impact on technological engagements and procurement.

Using GenAI to modernize legacy applications and make them “CSRD ready” has been explored to collect, map, and consolidate data, generate appropriate information for criteria, or automate the storytelling inside the CSRD reports.

Capgemini has detailed how GenAI could accelerate gap analysis and identify which data is lacking and which data is relevant for presentation. L’Oréal discussed how it believes that GenAI is key to education and acculturation on the criteria and wording of the regulation.

This scenario is in line with our vision for application modernization strategies in Europe.

The implementation of the CSRD — and, by extension, the major theme of sustainability — represents a powerful driver for adapting processes, revitalizing part of the application estate, and establishing a coherent link between IT and new business requirements.

Revitalizing applications to optimize business processes is a key theme of IDC’s European Application Modernization Strategies research program.

Modernize with a Sustainability/ESG Integration Platform

The challenges include making the regulation a starting point for a more global strategy, and placing CSRD and sustainability at the center of the organization’s decision-making and business innovation.

We believe this requires building an enterprise architecture, including modular and loosely coupled components, to integrate systems, applications, and data in a flexible and sustainable way over time.

Such a sustainable integration platform will de-silo business applications, facilitate the continuous collection of data, the industrialization of analytical reporting, and the connection to ecosystems. In short, it means building a dynamic CSR link in the value chain and anticipating the evolution of reporting obligations.