Assessing the Impact of VAT on Mobile Handset Demand in the UAE

Challenge

In the lead up to the introduction of VAT in UAE in January 2018, the client—a leading mobile handset manufacturer—approached IDC to understand and quantify the exact degree of change in the market’s potential for the following two years.

The client therefore required an in-depth assessment of the likely impact that the introduction of VAT would have on the mobile handset market in the UAE. Specifically, the client sought these viewpoints to reset their annual targets and rework the price bands of their various models.

Approach & Methodology

IDC provided qualitative insights into the industry as well as an overview of the macroeconomic situation, ensuring that the report guided the client’s handset team on recalibrating their targets and strategies for the post-VAT environment.

IDC’s methodology for this project incorporated the following components:

  • Channel Interviews: IDC scheduled meetings with key channel players and VAT specialists to understand the implementation structure of the new tax, its impact on business, and the approaches being taken by various stakeholders.
  • In-Country Insights: IDC utilized its in-country analyst team and relationships to gather inputs and present a detailed view of the market.
  • Analysis of Macro/Micro Factors: The IDC team extensively analyzed various macro and micro factors, drawing on the best possible knowledge base to provide direction and supporting arguments.

Key Findings

IDC’s in-depth analysis of the situation revealed the following market dynamics:

  • Excess Inventory: Many of the distributors for the market’s key vendors were sitting on large inventories.
  • Lack of Major Sell-Out Bump in Q4 2017: The channel was not expecting to see any large increase in sell-out ahead of VAT implementation in January 2018.
  • Sell-In Targets: Distributors were struggling with vendors to reduce their targets for Q4 2017.
  • Leaner Operation Models: Most channel players did not want to hold on to extra inventory and were actively pursuing leaner operation models.
  • No VAT Incentive: There was no incentive to stock up in Q4 2017 prior to the implementation of VAT (i.e., no VAT exception for stock purchased before January 1, 2018)
  • Low Market Sentiments: Channel players and vendors were not too optimistic about 2018 sell-out post VAT due to shrinking consumer disposable income and lengthening refresh cycles.

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Market and Competitive Assessment for Infrastructure Hardware

Challenge

The client was encountering a series of challenges in the infrastructure hardware space and approached IDC for some market intelligence and guidance on recalibrating its annual targets and future plans. The client also wanted to effectively compete in the market and was struggling to understand its competitors’ strategies, the reasons for their successes in leveraging partnerships, and the best practices they were deploying around sales and marketing.

The client wanted to re-examine its offerings in line with changing market requirements.  The adoption of emerging technologies such as cloud, big data and analytics, and IoT was reshaping the infrastructure space and the client sought a structured method for understanding the impact this was having on its target markets.

Approach & Methodology

IDC’s methodology for this project incorporated the following components:

  • Market Assessment: IDC utililized its existing tracker reports and performed a series of face-to-face interviews with relevant vendors and channel partners.
  • Industry Assessment: IDC conducted meetings with CIOs/IT managers of end-user organizations from five key verticals identified by the client, complementing this with its existing industry knowledge and vertical-based event surveys.
  • End-User Survey: IDC undertook an extensive end-user survey across 120 organizations and subsequently performed an in-depth analysis of the results.
  • Competitive Landscape Review: IDC utilized its relationships across the industry and arranged a series of face-to-face meetings to gather inputs from five of the client’s competitiors and their partners.

Key Benefits & Outcomes

IDC’s detailed study provided the client with the following:

  • A clear understanding of end-user organizations’ technology priorities and investment plans.
  • An end-to-end perspective on the competitive landscape that identified potential gaps for creating an effective go-to-market strategy.
  • Guidance on reshaping its portfolio and business mix to create a stronger focus on critical industries and segments offering substantial opportunities.
  • An effective sales and marketing strategy that took into account the changing competitive landscape.
  • A detailed roadmap drawn up in accordance with local market trends and future forecasts.

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Driving Digital Transformation Through RPOS Systems

Challenge

The client, a leading devices vendor, had extensive experience in offering end-to-end solutions to large and very large enterprises and possessed a comprehensive portfolio of retail point-of-sale (RPOS) solutions that reflects its core expertise in PC clients such as all-in-one systems, tablets, printers, and peripherals.

The client had a very successful deployment with a leading retail chain. Spurred by a desire to accelerate its enterprise-wide digital transformation efforts, the retailer had commissioned software upgrades and hardware servicing management for global locations, and had context-dependent device requirements.

Given the detailed nature of the engagement and its subsequent success, the client wanted to showcase the benefits to the rest of the market as a reference point. As such, it approached IDC to develop a dedicated marketing tool to highlight its capabilities to the market and attract other large customers.

Approach & Methodology

  • IDC analyzed the ecosystem for RPOS devices and evaluated the role of these devices within the context of enabling digital transformation.
  • IDC met face to face with the retailer’s CIO and head of marketing to develop a clear understanding of how and why they installed the system and the benefits it brought.
  • IDC used its ‘Buyer Case Study’ solution to demonstrate how the client undertook the digital transformation of RPOS systems for the retailer, detailing the key challenges, solutions, use cases, and success factors.

Key Benefits & Outcomes

  • The report presented a holistic view of the industry and served as a tool for showing how RPOS systems can benefit end-user organizations.
  • The report showcased immersive vendor–partner–end-user perspectives through the context of a real business case.
  • The report validated the effectiveness of RPOS systems in enhancing end-user digitial transformation journeys.

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Mini White Paper Series for Document Solutions Provider

Challenge

The client sought an effective marketing strategy for a number of its offerings — including document workflow solutions, mobility and cloud, document security, and managed print services.

IDC provided the client with a series of mini White Papers on the above technology areas and drew on its extensive end-user database to initiate hyper-targeted email marketing campaigns for each of the four White Papers, with the aim of driving lead generation for the client.

Approach & Methodology

  • IDC worked with the client to develop a comprehensive framework for the White Paper framework and collated all necessary insights to author the paper.
  • IDC detailed the client’s strategies for the four technology areas and delivered a snapshot of how the client is positioning itself for continued growth in the global market.
  • The White Papers positioned the client as a leader in the document solutions space and highlighted its key areas of competency in addressing document lifecycle processes.

Key Benefits & Outcomes

  • The client was able to leverage marketing collateral—backed by IDC’s trusted brand—that positions it as a pertinent player in the print services and document solutions market.
  • All four mini White Papers were delivered to more than 10,000 technology end users from various sectors to ensure that the mass mailing had the widest coverage and impact possible.

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Market Sizing for Cash Register Solutions in Turkey

Challenge

Due to the lack of existing market data on the size and forecast growth of cash register systems in Turkey, the client was not able to gauge the market’s true potential.

As such, the client approached IDC to furnish it with market size data for cash register system solutions, supplemented by a market forecast for the next two years and profiles of its key competitors (including market shares).

The client also wanted to understand the market potential across different verticals and the split of the cash register system market between hardware and software vendors.

Approach & Methodology

  • IDC met face to face with both hardware and software solution providers in the country to understand the market’s dynamics and to determine revenue shares, vertical splits, and future growth potential.

Key Benefits & Outcomes

  • The face-to-face interviews resulted in a comprehensive sizing study that included vendor revenue shares across product categories, vertical distribution, and two-year market size forecast.
  • The detailed report enabled the client to better serve its clients’ needs by reshaping its product focus and vertical strategy for the short and medium term.

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Competitive Profiling of ERM/CRM Market (+ IT Security Survey Report)

Challenge

The client was facing tough competition and wanted to calibrate its solutions portfolio and go-to-market strategies for ERM and CRM products across some of its key markets in the Middle East and Africa, including the UAE, Saudi Arabia, South Africa, and Turkey.

As such, the client approached IDC to develop competitive market information about four major ERM and CRM vendors to understand their technology focus, business models, and channel partner strategies. The client also wanted to leverage this initiative to gain a full view of IT security pain points, drivers, and requirements among end users in the Middle East.

Key Deliverables

  • Competitive Profiles: These profiles were to explore the strategies of major players in the Middle East and Africa ERP and CRM applications market.
  • Security Survey: This report was to explore the prevailing priorities, perceptions, and challenges of end-user organizations in the Middle East IT security market.

Approach & Methodology

  • Research: A team of in-country IDC analysts undertook extensive secondary research and conducted in-depth interviews with key vendors and channel partners in the ERP and CRM space.
  • Focus: The idea was to understand their overall strategies, partner ecosystems, current states of play, focus industries, business models, and key customers.
  • Survey: For the IT security report, IDC leveraged an online survey conducted over a period of three months and used the collated data to finalize the report.

Key Benefits & Outcomes

  • The competitive profiles helped the client to understand the positioning of its competitors and keep itself abreast of their strategic moves. This also helped the client to take strategic actions to ensure it remained competitive in the market.
  • The IT security survey report helped the client to understand the areas where end-user organizations in the Middle East are allocating their security budgets and what factors are top of mind when selecting a security vendor to partner with.
  • The report highlighted the opportunities that existed for the client in the IT security space and helped it to position itself in the market for better results.

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Creating a Connectivity Index

Challenge

A major South African telecommunications provider was keen to increase the market reach of its connectivity portfolio among municipalities and large enterprise clients to enhance its penetration into large-scale network deployment situations.

However, the standard sales and marketing mechanisms were proving to be ineffective. The client wanted to significantly bolster its position as a thought leader as well as a connectivity champion and sought to boost the level of market awareness about its role as a leading telecommunications infrastructure provider.

As such, the client engaged IDC to create a White Paper and benchmarking connectivity tool for to showcase the level of connectivity at municipality, provincial, city, community, and business level across South Africa.

Approach & Methodology

  • Indicators: IDC consulted with the client and the broader industry to develop suitable indicators.
  • Survey: A nation-wide survey of commercial establishments and consumers was conducted to obtain detailed metrics and insights for each indicator.
  • Index Model: IDC designed a connectivity index model that served as the input into delivery of a dedicated White Paper and workshop.
  • Portal: IDC planned a portal and distribution strategy around the index.

Key Benefits & Outcomes

  • The client acquired an in-depth understanding of the level of connectivity across various user segments at a municipal level in South Africa – this data was never available before.
  • IDC consultants led a series of internal executive workshops that provided inputs into strategic planning and suggested areas for future expansion and opportunity.
  • The White paper provided valuable external public relations benefits within key customer groups and raised awareness of the client’s capabilities across the country.

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Go-to-Market Campaign for SMB Segment

Challenge

The client wanted to increase its share of Saudi Arabia’s business intelligence (BI) and analytics market and enhance its brand equity in the country, with a specific focus on tapping into the Kingdom’s SMB segment.

It required an effective partner to support its efforts, first by developing a clear understanding of the drivers and perceptions that were shaping the market’s investment decisions, and then by positioning the client in line with these factors.

As such, the client approached IDC to develop a suite of solutions aimed at enhancing its market positioning. To achieve this, it required multiple assets that could be leveraged across various campaigns.

Approach & Methodology

  • Quantitative Research: IDC employed a quantitative research methodology, using a structured questionnaire to conduct the survey via computer-aided telephonic interviews.
  • Targeted Audience: As per the client’s requirements, the survey was targeted at ICT decision makers or influencers from a range of SMBs, with the respondents being able to choose whether they wanted the interviews to be conducted in English or Arabic.
  • Multiple Deliverables: As part of the project, IDC delivered a White Paper and an accompanying infographic. This was then supplemented by email marketing campaigns, blogs, and an analytics presentation to be used during the client’s events.

Key Benefits & Outcomes

  • The client acquired an in-depth understanding of the key drivers and challenges shaping the adoption of BI and analytics solutions among SMBs in Saudi Arabia.
  • The client leveraged the White Paper to educate prospects and the broader market on the capabilities and benefits of BI and analytics technologies. This enhanced the client’s positioning within its desired market, bolstering its ability to generate new business opportunities.
  • The supplementary content within the infographic, blogs, and email marketing campaigns further strengthened perceptions of the client’s brand as a trusted partner for SMBs in the Saudi market.
  • With the help of the White Paper, the client was able to fine tune and validate the messaging it was putting across to potential end customers in the BI and analytics arena.

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Go-To Market Campaign for Cloud-Based Contact Centers

Challenge

The client and its channel partner were struggling to understand the current market sentiment and trends around the adoption of cloud-based customer-engagement solutions within contact centers across the Middle East and Africa. As such, the client approached IDC to perform an extensive survey of end users and create a thought leadership paper that would help it position itself more effectively by addressing the key requirements of end-user organizations.

IDC conducted a survey of key decision makers within the contact center space and authored a White Paper to reach the target audience. This served both as an educational tool and a thought leadership document for the wider audience, driving market awareness around the increasing use and benefits of cloud-based contact center solutions. It also served as a lead-generation tool for tapping into new prospects.

Approach & Methodology

  • Clear Objective: The aim was to understand the trends, drivers, inhibitors, technologies, and challenges that are impacting the adoption of cloud-based customer-engagement solutions in contact centers.
  • Targeted Survey: IDC prepared a structured questionnaire on customer engagement and communication management technologies and carried out the survey using computer-aided telephonic interviews.
  • Segmented Focus: The survey focused on specific industry segments across a total of 100 organizations in the UAE, Saudi Arabia, and Egypt, using random sampling followed by quasi-random purposive sampling to achieve the desired quotas.
  • Secondary Research: To gain further insights, IDC also carried out secondary research and in-depth, analyst-driven interviews with customer-care professionals and IT decision makers.

Key Benefits & Outcomes

  • The client acquired an in-depth understanding of the market sentiment and adoption plans for cloud-based customer-engagement applications in the region.
  • With the help of the White Paper, the client was able to fine tune and validate the messaging it was putting across to potential end customers.
  • The White Paper was utilized as a positioning tool with existing customers and prospects and helped generated new business opportunities for the client.

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Multi-Client Strategic Brand Positioning Thought Leadership

Challenge

Several large technology innovations and major strategic projects in Saudi Arabia were being driven under the umbrella and funding of the Kingdom’s National Transformation Program (NTP). The clients sought to share their capabilities around these initiatives and position themselves as key digital transformation partners for existing and potential customers.

The remit was for IDC to create a report that would spur debate, share data, outline best practices and insights from senior ICT decision makers, and ultimately guide the implementation of the NTP. The clients required a powerful tool that could be customized across different sectors to showcase their understanding of digitization efforts within the NTP and their provision of relevant skills and support for this space.

Approach & Methodology

To ensure the report had the desired impact on senior decision makers across the Kingdom, IDC’s methodology for this project incorporated the following components:

  • Global Expertise: IDC called upon a large number of global subject-matter experts to contribute to the report.
  • In-Country Insights: IDC utilized its in-country analyst team and relationships to gather inputs from key decision makers on the global information that had been collected.
  • Existing Knowledge Base: IDC has arguably the largest ICT knowledge base for Saudi Arabia, which was extensively utilized to provide direction and supporting arguments for the report.

Key Benefits & Outcomes

  • NTP Plans: The report contained in-depth interviews with senior stakeholders from the clients that clearly detailed their plans and capabilities for supporting the NTP’s implementation.
  • Exclusivity: The professionally designed and printed report included just five sponsored interviews, thereby maximizing the impact of each client’s messaging.
  • Brand Association: By engaging with the Kingdom’s leading analyst firm, the clients were able to leverage IDC’s trusted brand status to showcase their plans and ideas to support the NTP.
  • Audience: The final report was hand delivered to 500 of Saudi Arabia’s most influential decision makers, ensuring that its recommendations had the widest coverage and impact possible.

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