A recent McKinsey Quarterly report (registration required) outlined changes it expects to see in business technology this year, including some of the findings MDM found in its distribution-specific report. Businesses in every industry are looking to automate more processes and use more productivity-based tools. E-commerce is becoming more common; however in the distribution world, more larger distributors than smaller have taken advantage of Web-based storefronts, catalog systems and electronic communication with supply chain partners.
 
Businesses are also looking to cut costs in IT, just as they are in other parts of their operation, without cutting capability. Still, many companies may shut down the possibility of non-essential IT projects this year due to the recession.
 
To save money, many businesses may this year outsource certain technology functions, or the general maintenance of their IT infrastructure overall. Companies can outsource functions overseas or stay close to home with a local IT outsourcing provider. (Read how some distributors are approaching this decision in The Question of Outsourcing IT, Aug. 10, 2008.)
 
In MDM’s recent special report, State of the Distribution Software Industry, we found that many distributors are looking to upgrade or buy new technology. Some of those plans may have been put on hold since MDM conducted the survey last fall. However some trends did stick out, including a focus on "add-on" technology such as route management or pricing software, more consideration of Web-based tools, including ecommerce, and more large ERP providers reaching out to the smaller end of the distribution market. MDM’s special report is still available. Click here to access the report. “