Japan Small and Medium Business Markets Regional Analysis 2009

Abstract

This IDC study, which is a translation of the Japanese report IDC #J9120105, presents a regional analysis of the objectives or issues of IT implementation, IT spending budgets, vendor engagement trends, and factors to promote IT spending among small and medium-sized business (SMB) users in Japan based on a user survey conducted in February 2009. Due to the global economic downturn since 2H08, SMBs across the regions are curtailing their IT spending. According to the results of the user survey, IT spending is expected to decrease drastically in the Tokai region. On the other hand, the extent of IT spending contraction is small in some regions and IT spending is believed to remain steady. Many SMBs face "revenue increase" as a major management challenge and many also expect that the use of IT will help them increase revenue. Due to the credit crunch by financial institutions amid the economic downturn, an increasing percentage of companies feel the need to improve their financial standing (e.g., through financing) as a pressing management challenge.

"There is a disparity among regions in their economic situation, IT spending trends based on their respective industrial structure, and management challenges. IT vendors should explore sales strategies to closely cater to individual regions involving pillar products/solutions, sales channels, and incidental services such as leasing," analyzes Hitoshi Ichimura, market analyst, IT Spending, IDC Japan.

Table of Contents

• IDC Opinion
• In This Study
• Methodology
• Definition of Small and Medium Businesses
• Classification by Industry
• Classification by Region
• Japan Small and Medium Business User Survey Method
• Target Respondents
• Number of Respondents
• Methodology
• Survey Period
• Survey Content
• Others
• Executive Summary
• Situation Overview
• Introduction
• Japan Economic Overview
• Economic Climate Surrounding SMBs by Region
• Hokkaido/Tohoku
• Kanto/Koshinetsu
• Tokai/Hokuriku
• Kinki
• Chugoku/Shikoku
• Kyushu/Okinawa
• Japan Small and Medium Business User Survey: IT Spending Trends
• Profiles of Respondent Companies
• IT Spending Objectives and Issues
• Management Issues and Role of IT
• IT Implementation/Deployment Challenges
• IT Spending Value and Budget Trends
• Revenue Value Allocated to IT Spending
• IT Spending Budget Plans
• IT Spending Areas
• Priority IT Spending Areas
• Implementation/Consideration of Major Solutions
• Vendor Engagement Trends
• Hardware/Software Implementation Methods
• Trusted IT Vendors
• Reasons for Choosing Trusted Vendors
• Factors to Promote IT Spending
• Trusted External Professionals/Organizations
• Media Referred to by SMBs in IT Spending/Product Selection
• Future Outlook
• Outlook of IT Spending Budgets for SMBs by Region
• Outlook for IT Spending Areas for SMBs by Region
• Essential Guidance
• Learn More
• Related Research
• Synopsis
• Table: Regional Distribution of Respondents by Company Size
• Table: Regional Distribution of Respondents by Industry
• Table: Company Headquarters Location by Region
• Table: Regional Distribution of Respondents by Revenue FY08 — Unconsolidated (%)
• Table: Regional Distribution of Respondents by Year-over-Year Revenue Growth Rate FY08 — Unconsolidated (%)
• Table: Regional Distribution of Respondents by Implementation of Major Products/Systems (%)
• Table: Management Issues Faced by SMBs: Top 10 Issues by Region
• Table: Management Issues Faced by SMBs: Top 10 Issues by Region (%)
• Table: Top 10 Management Issues Expected to be Resolved Through the Use of IT by Region
• Table: Top 10 Management Issues Expected to be Resolved Through the Use of IT by Region (%)
• Table: SMB IT Implementation/Deployment Challenges by Region (%)
• Table: Top 10 Priority IT Spending Areas by Region, FY09
• Table: Top 10 Priority IT Spending Areas by Region, FY08–FY10 (%)
• Table: Major Solutions Implemented by Region (%)
• Table: Top 10 Most Trusted IT Vendors by Region
• Table: Top 15 Most Trusted IT Vendors by Region (%)
• Table: Reasons for Satisfaction with Trusted IT Vendors by Region (%)
• Table: External Professionals/Organizations Engaged for Business Consulting by Region (%)
• Table: External Professionals/Organizations Engaged for Systems Consulting by Region (%)
• Table: Media Referred to during Systems Implementation/Selection by Region (%)
• Figure: SMB Economic Sentiment Diffusion Index by Region (Eastern Japan): Seasonally Adjusted Values
• Figure: SMB Economic Sentiment Diffusion Index by Region (Western Japan): Seasonally Adjusted Values
• Figure: Revenue Shares Allocated to IT Spending by Region, FY08
• Figure: Revenue Shares Allocated to Telecommunication Expenses, FY08
• Figure: IT Spending Budget Plans by Region, FY08–FY10
• Figure: IT Spending Budget Plans by Region, FY08–FY10
• Figure: Server Implementation Methods by Region
• Figure: Client PC Implementation Methods by Region
• Figure: Printer/MFP Implementation Methods by Region
• Figure: Enterprise Resource Planning Implementation Methods by Region