Businessmodel of Gartner

Customer Segments

Gartner’s customer base can be separated into two segments – individual senior corporate representatives, and corporates. It operates globally, but derives over two-thirds of its revenue from its North American operations.

• Senior corporate representatives – Gartner’s research and events arms target mainly individual senior corporate representatives, including CIOs and senior information technology (IT) leaders in corporations and government agencies, business leaders in high-tech and telecom enterprises and professional services firms, supply chain professionals, digital marketing professionals, technology investors, and others who may require up-to-date research on IT issues and who may benefit from the information sharing that comes from attending the IT-specific events organized by Gartner.
• Corporates – Corporates are generally served through the consulting arm, which provides IT advisory services to achieve optimal cost, performance, efficiency and quality. ### Value Proposition

Gartner’s value proposition is threefold.

First, its research coverage is both in-depth, in that it has deep expertise in very specific fields – IT, supply chains, and digital marketing, and extensive, in that within each field, especially IT, it is able to provide unparalleled coverage with regard to major issues. Second, Gartner is known for being independent and objective, making it a good source of information and advice for corporate clients. Third, Gartner has developed and is able to provide its proprietary tools to benchmark capabilities and to apply best practices for client organisations.

Aside from the above, Gartner is an established brand with over 35 years of history, a global footprint, a massive network of analysts and consultants, 3and a highly experienced management team.

Channels

The channels that Gartner uses to engage its customers varies largely across the different services that are provided.

For research services, reports, briefings, updates and related tools are primarily delivered online via Gartner’s website and/or product-specific portals. These reports are accessible through subscription only portals.

For consulting services, the provided assistance is of a bespoke nature. Gartner staff are usually present on the ground to assist with the application of Gartner’s proprietary information and tools to corporate client concerns. In this regard Gartner provides on-site and day-to-day support from its staff.

Customer Relationships

Gartner maintains its customer relationships differently across its different business functions. For its research arm, it maintains relationships primarily through virtual means – via its website or other product specific apps.

For consulting and events, both of which are more relational in nature, it has staff on the ground to assist with customers (and event goers). It also employs sales personnel to build up and maintain its customer relationships.

Key Activities

Gartner’s key activity is the provision of research, consulting, and event organization services for senior corporate representatives and corporates on issues relating to IT, supply chain, and digital marketing.

Key Partners

Gartner’s key partners are its clients and vendors.

Key Resources

Gartner’s key resources are its goodwill, intangible assets, and property, plant, and equipment. Of these the largest balance sheet item is its goodwill.

Cost Structure

Gartner’s key costs are the cost of services and product development, and selling, general, and administrative expenses.

The common thread between the two is staff costs – as Gartner’s business is the provision of services, its main costs would be to maintain its staff’s wages and to maintain its physical operations through its office space leases.

Revenue Streams

Gartner’s revenue streams come from its three main business segments: Research, Consulting, and Events.

The research arm earns mainly from subscription fees for research products. Consulting revenues are derived from both fixed fee or time and material arrangements. Event revenues are generated from ticket sales and other revenues.

Source of Revenue/Cost Revenue (FY 2015, thousand USD) % of Total Revenue Total revenues 2,163,056 100% Research

1,583,486 73% Consulting

327,735 15% Events

251,835 12% Expenses 1,875,059 87% Cost of services & product development

839,076 39% Selling, general and administrative

962,677 45% Depreciation

33,789 2% Amortization of intangibles

13,342 1% Acquisition & integration charges

26,175 1% Operating income 287,997 13%