We are deep in the season of political polling, and regardless of anyone’s political leanings, it is easy for us all to get swept up in the who’s up and who’s down of the Republican primary battle. The scrutiny will only build as we get closer to November’s general election, when polls will try to predict everything from the presidential winner down to mayoral races all over the country.

Political polling is a highly specialized niche of market research. At their best, market research surveys of all stripes allow us to gain insights into people's behaviors and opinions, and tease out indicators that point to future actions. Political polling, on the other hand, so often tends to be a snapshot – kind of like the photo finish in a horse race. In that sense the public might be forgiven for thinking that today’s primary competition is more like the home stretch of the Kentucky Derby than a serious contest to determine the leader of the free world for the next four years.

A wide range of organizations conduct political polls, and the way they craft their questions can make it obvious to the trained eye (and often to the casual observer) whether or not the survey or interview is objective. 

The federal healthcare IT market is undergoing rapid change, in part driven by technological advances and in part by policies mandating better sharing of medical data while maintaining patient privacy. These conditions are creating opportunities for companies to gain market share and stand out as leaders in health IT.

Last fall, Market Connections completed a multi-client study of the federal health IT space to assess the competitive landscape within federal health agencies, uncover the “pain points” that a successful vendor can help to alleviate and identify the top federal healthcare IT initiatives and solutions being considered by decision makers and influencers.

Respondents cited connecting fragmented systems and interoperable sharing of medical data as the biggest organizational challenges in healthcare IT. Survey participants in an IT role are more concerned than business personnel about complying with federal IT regulations, particularly with regard to the security and privacy of patient data.

The study found healthcare IT is a “muddled market” –

Market Connections' staff has reviewed several sources focusing on emerging government trends and topics for 2012. Similar to last year, we will focus on trends and recommendations discussed in conferences, roundtables, news articles, and Market Connections' own studies.

Continuing to do more with less?

There is agreement among experts that the budget environment will continue to be an issue in 2012, making for an increasingly competitive landscape with limited market growth. Overall, government budgets for discretionary appropriations are down from 2011 to 2012. Air Force and Navy plan a 25% reduction in IT costs with emphasis on consolidating IT Acquisition (Fed Focus 2012). Contractors should also expect continued pressure to keep prices low (Grant Thornton, 2011). A recent article published by Washington Technology predicts the same and adds that with less money available for contracts and new purchasing, task order competition rules go into effect for federal contracting executives (Washington Technology, 2011).

To reduce the effects of limited funds, the tendency will be greater emphasis on strategic sourcing and shared services in search of best value. What does it mean for your company?

According to Grant Thornton LLP, if you are a smaller, highly specialized company, you will be more likely to experience growth, as opposed to large defense prime contractors who will tend to grow at a slower pace. With this in mind, companies will have to reorganize for greater efficiencies and change acquisition strategies in order to adjust to shrinking budgets and a more competitive landscape.

Energy and Health Care IT Leading the Way

There's also an increased focus on energy conservation and infrastructure modernization, as these areas continue to fuel budget increases. Healthcare IT is showing promise as well, with electronic health records leading this growing market (GovConExec Magazine, 2011).

According to Market Connections' recent Federal Health IT study, which surveyed 200 individuals from Health and Human Services, Veterans Affairs and Defense Health agencies, one-third of respondents cite data center consolidation and mobile devices as healthcare investment priorities in 2012.

The study also found the Health IT field is both growing and wide-open. No one contractor stood out as top-of-mind, meaning there is ample opportunity for a market leader to pull ahead of the pack. With such a fragmented Health IT market, service providers should differentiate themselves by increasing targeted advertising and marketing efforts towards the government health IT sector.

Cyber Security

Cyber security will also remain a hot topic. Expansion of cyber operations and consolidation of networks to improve cyber security is expected. With an unprecedented number of cyberattacks in the first half of 2011, many contractors provided solutions to defend big business' infrastructures (GovConExec Magazine, 2011). In addition, many experts argue that Congress and state governments will continue to pass more legislation to regulate the protection of customer information, leading to a higher demand for security solutions.

According to a special report published by Washington Technology, the creation and sharing of content using a variety of online, mobile and social media introduces new security vulnerabilities that require protection. There's also an increased influx of "personal devices" in the workplace, which poses challenges for federal IT administrators (Washington Technology Special Report, 2011).

Similarly, Market Connections' 2011 Federal Cyber Security Study commissioned by Cisco and conducted with two hundred decision-makers and influencers found that nearly half of survey respondents have experienced a phishing attack in their agency or department in the last 12 months. The study showed that there's a growing need for increased visibility and security of networks. Supporting this statement, only half of the respondents believed that they have a clear picture of all the activity on their networks.

Cloud Computing

Cloud computing has become essential for government operations, as evidenced by the General Services Administration's recent move to a cloud-based system and other agencies soon to follow (GovConExec Magazine, 2011). Lockheed Martin's Cyber Security Alliance studies, conducted by Market Connections in 2010 and 2011 to measure and track attitudes, awareness, level of comfort and trust with security and cloud computing, found cloud is making rapid gains in acceptance by federal agencies. This is driven in large part by growing familiarity with the concept and IT professionals' increased involvement in implementation. (http://www.marketconnectionsinc.com/Reports/getting-secure-in-the-cloud.html)

Following the Office of Management and Budget's cloud application requirement in the "25-Point Plan", agencies across the government identi¬fied 78 IT services to be moved to the cloud by the end of 2011. According to the Lockheed Martin Cyber Security Alliance study, in 2010, 14 percent of respondents reported their agencies had moved one or more applications to the cloud; in 2011 this number increased to 34 percent, and experts expect it to go up again this year.

Mobility

Market Connections' 2011 Federal Media and Marketing study and Public Sector Social Media Study findings showed significant growth in the use of mobile devices to stay connected, affecting not only how employees use social media, but also how they access information online. More than 50% of federal decision-makers access e-mail using a mobile device, and more than 30% access web sites on a mobile device. The social media study revealed government employees use blogs and social media to gather information and educate themselves, and they want contractors to use social media more to share information. With the increase in usage of mobile devices, it's essential that messages and content be delivered in a succinct, mobile-friendly format to optimize effectiveness.

Many have identified cyber security, cloud computing, and issues with mobility and Health IT as "niche markets" and potential areas of growth within government services. These relatively new markets are top priorities ffor many government agencies in 2012. Understanding how these issues and trends will impact your company and your customer base is essential to stay on top in the current budgetary climate. Having the most and up-to-date intelligence on these priority issues will help your organization continue to deliver value, the right services and resonant messages in an increasingly competitive government contracting landscape. .

Sources

The government contractor industry: M&A environment and recent deal trends, Grant Thornton, 2011.

FedFocus 2012 Presentation, Deltek, 2011. Links to the presentation slides:
Presentation: "Issues and Opportunities for 2012," Kevin Plexico, Deltek
Presentation: "Defense Outlook 2012," Brian Haney, Deltek
Presentation: "Top Civilian Opportunities for 2012," Deniece Peterson, Deltek

How bad was fiscal 2011? Washington Technology, December 2, 2011.

Influx of mobile devices keeps network admins awake at night, Washington Technology, 2011.

Health IT Multi-Sponsor Study, Market Connections, 2011. For more information, contact Cathy Cromley via email or at 703-378-2025 x108.

3rd Annual Federal Media & Marketing Study, Market Connections, 2011.

Social Media in the Public Sector, 2011, Market Connections.

Getting Secure in the Cloud, Lockheed Martin Cyber Security Alliance and Market Connections, 2011.

Awareness, Trust and Security to Shape Government Cloud Adoption, 2010, Lockheed Martin Cyber Security Alliance and Market Connections.

Cybersecurity Study: Increasing Trust, Visibility and Resilience Improves Federal Agency Cybersecurity, 2011. For more information, contact Cathy Cromley via email or at 703-378-2025 x108.

Agencies, Contractors Show Different Priorities

The growth in the use of mobile devices to stay connected is expanding the use of social media, which in turn will affect the form and content of information on the Internet.

This is just one key finding of Market Connections’ second annual Public Sector Social Media Study released October 18. Strategic Communications Group (Strategic), a PR firm specializing in the use of social media, collaborated on the project.

Market Connections' President and CEO Lisa Dezzutti presented the study findings to a standing-room-only crowd at a breakfast event October 18 at the Tysons Corner Marriott.

“We are seeing mobile usage driving social media,” said Dezzutti. “There are implications for us as marketers in terms of how we're delivering content . . . is it mobile-friendly? A 500-word blog post isn't necessarily something people are going to want to read on their phones.”

Government agencies are beginning to narrow the gap between themselves and contractors using social media, Dezzutti said. In addition, while all social media sites saw big gains in usage, government-specific sites such as GovLoop and GovTwit grew significantly; 35 percent of government respondents said they use GovLoop, up from just 11 percent last year, while GovTwit grew from 5 percent in 2010 to 30 percent this year.

By Marc Hausman, Strategic Communications Group
Guest Contributor

When it comes to the public sector there is seldom a quick hit in enterprise sales.

Prospective government customers are appropriately demanding. They assess corporate capabilities and reputation. They evaluate product features and service offerings. They judge track record and contract performance.

A vendor that attempts to rush this evaluation process can sour the deal and, in some instances, soil the long-term relationship. That's because connections with government buyers are cultivated over time. In fact, it's quite common for the opportunity identification and capture process to be measured in years.

The payoff sure is sweet though. Revenue generated from a multi-year, enterprise deal with a government agency can run well into the millions of dollars. Plus, the lifetime value of the customer engagement is significant, as it provides a critical qualification that can lead to follow-on work and new opportunities.

At Strategic Communications Group (Strategic), the majority of our clients sell complex products and services to government agencies, at both the federal and state/local levels. As such, our social media marketing focus and engagement methodology has gravitated towards direct support of the three most important benchmarks for success in the sales process -- lead generation, cultivation of prospect relationships and deal capture.

It is possible for executive management and marketers to align social media with sales by following four key steps:

Attention Government Contractors and Employees:

Please share your views and experience using social media as part of the public sector community!

The 2nd annual Public sector Social Media study explores social media in the public sector by focusing on how and why government agencies and contractors use social media, as well as the benefits and challenges to doing so. This survey is sponsored by Market Connections, Inc. in collaboration with Strategic Communications Group.

Take the survey now!

One of the hot topics in federal circles this year is data center consolidation. Seen as a way to control costs and save energy – both admirable goals – consolidation is one of the pillars of the 25-point IT reform plan.

The promise of cost reductions and greater flexibility is encouraging many federal agencies to move applications to cloud computing platforms, but security concerns and still-developing familiarity with the concept keep them from moving faster.

Those strange white and black boxes are popping up everywhere. What are these pixilated and futuristic icons? They are Quick Response (QR) codes.

Security remains the biggest deterrent to US government agencies using cloud computing, according to a survey by Lockheed Martin and its Cyber Security Alliance.

From Infosecurity, June 23, 2011