Question: Do the executives/managers out there actually get real value from analyst reports?
Category Opinion
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As most of you know, there has been a firestorm over the recent Radacati report, as well as the stupidity of an analyst at the Radacati trying to remain anonymous (ha!) while posting on various blogs. I am not going to link to all of that because a) you've probably already seen it, b) I could spend all day doing it, and c) I don't feel like it. (Go to Ed Brill or Volker's blogs to catch up, if you must)
But this recent controversy has brought up a question that has been nagging me for many years - do managers and executives really feel they get value from these reports? How can you, as an executive, know that the report isn't biased? I mean, these reports have to be funded from somewhere - and almost all of the time it is very painfully obvious where the funding (whether direct or indirect) came from. Radacati and others have proven over and over that they are "Opinion Whores", giving a favorable report to the highest bidder. Most of us in the industry give them little or no credence - are there others out there who feel they do get good value from these reports?
BTW, I know of one particular analyst firm that I believe gives insightful, objective analysis - The Burton Group. Why do I think this? Well, I have spoken to Peter O'Kelly at length about them, and I know for a fact that they do not take outside money to sponsor a report. So, I believe them to be objective - and I am sure there are others. But, outside of these known objective analysts, does anyone believe these other firms?
Update: Chris Linfoot has written an excellent response to my question on his blog. He trackbacked it from here, but I wanted to put a link to it on the front page - it is that good.
Rock
**Marriages are made in heaven. But, again, so are thunder, lightning, tornados and hail.
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Comments
Rock
Posted by Rock At 08:10:10 AM On 08/06/2004 | - Website - |
i wanted to say something about pointy haired managers, but i think chris and andrew already did.
Posted by jonvon At 10:39:05 AM On 08/06/2004 | - Website - |
Posted by Chris Linfoot At 07:26:27 AM On 08/06/2004 | - Website - |
The fact of there being a reporting favoring one vendor feeds the need for competing vendors to make sure to get their own products reviewed favorably.
Vendors inflate the value of the analyst reports to help sell their products and as a whole a cycle (some say a vicious cycle, other say a beneficial one) is created.
Like advertising, it is to some extent a self made industry. Recent events have proven that any hack with a keyboard can be an analyst.
Posted by Andrew Pollack At 09:47:37 AM On 08/06/2004 | - Website - |