The return of the user group

IT user groups come into their own when faced with a crisis, such as the cancellation of a once-popular product line. They typically provide forums for companies to pool experiences and co-ordinate lobbying efforts.

But for more than a year, user groups have faced a global business crisis. While some have helped their members to boost return on investment (ROI), others have suffered themselves, as members cut back on non-essential activities.

Ian Severn, chairman of the Compaq Users Organisation in the UK (CUO-UK), said: "The trough was a year ago and now we are seeing a resurgence.

"I think our members are seeing a benefit in attending meetings, partly to learn how they can make the most of their investment, but also to keep watch on the [proposed merger of Compaq and Hewlett Packard]."

CUO-UK has a busy programme of 13 events before Easter, and expects 60 to 70 delegates at each. Severn said his group will back up the meetings with an online community website, part funded by Compaq.

The SAP user group is in a similar situation. Mike Dean, operations manager at SAP reseller Pecaso, and treasurer of the SAP UK & Ireland User Group, said that the organisation is stepping up its online efforts while money is tight.

"There has been talk of setting up a European SAP user group, but it is tough to justify international flights," he said. The group is currently experimenting with SAP's web conferencing facilities.

Pecaso works with SAP user groups in the UK, the US, Germany, Spain and The Netherlands. Mike Head, the reseller's business development director, explained that some firms are too focused on belt-tightening to seek knowledge which boosts efficiency.

"Firms are scaling back on what they see as junkets," he said. "But if you have a good ROI story to tell, people are keen to hear it."

Simeon Lando, membership and marketing manager at the UK Oracle User Group (OUG), said: "People are travelling less, and over shorter distances."

The OUG is increasing its regional programme, with events in Dublin, Leeds, Belfast, Edinburgh, London and Birmingham. It saw a 15 per cent rise in membership during 2001, while vendor sponsorship was no harder to come by than in other years.

US-based information delivery specialist Actuate helps to fund its user group in the UK. Alan Hamilton, Actuate's managing director, said he expected to spend £50,000 to £100,000 this year. "That's not an expense, it's an investment," he argued. "We have to know where we fit into our customers' tier-one priorities. We have to get in at that tier this year or we won't get in at all."

Hamilton said that the user group has helped Actuate to plan product development. "We've prioritised integration with web portals, because that's how our customers are trying to get rapid ROI," he said.

The user group also gave Actuate early warning of the downturn, as customer interest shifted away from new features during 2000.

Steve Needham, vice president of IT client reporting at financial services firm Deutsche Asset Management, is chairman of the Actuate user group.

He devotes a few days each month to the group and maintained that the overhead is easily justified. "Belts are tightened here as in most firms, but we think this will help us to get more value," he said.

Needham's advice to those thinking of getting involved in a user group is simple. "Don't let the vendor use the group to sell its products," he advised, warning against groups that are glorified beta programmes. "Don't get involved in a bug-fix forum. User groups should look at strategic issues," he said.

Getting the most from user groups

• Negotiate time to attend groups based on a strong business case
• Be prepared to exchange ideas on achieving ROI
• Encourage organisers to make use of online forums
• Ensure that strategic rather than operational issues are discussed
• Avoid groups where vendors are allowed to launch sales pushes or those that focus on bug fixing