An empirical study on the influences on the acquisition of enterprise software decisions

Abstract

Purpose -The purpose of this paper is to understand the decision process of enterprise software acquisition. The research aims to focus on identifying significant influences on enterprise software acquisition decisions. Design/methodology/approach -As a research model and theoretical background, the organizational buying model (OBB) is proposed for the acquisition of enterprise systems. Influences on enterprise software acquisition decision processes were found by an empirical study carried out from a practitioner's perspective. The study collected data via a mail survey administered to information systems (IS) professionals involved in the acquisition of enterprise software (ES). The survey questionnaire was developed based on a previous research project and a literature review. Organizational buying behavior (OBB) models in the literature served as the basis for the influences included in the survey instrument. Factor analysis was carried out on the survey data to identify the most significant factors/influences. Findings -The following five factors emerged as significant influences on the acquisition decision process of enterprise software: ES strategy and performance; BPR and adaptability; management commitment and user buy-in; single vendor integrated solution; and consultants, team-location, and vendor's financing. These factors are discussed and managerial implications are extracted. Conclusions are derived from the study findings and guidelines for further research are suggested.Research limitations/implications -The present study provides a starting point for further research in understanding a more comprehensive list of influences on enterprise software acquisition. A bigger sample from more industries is required to examine whether the significance of the influences remains stable. Originality/value -Using OBB models has proven to be useful for organizations in making effective decisions on enterprise software acquisition.

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“…While technology factor is only some part of the project, people are the key to making with CRM success, while top management support should focus not only CRM system but also arrangement of the personal in order to increase level of the cross functional integration of process, people, operations and technology (Yi-Te, 2010). Support from the study of Palanisamy et al (2010) has shown the finding on interview 183 samples of organizations in North America, that CRM performance, strategy, business process reengineering, management support and end user buy-in are the influential factor to CRM system acquisition. Therefore, CRM success is required the change in organizational normal business process to support the CRM system which design the path way to best practice, together with the high level of employees' commitment (Shum, Bove & Auh, 2008), a clear CRM vision, support from the management in term of tangible and intangible resources to support Customer Relationship Management System (management support), co-operate within organization to use the Customer Relationship Management System (Employee Buy-In), suitable corporate culture and focus of user requirement, these are the success factors which can be applicable both large, medium and small sized of CRM installed companies (Xevelonakis, 2005;Doom, Milis, Poelmans & Bloemen, 2010;Lambert, 2010).…”

“…Thus, the perspective of managerial and operational level towards the CRM influential factor is likely to differ according to the job title, roles in organization (Palanisamy et al, 2010) and style which influence to the organization performance (Richardson and Foong, 2004). Since, there is no commonly agreed framework for the effective CRM's implementation and CRM's influential factors (Lo, Stalcup & Lee, 2010).…”

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