Jacques Verville, Christine Bernadas and Alannah Halingten
This paper aims to present a discussion of the critical success factors (CSF) that affect the acquisition process for enterprise resource planning (ERP) software.
Abstract
Purpose
This paper aims to present a discussion of the critical success factors (CSF) that affect the acquisition process for enterprise resource planning (ERP) software.
Design/methodology/approach
The research strategy was a multiple‐case design with three organizations that had recently completed the acquisition of an ERP solution. The rationale for the multiple‐case design was that, as a research strategy, the focus could be directed to understanding the dynamics and complexities present within each case, these being critical success factors of the ERP software acquisition process within the organization.
Findings
This study identified ten factors critical to the successful outcome of acquiring an ERP solution. Their omission would have resulted in a less than optimal outcome for the organization. For each of the three cases, the elements that stand out the most are as follows: clear and unambiguous authority, a structured, rigorous and user‐driven process, its planning, the establishment of criteria, and the sense of partnership that the team works to establish not only with various user commitments, but also with the potential vendor.
Originality/value
It is important to note that no one CSF alone is going to make an ERP acquisition successful. It is rather the combination of several critical factors that will result in its successful outcome.
Details
Keywords
Ramaraj Palanisamy, Jacques Verville, Christine Bernadas and Nazim Taskin
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…
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.
Details
Keywords
The purpose of this paper is to suggest a framework that would guide the practicing manager to decide the degree of information systems (IS) outsourcing.
Abstract
Purpose
The purpose of this paper is to suggest a framework that would guide the practicing manager to decide the degree of information systems (IS) outsourcing.
Design/methodology/approach
The proposed framework has been derived from the findings of a previous empirical study and qualitative inputs. Analytical hierarchy process (AHP) is then used to apply the framework. The framework is finally validated in three India‐based banks.
Findings
The proposed framework helps in creating a strategic alignment between the business strategy and information system strategy. The application of the framework shows the preference of managers towards high IS outsourcing. Strategic alignment and medium term impact emerge the important factors in IS outsourcing. The validity of the framework is proved in three banks.
Research limitations/implications
The validation exercise has been done on a small sample due to resources constraints and a study involving a larger sample is desired. Further, it is advised to review the framework on regular intervals and make suitable changes in decision factors.
Practical implications
The framework is helpful to managers in identifying the critical factors which can act as useful inputs in taking informed decisions on the degree of IS outsourcing.
Originality/value
The paper fills some of the gaps in IS outsourcing by suggesting a practice‐ oriented framework that guides the decision maker to undertake a systematic and structured approach in arriving at an outsourcing decision. The framework has evolved from the practices of banks in India for which there does not exist any similar research.