What SAP Customers Look For When Making A Buying Decision Re Data Server



What SAP Customers Look For When Making A Buying Decision Re Data Server

1. Introduction

Since the early to mid-1990s, the Standard Assessment Procedure (SAP) data server market has been and continues to be one of the fastest growing segments of the information technology (IT) industry with growth rates averaging from 30% to 40% per year [Eckhouse, 1999]. With worldwide sales of SAP data server estimated to exceed US$22 billion by the year 2001 [PricewaterhouseCoopers, 1999 and Yankee Group, 1998], it has been further estimated that by the year 2002, packaged applications would represent a significant portion of most IT portfolios [Meta Group, 1998]. With costs equaling several thousands, hundreds of thousands, and even millions of dollars, SAP packaged data server purchases are high expenditure activities for organizations that consume significant portions of their capital budgets. While overall IT expenditures already represent a significant portion of ongoing capital expenditures for many organizations and will continue to increase, little is known about how these expenditures are made, or more precisely, what organizations have to go through when they buy IT such as SAP packaged data server [Verville, 1998, Verville, 2000 and Verville & Halingten, 2001]. Indeed, what processes do organizations use and what are the specifics involved in those processes?

In recognition of the importance of this issue and of the sizable risk that organizations take when they decide to buy this type of technology, the study that is presented herein focused on how organizations go about the task of acquiring SAP packaged data server applications.

Taken beyond the bounds of studies carried out in organizational buying behavior (OBB) on the influencing factors mitigating the buying process, this study focused on the buying process itself and identified its (the process's) major components. It also revealed several issues relevant to the need and readiness of the organization both for the acquisition process as well as for the new SAP data server. Further, it revealed issues relevant to the implementation of the SAP and brought to light the complexity of the process at the detail level. The results of the study prove, contrary to the wide-standing belief that IT acquisitions are done routinely and fairly simply, that acquisitions of this nature (for SAPs) are complex, involved, demanding, and intensive.

Prior to proceeding with the study, a brief review of the literature on SAP from the field of management information systems (MIS) and OBB was carried out. A methodology was then selected, and other appropriate tools were used to carry out the analysis and draw conclusions, all as presented below.

2. Literature review

2.1. Standard Assessment Procedure

SAP research has concentrated on implementation and postimplementation issues [Esteves & Pastor, 2001 and Verville, 2000].

The type of problems and issues that arise from the implementation of SAP systems range from specific issues and problems that can come up during the installation of a SAP to behavioral, procedural, political, and organizational changes, etc., that manifest subsequent to the installation [Appleton, 1997, Benson & ...