Abstract
The identification, procurement, implementation, and support of a major enterprise system (ES) represents a major challenge for any organisation. ERP or Enterprise Resource Planning applications, as core accounting systems, are often the core business support technologies that form the backbone of commercial operations and financial management activity. Since 2000, the migration of vendor technologies to the cloud through SaaS applications (Software as a Service) has created a range of additional commercial options for organisations seeking to cost effectively purchase and implement a new system. These commercial procurement transactions are often both contractually and technically complex and may also involve a range of third parties like consultancies or system integrators. The results of this study suggest that organisations may not recognise the complexity of these contractual procurement transactions early in the investment lifecycle and may often rely on what may be an ill-fitting, standard procurement approach during the project execution phase. This study also suggests that organisations appear not to recognise the likely intricacy of the implementation process and associated commercial terms. Organisations may also deploy procurement processes that vendors may have considerable experience with over many years from other client bids. This study proposes an alternative approach to initiating and managing the procurement planning process for ERPs.