The Enterprise Software Buyers ClubThe reasons why companies buy software may not be what you thinkContinued from Page 1 But a company positioning itself as the customer's best ally is only one of the factors that influence a sale. The other is the "me, too" effect, also known as "the software my competitor uses is the one I need to buy, too" imperative. This reason probably explains why companies selling Internet market and procurement software did so well before the dot-com bust: Once some big companies bought into the concept, a lot of companies that had no business buying these products ponied up millions for me, too rights. As for the technical merits of the products, well, some analysts said this stuff might work. A Step in the LadderAnyone who thinks that career enhancement doesn't play a role in software acquisition doesn't have a career in the software industry. Some of this incentive is appropriately subtle, as in, "If I don't buy the right software for the job, I'll get fired." But all too often, the driving force is resume and experience enhancement, as in, "If I can get one more big ERP implementation under my belt, I can make CIO." This career-motivated reasoning is behind seemingly contradictory software acquisition approaches: maverick CIOs taking unnecessary chances to look good at their next job and more conservative CIOs sticking with proven (safe) products so that they can keep their jobs one more year. Behind the HypeAll those PR people who inhabit the industry's leading edges actually serve a purpose, as annoying as many people — vendors, analysts, and the press — may think they are. The who knows whom factor really works in PR, and those six (or four or two) degrees of separation between vendor PR firm and key influencers — analysts and press, for the most part — can make all the difference in how each of the previous factors work. Building a web of perception that makes friends and influences people — particularly software buyers — starts at the PR level. And much of the budget for getting those analysts in line and publishing those customer surveys and ROI studies comes out of a PR and marketing budget. You may not think you're buying software because someone spent money six months ago betting that you could be influenced, but chances are that if they did, you were. And Finally...What functional business problem does the software solve? Okay, this buying rationale isn't necessarily so unimportant that it's got to be last. But look at such issues as supply chain management, partner relationship management, or any other buzzword-compliant problem you might have in your company. Does one easily identifiable vendor's products uniquely fit your company's needs and solve all your problems at an appropriate price and in an appropriate timeframe? Maybe yes or maybe no. But one thing is for sure: Performing technical analyses on all the currently available options on the market is extremely difficult. It's surely a lot easier to start with whom you know and what others think about them. Then you can move on to checking customer references — or at least look at some survey results. A quick view toward what the product will mean at your next job, and pretty soon, you've successfully whittled your choices down to, at the least, something you can handle. Welcome to the enterprise software buyers club. Don't forget to check your technical criteria at the door. Joshua Greenbaum [josh@eaconsult.com] is a principal at Enterprise Applications Consulting. He researches enterprise apps and e-business.
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