ABSTRACT
This chapter examines parallels between the partner – vendor paradigm and business – information technology alignment. Organizations with a one-way relationship between business units and Technology find themselves in an analogous position to the posture of treating external implementation providers as vendors than partners. The chapter explores, however, that there is a circular relationship between technology and strategy. It discusses psychological, technical, and financial considerations that firms should review when making these decisions. The chapter shows that individual and group psychologies can be influenced by the decision to purchase a packaged product instead of building one in-house. Another psychological factor, which will play a critical role in the success of a customer relationship management (CRM) implementation, is the posture an organization takes toward its implementation provider. Managerial considerations are also important in understanding the packaged CRM decision-making landscape. The financial implications of hosted CRM solutions include ongoing licensing costs and ongoing maintenance either by internal IT or external implementation partners.
