Software Purchasing Decisions

Goals

To gather information about companies across the ERP, HCM and CX segments, including who makes purchasing decisions, what do senior management consume content-wise, and information about typical purchases of these products. This information will inform a proposal to be submitted to an agency.

Early Findings

ERP Solutions

  • Software purchases, such as purchases of ERP solutions, greatly benefit senior members of companies, so they may be interested in purchasing them.
  • Business owners are also responsible for purchasing decisions of ERP solutions, as for a successful sale, they need to be convinced.
  • CPAs and other financial executives are important in guiding midsize companies' decision-making concerning purchasing ERP solutions.
  • One of the main reasons companies will purchase ERP solutions is because existing legacy systems have become outdated and are no longer supported. Other reasons include growth, divestiture, siloed departments, and to keep up with their competition.
  • Most product companies spend up to 4% of their annual revenue on an ERP system. This is based on a study of mostly companies with an annual revenue between $25 million and $1 billion.

HCM Solutions

  • HCM solutions are provided for HR departments. This would suggest HR professionals are involved in the purchasing decisions.
  • When considering purchasing tech, HR departments will use their employees' preferences to determine what technology is important.
  • Companies might purchase HCM solutions to increase process efficiency and workplace productivity, regulatory compliance, or technology platform simplification.
  • The marketplace of HR software such as HCM solutions was valued at over $14 billion in 2016.

CX Solutions

  • As guides have been created introducing CEOs to CX solutions, it is likely that they are involved in the purchasing decisions.
  • CX is very important for marketing, so the marketing department may be involved in the purchasing decision.
  • Companies will purchase CX solutions prevent, or recover from, negative customer experience impact, such as when United Airlines lost $1.4 billion due to a customer's negative experience going viral on social media.
  • CX technologies were estimated to reach a value of $508 billion by the end of 2019.

Content Consumption

  • C-level officers are most attracted to content that provide advice for their career.
  • The content that the C-suite consumes is often curated, with more than half getting their information from email or traditional media.
  • Around 60% of CEOs consume content in the mornings.
  • 84% of CEOs and VPs use social media to make purchasing decisions.

Proposed next steps:

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