Managed Technology Adoption Risk: A Way to Realize Better Return from COTS Investments

Abstract

Two companies can install the same COTS (Commercial Off The Shelf) software package, yet one company enjoys more success, and a better return, than the other. Needless to say, many factors could be involved in this common scenario. Yet, chances are, one of the factors is that the successful company actively managed the non-technical aspects of the adoption of the COTS software adoption, instead of just selecting it and installing it. What is the difference? According to technology transition researchers, “installed” means that the system is operational; however, only a few people use the software as intended (or at all!) [Fichman1995]. “Adopted” means that the system is operational, and employees are using it in the way that was intended to support the business need that led to the COTS adoption to begin with. Every organization exhibits different risks for adopting a particular technology, and whether and how those risks are managed often determine whether adoption is achieved, vs merely achieving installation. Managing adoption, especially managing adoption risk, actually starts before acquiring any technology and continues after installation.