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The reasons that companies and individuals habitually return to the same vendor are:
Some seek the security of doing business with a well-established company.
Others like the products or perhaps, even the sales person.
The leading-Edge Technocrats
A relatively small group of companies want to be perpetually on the leading edge of the technology. They are always on the lookout of innovative new products that may have the potential to benefit their companies. These adventuresome companies are willing to work directly with vendors to iron out the bugs in the hardware or a software package in return for the privilege of being among the first to install the product. These companies often agree to be a beta test site for a vendor, that is, they agree to test a product in a live environment. Before being released for beta testing, products will have passed an alpha test (an in-house vendor test). By agreeing to be a beta test site, a company has an opportunity to get in on the
the ground floor of the emergence of a potentially exciting product. The vendor provides pre release versions of the product gratis to the beta test sites in return for their comments on the accuracy, effectiveness, and overall quality of the product.
Being first has its drawbacks. Implementing a new product can be time consuming and costly. Most off-the-shelf products are bug-free. This is not the case with pre release versions and even products that have just reached the market. Pre release versions of software products and some newly released products invariably have bugs and sometimes major design flaws. Companies using these products must be willing to cope with setbacks and delays for the right to be first. Even being first is a small consolation when product does not live up to pre release hype.
The Conservatives
In contrast to the leading-edge technocrats, the conservative buyers have no interest in being on the edge, or as they call it, the “bleeding edge”. They are perfectly content to let other companies experience the pain and expense of working through the learning curve. The conservatives wants to buy a proven product. They feel that delaying implementation by six months or a year is a small price to pay for the satisfaction of knowing that a product works. Before buying, the conservatives ask vendors to point to example of success stories; then they confirm these reports by talking directly with representatives of the companies using the product.
Compatibility and Connectivity Concerns
Computing Environment – defined by the programming language, a computer, and operating system.
When software written for one environment can be run on another, the environments are said to be compatible. On the other hand, environments are not compatible when the programs can be run under one environment, or the other, but not both.
The expense of upgrading to hardware or software that is not compatible with the existing environment is an expense that managers try to avoid if at all possible. When systems are not compatible, programs may require substantial and expensive modification before they can be run. When evaluating hardware and software, managers may limit their search to alternatives that are compatible and can offer upward compatibility. Systems that permit upward compatibility enable a company to purchase proprietary software at one level of sophistication and then, at a later date, upgrade the existing system to one with greater capabilities without the need for redesigning and reprogramming
Seven-steps for buying a Microcomputer System
Achieve computer literacy
Determine your information and computer usage needs.
Assess availability of software and information services.
Investigate hardware options
Determine features desire
Capacity Planning
The process by which planners determine how much hardware resourc
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