EPROCUREMENT INNOVATIONS IN ORGANIZATIONS : REASONS FOR IMPLEMENTATION AND OUTCOMES

Sammanfattning: Nowadays, companies are facing several competitive pressures, which push them to seek for new and better ways to conduct their internal processes. One of this ways is throughout processes innovations that allow the company to establish and maintain competitive advantages; one example of this new trend is the emergence of eProcurement, an electronic system aimed to automate purchasing processes in organizations, which, if it is properly implemented, will derive in processes cost reduction and efficiency improvement on those same procedures. This study is focused on identifying the propeller factors that make companies to engage in this kind of ventures; as well as studying which are the outcomes generated inside the organizations once the electronic system has been implemented. Purpose The purpose of this thesis is to identify the elements that trigger automation of procurement processes in organizations; as well as describing the implications derived from automation during and after such implementation. The study was conducted through interviews with managers and final user from two Mexican companies which are currently using Oracle as their eProcurement tool. Conclusions The study found that depending on how well organizations prepare themselves and their staff for the upcoming change, different results may be obtained in terms of benefits and acceptability from final users. In order to avoid potential pitfalls, firms must bear in mind that, both operational and social awareness are key factors for a successful implementation. If a company takes into consideration their internal operational needs and staff opinions to base their decision of engaging on eProcurement, it will be more likely to obtain benefits related to cost reduction, improved efficiency and final user satisfaction.