Managing the Cloud Procurement Process – Findings from a Case Study
Cloud computing (CC) has already gained overall
appreciation in research and practice. Whereas the willingness to
integrate cloud services in various IT environments is still unbroken,
the previous CC procurement processes run mostly in an unorganized
and non-standardized way. In practice, a sufficiently specific, yet
applicable business process for the important acquisition phase is
often lacking. And research does not appropriately remedy this
deficiency yet. Therefore, this paper introduces a field-tested
approach for CC procurement. Based on an extensive literature
review and augmented by expert interviews, we designed a model
that is validated and further refined through an in-depth real-life case
study. For the detailed process description, we apply the event-driven
process chain notation (EPC). The gained valuable insights into the
case study may help CC research to shift to a more socio-technical
area. For practice, next to giving useful organizational instructions
we will provide extended checklists and lessons learned.
[1] A. Benlian and T. Hess, “Opportunities and risks of software-as-aservice:
Findings from a survey of IT executives”, Decision Support
Systems, vol. 52, no. 1, pp. 232–246, 2011.
[2] A. Bharadwaj, O. A. El-Sawy, P.A. Pavlou, and N. Venkatraman,
“Digital Business Strategy: Toward a Next Generation of Insights”,
Management Information Systems Quarterly, vol. 37, no. 2, pp. 471–
482, 2013.
[3] S. Marston, Z. Li, S. Bandyopadhyay, J. Zhang, and A. Ghalsasi, “Cloud
computing - The business perspective”, Decision Support Systems, vol.
51, no. 1, pp. 176–189, 2011.
[4] W. Venters, and E.A. Whitley, “A critical review of cloud computing:
researching desires and realities”, Journal of Information Technology,
vol. 27, no. 3, pp. 179–197, 2012.
[5] O. Durowoju, H. K. Chan, and X. Wang, “The impact of security and
scalability of cloud service on supply chain performance”, Journal of
Electronic Commerce Research, vol. 12, no. 4, pp. 243–256, 2011.
[6] P. Gupta, A. Seetharaman, and J. R. Raj, “The usage and adoption of
cloud computing by small and medium businesses”, International
Journal of Information Management, vol. 33, no. 5, pp. 861–874, 2013.
[7] Gartner Research, “Gartner Says Worldwide Public Cloud Services
Market to Total $131 Billion”, available at: http://www.gartner.com/
newsroom/id/2352816 (accessed 20 May 2014), 2014
[8] L. Youseff, M. Butrico, and D. Da Silva, “Toward a unified ontology of
cloud computing”, Grid Computing Environments Workshop 2008
(GCE), 16th November 2008, Austin, Texas, 2008.
[9] S. Leimeister, M. Boehm, C. Riedl, and H. Krcmar, “The Business
Perspective of Cloud Computing: Actors, Roles and Value Networks”,
Proceedings of the 18th European Conference on Information Systems
(ECIS), Pretoria, South Africa, 2010. [10] S. Fremdt, R. Beck, and S. Weber, “Does Cloud Computing Matter? An
Analysis of the Cloud Model Software-as-a-Service and Its Impact on
Operational Agility”, Proceedings of the 46th Hawaii International
Conference on in System Sciences (HICSS), Gr. Wailea, Hawaii, 2013.
[11] I. R. Bardhan, H. Demirkan, P. K. Kannan, R. J. Kauffman, and R.
Sougstad, “An interdisciplinary perspective on IT services management
and service science”, Journal of Management Information Systems, vol.
26, no. 4, pp. 13–64, 2010.
[12] ISACA (Information Systems Audit and Control Association), “COBIT
5”, available at: http://www.isaca.org, (accessed 10 March 2014), 2012.
[13] N. Brender, and I. Markov, “Risk perception and risk management in
cloud computing: Results from a case study of Swiss companies”,
International Journal of Information Management, vol. 33, no. 5, pp.
726–733, 2013.
[14] G. Garrison, S. Kim, and R. L. Wakefield, “Success factors for
deploying cloud computing”, Communications of the ACM, vol. 55, no.
9, pp. 62–68, 2012.
[15] L. Morgan and K. Conboy, “Factors affecting the adoption of cloud
computing: an exploratory study”, Proceedings of the 21st European
Conference on Information Systems (ECIS), Utrecht, Netherlands, 2013.
[16] G. Yan, D. Wen, S. Olariu, and M.C. Weigle, “Security challenges in
vehicular cloud computing”, Intelligent Transportation Systems, vol. 14,
no. 1, pp. 284–294, 2013
[17] V. Chang and G. Wills, “A University of Greenwich Case Study of
Cloud Computing”, in D. Graham, I. Manikas, and D. Folinas, ELogistics
and E-Supply Chain Management: Applications for Evolving
Business, IGI Global, Hershey, pp. 232–253, 2013.
[18] J. Leukel and S. Kirn, “A Service-Oriented Approach to Freight Routing
in Intermodal Transport Systems“, Tagungsband der 10. Internationalen
Tagung Wirtschaftsinformatik, Zurich, Swiss, 2011.
[19] D. V. Meer, K. Dutta, and A. Datta, “A cost-based database request
distribution technique for online E-commerce applications”,
Management Information Systems Quarterly, vol. 36, no. 2, pp. 479–
507, 2012.
[20] S. G. Lee, S. H. Chae, and K. M. Cho, “Drivers and inhibitors of SaaS
adoption in Korea”, International Journal of Information Management,
vol. 33, no. 3, pp. 429–440, 2013.
[21] S. Wind, J. Repschlaeger, and R. Zarnekow, “Towards a Cloud
Computing Selection and Evaluation Environment for Very Large
Business Applications”, Proceedings of the 18th American Conference
on Information Systems (AMCIS), Seattle, Washington, 2012.
[22] A. LaBelle and H. E. Nyce, “Whither the IT Organization?”, Sloan
Management Review, vol. 28, no. 4, pp. 75–85, 1987.
[23] P. Weill and M. Broadbent, Leveraging the New Infrastructure, Harvard
Business School Press, Boston, MA, 1998.
[24] ITSMF (Information Technology Service Management Forum), ITIL®
Foundation, Handbook, 3rd Edition, Belfast, 2012.
[25] E. Bailey and J. D. Becker, “IT Controls and Governance in Cloud
Computing”, Proceedings of 20th Americas Conference on Information
Systems (AMCIS), Savannah, USA, 2014.
[26] P. Raj and M. Periasamy, “The Convergence of Enterprise Architecture
(EA) and Cloud Computing”, Cloud Computing for Enterprise
Architectures, Springer, London, pp. 61–87, 2011.
[27] G. Feuerlicht, S. Schneider, and L. Tranter, “Towards Enterprise
Architecture for Cloud Computing Environments”, Proceedings of the
11th Workshop of on e-Business, Orlando, 2012.
[28] C. K. Prahalad and G. Hamel, “The core competence of the
corporation”, Harvard Business Review, vol. 68, no. 3, pp. 79–91, 1990.
[29] T. Saarinen and A. P. Vepsalainen, “Procurement strategies for
information systems”, Journal of Management Information Systems,
Vol. 11 No. 2, pp. 187–208, 1994.
[30] R. Heckman, “Managing the IT procurement process”, Information
Systems Management, vol. 16, no. 1, pp. 61–71, 1999.
[31] B. A. Aubert, M. Patry, and R. Rivard, “A tale of two outsourcing
contracts”, Wirtschaftsinformatik, vol.45, no. 2, pp. 181–190, 2003.
[32] B. A. Aubert, J. F. Houde, M. Patry, and S. Rivard, “A multi-level
investigation of information technology outsourcing”, The Journal of
Strategic Information Systems, vol. 21, no. 3, pp. 233–244, 2012.
[33] A. Benlian, J. Vetter, and T. Hess, “Zur Rolle versunkener Kosten in
aufeinander folgenden IT-Outsourcing-Entscheidungen”, Zeitschrift für
Betriebswirtschaft, vol. 82, no. 2, pp. 181–213, 2012.
[34] C. Qi, and P. Y. K. Chau, “Relationship, contract and IT outsourcing
success: Evidence from two descriptive case studies”, Decision Support
Systems, vol. 53, no. 4, pp. 859–869, 2012. [35] J. Ingalsbe, D. Shoemaker, and N. Mead, “Threat modeling the cloud
computing, mobile device toting, consumerized enterprise – An
overview of considerations”, Proceedings of the 17th Americas
Conference on Information Systems (AMCIS), Detroit, Michigan, 2011.
[36] P. Mell and T. Grance, “The NIST definition of cloud computing”,
available at: http://pre-developer.att.com/home/learn/enabling
technologies/The_NIST_Definition_of_Cloud_Computing.pdf (accessed
10 December 2013), 2011.
[37] BSI, Bundesministerium für Sicherheit und Informationstechnik, „Cloud
Computing Grundlagen“, available at: https://www.bsi.bund.de/DE/
Themen/CloudComputing/Grundlagen/Grundlagen_node.html (accessed
25.05.2014), 2014.
[38] P. Kraljic, “Purchasing must become supply management”, Harvard
Business Review, vol. 61, no. 5, pp. 109–117, 1983.
[39] P. Cousins, R. Lamming, B. Lawson, and B. Squire, Strategic Supply
Management Principles, Theories and Practice, Pearson Education, UK,
pp. 47-131, 2008.
[40] P. Fettke and P. Loos, “Classification of reference models: a
methodology and its application”, Information systems and e-business
management, vol. 1, no. 1, pp. 35–53, 2003.
[41] B. Schlagheck, Objektorientierte Referenzmodelle für das Prozess- und
Projektcontrolling–Grundlagen–Konstruktion–
Anwendungsmöglichkeiten, DUV, Wiesbaden, pp. 77–91, 2008.
[42] J. Webster and R. T. Watson, “Analyzing the past to prepare for the
future: Writing a literature review”, Management Information Systems
Quarterly, vol. 26, no. 2, pp. xiii–xxiii, 2002.
[43] M. B. Miles and A. M. Huberman, Qualitative data analysis, Thousand
Oaks, Sage, 1994.
[44] K. M. Eisenhardt, “Building theories form case study research”,
Academy of Management Review, vol. 14, no. 4, pp. 532–550, 1989.
[45] R. K. Yin, Case study research: design and methods, Thousand Oaks,
Sage Publications, pp. 40–86, 2002.
[46] F. Ahlemann and H. Gastl, “Process Model for an Empirically Grounded
Reference Model Construction”, in: P. Fettke, and P. Loos, (Eds.),
Reference Modelling for Business Systems Analysis, Idea Group
Hershey, pp. 77–97, 2007.
[47] F. Radeke, “How To Rigorously Develop Process Theory Using Case
Research”, Proceedings of the 18th European Conference on Information
Systems (ECIS), Pretoria, South-Africa, 2010.
[48] G. Walsham, “Interpretive case studies in IS research: nature and
method”, European Journal of information systems, vol. 4, no. 2, pp.
74–81, 1995.
[49] E. J. Dumond, “Making Best Use of Performance Measures and
Information”, International Journal of Purchasing & Materials
Management, vol. 14, no. 9, pp. 16–31, 1994.
[50] R. M. Monczka, R. Handfield, L. C. Giunipero, J. L. Paterson, and D.
Waters, Purchasing and Supply Chain Management, South-Western,
Cengage Learning, 2010.
[51] R. M. Monczka, R. J. Trent, and K. J. Petersen, Effective Global
Sourcing and Supply for Superior Results, Arizona, CAPS Research, pp.
34, 2006.
[52] A. J. Van Weele, Purchasing and Supply Chain Management: Analysis,
Strategy, Planning and Practice, Thomson Learning, London, pp. 94–
98, 2005.
[53] A. W. Scheer, ARIS. Vom Geschäftsprozess zum Anwendungssystem,
Springer, Berlin, pp. 20, 2002.
[54] A. Tsai, J. Wang, W. Tepfenhart, and D. Rosca, “Epc workflow model
to wifa model conversion”, Systems, Man and Cybernetics, vol. 4, pp.
2758–2763, 2006.
[55] C. Kocian, “Geschäftsprozessmodellierung mit BPMN 2.0”, available at:
https://www.hs-neu-ulm.de/fileadmin/user_upload/Forschung/HNU_
Working_Paper/HNU_WP16_Kocian_Geschaeftsprozessmodellier
ung.pdf (accessed 20 May 2014), 2011.
[1] A. Benlian and T. Hess, “Opportunities and risks of software-as-aservice:
Findings from a survey of IT executives”, Decision Support
Systems, vol. 52, no. 1, pp. 232–246, 2011.
[2] A. Bharadwaj, O. A. El-Sawy, P.A. Pavlou, and N. Venkatraman,
“Digital Business Strategy: Toward a Next Generation of Insights”,
Management Information Systems Quarterly, vol. 37, no. 2, pp. 471–
482, 2013.
[3] S. Marston, Z. Li, S. Bandyopadhyay, J. Zhang, and A. Ghalsasi, “Cloud
computing - The business perspective”, Decision Support Systems, vol.
51, no. 1, pp. 176–189, 2011.
[4] W. Venters, and E.A. Whitley, “A critical review of cloud computing:
researching desires and realities”, Journal of Information Technology,
vol. 27, no. 3, pp. 179–197, 2012.
[5] O. Durowoju, H. K. Chan, and X. Wang, “The impact of security and
scalability of cloud service on supply chain performance”, Journal of
Electronic Commerce Research, vol. 12, no. 4, pp. 243–256, 2011.
[6] P. Gupta, A. Seetharaman, and J. R. Raj, “The usage and adoption of
cloud computing by small and medium businesses”, International
Journal of Information Management, vol. 33, no. 5, pp. 861–874, 2013.
[7] Gartner Research, “Gartner Says Worldwide Public Cloud Services
Market to Total $131 Billion”, available at: http://www.gartner.com/
newsroom/id/2352816 (accessed 20 May 2014), 2014
[8] L. Youseff, M. Butrico, and D. Da Silva, “Toward a unified ontology of
cloud computing”, Grid Computing Environments Workshop 2008
(GCE), 16th November 2008, Austin, Texas, 2008.
[9] S. Leimeister, M. Boehm, C. Riedl, and H. Krcmar, “The Business
Perspective of Cloud Computing: Actors, Roles and Value Networks”,
Proceedings of the 18th European Conference on Information Systems
(ECIS), Pretoria, South Africa, 2010. [10] S. Fremdt, R. Beck, and S. Weber, “Does Cloud Computing Matter? An
Analysis of the Cloud Model Software-as-a-Service and Its Impact on
Operational Agility”, Proceedings of the 46th Hawaii International
Conference on in System Sciences (HICSS), Gr. Wailea, Hawaii, 2013.
[11] I. R. Bardhan, H. Demirkan, P. K. Kannan, R. J. Kauffman, and R.
Sougstad, “An interdisciplinary perspective on IT services management
and service science”, Journal of Management Information Systems, vol.
26, no. 4, pp. 13–64, 2010.
[12] ISACA (Information Systems Audit and Control Association), “COBIT
5”, available at: http://www.isaca.org, (accessed 10 March 2014), 2012.
[13] N. Brender, and I. Markov, “Risk perception and risk management in
cloud computing: Results from a case study of Swiss companies”,
International Journal of Information Management, vol. 33, no. 5, pp.
726–733, 2013.
[14] G. Garrison, S. Kim, and R. L. Wakefield, “Success factors for
deploying cloud computing”, Communications of the ACM, vol. 55, no.
9, pp. 62–68, 2012.
[15] L. Morgan and K. Conboy, “Factors affecting the adoption of cloud
computing: an exploratory study”, Proceedings of the 21st European
Conference on Information Systems (ECIS), Utrecht, Netherlands, 2013.
[16] G. Yan, D. Wen, S. Olariu, and M.C. Weigle, “Security challenges in
vehicular cloud computing”, Intelligent Transportation Systems, vol. 14,
no. 1, pp. 284–294, 2013
[17] V. Chang and G. Wills, “A University of Greenwich Case Study of
Cloud Computing”, in D. Graham, I. Manikas, and D. Folinas, ELogistics
and E-Supply Chain Management: Applications for Evolving
Business, IGI Global, Hershey, pp. 232–253, 2013.
[18] J. Leukel and S. Kirn, “A Service-Oriented Approach to Freight Routing
in Intermodal Transport Systems“, Tagungsband der 10. Internationalen
Tagung Wirtschaftsinformatik, Zurich, Swiss, 2011.
[19] D. V. Meer, K. Dutta, and A. Datta, “A cost-based database request
distribution technique for online E-commerce applications”,
Management Information Systems Quarterly, vol. 36, no. 2, pp. 479–
507, 2012.
[20] S. G. Lee, S. H. Chae, and K. M. Cho, “Drivers and inhibitors of SaaS
adoption in Korea”, International Journal of Information Management,
vol. 33, no. 3, pp. 429–440, 2013.
[21] S. Wind, J. Repschlaeger, and R. Zarnekow, “Towards a Cloud
Computing Selection and Evaluation Environment for Very Large
Business Applications”, Proceedings of the 18th American Conference
on Information Systems (AMCIS), Seattle, Washington, 2012.
[22] A. LaBelle and H. E. Nyce, “Whither the IT Organization?”, Sloan
Management Review, vol. 28, no. 4, pp. 75–85, 1987.
[23] P. Weill and M. Broadbent, Leveraging the New Infrastructure, Harvard
Business School Press, Boston, MA, 1998.
[24] ITSMF (Information Technology Service Management Forum), ITIL®
Foundation, Handbook, 3rd Edition, Belfast, 2012.
[25] E. Bailey and J. D. Becker, “IT Controls and Governance in Cloud
Computing”, Proceedings of 20th Americas Conference on Information
Systems (AMCIS), Savannah, USA, 2014.
[26] P. Raj and M. Periasamy, “The Convergence of Enterprise Architecture
(EA) and Cloud Computing”, Cloud Computing for Enterprise
Architectures, Springer, London, pp. 61–87, 2011.
[27] G. Feuerlicht, S. Schneider, and L. Tranter, “Towards Enterprise
Architecture for Cloud Computing Environments”, Proceedings of the
11th Workshop of on e-Business, Orlando, 2012.
[28] C. K. Prahalad and G. Hamel, “The core competence of the
corporation”, Harvard Business Review, vol. 68, no. 3, pp. 79–91, 1990.
[29] T. Saarinen and A. P. Vepsalainen, “Procurement strategies for
information systems”, Journal of Management Information Systems,
Vol. 11 No. 2, pp. 187–208, 1994.
[30] R. Heckman, “Managing the IT procurement process”, Information
Systems Management, vol. 16, no. 1, pp. 61–71, 1999.
[31] B. A. Aubert, M. Patry, and R. Rivard, “A tale of two outsourcing
contracts”, Wirtschaftsinformatik, vol.45, no. 2, pp. 181–190, 2003.
[32] B. A. Aubert, J. F. Houde, M. Patry, and S. Rivard, “A multi-level
investigation of information technology outsourcing”, The Journal of
Strategic Information Systems, vol. 21, no. 3, pp. 233–244, 2012.
[33] A. Benlian, J. Vetter, and T. Hess, “Zur Rolle versunkener Kosten in
aufeinander folgenden IT-Outsourcing-Entscheidungen”, Zeitschrift für
Betriebswirtschaft, vol. 82, no. 2, pp. 181–213, 2012.
[34] C. Qi, and P. Y. K. Chau, “Relationship, contract and IT outsourcing
success: Evidence from two descriptive case studies”, Decision Support
Systems, vol. 53, no. 4, pp. 859–869, 2012. [35] J. Ingalsbe, D. Shoemaker, and N. Mead, “Threat modeling the cloud
computing, mobile device toting, consumerized enterprise – An
overview of considerations”, Proceedings of the 17th Americas
Conference on Information Systems (AMCIS), Detroit, Michigan, 2011.
[36] P. Mell and T. Grance, “The NIST definition of cloud computing”,
available at: http://pre-developer.att.com/home/learn/enabling
technologies/The_NIST_Definition_of_Cloud_Computing.pdf (accessed
10 December 2013), 2011.
[37] BSI, Bundesministerium für Sicherheit und Informationstechnik, „Cloud
Computing Grundlagen“, available at: https://www.bsi.bund.de/DE/
Themen/CloudComputing/Grundlagen/Grundlagen_node.html (accessed
25.05.2014), 2014.
[38] P. Kraljic, “Purchasing must become supply management”, Harvard
Business Review, vol. 61, no. 5, pp. 109–117, 1983.
[39] P. Cousins, R. Lamming, B. Lawson, and B. Squire, Strategic Supply
Management Principles, Theories and Practice, Pearson Education, UK,
pp. 47-131, 2008.
[40] P. Fettke and P. Loos, “Classification of reference models: a
methodology and its application”, Information systems and e-business
management, vol. 1, no. 1, pp. 35–53, 2003.
[41] B. Schlagheck, Objektorientierte Referenzmodelle für das Prozess- und
Projektcontrolling–Grundlagen–Konstruktion–
Anwendungsmöglichkeiten, DUV, Wiesbaden, pp. 77–91, 2008.
[42] J. Webster and R. T. Watson, “Analyzing the past to prepare for the
future: Writing a literature review”, Management Information Systems
Quarterly, vol. 26, no. 2, pp. xiii–xxiii, 2002.
[43] M. B. Miles and A. M. Huberman, Qualitative data analysis, Thousand
Oaks, Sage, 1994.
[44] K. M. Eisenhardt, “Building theories form case study research”,
Academy of Management Review, vol. 14, no. 4, pp. 532–550, 1989.
[45] R. K. Yin, Case study research: design and methods, Thousand Oaks,
Sage Publications, pp. 40–86, 2002.
[46] F. Ahlemann and H. Gastl, “Process Model for an Empirically Grounded
Reference Model Construction”, in: P. Fettke, and P. Loos, (Eds.),
Reference Modelling for Business Systems Analysis, Idea Group
Hershey, pp. 77–97, 2007.
[47] F. Radeke, “How To Rigorously Develop Process Theory Using Case
Research”, Proceedings of the 18th European Conference on Information
Systems (ECIS), Pretoria, South-Africa, 2010.
[48] G. Walsham, “Interpretive case studies in IS research: nature and
method”, European Journal of information systems, vol. 4, no. 2, pp.
74–81, 1995.
[49] E. J. Dumond, “Making Best Use of Performance Measures and
Information”, International Journal of Purchasing & Materials
Management, vol. 14, no. 9, pp. 16–31, 1994.
[50] R. M. Monczka, R. Handfield, L. C. Giunipero, J. L. Paterson, and D.
Waters, Purchasing and Supply Chain Management, South-Western,
Cengage Learning, 2010.
[51] R. M. Monczka, R. J. Trent, and K. J. Petersen, Effective Global
Sourcing and Supply for Superior Results, Arizona, CAPS Research, pp.
34, 2006.
[52] A. J. Van Weele, Purchasing and Supply Chain Management: Analysis,
Strategy, Planning and Practice, Thomson Learning, London, pp. 94–
98, 2005.
[53] A. W. Scheer, ARIS. Vom Geschäftsprozess zum Anwendungssystem,
Springer, Berlin, pp. 20, 2002.
[54] A. Tsai, J. Wang, W. Tepfenhart, and D. Rosca, “Epc workflow model
to wifa model conversion”, Systems, Man and Cybernetics, vol. 4, pp.
2758–2763, 2006.
[55] C. Kocian, “Geschäftsprozessmodellierung mit BPMN 2.0”, available at:
https://www.hs-neu-ulm.de/fileadmin/user_upload/Forschung/HNU_
Working_Paper/HNU_WP16_Kocian_Geschaeftsprozessmodellier
ung.pdf (accessed 20 May 2014), 2011.
@article{"International Journal of Information, Control and Computer Sciences:68893", author = "Andreas Jede and Frank Teuteberg", title = "Managing the Cloud Procurement Process – Findings from a Case Study", abstract = "Cloud computing (CC) has already gained overall
appreciation in research and practice. Whereas the willingness to
integrate cloud services in various IT environments is still unbroken,
the previous CC procurement processes run mostly in an unorganized
and non-standardized way. In practice, a sufficiently specific, yet
applicable business process for the important acquisition phase is
often lacking. And research does not appropriately remedy this
deficiency yet. Therefore, this paper introduces a field-tested
approach for CC procurement. Based on an extensive literature
review and augmented by expert interviews, we designed a model
that is validated and further refined through an in-depth real-life case
study. For the detailed process description, we apply the event-driven
process chain notation (EPC). The gained valuable insights into the
case study may help CC research to shift to a more socio-technical
area. For practice, next to giving useful organizational instructions
we will provide extended checklists and lessons learned.
", keywords = "Cloud Procurement Process, IT-Organization, Event-driven
Process Chain, In-depth Case Study.", volume = "9", number = "2", pages = "378-11", }
