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Understanding the role of organizational integration in developing and operating Software-as-a-Service

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Abstract

While previous research has mostly studied Software-as-a-Service from a client perspective or focused on downstream activities of vendors, an in-depth understanding of the coordination and communication between software development and software operations is still missing. In order to fill this gap, we develop a theoretical framework that integrates extant literature on the constituent characteristics of services and on organizational integration. Guided by this framework and based on a multiple-case study of six software vendors, we identify five types of challenges and opportunities of organizational integration between Software-as-a-Service development and operations. The challenges include ensuring awareness and continuity between operations and development, as well as considering customers’ business activities in scheduling updates. The opportunities relate to the ability to leverage a direct feedback channel and innovate with higher velocity. In addition, service mindset, technical harmonization, and company size emerged as three contingency factors that enable or inhibit organizational integration. The study contributes to existing literature by providing a better understanding of the activities that require coordination and communication when developing and operating Software-as-a-Service. Moreover, this study adds to previous research by linking the integration of organizational subunits to constituent characteristics of services. Decision makers learn about challenges and opportunities when offering Software-as-a-Service that go beyond providing a technical infrastructure.

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Acknowledgments

We received valuable feedback on earlier versions of this paper at City University of Hong Kong, Washington State University, the International Conference on Outsourcing of Information Services, and the Global Sourcing Workshop. We thank the anonymous reviewers for their helpful comments during the revision process. We would like to acknowledge financial support from the Research Institute for Software and Service Ecosystems (funded by the German Ministry for Education and Research) and the Julius Paul Stiegler Memorial Foundation.

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Authors and Affiliations

  1. Department of General Management and Information Systems, University of Mannheim, L15, 1-6, 68161, Mannheim, Germany

    Sebastian Stuckenberg, Thomas Kude & Armin Heinzl

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  1. Sebastian Stuckenberg
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  2. Thomas Kude
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  3. Armin Heinzl
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Corresponding author

Correspondence to Sebastian Stuckenberg.

Appendix: High level interview guidelines

Appendix: High level interview guidelines

  1. A.

    Information regarding company and interview partner

    1. 1.

      Interviewee’s position within organization, role regarding Software-as-a-Service development and operation, interviewee’s experience

  2. B.

    Inward-oriented integration

    1. 1.

      Describe the development and operation processes of your Software-as-a-Service solution.

    2. 2.

      Are development and operations separated or integrated processes within your organization? What interfaces exist between the two areas?

    3. 3.

      Does Software-as-a-Service require special technologies? Do these technologies have an impact on the development and operation processes?

  3. C.

    Outward-oriented integration

    1. 1.

      Does Software-as-a-Service change the way customers are integrated/involved in the development and processes in general?

    2. 2.

      Does your organization create an advantage out of the direct customer relationship?

    3. 3.

      Does the changed customer relationship have implications on a process level?

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Stuckenberg, S., Kude, T. & Heinzl, A. Understanding the role of organizational integration in developing and operating Software-as-a-Service. J Bus Econ 84, 1019–1050 (2014). https://doi.org/10.1007/s11573-013-0701-5

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