The Influence of Software-as-a-Service on IT Decision Authority

Abstract: The emergence of Software-as-a-Service (SaaS) simplifies the implementation of powerful business IT solutions. The notably lower technical knowledge required and the minimum capital investment needed enable non-IT professionals to adapt, develop and operate IT solutions independently. Therefore, research on shadow IT and IT consumerization notes the transformative impact of SaaS on organizational structures and challenges the assumption that the IT function controls the entire IT contribution of the organization. As a result, SaaS directly influences the allocation of IT decision authority by shifting responsibility away from the traditional IT function towards business units. Due to the identified crucial need of folding IT decision authority successfully into the new IT governance model the factors that led to this change of the historical role of the IT functions under SaaS is sought to be identified. This thesis proposes a research model which includes various factors and applies data of 82 distinct organizations to test the hypothesized associations. The dissatisfaction of the business units with the provided IT solutions, the business knowledge of IT professionals and IT governance mechanisms are identified as factors which influence the allocation of IT decision authority the most.