Top-down and bottom-up approaches in organizational software selection

Top Down and Bottom Up Approaches

In different organizations different business strategies are utilized for different reasons. The top down and bottom up approaches are both utilized in different organizations for different reasons. The top down approach is where the organization breaks down a system to gain insight into its composition (Wikipedia, 2010). The bottom up approach is where the organization pieces together different pieces of their information system to gain information about the system and the company (Wikipedia, 2010). These two business approaches are often utilized by management when making decisions about the information systems and technology utilized by the organization. In this paper I will discuss both the top down and the bottom up approaches and how it utilized differently by organizations. I will also show how the top down approach offers more benefits.

Top down Approaches

The top down approach has been around for a long time and is a recognized approach. It is often utilized in the business-to-business (B2B) transactions. Software transactions, purchases and agreements are often very expensive; they cost hundreds of thousands of dollars. Executive and decision makers in business organizations know the magnitude and cost of software acquisition therefore it is usually a decision that is made by the top decision makers. These executives make high level decisions about software purchases, make the purchases and then mandate that everyone in the organization must use the software (Yoskovitz, 2010).

Beneficial Approach

The top down approach is a very beneficial approach in business world. The business selling the software product is able to make bigger sales with fewer customers which is a great benefit for the company. It is easier to negotiate with the leaders of another business organization and make a huge sale than to negotiate with individual customers for small sales (Mazurkiewlcz, 2001). The information technology sector of many businesses can become extremely costly without providing high performance levels. The top-down level of software selection can allow the line managers to make software decisions based on costs and benefits, saving the organization hundreds of thousands of dollars and even millions of dollars (Heckman, 2003). The line managers have a good understanding of the business function and needs; therefore they are capable of making decision about the software purchases of the business.

Although both the top down and bottom up approach serves a vital role in the business world some may say the top-down approach offers more benefits. This approach has been around longer and it is a more scripted approach which conveys the business direction and goals (Rudich, 2010). This approach forms a focal point around which other business decisions can be made and other activities can be formed.