Future strategies for a company’s information system Essay

Title: Write a study to the company’ s main executive sketching the benefits of both attacks, the cardinal issues that will necessitate to be addressed, and any possible jobs that may originate.

I. Executive Summary

This study outlines the benefits, cardinal issues, and possible jobs in the acceptance of the bargain or “build” scheme for the development of the company’s future information systems.

Buying package bundles such as ERP systems has a figure of possible benefits to an administration. Since these package bundles must conform to industry criterions, there is small hazard of failure on the execution side. Support services and upgrade options may be included in the full bundle. In the initial phases of the information systems development, they tend to be much higher than in-house developed systems but in the longer term, these costs will be minimum because these systems have already provided constitutional integrating capablenesss which allows for a individual position of the system.

In-house developed systems are every bit attractive particularly to most administrations that have alone concern procedures because they can custom-make the system to accommodate their peculiar demands. In this attack, users are more straight involved in the development procedure. The administration has direct control over it.

Before administrations can ship on developing an endeavor calculating solution, it has to turn to issues related to the computer science substructure and skills demands of the package, answerability issues, costs, and security. For the development of applications in-house, there is a demand to turn to issues related to enrolling and keeping a pool of highly-skilled developers. For both attacks, jobs may originate if these issues are non decently weighed and scrutinised before shiping on an information systems program.

II. Benefits of Buying of Building Software

There are a batch of benefits in choosing to purchase package or endeavor solutions for the company. The following are the expected benefits:

  • It meets the demands of many users. It is possible for different users utilizing indistinguishable or different package to entree the same information beginning and execute the same undertaking even if they are on the opposite sides of town or opposite side of the universe ( Norton, p.441 )
  • Minimize integrating jobs. When information is to the full integrated into a individual database, workers in different sections can easy portion information.
  • Enhanced security. Software packages come with constitutional security characteristics which can be invariably upgraded.
  • Take full advantage of support services from package sellers at a minimum cost. Sometimes, a Support Agreement or Maintenance Agreement may help the company staff in maintaining the ERP package running while a Maintenance Agreement may supply the company rights to all current version spots and both minor and major releases.
  • Reduce developmental jobs and hazards since the package is tested for quality and conformance to industry criterion before it is released. There is lower hazard that the package will neglect to run into the firm’s concern demands because the package can be examined prior to purchase.
  • Rich functionality. The package bundle may give users more than what they have bargained for. This can includes public-service corporation and anti-virus package.
  • Overall cost is constantly lower because the package development house can distribute the cost over a figure of clients.
  • The package should be of high quality because many clients and developers have used and helped debug it. Quality control is said to be at its strictest signifier.
  • Designed for scalability ( Parsons, p. 676 ) . Scalability refers to the ability of the information system to shrivel or turn as demands change. Cost effectual scalability means that the system can turn without a big fiscal investing. Tie-sensitive scalability means the system can be scaled without disenabling it for a long period of clip.

Developing applications in-house has its ain set of benefits. These include:

  • The development of nucleus competencies particularly on the development facet which in bend, can be used for competitory advantage.
  • The active engagement of users in the development procedure means that the new system has a better opportunity of run intoing user demands and eases execution of the new system. ( Turbanet Al,p. 474 ) .
  • Reduced preparation cost. Since the users have had a direct engagement in the development of the system, the demand to develop them on how to utilize the plan will merely be minimum.
  • High customisation capablenesss in the development of the package provide the company with a much higher degree of control and flexibleness.
  • The company gets what it precisely needs, thereby cut downing unneeded disbursals on unnecessary constituents.
  • Allows bequest systems to be integrated and leveraged for informations retrieval. Legacy systems have dozenss of informations in them which are still utile to the company. Designing and developing systems in-house that can still suit bequest systems will cut down the cost of change overing and incorporating these old systems into the new information systems’ environment.

III. Key issues to be addressed:

Before purchasing package, the undermentioned issues should be considered:

  • What should be done with other characteristics and functionalities that are non needed and with expected functionalities that are missing?
  • Is the current IT substructure capable of managing the demands of the package? Sometimes, a company’s IT substructure may differ from what the package was originally designed for.
  • Are we ready to shoulder the cost of developing the work force? The success of the ERP execution will depend a batch on their accomplishments and experience on how to work with the ERP system.
  • Since an ERP system spans multiple sections in a company, answerability and duty must be steadfastly established. ERP systems can animate company boundaries among employees, providers, and other members of the supply concatenation. Who are those involved in the use of these resource?
  • Is there equal support and security in order to safeguard the overall involvement of the company?


Before developing in-house applications, the undermentioned issues should be considered

  • Will the new system be scalable in order to run into emerging concern demands?
  • Will at that place be a demand to utilize middleware. A middleware is a type of package that acts as an intermediary between two other package bundles, typically by reformatting informations from one package bundle to another so that it can be used by another package bundle ( Parsons, p. 691 ) .
  • Who are the end-users who would organize portion of the development squad?
  • Will it be possible to integrate rigorous security mechanisms?

IV. Potential Problems

No IT schemes are perfect. See the undermentioned potency jobs which can originate:

  • The industry criterions prescription of package bundles particularly ERP systems may change the company’s concern procedures and may finally cut down our company’s competitory advantage.
  • Training costs are high. Companies must be willing to put on preparation forces non merely on how to larn how to utilize the new package. They must besides larn new procedures. Will at that place be adequate resources to cover these issues?
  • The different methods of in-house development ( such as RAD ) may ensue in systems with limited functionality and flexibleness for alteration.
  • Both package ( in-house developed and purchased ) may non be able to react to altering and unknown concern demands and conditions.
  • In-house systems require a big figure of extremely skilled IT professionals to make the occupation of developing, maintaining, and procuring the system. What if
  • There is complexness in both picks. The complexness of the development procedure for in-house developed package and the function of the company demands with the package bundle may ensue to added operating expense costs and hazards which can be potentially detrimental to the company’s concern involvement.

Part Two:

Title: Internet Commerce has been described as a new paradigm for concern. To what extent do you hold with this position?

There are many ways of running and bettering a concern. In today’s knowledge-based economic system, a new concern theoretical account has begun to take form. This theoretical account is called electronic commercialism ( or e-commerce ) . It encompasses all facets of concern and selling procedures which are enabled by Internet and web engineerings.

Amazon.com for illustration, has grown from being a marketer of books to offering music, picture, electronics, and even playthings and games. Today, most of its goods and services are happening an electronic connexion ( McLeod and Schell, p. 67 ) . [ 1 ]

The universe economic order is composed of economic systems where different participants and factors come into drama. The concern success of the e-commerce theoretical account depends mostly on whether costumiers and concern in different states have been able to bridge the divisions that are apparent around the universe today. First, there is the digital divide. Not all people have entree to the Internet and have recognition cards. Second, there is the linguistic communication barrier. Today’s e-commerce theoretical account is aimed to English talkers ( Parsons & A ; Oja, p. 332 ) . Third, there are states which control the flow of information through the Internet and bound minutess to the outside word. Despite the promise of being able to make out to a figure of geographically dispersed client base, many retail merchants find that the web does non supply sufficient market coverage to make all clients ( McLeod & A ; Schell, p. 67 ) .

Pollss made in the US for illustration, shows that 37 % of Americans have shopped online and 56 % of these have incomes greater than $ 50,000 while merely 15 % have incomes of less than $ 25,000 ( Greenberg, 2001 ) . [ 2 ] For most retail merchants with e-commerce sites, the support of the multitudes is important to the success of any Internet commercialism venture. For illustration, the constitution of K-Mart.com and BlueLight.com is one manner of enlisting their support. Retail giants like Kmart and Wal-mart are get downing to absorb these two e-commerce constitutions back into their crease in order to take advantage of a concern of the old economic system that already has a web presence.

In order to foreground e-commerce presence in Latin America, Bovespa, one of Brazil’s largest stock exchanges is on the web. But harmonizing to Gupta ( 2000 ) , [ 3 ] “Brazil is by far the most complicated, the most frustrating and hard topographic point to make business.” Latin America in general, has an ageing telecommunications substructure has inhibited the growing of electronic commercialism. Rigid authorities regulations and ordinances, private monopolies, high phone charges for local and international calls and corruptness in the public-service corporations industry has besides hampered the development of e-commerce enterprises in most parts of Latin America ( Gupta, p. 234 ) .

The Internet commercialism concern theoretical account is merely possible where there is ample economic, political, and technological substructure to back up it. In order for e-commerce to be commercially feasible, it must be able to interrupt the barriers to its execution. It should be for everyone, and non for the privileged few.



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