Ch2new10 - Chapter 2: The Sources of Software D. Harrison...

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Unformatted text preview: Chapter 2: The Sources of Software D. Harrison McKnight Eli Broad College of Business Business ESSENTIAL 2 Know Key terms – 3 reasons why outsourcing is done – 6 sources of software – 4 criteria for selecting a software criteria package, including the two most important package including – 4 approaches to reuse – Why Outsource IT ?? Why 1. 2. 3. 4. To reduce IT costs (e.g., American To Express) Express) To solve problems in IT units (e.g., city of To Grand Rapids had union issue) Grand To focus on issues more core to their own To business (e.g., Kodak, in late 1980s) business To follow “best practice” (Kodak, first large To outsourcer, legitimized outsourcing) outsourcer, For more on outsourcing, see: For http://www.businessintheeyeofthestorm.com/featured/003/default.aspx http://www.businessintheeyeofthestorm.com/featured/003/default.aspx Six Sources of Software Six 1. IT Services Firms (e.g., IBM, EDS, Computer Sciences Corp.) [custom software] Corp.) 2. Packaged Software Producers (Microsoft, Quicken) [off-the-shelf software—turnkey systems] [off-the-shelf 3. Enterprise Resource Planning systems (ERP) (SAP, Oracle) [integrated applications—A/P, A/R] Oracle) 4. Application- and Managed Service Providers Application[rent or license from 3rd party providers] [rent 5. Open-Source Software (e.g., MySQL, Firefox) [available for free—see SourceForge.net] for 6. In-House Development (or hybrid solutions) Criteria for Selecting Software Package Criteria 1. 2. 3. 4. 5. 6. 7. 8. Vendor support — helping you use it helping Vendor Vendor viability — will they be around will Vendor Functionality — tasks the software can perform Functionality tasks Cost — cost of purchase vs. developing in-house Cost cost Flexibility — ease of customizing software Documentation — user/technical manual quality Response time — system response to user Ease of installation — making it go Note: #1. and #2. are usually the most crucial Approaches to Reuse of Software Reuse 1. Ad Hoc Reuse — Individuals find/share on own Individuals 2. Facilitated Reuse — Org. encourages, supports it some Org. 3. Managed Reuse — Org. enforces via policies, tools, etc. Org. 4. Designed Reuse — Org. invests in compatible assets Org. ESSENTIAL 2 Know Key terms – 3 reasons why outsourcing is done – 6 sources of software – 4 criteria for selecting a software criteria package, including the two most important package including – 4 approaches to reuse – ...
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