Systems Analysis and Design - Ch 2

Outsourcing

Turning over responsibilities for some or all of an organizations information systems applications and operations to an outside firm

• Frees up internal resources, increases potential revenue, reducing time to markets, increases process efficiencies, outsourcing noncore activities

• Contracting third-party providers to manage, operate, or develop an organization’s IT infrastructure and applications (summarized)

Cloud computing - Sources of Application Software

easy to use, pay on a per-use system or license the software, easy to implement.

Example Firms or Websites - Amazon, Google, IBM, Microsoft, Salesforce

Packaged Software Providers - Sources of Application Software

not customizable, you just buy and use. Off-the-shelf, serves many market segments.

Example Firms or Websites - Intuit, Microsoft, Oracle, SAP AG, Symantec

Open Source - Sources of Application Software

maintenance is hard, hard to customize, more of an open space but still needs professional support, not typically the option for many organizations.

• Freely available, including source code

• Developed by a community of interested people, performs the same functions as commercial software

ERP Providers - Sources of Application Software

helps centralize data, manages and automates core business processes like finance, HR, manufacturing, and supply chain within a single system.

• Less maintenance

• More consistent, accurate data

• SAP AG is the leading vendor of _____ systems

In House - Sources of Application Software

computer applications or systems designed, developed, and maintained by an organization’s internal IT team rather than being purchased or outsourced.

• Involves using an organization’s staff to create systems

• Can lead to more maintenance needs

• Not unusual to incorporate a hybrid of _______ and purchased components

IT Services Firms - Sources of Application Software

designing, building, implementing, and managing a custom software solution tailored to specific business needs for internal use. Employs skilled IT people
Example: Accenture, Computer Sciences Corporation (CSC), IBM, HPE