Study Notes on Business Information Systems Acquisition

Introduction to Business Information Systems

  • Importance of identifying a need or a problem in an organization before developing an information system.

  • Business information systems are acquired to address organizational issues affecting performance.

Alternatives for Acquiring Business Information Systems

  • There are three main alternatives to acquire business information systems:

    • Bespoke Development

    • Off-the-Shelf Development

    • User-Developed Applications

Bespoke Development

  • Definition: Bespoke development refers to the custom creation of an information system tailored to specific business requirements by Information Systems (IS) professionals.

  • Types of Bespoke Development:

    • In-House Development: Developed using internal staff members within the organization.

    • Outsourced Development: Development involving hiring external professionals or companies specializing in application development.

Characteristics of Bespoke Development

  • Focus on building the system from scratch to fully meet the specific needs of the organization.

  • Example Scenario: Developing a customized information system to manage classes and strike issues at a university (WSU).

Benefits of Bespoke Development

  1. Tailored Solutions:

    • The system is specifically designed to fit the unique requirements of the business.

    • Example: Specific functionalities tailored to resolve issues within the organization.

  2. Competitive Advantage:

    • May offer a distinct edge in the market as it likely introduces unique features not available to competitors.

    • Example: Introduction of self-service kiosks that drew customer interest and improved service efficiency.

Challenges of Bespoke Development

  1. High Costs:

    • Building from scratch incurs significant expenses for resources, tools, and expertise.

  2. Time-Consuming:

    • Development time can be extensive as every function must be coded from the ground up, including extensive testing phases.

  3. Potential for Low Initial Quality:

    • Newly developed systems may suffer from bugs and require additional iterations to meet quality standards.

Off-the-Shelf Development

  • Definition: Off-the-shelf purchase involves acquiring pre-built applications that are ready for immediate use by multiple organizations.

  • Characteristics:

    • Quick acquisition process akin to purchasing an already manufactured product (e.g., buying groceries).

    • Example: The Integrated Teaching System (ITS) used by WSU is an off-the-shelf product utilized across multiple universities.

Benefits of Off-the-Shelf Development

  1. Time Efficiency:

    • Rapid implementation since the systems are ready for immediate use after purchase and installation.

  2. Cost-Effectiveness:

    • Generally less expensive than bespoke systems due to shared development costs across users.

Limitations of Off-the-Shelf Development

  • Less customization available compared to bespoke systems, as the features are standard across different organizations.

  • May require continuous payments for updates or additional modules.

User-Developed Applications

  • This alternative involves systems created directly by the users, often utilizing existing tools and resources to build applications that meet their immediate needs.

  • This approach is highly flexible and can quickly adapt to changing organizational requirements but might lack the robustness of bespoke and off-the-shelf solutions.

Summary

  • The acquisition of a business information system should be driven by organizational needs, with bespoke development, off-the-shelf purchase, and user-developed applications serving as primary options.

  • Each option has its benefits and limitations that must be carefully evaluated against organizational goals and resources.