Chapter 2 Flashcards
Outsourcing
turning over responsibilities for
some or all of an organization’s information systems applications and operations to an outside firm
What are the reasons for outsourcing?
Freeing up internal resources
Increasing the revenue potential of the organization
Reducing time to markets
Increasing process efficiencies
Outsourcing noncore activities
What are the sources of software can be categorized into six major groups?
–Information technology services firms
–Packaged software producers
–Enterprise solutions software
–Cloud computing
–Open-source software
–In-house development
IT Service firms help ___
companies develop customer information systems for internal use
Enterprise resource planning (ERP) systems
integrate individual traditional business functions into
a series of modules so that a single transaction
occurs seamlessly within a single information system
rather than several separate systems
What are the benefits of ERP?
A single repository resulting in more consistent and
accurate data
Less maintenance
What is the leading vendor of ERP systems?
SAP AG
Cloud computing
the provision of computing
resources, including applications, over the Internet, so customers do not have to invest in the computing infrastructure needed to run and
maintain the resources
What are the benefits?
Freeing internal staff
Faster access to applications
Lower cost to corporate-quality applications
What are two ways to make money with open-source software?
provide maintenance and services
sell a more full-featured version of the free software
In House Development
Involves using an organization’s staff to create systems
This can lead to more maintenance needs
Criteria to consider when choosing off-the-shelf software
Cost, Functionality, Vendor Support, Flexibility, Documentation
RFP (Request for Proposal)
document provided to vendors asking them to propose hardware and system software that will meet the requirements of a new system
If soliciting RFPs from more than one vendor be sure to
–Create a scoring value for each item requested
–Calculate a total score for each vendor after RFPs are
received
–Select a vendor with a high score
Reuse
the use of previously written software resources, especially objects and components, in new applications
