Introduction
Technology planning is a critical area in the growth of most businesses today. However, identifying and acquiring new technology can be daunting, particularly for any organization without an extensive IT budget and dedicated system developers. A smart organization should embrace the processes for evaluating its technology goals and requirements before implementation, with or without dedicated system analysts or programmers. The paper considers the advantages and disadvantages of using a prewritten, open-source, and customized application and proposes the best solution for a mid-sized business without dedicated system developers.
The Benefits and Drawbacks of Information System Acquisition Methods
Prewritten Application
Prewritten applications or off-the-shelf software are multipurpose or general systems that can fit into any entity, especially if the intended organization’s processes and activities are standardized. Therefore, the prewritten software acquisition method is cheaper upfront since building and running costs are distributed over a larger user base. Notably, the vendor can charge users lower fees for initial installation because many people are paying for it. It also offers instant success for the business as it is easier to set up and includes several features that are ready for use instantly (Singh, Verma, & Kumar, 2017, p. 740). Besides, off-the-shelf software is dynamic because most will undergo updates continuously to resolve bugs and add new updates.
Nevertheless, a prewritten application can be expensive over time, and inflexible should the business need some changes (Singh et al., 2017, p. 740). For example, as needs change, the company may need to purchase additional upgrades or purchase new software, increasing the outlay cost over time. The application may not fit the business’s work process, have integration issues, and have too many or too few features and functions. With this option, a business can easily get stuck with software that is hard to navigate, nice features at the expense of essential functions, or the colossal task of training staff to learn the system.
Open-Source Application
The method requires no upfront expenses and offers businesses flexibility because the source code can be modified (Singh et al., 2017, p. 740). Therefore, the users do not experience vendor lock-ins besides cost savings. Open-source applications also offer similar quality systems to off-the-shelf software or customized applications since their developers strive to optimize the application’s quality to the maximum (Singh et al., 2017, p. 741; Swarts, 2018, p. 62) ). However, technical support may be limited for the open-source option because users rely on community forums (Swarts, 2018, p. 66). Other downsides include unreliability and insecurity because open-s source applications are not always as secure as their counterparts.
Customized Application
Custom-made solutions provide the exact set of features that suit an organization’s unique needs. It offers a solution that performs a business’s routine operations with advanced security measures and qualified support services ideal for business improvement. Besides, the system owners can add features one at a time if they are unsure what range of features is required. However, the system owner will incur high upfront costs, besides time lost in gathering requirements and implementing the system. Notably, a customized application requires a team of experienced designers, developers, testers, and project managers, resulting in higher acquisition costs than other methods. Besides, the danger of choosing the wrong vendor is real with this approach.
Preferred Information System Development Method
The best approach is to outsource the information system, considering the business lacks programmers or system analysts. The organization has grown into a mid-size firm, meaning order volume will increase and require robust accounting ERP software. Therefore, the implementation process is more complex and requires significant planning beyond the current IT staff. Due to staff limitations at the organization, besides its suitability for business growth, outsourcing a customized application is good for the business. Notably, outsourcing an appropriate mid-market information system can delay or reduce the business’s need to hire additional employees while allowing for automation and growth.
It would be best for the organization to implement the information system and its database as a hosted (cloud) solution. Hosting the application in the cloud environment allows the organization to push IT management to the software vendor and relieves internal employees of additional responsibilities. For example, roles like IT maintenance, data back-up, patches and upgrades, and hardware and server management are pushed to the vendor while IT staff focus on internal support.
The agile method of the system development life cycle suits the project. The agile method acknowledges that requirements will be changing by allowing short iterations and adaptable development processes to deliver functional parts quickly (Surendra & Nazir, 2019, p. 551). Therefore, it encourages collaboration between the development team and the client, making it easy to fulfill all system requirements, fix bugs, and incorporate additional features whenever needed. However, the business may have to trade off budget overshoot and delays at the expense of quality due to multiple iterations and user involvement.
Conclusion
Prewritten and open-source applications are convenient because they require no upfront expenses, but customized applications solve the business’s specific needs. Therefore, a customized application is more viable to meet a range of features and allow the company to grow. Hosting the application on the cloud, including its database, is ideal for the business due to its limited IT staff. Most maintenance tasks will be pushed to the vendors, relieving IT staff of extra work and enabling them to concentrate on internal support. Implementing an information system solution using the agile model will allow the vendor to design a system that meets all the business needs and allow for growth and qualified support.
References
Singh, S., Verma, M., & Kumar, N. (2017). Open source software vs proprietary software. International Journal of Scientific & Engineering Research, 8(12), 735-741.
Surendra, N. C., & Nazir, S. (2019). Creating “informating” systems using Agile development practices: An action research study. European Journal of Information Systems, 28(5), 549-565.
Swarts, J. (2018). Open-source software in the sciences: The challenge of user support. Journal of Business and Technical Communication, 33(1), 60-90. Web.