Podcast
Questions and Answers
What is one advantage of obtaining information systems (IS) in-house?
What is one advantage of obtaining information systems (IS) in-house?
What does the process of weighted scoring help with during vendor selection?
What does the process of weighted scoring help with during vendor selection?
Which of the following is a common risk associated with in-house IS development?
Which of the following is a common risk associated with in-house IS development?
Which of the following is a potential drawback of outsourcing the development of information systems?
Which of the following is a potential drawback of outsourcing the development of information systems?
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What is one method mentioned for evaluating vendors during the purchase process?
What is one method mentioned for evaluating vendors during the purchase process?
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What is one key element that companies should consider when outsourcing IS development?
What is one key element that companies should consider when outsourcing IS development?
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Who typically helps contribute to in-house software development according to the content?
Who typically helps contribute to in-house software development according to the content?
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What is a significant complexity that can arise when developing in-house information systems?
What is a significant complexity that can arise when developing in-house information systems?
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What is one challenge companies face when developing an AIS internally?
What is one challenge companies face when developing an AIS internally?
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Which of the following is a step in the purchasing process for an information system?
Which of the following is a step in the purchasing process for an information system?
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What is a potential drawback of using canned software?
What is a potential drawback of using canned software?
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What is one common reason organizations choose to outsource their information systems?
What is one common reason organizations choose to outsource their information systems?
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What is a necessary step before selecting a vendor for an information system?
What is a necessary step before selecting a vendor for an information system?
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Why can changes to an AIS be difficult once specifications are written?
Why can changes to an AIS be difficult once specifications are written?
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What does 'inhouse' refer to in the context of obtaining information systems?
What does 'inhouse' refer to in the context of obtaining information systems?
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What can lead to the failure of a newly designed system meeting user needs?
What can lead to the failure of a newly designed system meeting user needs?
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Which of the following is a potential benefit of outsourcing information systems?
Which of the following is a potential benefit of outsourcing information systems?
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What is one potential downside of using vendor-supplied canned software?
What is one potential downside of using vendor-supplied canned software?
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What is one of the primary benefits of obtaining IS through in-house development?
What is one of the primary benefits of obtaining IS through in-house development?
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Which of the following is considered a risk of in-house IS development?
Which of the following is considered a risk of in-house IS development?
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What advantage does outsourcing provide to companies?
What advantage does outsourcing provide to companies?
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Which of the following is a disadvantage associated with outsourcing?
Which of the following is a disadvantage associated with outsourcing?
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Which type of candidates are most suitable for outsourcing?
Which type of candidates are most suitable for outsourcing?
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What potential negative outcome can result from outsourcing?
What potential negative outcome can result from outsourcing?
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How can outsourcing affect a company's competitive advantage?
How can outsourcing affect a company's competitive advantage?
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What is a recent trend regarding outsourcing mentioned in the content?
What is a recent trend regarding outsourcing mentioned in the content?
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Study Notes
AIS Development Strategies
- Organizations acquire application software, vendor services, and hardware in various ways.
- Information system departments develop custom software.
- End-users develop, control, and use computer-based information systems.
- Organizations outsource their information systems to evaluate benefits and risks.
Introduction
- Companies face difficulties in developing AIS internally, including resource backlogs, slow processes, unmet user needs, and difficulty adjusting to changes after specifications are set.
Obtaining an Information System (IS)
- Three ways to obtain IS: Purchase, In-house development, Outsourcing.
Purchase
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How to Purchase:
- Select vendors (referrals, trade shows).
- Request for proposal (RFP) to meet needs.
- Evaluate proposals and vendor demonstrations to fit needs and criterion.
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Canned Software Considerations:
- Canned software often pre-built systems sold on the open market to users with similar needs.
- Difficulties can include difficulty in meeting specific needs, frequent upgrades needed, and loss of control due to vendor dependency.
- Personal experience with specific canned software mentioned (UBS, Mr. Accounting, Coda Financials, MySoft, MYOB, QuickBooks).
In-House Development
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How to Obtain an In-House System:
- Internal IT or IS departments handle entire development.
- End-users can also develop systems. (EUC)
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Advantages:
- Increased control, customization potential
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Disadvantages:
- Significant time and resources required, potential difficulties in meeting specific needs, coordination issues, and risk for poor planning.
Outsourcing
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Outsourcing Candidates:
- Non-critical systems, non-core processes
- Non-intellectual property-related tasks
- Operational maintenance
- Recent Trends: Entire work or core functions are often outsourced.
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Advantages:
- Focus on core competencies, reduced time, cost efficiency.
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Disadvantages:
- Loss of control, security risks, potential difficulty in coordination, and inflexibility.
Class Activity Questions
- What is an accountant's role in the computer acquisition process? An accounting professional's involvement includes analyzing financial implications, return on investment, and software costs.
- What are the benefits of analyzing the operating environment before selecting the software? Proper analysis identifies necessary and sufficient software features to meet user and technical requirements.
- What are the primary components of an RFP? RFP typically addresses detailed requirements for the system, including hardware-software needs, pricing details, and testing protocols.
- Explain End-User-Developed Software. End-user developed software, or EUC, involves end-users designing and implementing portions of the information system.
- What are the benefits of outsourcing? Outsourcing has potential benefits like cost savings, efficiency improvements, and access to specialized expertise.
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Description
Explore the various strategies organizations utilize when developing or acquiring Accounting Information Systems (AIS). This quiz covers methods like purchasing, in-house development, and outsourcing, along with the difficulties faced in internal development. Test your understanding of these strategies and their applicability in real-world scenarios.
