ITIS362 Ch 6: Methodologies for Purchased Software
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Questions and Answers

What is the primary role of the attorney in the ERP implementation process?

  • To lead the ERP implementation team
  • To write the contract (correct)
  • To implement the ERP system
  • To monitor the ERP installation process

    • What is the primary reason why a third-party partner may be required for ERP implementation?

  • Because the company lacks the necessary expertise and resources (correct)
  • To provide expertise in a specific area of the ERP system
  • To implement the ERP system on behalf of the company
  • To provide additional resources for the implementation team

    • What is the primary benefit of ERP integration?

  • Improved system security
  • Reduced implementation time
  • Better quality data for better decision making (correct)
  • Lower implementation costs

    • What is the role of top managers in ERP implementation?

    <p>To motivate other employees and take a serious role</p> Signup and view all the answers

    What is the primary characteristic of a successful ERP implementation team leader?

    <p>Giving team members the authority to make some decisions</p> Signup and view all the answers

    What is the primary requirement for a positive mindset in ERP implementation?

    <p>Everyone must be involved and feel satisfied</p> Signup and view all the answers

    What is the primary reason why businesses tend to purchase software rather than building it?

    <p>It is cheaper and easier to implement</p> Signup and view all the answers

    What is the first phase of the software development lifecycle (SDLC) when purchasing software?

    <p>Definition Phase</p> Signup and view all the answers

    What is the primary role of an Alpha Site in the software development process?

    <p>Playing a significant role in determining the final functionality and user interface</p> Signup and view all the answers

    What is the main disadvantage of purchasing software?

    <p>It may not exactly fit the business needs</p> Signup and view all the answers

    What is the purpose of creating a cost estimate in the software development process?

    <p>To compare prices for building or buying software</p> Signup and view all the answers

    What is the primary role of a Beta Site in the software development process?

    <p>Initiating the purchasing process for the vendor</p> Signup and view all the answers

    How many phases are involved in the software development lifecycle (SDLC) when purchasing software?

    <p>3</p> Signup and view all the answers

    What is the main advantage of building custom software?

    <p>It is more tailored to the specific business needs</p> Signup and view all the answers

    What is a major factor that contributes to the success of purchased systems?

    <p>The performance of the third-party vendor</p> Signup and view all the answers

    What is a benefit of purchasing software?

    <p>Reduced dependence on internal IS resources</p> Signup and view all the answers

    What is a disadvantage of open-source software?

    <p>The documentation is not free</p> Signup and view all the answers

    What is a benefit of using open-source software?

    <p>The user has access to the source code</p> Signup and view all the answers

    What is a risk associated with purchased systems?

    <p>Risks due to lack of package knowledge</p> Signup and view all the answers

    What is a benefit of open-source software in terms of vendors?

    <p>The user has a choice of multiple vendors</p> Signup and view all the answers

    What is a disadvantage of purchased systems?

    <p>The user is dependent on the vendor for support</p> Signup and view all the answers

    What is a characteristic of open-source software?

    <p>The software is reliable due to volunteer testing</p> Signup and view all the answers

    What is a potential issue with open-source licensing?

    <p>It is not aligned with the business's legal requirements</p> Signup and view all the answers

    What is the main advantage of using an Application Service Provider (ASP)?

    <p>It allows for cheap and quick installation</p> Signup and view all the answers

    What is a potential risk of using an ASP?

    <p>Sensitive data may be exposed to external vendors</p> Signup and view all the answers

    What is the primary purpose of a Service Level Agreement (SLA)?

    <p>To specify the ASP's expected performance</p> Signup and view all the answers

    What is a potential drawback of open-source software?

    <p>The local cost of ownership is high</p> Signup and view all the answers

    What is a benefit of using an ASP over traditional software purchasing?

    <p>It offers a higher level of customization</p> Signup and view all the answers

    What is included in a Service Level Agreement (SLA)?

    <p>The system uptime and recovery time</p> Signup and view all the answers

    What is a potential issue with volunteers in open-source software development?

    <p>They are not coordinating with each other, resulting in duplicated efforts</p> Signup and view all the answers

    What is the primary purpose of developing a Request for Proposal (RFP) document?

    <p>To formally communicate the organization's requirements to vendors</p> Signup and view all the answers

    Why is it essential to create selection criteria for packages and vendors?

    <p>To ensure that the chosen package meets the organization's requirements</p> Signup and view all the answers

    What is the primary concern when evaluating a software package's compatibility with current hardware and software?

    <p>The environment in which the system will be used</p> Signup and view all the answers

    What should an organization do if they find a good system but it's not perfect?

    <p>All of the above</p> Signup and view all the answers

    What is the purpose of a contract in a software package purchase?

    <p>To outline the terms and conditions of the agreement</p> Signup and view all the answers

    What is a characteristic of a fixed-price contract?

    <p>The total price is agreed upon from the beginning</p> Signup and view all the answers

    What is the primary purpose of evaluating a vendor's track record?

    <p>To evaluate the vendor's stability and reliability</p> Signup and view all the answers

    What is a common outcome when evaluating software packages against an organization's requirements?

    <p>Finding a package that meets most requirements but has some discrepancies</p> Signup and view all the answers

    Study Notes

    Purchasing vs Building Software

    • Businesses often prefer to purchase software rather than build it due to advantages like lower costs and easier implementation.
    • However, purchased software may not exactly fit business needs, and may require trade-offs.

    Purchasing Methodology

    • The purchasing process goes through three phases: Definition, Construction, and Implementation.
    • The Definition Phase involves:
      • Creating a cost estimate to compare prices for building or buying software.
      • Evaluating available features of the package with current hardware and software compatibility.
      • Establishing selection criteria, including vendor track record.
    • The Construction Phase involves:
      • Developing a Request for Proposal (RFP) to send to vendors, outlining system objectives, requirements, and environment.
      • Evaluating proposals from vendors based on the established criteria.
    • The Implementation Phase involves:
      • Negotiating a contract to ensure all terms are met within the agreed time.
      • Considering three ways to write a contract: fixed price, third-party partner, and attorney.

    Enterprise Resource Planning (ERP)

    • ERP is a system that combines all departments and functions in one single system.
    • ERP integration provides better quality data for decision making, but installation can be challenging and may require third-party help.
    • Five factors for successful ERP implementation are:
      • Top management involvement and motivation.
      • Having an experienced team leader and giving team members authority to make decisions.
      • Getting help from external experts.
      • Positive mindset and employee involvement.
      • System risks dependent on third-party performance and contract negotiation.

    Open Source Software

    • Open source software is free, but users may still pay for additional features, training, and documentation.
    • Advantages of open source software include:
      • Fast bug fixing and reliability due to volunteer testing and development.
      • Access to source code for modification and customization.
      • No dependence on a single vendor and more control over the software environment.
      • No maximum users or installations.
    • Disadvantages of open source software include:
      • Paid documentation and technical support.
      • General solutions that may not meet company-specific requirements.
      • Duplicating efforts due to lack of coordination among volunteers.
      • Potential legal issues due to license agreements.

    Application Service Provider (ASP)

    • ASPs offer cloud-based software subscriptions, eliminating the need for companies to buy and install software.
    • Advantages of ASPs include:
      • Lower upfront costs and quick installation.
      • Monthly fees rather than large investments.
    • Disadvantages of ASPs include:
      • Exposed sensitive data to external vendors.
      • Relying on ASPs requires accurate assessment.
    • Service Level Agreement (SLA) is a document that defines the ASP's expected performance, including system uptime, recovery time, help desk calls, and software updates.

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    Description

    This quiz covers the pros and cons of purchasing software versus building it in-house, including the decision-making process and business needs.

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