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What is a key benefit of using cloud computing for a company?
What is a key benefit of using cloud computing for a company?
What type of cloud service is Salesforce.com an example of?
What type of cloud service is Salesforce.com an example of?
Which of the following is NOT a concern related to cloud computing?
Which of the following is NOT a concern related to cloud computing?
Which of these is an example of open source software?
Which of these is an example of open source software?
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How can open source software developers make money?
How can open source software developers make money?
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What is a potential disadvantage of in-house software development?
What is a potential disadvantage of in-house software development?
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Which of these is a potential benefit of using a hybrid approach to software development?
Which of these is a potential benefit of using a hybrid approach to software development?
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What is a key component of a company's decision to adopt cloud computing?
What is a key component of a company's decision to adopt cloud computing?
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What is the definition of outsourcing in the context of information systems?
What is the definition of outsourcing in the context of information systems?
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Which of the following is NOT a source of software listed in the material?
Which of the following is NOT a source of software listed in the material?
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Which of the following options represents a source of enterprise-wide solution software?
Which of the following options represents a source of enterprise-wide solution software?
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How do most organizations currently approach application coding and software development?
How do most organizations currently approach application coding and software development?
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Which of the following serves as an example of a vendor that Shell Oil used for outsourcing?
Which of the following serves as an example of a vendor that Shell Oil used for outsourcing?
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What is the role of information technology service firms in the context of software sources?
What is the role of information technology service firms in the context of software sources?
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What is a key benefit of utilizing open-source software?
What is a key benefit of utilizing open-source software?
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Which factor is NOT typically considered when evaluating off-the-shelf software?
Which factor is NOT typically considered when evaluating off-the-shelf software?
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What is a key factor to consider when comparing the cost of off-the-shelf software?
What is a key factor to consider when comparing the cost of off-the-shelf software?
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Which aspect is crucial for understanding the capabilities of off-the-shelf software?
Which aspect is crucial for understanding the capabilities of off-the-shelf software?
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What does the viability of a vendor refer to?
What does the viability of a vendor refer to?
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Which of the following is not a factor to consider for the ease of using the software?
Which of the following is not a factor to consider for the ease of using the software?
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What is the purpose of sending a Request for Proposal (RFP) to vendors?
What is the purpose of sending a Request for Proposal (RFP) to vendors?
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When evaluating software, what feedback should analysts consider?
When evaluating software, what feedback should analysts consider?
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Which of the following sources can provide unbiased testing results for software?
Which of the following sources can provide unbiased testing results for software?
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What is significant about technical marketing literature in the context of selecting software?
What is significant about technical marketing literature in the context of selecting software?
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What is the primary focus of software reuse?
What is the primary focus of software reuse?
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Which development technology is NOT commonly associated with software reuse?
Which development technology is NOT commonly associated with software reuse?
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What are the three steps of software reuse?
What are the three steps of software reuse?
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Which approach to reuse involves mandating the sharing and adoption of reusable assets?
Which approach to reuse involves mandating the sharing and adoption of reusable assets?
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What is a common technical issue associated with software reuse?
What is a common technical issue associated with software reuse?
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What is the main benefit of correctly implementing software reuse?
What is the main benefit of correctly implementing software reuse?
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Which of the following is true about object class in object-oriented development?
Which of the following is true about object class in object-oriented development?
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What is often deemed a challenge in measuring the benefits of software reuse?
What is often deemed a challenge in measuring the benefits of software reuse?
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What is a primary reason companies choose to outsource software development?
What is a primary reason companies choose to outsource software development?
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Which country is NOT mentioned as a top outsourcing destination?
Which country is NOT mentioned as a top outsourcing destination?
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What is a common characteristic of packaged software?
What is a common characteristic of packaged software?
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What does ERP stand for in the context of enterprise solutions software?
What does ERP stand for in the context of enterprise solutions software?
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Which of the following is NOT a benefit of outsourcing?
Which of the following is NOT a benefit of outsourcing?
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What is the purpose of information technology (IT) services firms?
What is the purpose of information technology (IT) services firms?
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Which statement about prepackaged software is accurate?
Which statement about prepackaged software is accurate?
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Why do some U.S. firms prefer nearshoring?
Why do some U.S. firms prefer nearshoring?
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Study Notes
Modern Systems Analysis and Design, Chapter 2: The Origins of Software
- Historically, software development for a corporate information systems department was primarily done in-house.
- Now, software development involves components from external sources.
- Much in-house coding involves integrating components from external sources.
- Six sources of software:
- Information technology service firms
- Packaged software providers
- Vendors of enterprise-wide solution software
- Cloud computing
- Open-source software
- In-house development
- Methods of evaluating software from various sources are available.
- Outsourcing is the practice of transferring responsibility for some or all of an organization's information systems applications and operations to an external firm.
- Shell Oil's outsourcing spending totalled $3.2 billion in 2008.
- Outsourcing vendors (2008-2011): EDS, T-Systems, AT&T, IBM, Logica, Wipro, Accenture.
- Reasons to outsource:
- Cost-effectiveness (economies of scale).
- Filling in deficiencies in in-house knowledge.
- Freeing internal resources.
- Reducing time to market.
- Enhancing process efficiency.
- Outsourcing system development as a non-core activity.
- Political considerations (e.g., labor disputes).
- Top outsourcing countries (2014 A.T. Kearny report): India, China, Malaysia. Top 10 in Asia, Latin America, Europe, and Africa.
- U.S. firms are increasingly shifting to nearshoring (same time zone, lower labor costs).
- Examples of leading software firms and their specializations are listed in Table 2-1.
- Information Technology (IT) service firms help companies develop customized internal information systems and run applications for customers. Additional services include management, accounting, and financial functions.
- Packaged software producers offer a range of software. From broad-based packages (e.g., general ledger) to niche packages (e.g., day care management), catering to various market segments.
- Packaged software is pre-packaged, "off-the-shelf", and turnkey software (non-customizable).
- Off-the-shelf software typically meets 70% of organizational needs. Software runs from microcomputers to large mainframes.
- Enterprise Resource Planning (ERP) systems integrate individual traditional business functions into modules for seamless cross-functional transactions. SAP AG is a leading ERP vendor.
- Cloud computing provides computing resources (applications) over the Internet. Customers avoid investing in and maintaining computing infrastructure. Pay-per-use or monthly/yearly licenses are common. Cloud computing examples: Google Apps, Salesforce.com, Microsoft Azure platform, Amazon.com.
- Open-source software is available free of charge, with source code. It's developed by communities of interested individuals and performs commercial software functions. Examples: Linux, MySQL, Firefox.
- Benefits of open-source software: -Free software and source code. -Usually freely available. -Developed by passionate individuals. -Maintained and improved by communities.
- How open-source software providers generate revenue: -Providing support/maintenance services. -Selling more comprehensive versions of the free software.
- In-house development is most effective when sufficient expertise with the target platform exists. Maintenance burden is often greater than other approaches in-house development. Hybrid methods (involving a mix of purchased and in-house components) are common. Comparison of various software-building strategies is found in Table 2-2.
Selecting Off-the-Shelf Software
- Cost considerations involve comparing in-house development costs to the costs of purchasing or licensing software.
- Functionality includes tasks the software can perform (mandatory, essential, and desired features).
- Vendor support includes the type and cost of support.
- Vendor viability involves assessing if the vendor will adapt to evolving systems software and hardware.
- Selection factors also include flexibility (ease of customization), documentation (manuals and technical information), response time (speed of interactive responses), and ease of installation.
Validating Purchased Software Information
- Requests for proposal (RFPs) are submitted to vendors. These documents specify a company's needs.
- Information sources for validating a software package acquisition can include vendor proposals, running the software through tests, feedback from others who utilize the system, independent testing services, and customer surveys. Articles in trade publications can sometimes be misleading (e.g., manufacturer-inserted bias).
- RFPs (sometimes called Request for Quotes or RFQs) help analysts identify the best selection.
Reuse
- Reuse involves utilizing previously written software assets (objects/components) in new applications. This is commonly applied to object-oriented and component-based development.
- Object-oriented development is based on object-classes encapsulating data and behavior of common organizational entities (e.g. employees).
- Component-based development uses components varying in size (from objects to software for single business functions).
- Reuse can increase productivity and reduce rework, but can be affected by technical or organizational issues, including the availability of component libraries and organizational commitment.
- Costs and benefits of reuse are highlighted in Figure 2-5.
- Three steps involved in implementing software reuse:
- Abstraction - designing reusable software.
- Storage - making software resources accessible.
- Recontextualization - making the software understandable to developers.
- Approaches to reuse range from ad-hoc to facilitated, managed, and designed. These approaches vary in the degree of reuse, commitment levels, policies, and costs, as outlined in Table 2-3.
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Description
This quiz explores the evolution of software development as discussed in Chapter 2 of Modern Systems Analysis and Design. It covers the shift from in-house software development to utilizing external components and outsourcing practices. Examine the various sources of software and the implications of outsourcing in the information systems sector.