Modern Systems Analysis and Design: Chapter 2 Software Origins

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Questions and Answers

What is outsourcing in the context of systems acquisition?

  • Evaluating off-the-shelf software for organizational use
  • Turning over responsibility of some or all of an organization’s information systems applications and operations to an outside firm (correct)
  • Developing software components to work together
  • Creating in-house applications from scratch

What is the primary source of most of a corporation’s application software?

  • Outsourcing vendors
  • Off-the-shelf software (correct)
  • Internal development teams
  • Open source software

What is a key characteristic of in-house coding according to the text?

  • Building entirely new applications from scratch
  • Creating custom software for clients
  • Making components work together (correct)
  • Developing software components to work together

Which of the following was NOT listed as one of Shell Oil's outsourcing vendors from 2008-2011?

<p>Microsoft (D)</p>
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What does the text mention as a criterion for evaluating software from different sources?

<p>Cost-effectiveness (B)</p>
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What role does reuse play in software development according to the text?

<p>Repetitive use of existing software components (C)</p>
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What is one of the reasons mentioned in the text for organizations to outsource system development?

<p>Make up for lack of in-house knowledge (D)</p>
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Which type of software is described as integrating individual traditional business functions into modules enabling a single seamless transaction to cut across functional boundaries?

<p>Enterprise Resource Planning (ERP) systems (B)</p>
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What is a characteristic of prepackaged, off-the-shelf software as mentioned in the text?

<p>Not customizable (D)</p>
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Which type of firm helps companies develop custom information systems for internal use?

<p>Information Technology (IT) services firms (A)</p>
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What is the leading vendor of ERP systems as mentioned in the text?

<p>SAP AG (D)</p>
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What is the primary benefit of outsourcing system development according to the text?

<p>Free up internal resources (A)</p>
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What is the main goal of enterprise-wide solutions software as mentioned in the text?

<p>Integrate traditional business functions into modules (B)</p>
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What is one of the main reasons for companies to take advantage of economies of scale, as mentioned in the text?

<p>To achieve cost-effectiveness (C)</p>
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What type of system development is a non-core activity for many organizations according to the text?

<p>Enterprise Resource Planning (ERP) systems development (C)</p>
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Flashcards

Outsourcing in Systems Acquisition

Delegating system development tasks to external vendors rather than doing them in-house.

Application Software Sources

Most companies get application software from third-party vendors, not their own IT departments.

In-House Coding Characteristics

Building software internally allows for deep understanding of specific company needs and more tailored solutions.

Software Evaluation Criteria

When choosing software, factors like quality, cost, and vendor support are crucial.

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Software Reuse

Using existing software components saves time and effort in development.

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Reasons for Outsourcing

Companies outsource system development to access external expertise and reduce costs.

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Enterprise Resource Planning (ERP) Software

Software that integrates various business functions into modules, creating a seamless workflow.

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Prepackaged Off-the-Shelf Software

Software designed for broad applicability, less customizable, but cost-effective.

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Custom Information Systems Development

Consultants help companies develop custom information systems to meet their specific needs.

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Leading ERP Vendor

SAP is a major provider of ERP systems in the industry.

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Benefits of Outsourcing System Development

Reduced costs, access to specialized skills, focus on company's core competencies.

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Goals of Enterprise-wide Solutions Software

To improve organizational efficiency and communication by integrating different areas.

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Economies of Scale Justifications

Companies seek economies of scale to lower costs and improve their competitive position.

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Non-Core System Development Activities

Certain system development activities, like HR or finance systems, may be outsourced.

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What are the key criteria for choosing software?

Factors like quality, cost, and vendor support are crucial for evaluating software options.

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Study Notes

Outsourcing in Systems Acquisition

  • Outsourcing involves delegating certain system development tasks to external vendors rather than completing them in-house.
  • Organizations often seek specialized skills or cost-effectiveness through outsourcing.

Application Software Sources

  • Most application software for corporations comes from third-party vendors rather than internal development.

In-House Coding Characteristics

  • In-house coding is characterized by a deep understanding of the organization's unique needs, which allows for more tailored solutions.

Shell Oil's Outsourcing Vendors

  • Specific vendors used by Shell Oil from 2008-2011 were listed, with one key vendor omitted from the known list.

Software Evaluation Criteria

  • Quality, cost, and vendor support are crucial criteria for evaluating software options from various sources.

Reuse in Software Development

  • Reuse of existing software components can significantly improve efficiency and reduce the time needed for development.

Reasons for Outsourcing

  • Organizations often outsource system development to access external expertise and reduce development costs.

Enterprise Resource Planning (ERP) Software

  • ERP software integrates various traditional business functions into cohesive modules, enabling seamless transactions across different departments.

Prepackaged Off-the-Shelf Software

  • This type of software is designed for broad applicability and is typically less customizable but cost-effective compared to bespoke solutions.

Custom Information Systems Development

  • Consulting firms specialize in helping organizations develop custom information systems tailored to internal requirements.

Leading ERP Vendor

  • SAP is recognized as the leading vendor of ERP systems within the industry.

Benefits of Outsourcing System Development

  • Primary benefits include reduced costs, access to specialized skills, and the ability to focus on core business functions.

Goals of Enterprise-wide Solutions Software

  • The main objective is to enhance organizational efficiency and improve communication by integrating various functional areas.

Economies of Scale Justifications

  • Companies pursue economies of scale primarily to lower costs and improve competitive positioning.

Non-Core System Development Activities

  • Many organizations consider certain system development activities, such as HR or finance systems, as non-core and more suitable for outsourcing.

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