Transcript Strategic planning for IT

Categories of
Software
Software
• System software helps run the
computer hardware and computer
system.
• A big part of any business
application system
• Software must be modified to fit a
company’s specific need
Software (continued)
• Business application is often a
combination of many different bits of
software - purchased or acquired and
integrated by a company’s staff
• A smaller proportion of time and
effort is spent on developing systems
• Instead increasingly packed
applications/outsourcing is used
Outsourcing
• The practice of turning over
responsibility of some or all of a
company’s IS applications and
operations to an outside firm
• Cost-effective
• Used to overcome operating problems
• due to inexperience
Sources of Software
•
•
•
•
•
•
Information Technology Firms
Packaged Software Providers
Vendors of Enterprise Solutions
Application Service Providers
Open Source Software
In-House Development
Information Technology Firms
• Help companies develop custom ISs
for internal use
• IT firms develop, host, run application
for customers
• Employ people who are experts in
development of IS & the business area
• Examples
IBM, EDS, CapGemini, Accenture
Packaged Software Producers
• Software companies develop pre-packaged or off-theshelf systems
• Many market segments are served
• Some off-the-shelf software systems cannot be
modified to meet the specific individual needs of a
firm (turnkey systems)
• Changes are only made if a specific number of users
request the change
• Some off-the shelf software can be modified/extended
• Can meet 70% if the firm’s needs
• Examples: Microsoft’s Project
Enterprise Solutions
• Also known as Enterprise Resource Planning systems
• Complete software solutions for a company
• ERP systems integrate individual business functions
into a series of modules so that a single transaction
occurs seamlessly rather than using separate systems
• Focus is on business processes rather than business
functional areas!
• Using enterprise software solutions, a firm can
integrate all parts of a business process in a unified
information system
Enterprise Solutions (contd.)
• A single repository of data is used
• But ES systems are complex!
• Therefore expensive as consultants are
often used for specialist advice
• Examples
SAP AG, Oracle
Application Service Providers
• An organisation that remotely hosts and runs
computer applications for other companies,
typically on a pre-use or licence basis
• Users have access through the Internet or
VPNs
• Users pay on a per-use or per-month basis
– Microsoft offers its Windows & Office to ASPs
– Oracle offers its ERP applications
• Using an application this way can be limiting
Managed Service Providers
• An organisation that remotely provides
customized computer applications and
network-based services to other companies
• Companies pay per-use or monthly fee
• Difference to ASPs is MSPs offer extras:
– e.g. network-based services
– customized applications
– equipment for a fee
Benefits of using ASP/MSPs
• Freeing internal IT staff
• Gaining access to applications faster than via
internal development
• Achieving lower-cost access to corporatequality applications
Open Source Software
• Software which is freely available
• Not just the final product but the source code
• Developed by a community of interested
people instead of by employees of a company
• Performs the same functions as commercial
software
• Examples:
Linux (OS), mySQL (database), Firefox
SourceForge.net
Open Source Software (contd.)
• Companies can make money by:
– Providing maintenance and services
– Providing one version for free and another more
fully featured version for sale
In-House Development
• Developed by company’s employees
• Usually customised according to the needs of
the organisation
• Can also be a hybrid solution – some
purchased software and some in-house
components
Off-the-Shelf Software
• Criteria for choosing OtS Software includes:
– Cost (buy-in or develop in house?)
– Functionality (tasks performed by the software)
mandatory, essential and desired features
– Vendor support
– Viability of vendor
– Flexibility (how easy is to customise software)
– Documentation
– Response time (of the software)
– Ease of installation
Re-Use of Software
• The use of previously written software
resources in new applications
• Should increase programmer productivity
• Decrease development time
• Result in higher quality software
• Decreasing maintenance costs