The make-versus-buy decision is important every time a new application is requested of the IS group. What, in your opinion, are the key reasons an IS organization should make its own systems, what are the key reasons it should buy an application?
Key reasons why IS organization should make its own systems include;
-they will have full control of the system
-it promotes the development of internal workforce
-limits possible transfer of technology and intellectual property
The key reasons why IS organization should buy its own systems include;
-it will access external expertise
-the organization will focus on core functions
-it is sometimes cost-effective
Explanation:
Key reasons why IS organization should make its own systems include;
-they will have full control of the system- when a firm decides to make or manufacture its own application system, it will have direct control of the process.
-it promotes the development of internal workforce-to make a new application system, the organization will have to train its internal workforce. Training is key in workforce development.
-limits transfer of technology and intellectual property-when there is outsourcing, IS organization will easily share their technology with other organizations. Creating an internal manufacturing unit will reduce the risk of transferring(sharing) technology as well as intellectual property to other organizations.
The key reasons why IS organization should buy (outsource) its own systems include;
-it will access external expertise-the IS organization will benefit from quality application systems obtained from external organizations that are experienced in producing them.
-the organization will focus on core functions-IS organization will concentrate on the main functions as external organizations provide the application systems.
-it is sometimes cost-effective -buying from external entities is sometimes cost effective because the organization will not need to create a new department to produce the application systems.
The make-versus-buy decision is important every time a new application is requested of the IS group....
Identify some important qualitative considerations in an evaluating a decision to make or buy a part. In a decision to sell or to process further of what relevance are costs incurred prior to the decision point? Explain your answer.
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