Are you an planning to acquire an information system for your organization and wondering how? You can acquire an information system in several ways. In this article, we will list 3 basic approaches to acquiring an information system for your organization as well as the advantages and the disadvantages of each approach. After reading this post, you can access your resources and make a choice.
Let’s dive in!
As the term indicates, in-house development is simply a development process that is handled by an organization internally. If you have staff with the knowledge, you can develop a software within your organization with the contribution of IT staff and.
Advantages of in-house development
- Better understanding of requirement of the system. Internal staff will have better understanding of the requirements of the system to be than outside developers.
- Developed to meet the requirements of your services. Since your Staff have better understanding of the requirements of the information system, they are likely to come up with a solution that meet those requirements.
- Fit for your organization’s culture. Developing the information system by staff internally will be fit for your organization’s culture because chances are that the culture will be taken into consideration during the software development process.
Disadvantages of in-house development
- Insufficient number of staff on the software development projects which may cause delay and over spending.
- There may be issues with the performance of the IT team.
- Staff may not have the appropriate skills to develop the system to meet the requirements of the information system.
- It may be time consuming and expensive.
- Another disadvantage is that this introduces an additional task to the usual tasks of the IT staff which may cause the staff to overwork. Causing staff to overwork may affect the success of the system.
- Usage is extremely focused on the particular organization’s system which reduces the possibility to sell the system.
You can purchase a standard off the shelf system that supports common business processes.
Advantages of purchasing an enterprise information system
- Less expensive: Purchasing an information system is relatively cheaper than in-house development
- Easy to acquire: Purchasing an information system is easy.
- Time saving: It is time saving to purchase an information system, because the development has already been done by the vendor.
- There are many types of systems to choose from. You have the choice to choose from a large variety of available systems.
- The updates of the purchased system are likely to be done by the vendor.
- Your organization would not be the first to use the system which may be easy to access and maintain. The system would have been proven to be working.
- Possibility to eliminate the need of hiring a specialist for the development of the system
Disadvantages of purchasing an enterprise information system
- The purchased system may not fully meet your organization’s requirements.
- The purchased system may be difficult to integrate with the existing systems if there is any.
- It may be difficult to modify the purchased system to meet the requirements of your organization’s system.
- It may require lot of effort to make substantial changes in the organization’s services to adapt to the purchased system.
- Your organization may not be able to improve the functionalities of the purchased system in case there is a need for improvement but has to use it as it is.
You can rent a system from an outsourcing firm.
Advantages of leasing an enterprise information system
- Time saving: It is time saving to lease an information system, because the development has already been done by the outsourcing firm.
- Cost saving
- The system can be customized to meet the requirement of your organization’s system
- Maintenance can be done by the leasing firm
- Possibility to eliminate the need of hiring a specialist for the development of the information system
- Keep up the changes in technology
Disadvantages of leasing an enterprise information system
- The need for a reliable asset management to track the status of the lease resources.
- It may be difficult to make any changes to parts of the system during the period of the lease.