Sunday, June 8, 2014

Build the new System Application or purchasing the equivalent System Application

By Raul Bernardino
Introduction:
In this fourth week assignment, it has very tricky question. With the simple mathematics calculation and a little bit has an economic knowledge, it will be allowing us to make very quick decision for purchasing equivalent or similar system rather than have to build a new system. It stated that, to build the new system, it will cost us about $800,000; while in the market, there is an equivalent system that will cost us about $125,000. This means that, if we going to acquiring the system, it will be saving about $675,000.
In the software development, we cannot guarantee that lower price of purchasing the system is a good investment for the company. For instance, we only bought the license of the application in order to use them; however we did not have the source code. Therefore to do an adjustment of the requirements needs, we have to upgrade the license and doing the maintenance. This will be having additional fees on the top of the original license fee ($125,000). In other end, it is also requiring to have training to the end users and support team. It is also including the annually maintenance fees. In the long run, the cost this software application will be ending up with the millions of dollars.  For instance the maintenance cost or licensing cost $20,000 per year. In this scenario the cost will be ending up $720,000 in the next three years. In the software environment, “often we bought the service, the product, or both of them”, Hall, P. A.V. & Fernandez-Ramil, J. (2007, P. 131).
There are some advantages and disadvantages of deciding to purchase any software application system. The advantages of getting or buying the software applications from application service providers (ASPs) are: “Lower cost or cost saving, market is ready and it has a quick of the implementation (no time delay), and it has clear support line and maintenance. This software has a quality because many companies are using the same product or services.  Some disadvantages of purchasing from ASPs are: The features may not fit with the business requirement needs, totally depends on external services, and more cost for long term business”, Hall, P. A.V. & Fernandez-Ramil, J. (2007, P. 137).It is also having the trade-off. If we are going to build the software application inside the company; the advantages are: We will be having the source code, we can easily adjust and adapt at any time as it is business required. The disadvantages are: Time consuming to develop the application, more cost in the initial investment,” Martin (2005).
It is important to have concrete planning towards to the acquisition of the any software application; whereas it is starting from business requirement needs, establishes a consensus of the needs among the stakeholders, and makes a listing of the essential features and functions of the system; it is also including the relative features and functions and the integration of the relationship. The business requirement needs can be elicited from interviewing the stakeholders, uses case modeling or simulation to the current situation, brainstorming the ideas with all parties that are involving the project either they are direct or indirect,  and makes some observation in normal working environment. The facilitation has to elicit those requirements and documented. If there are conflicts and disagreement between the stakeholders, the facilitator has to facilitate all parties in order to reach a consensus or at least to reconcile the ideas or needs.
In some software package that is not fit with the business requirements needs, then first of all, we have to think how the technical integration to the current application system especially to the operation system and hardware of the target computers. In other hand we have to think of customizing and modifying the features and functions in order to fit the business needs. Another step is re-engineering the business process of the application whereas to imitate the real world of the working environment.
There are several strategic to implement new package of software as follows:
a)     Strategic Parallel: In this strategic the production mode using the old system while in the testing mode uses the new software. Whenever, the stakeholders are confident with the new system, then they can move to new software application.
b)    Strategic Piloting: In this strategic, the organization or company are selecting several end users to test the new application and do a correction of the problem and updates the codes in necessary.
c)     Strategic of phasing: In this scenarios organization can benefit from achievement from phasing strategic.
d)    Strategic of cutover: in this scenarios ask the organization to adopt new operating system.
The software implementation phase has several sections as follows:
a)     Installation: this is a first phase of the implementation. In this phase it has several processes such as: Plan for the installation, training plan, data backup, data clean up, and conversion.
b)    Operation: In this phase the operation is important, because it will be seeing as it is operable or useable. How is it integrated with other current application? It integrated to other system and system operation.
c)     Maintenance: It is important to have a support from the vendor and it has to base on the service level agreement.


In conclusion: In any software application development, it has to base on business requirement needs and how the stakeholders are for seeing the needs, and decides the features and functions. If the software application is intending to buy from the available in the market, it has to be able to do a technical integration to the other system, customization, and in line with business process. If it is intending to build the system internally, first of all, it has to start with the requirements such as feasibility study/ elicitation, analysis and specification. Second, on the designing such as high level design and details of the design asks more concentration on the block level. The third construction: in this phase it is doing a coding, testing and integration, and the last part is the implementation such as installation, support and maintenance, including operations

References:
Hall, P. A.V. & Fernandez-Ramil, J. (2007) Managing the Software Enterprise:

Software Engineering and Information Systems in Context. London: Thomson Learning.

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