The Medical Supply Company’s Software Acquisition, Research Paper Example

There are mainly four methods of software acquisition. The use of each technique depends on some factors including MSC’s goals and objectives, human resource capacity, the amount of funds available for investment in the project. Businesses can either chose to use a custom developed software package or a purchased software package.

Custom Developed Software

MSC can opt to develop their software that caters to all the organization’s processes and information needs. The software is specific to the company’s structure and processes and it captures, records, analyzes and reports information for effective decision making.

In-house Development

This method software acquisition entails developing an internal IT department responsible for the development of the company’s software (Turban, Volonino, Wood, & Sipior, 2013). The IT group would consist of programmers and analysts. In-house development is employed when the company depicts the required characteristics for such an endeavor. These features also form the reasons for applying the technique.

Unique business requirements: MSC can choose this method if it has individual business requirements that are specific to its nature and scope of its operations. This is especially feasible when there are no existing software packages that meet the company’s business requirements.

Mitigating change: using in-house software development allows the company to minimize the change that would be realized by its policies and business procedures. Installation of new software is characterized by some changes in business operations

System and technology constraints: In-house development is only feasible if the changes to be meet lie within the limitations of the existing systems. Furthermore, the new system has to work using current technology (hardware and legacy systems).

Purchasing Software Package

This method of software acquisition entails purchasing software package(s) that are commercially available and satisfy the company’s system and information needs. This method can be employed if the following criteria are met;

Mitigate cost: MSC may choose this alternative in the case where there are limited funds to finance the project. Package software is used by numerous businesses, which helps spread the cost of development amongst the users in the market (Turban, Volonino, Wood, & Sipior, 2013).

Limited implementation time: implementation of package software is considerably straightforward as it has gone through the design, programming, testing and documentation phases.

Reliability and Performance Benchmarks: packaged software is used by numerous businesses which offer vendors the chance to detect and rectify any significant issues related to the software’s performance. This ensures the purchased software is reliable and has industry-wide performance benchmarks.

Human resource: using packaged software reduces the business’s human resource requirements by eliminating the need for system analysts and programmers (Turban, Volonino, Wood, & Sipior, 2013). This saves costs in the long-run.

Software Updates: the proposed system for MSC would require regular updates to ensure functionality and efficiency. Packaged software ensure that software upgrades are provided by the vendor. This mitigates the cost of maintenance.

Outsourcing

This method entails contracting third party companies (service providers) to manage and update certain aspects of the enterprise’s IT workload. This can be short-term or long-term. This method is useful in controlling costs and the rapid changes in technology. The following reasons validate the use of outsourcing:

Risks: this method eliminates the risks associated with internally developing, managing and maintaining a system. This responsibility is passed on to the external service providers.

Recommendation

The best alternative for MSC would be outsourcing the IT function to a service provider. This provides the company the ability to use a system that is customized to its varying informational needs. This would also mitigate the costs associated with hiring numerous IT specialists for development, maintenance, and development.

Application of Green Principles

The company also has to take into consideration the impact its software would have on the environment. As such, green principles would be adopted in the acquisition process. The acquisition would have to be recognized by an energy saving software brand ENERGY STAR. Such software would ensure energy savings that are obtained through life cycle cost calculation.

References

Turban, E., Volonino, L., Wood, G. R., & Sipior, J. C. (2013). Information technology for management: Advancing sustainable, profitable business growth. Hoboken: Wiley.