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Evaluate the alternative methods of acquiring IS with a particular focus on ASPs by Mind Map: Evaluate the alternative methods of acquiring IS with a particular focus on ASPs
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Evaluate the alternative methods of acquiring IS with a particular focus on ASPs


Proprietary software vendor may not choose to develop software in the future

Inhouse Development


System is developed internally


Control over the direction of the development of the IS


If a large project, new IT staff may be required

Systems may be available elsewhere

Staff may be inexperienced in developing this style of application

May be too technically challenging


Project may be too technically challenging

Systems may not be delivered on time

Project may incur unexpected costs

Similar alternatives

Outsourcing software

Using contractors

End User Computing

COTS - Commercial Off the Shelf Software


Software is proprietary


IS can be acquired quickly

Many alternatives are available


Limited scope to make adjustments

Unable to direct the direction that software develops (new features etc)

Similar Alternatives

Open Source Software, About, Applications in which the underlying code of an application is released to the IT community, Benefits, Source code is made available, making it easier to make changes to software, Less risk if the organisation goes bust- community may continue to support the software longer., Drawbacks, Performance may not be as high as proprietary, Examples, MySQL Database, Mozilla Firefox, GIMP, Linux OS, Licenses, GPL, Others, Benefits, The Conservatives have estimated that £600million could be saved from government adopting OSS

Also consider





What is it?

The use of an external organisation to develop bespoke software

A field of management services


IT Management contract out IT Services, May involve, Specific Application, Oursourcing whole IT department, Offshoring IT


IT may not be seen as a core activity

Gain the experience of the knowledge held by the service provider, Hardware, Software, Available IT within a particular sector such as IT

Be able to have IT services at a lower cost that currently


Communication channels may be longer.


Cost savings may not be realised

Company knowledge transferred outside the organisation

Changes to agreed contacts may be expensive.

Similar Alternatives

Application Service Providers

Example organisations

IBM Global Services, HP, Xansa, Accenture

Issues to take into account

IT Department

People, Experience in the IT department, Skills of the IT staff, Size of the IT staff

Is are the major concerns for IT operations?, Maintaining Systems?, Server power, space, upgrade requirements

System Requirements

Is the project technically challenging?

How urgent is the Information System required?


Is the IS expected to play a strategic role in the organisation?

Is it cheaper to develop the system outside of the country (Offshoring)?


What is the determining factor for the organisation?

How soon does the organisation require the system?

Is the business likely to grow in the future? How does this change the system choice


What is the degree of risk associated with the options?

Which option has the least risk?

Options Available

How much does the IT department know about each of the options?

Has the department had previous experience which was positive?

How flexible are the options?

Which method is likely to most improve the efficiency / effectiveness of the organisation?

What are the terms of the lisencing for the application?

User Developed Software

What is it

Employees develop software for the benefits of one user


Self Generated Reports from corporate databases

Spreadsheet Simulations of Financial Projections

Also known as End User Computing


Cheap - no cost of experienced development staff

Better user satisfaction


See risks

Little testing if any is carried out for software


Errors may be in formulas created


What are they?

Application Service Providers


No need to develop software

Other organisations have used and tested software

No need to purchase application servers, or maintain application internally, reduction in direct staff costs, reduction in power consumption

No direct costs including IT staff or maintainance contracts associated with maintaining systems


Flexibility, Little customisation may be available for the application., Unable to state how the application develops in the future

IT Network, Increase in load of data entering corporate network, Users can't work offline

May need to change business processes to fit in with software

May not be able to integrate software with other applications


Company may go under

Risk of others getting access to Internal data

Data not being backed up by the ASP



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