There are several ways companies acquire software.
Identify what is the most critical software that your company needs/has (i.e if you think
of Uber it is their mobile phone app; if you think of a university it would be their
student management system)
Customer app → talk a bit about the app
Consider all feasible acquisition methods in light of your business requirements and
determine which method is the most suitable for your organisation.
(Discuss all acquisition methods listed but choose one that will be most suitable)
Customise a prewritten application - choose this one but talk about other two apps
(why did we choose the customise option and not the other two)
Application software service providers → can only access through a web browser
(why we aren’t choosing)
Outsourcing
Purchase a Prewritten Application (to write no code)
How will the company pay : Buy or lease
Customize a Prewritten Application (to write some computer code)
How will the company pay : Buy or lease
Where will the app run: SaaS (save the expense of money, IT staff) buying, operating and
maintaining
Customize open source software( license to customize,develop) or customize vendor software
Outsourcing : acquiring IT apps from outside contractors
Disadvantage: data under control of vendor
Create a new application (from scratch) lease the application
How will the company pay :Use internal funding
Quick and Easy has integrated an application that allows the customer to place an order whenever
he/she pleases. The app is our way of communicating with the user thus making it the most critical
software we own. The acquisition method chosen for this software was outsourcing the application
to a well-known company.
The reasons for not choosing to purchase a prewritten app are because our business process is
unique and the already designed app may not fit our company's needs. In addition, the purchased
software will be difficult to integrate with existing systems and trying to modify it can require huge
business processes to be implemented. Last but not least, quick and easy provides the user with
features and loyalty programs and wants an application that can provide a competitive advantage
over other companies hence buying the same prewritten application will not help in doing so.
Creating a new application from scratch for our company is time-consuming and expensive. Since it's
a very complex procedure, hiring a team of IT developers would've been a necessity in order to get it
running and having them stick around for maintaining the app and keeping it up to date which
basically means more expenses.
The company decided that outsourcing the app to IBM is the best option. First of all, handing over
our purchased application to IBM to customize helped us focus on core competencies and ways to
improve our company instead of worrying about the t app. Moreover, software infrastructure
would've cost the company a lot of money with having to set up and maintain the servers. Second,
outsourcing integrates our app with other platforms giving the company the ability to connect to
social media in other words attracting new customers. Furthermore, IBM also offers many various
tools and packages that help us keep track of our inventory saving us a lot of time and helping the
company present and analyse the data more efficiently.
Quick and Easy offers an integrated mobile application that allows customers to place their
food orders whenever they please. The mobile application is an efficient way of creating
communication and convenience for our consumers thus making it the most critical software
we own. The acquisition method chosen for this software was outsourcing the application
rather than purchasing one or leasing it.
We chose not to purchase a prewritten app because our business process is unique and the
already designed app may not fit our company's needs. Moreover, a purchased software will
be difficult to integrate with existing systems and trying to modify it can require huge
business processes to be implemented. Quick and Easy provides the user with features and
loyalty programs and requires an application that can provide a competitive advantage over
other companies hence buying the same pre-written application will not help in doing so.
Creating a new application from scratch for our company is time-consuming and expensive.
Since it's a very complex procedure, hiring a team of IT developers would've been a necessity
in order to get it running and having them stick around for maintaining the app and keeping it
up to date which basically means more expenses.
Similarly, with purchasing and customizing a prewritten application double handling and
costs will fly increase rapidly. The company decided that outsourcing the app to IBM is the
best option. First of all, providing IBM with our ideas and company needs to create the
application helped us focus on core competencies and ways to improve our company instead
of worrying about the app. Moreover, software infrastructure would've cost the company a lot
of money with having to set up and maintain the servers. Second, outsourcing integrates our
app with other platforms giving the company the ability to connect to social media in other
words attracting new customers. Furthermore, IBM also offers many various tools and
packages that help us keep track of our inventory saving us a lot of time and helping the
company present and analyse the data more efficiently.
