Issues of Information Technology - Case Study Example

Today, many companies are faced with a dilemma when it comes to issues of Information technology. One such dilemma may arise when an organization plans to develop software for internal use (Jessup & Valacich 2003). There are many options that an organization has in software development. A company may decide to build their own software, buy a packages system from a software development company or a consulting firm, and outsource the software from a third party (FCA 2007). In this report, there are two options, which will be discusses with regard to an enquiry from Booz Allen Hamitlon company that wants to know whether to continue with internal or in-house software development or acquire their social software from another company. Like many other companies, Booz Allen Hamitlon Company has to make sure all its stakeholders understand what system development means and what purposes it is meant to serve. This information should be known by both insiders and outsiders in order to make the evaluation of their decision easy to implement. This is so because effective partnership is significant in creating a close and mutual and respectful working relationship between developers and users of any software project (Maier 1998). To take the best step, there are issues that Booz Allen Hamitlon must sort out. First, the company must identify a large IT problem that needs to be solved. Jessup and Valacich (2003) advise that the problem should then be broken down into several smaller and manageable pieces that can be translated into computer programs. The social software should join each program into an overall comprehensive system that caters for the whole problem as illustrated in the below diagram by Jessup and Valacich (2003). At this point, any company can discover the complexity of the program needed and weigh options with regard to the expertise it has at hand. Where the company realizes that its personnel are not competent enough to develop such software, it should consider other alternatives (FCA 2007). Incase the company realizes that their problem needs software that their personnel can develop, then it should consider developing it in-house if the time consumed and resources needed are less than the cost of purchasing or securing the development otherwise. External acquisition of software for Booz Allen Hamitlon Company As Booz Allen Hamitlon Company considers the off-the-shelf software development, the evaluation process will be vital. This should be done by evaluating and analyzing the features, functions, benefits and costs of the viable options so as to develop the best software for business (Jessup & Valacich 2003). In most cases, developing in-build software will fit the company perfectly. This is because software developed from outside will have many features that are irrelevant to the company operations, or the software will have few features than required (Jessup & Valacich 2003). In either case, the company must invest in customizing the software to fit in its requirements or change its operations to fit the software; and this calls for an extra cost. Moreover, the company should seek proof of the reliability of every product as well as the software’s compatibility to be integrated in the company’s technology infrastructure (Valacich & Schneider 2012). Although many companies believe that of-the-shelf developed products can easily be integrated with any environment, this is not always the case especially when the right vendor is not chosen. Therefore, when considering external acquisition of software, the company must analyze the vendor. This will involve requesting new product features and getting information from other vendor clients, and whether the features worked in their cases. Before the company proceeds to acquire the product from the external developer, the company will have to identify all the costs associated with the product. This includes extensive customization and the cost associated with the process. This is crucial because there are companies who purchase externally developed software only to realize they had paid up to three times the cost of purchasing for customization. This can be very costly in terms of resources and time. The company must also consider the ongoing per user maintenance and operational cost in the software’s lifetime (Valacich & Schneider 2012). In the long run, external software acquisition can be extremely expensive especially when a company uses only a fraction of its features and have to pay license for the rest of its features. This results to a very expensive project that has low return on investment (ROI) that was not anticipated by the company. However, external acquisition of software is the best option when many viable products are available. It will be the best option if the business processes in the Booz Allen Hamitlon Company are flexible and customized branding is not required. According to FCA (2007) it can also bear fruits when implementation time is limited, per-seat license fees are low, and adding new features is not critical. If these features are considered by Booz Allen Hamitlon Company, external acquisition of software will have low initial cost, reduced time for development, high success rate in the business. In-house development of software for Booz Allen Hamitlon Company Alternatively, Booz Allen Hamitlon Company may decide to build its own software. In this case, the company must analyze the capabilities of the development team of experts. Apart from enquiring on the ability of the team in handling the project, Booz Allen Hamitlon should do a comprehensive technical skill assessment (Jessup & Valacich 2003). The assessment should be done to determine whether the company really has the bandwidth and the skill needed for the completion of the project. If the skills require some back up expertise, then the company should consider hiring additional developers. In this case, the company must do a careful interview so as to select the right technical resources for the project. Booz Allen Hamitlon Company should also consider the time it will take for them to develop in-house software. Jessup and Valacich (2003) warn that a simple request to be granted by management in a sitting may require months in programming for its incorporation into the application. Therefore, Booz Allen Hamitlon must ensure the project is on track by defining the deliverables, requirements and timelines at the commencement of the project. The table below shows steps in the software development process that can be considered by the company (Jessup & Valacich 2003). Lastly, a financial analysis of developing the software in-house will be critical so as to evaluate the development and opportunity costs. For example, Booz Allen Hamitlon may realize that internal employees have more responsibilities that will not go on smoothly as a result of the development project. In this case, the costs that arise when regular tasks are not performed will cost the company. Moreover, if Booz Allen Hamitlon hires external contractors and staff to augment internal skills, there will be a need to train them, and this will involve additional cost (Maier 1998). Therefore, in-house development of software involves some costs as well as benefits. The challenges involve unrealistic deadlines from the management team, inadequate time allocated to the software project, internal politics, poor estimation of cost and time, lack of proper project management and quality assurance, insufficient resources among other challenges (Valacich & Schneider 2012). These challenges may discourage any company from in-built software and Booz Allen Hamitlon should be able to make an informed decision with needed care. However, FCA (2007 argue that in-built software development for Booz Allen Hamitlon can provide software that is build around specific requirements. The company will also have a complete control of future development and an understanding of the functioning of the software. Moreover, Booz Allen Hamitlon will be able to incorporate unique features that give it a competitive edge due to lower cost of developing and support. In conclusion, for Booz Allen Hamitlon Company, considering in-built software development and external acquisition of software will involve thorough knowledge of the challenges and the benefits of each alternative. With the correct analysis, followed by evaluation and making the best decision and alternative cost, either choice can work for the Company. The aim is not to have either of the alternatives as best, but how best the company will be able to analyze its situation and make a decision for an option that gives them a sustainable solution at the lowest cost. References FCA, 2007, System Development: Essential Practices For Information Technology, Examination Manual It Section. Retrieved from . Jessup, L & Valacich, J 2003, Information Systems Today: Why IS Matters, 2nd edn, Prentice-Hall, New Jersey. Maier, M 1998, “Architecting Principles for Systems of Systems”, Systems Engineering Vol.1, No. 4, pp. 267-84. Parise, et al. 2012, “Booz Allen Hamilton: Social and Beyond”, Journal of Information Technology Case and Application Research, vol. 14, no. 1, pp 55-76. Valacich, J & Schneider, C 2012, Information Systems Today, 5th edn, Prentice-Hall, New Jersey. Read More