Management Information System Harvard Case Solution & Analysis

In House Developing:

Advantages:

The biggest benefit of in house development is that an organization will have full ownership of an ERP system as well as the source codes of a system. An organization during development of an ERP system will gain full knowledge about how to run an ERP, which will help to train its employees and staff in order to avoid any discrepancies and damages related to lack of knowledge and skills about the system.(Pratt, 2013).

An in house developed software fits exactly with the requirements of an organization because it is drafted exactly according to the organizational needs.

In house development of a system helps to get in touch of potential users of a system with developers that exactly describes the needs and requirements of a system over the use of better and effective communication process.

In house system building provides the organization a full dominancy and power over the system and its functionality which further allows the organization to differentiate its strategy from competitors by using the custom build system according to organization’s need and requirements.

In house software developing helps to save the annual renewal charges that is a life time cost for organizations if they go for acquisition of vendor supported system instead of in house development of ERP system.

It provides greater flexibility in case of any change and modifications in existing ERP system in less cost than in acquisition of vendor supported system.

Apart from all, it helps to avoid greatest risk associated with vendor supported system that they might cease to support system or even go out of business at any time without prior information or notification to business executives and users of the system.

Disadvantages:

In house system building takes too much time and cost to build which creates many other business issues such as late submission of work due to an involvement of workers and employees in system building process, loss of competitive advantage and excessive delays in other important pending works that are ignored by the organizations due to much involvement in in-house system building(Preeju, 2019).

In house system building requires much IT staff that increases the overhead cost for ERP. In case of any change and diversification in business or switching to any new technology will lead to a heavy cost for organization, which will ultimately down the profitability of the company, resulting in decrease in share value and growth and negative image in public.

Moreover, any damage and failure in completion of system can lead to a whole cost to get sunk ultimately resulting in the loss of project that might create potential problems for organizations.

Recommendation:

In order to save overhead and overall costs, organizations should opt to get best of both such as; organizations can outsource the specialized services and send their best staff to help vendors for the purpose of providing support during system manufacturing process.

Hybrid development of an ERP system will lead to save the time and cost for an ERP system building which will also help to get ample knowledge related to system running and processing.

Hybrid system development leads to a greater flexibility in case of any change and modifications in existing ERP system in less cost due to the involvement of organization’s key personals at every stage of System Development Life Cycle (CDLC).

A hybrid developed software fits exactly with the requirements of an organization because its drafts is exactly according to the organizational needs.

Moreover, a hybrid developed system helps to get in touch with potential users of a system and developers that exactly describes the needs and requirements of a system over the use of better and effective communication process.

 

Exhibit 1: Table of Advantages and Disadvantages

AdvantagesDisadvantages
Outspreading·         Decreased expenditures

·         Ease in accessing the global talent pool

·         Ability to upscale in quick manner

·         Interrupted workflow

·         Time saving

·         Difference in time

·         Linguistic barriers

·         Different work habits

·          Long distance

 

In-house development·         Final product ownership

·         Fits to business requirements

·         User base and development team relationship

·         Control over system as well as its functionality

·         Competitive advantage

 

·         Costly to maintain

·         IT personal requirement

·         High cost of switching

 

 

 

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