1. Categories of Software

2. System software helps run the computer hardware and computer system.
A big part of any business application system
Software must be modified to fit a company’s specific need

3. A smaller proportion of time and effort is spent on developing systems
Software (continued)
Business application is often a combination of many different bits of software - purchased or acquired and integrated by a company’s staff
A smaller proportion of time and effort is spent on developing systems
Instead increasingly packed applications/outsourcing is used

4. Used to overcome operating problems due to inexperience
Outsourcing
The practice of turning over responsibility of some or all of a company’s IS applications and operations to an outside firm
Cost-effective
Used to overcome operating problems
due to inexperience

5. Information Technology Firms Packaged Software Providers
Sources of Software
Information Technology Firms
Packaged Software Providers
Vendors of Enterprise Solutions
Application Service Providers
Open Source Software
In-House Development

6. Information Technology Firms
Help companies develop custom ISs for internal use
IT firms develop, host, run application for customers
Employ people who are experts in development of IS & the business area
Examples IBM, EDS, CapGemini, Accenture

7. Packaged Software Producers
Software companies develop pre-packaged or off-the-shelf systems
Many market segments are served
Some off-the-shelf software systems cannot be modified to meet the specific individual needs of a firm (turnkey systems)
Changes are only made if a specific number of users request the change
Some off-the shelf software can be modified/extended
Can meet 70% if the firm’s needs
Examples: Microsoft’s Project

8. Enterprise Solutions
Also known as Enterprise Resource Planning systems
Complete software solutions for a company
ERP systems integrate individual business functions into a series of modules so that a single transaction occurs seamlessly rather than using separate systems
Focus is on business processes rather than business functional areas!
Using enterprise software solutions, a firm can integrate all parts of a business process in a unified information system

9. Enterprise Solutions (contd.)
A single repository of data is used
But ES systems are complex!
Therefore expensive as consultants are often used for specialist advice
Examples SAP AG, Oracle

10. Application Service Providers
An organisation that remotely hosts and runs computer applications for other companies, typically on a pre-use or licence basis
Users have access through the Internet or VPNs
Users pay on a per-use or per-month basis
Microsoft offers its Windows & Office to ASPs
Oracle offers its ERP applications
Using an application this way can be limiting

11. Managed Service Providers
An organisation that remotely provides customized computer applications and network-based services to other companies
Companies pay per-use or monthly fee
Difference to ASPs is MSPs offer extras:
e.g. network-based services
customized applications
equipment for a fee

12. Benefits of using ASP/MSPs
Freeing internal IT staff
Gaining access to applications faster than via internal development
Achieving lower-cost access to corporate-quality applications

13. Software which is freely available
Open Source Software
Software which is freely available
Not just the final product but the source code
Developed by a community of interested people instead of by employees of a company
Performs the same functions as commercial software
Examples: Linux (OS), mySQL (database), Firefox SourceForge.net

14. Open Source Software (contd.)
Companies can make money by:
Providing maintenance and services
Providing one version for free and another more fully featured version for sale

15. Developed by company’s employees
In-House Development
Developed by company’s employees
Usually customised according to the needs of the organisation
Can also be a hybrid solution – some purchased software and some in-house components

16. Off-the-Shelf Software
Criteria for choosing OtS Software includes:
Cost (buy-in or develop in house?)
Functionality (tasks performed by the software) mandatory, essential and desired features
Vendor support
Viability of vendor
Flexibility (how easy is to customise software)
Documentation
Response time (of the software)
Ease of installation

17. The use of previously written software resources in new applications
Re-Use of Software
The use of previously written software resources in new applications
Should increase programmer productivity
Decrease development time
Result in higher quality software
Decreasing maintenance costs