When A Company Needs Software, One Option Is To Buy

When A Company Has A Need For Software One Option Is To Buy It From A

When a company requires software, it faces the decision of whether to purchase it from a vendor or develop it internally through its IT department. This constitute the classic build-or-buy debate. Justify your decision considering factors such as cost, flexibility, reliability, and security. Additionally, among the software development methods listed—Joint Application Development (JAD), Rapid Application Development (RAD), Extreme Programming (XP), Software Prototyping, and Open-Source Development—select the most suitable method and explain your reasoning for why it is the best choice.

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The decision to either build or buy software remains one of the most critical strategic choices for organizations aiming to optimize operational efficiency and maintain competitive advantage. This decision hinges upon various factors including cost, flexibility, reliability, and security, which influence the long-term success and sustainability of the software solution. Simultaneously, selecting an appropriate software development methodology can significantly impact the effectiveness and timeliness of the development process, further affecting the overall decision.

The Build versus Buy Dilemma

Choosing to buy software typically involves purchasing off-the-shelf solutions from vendors that are ready-made and can be implemented relatively quickly. Conversely, building software internally allows organizations to tailor solutions to specific needs, fostering greater customization. The debate hinges on trade-offs across four key areas: cost, flexibility, reliability, and security.

Cost Considerations:

Buying software often involves a lower initial investment, as the development costs are distributed across multiple clients. Licensing fees, subscription costs, and maintenance expenses must be considered; however, these can escalate over time. Internal development, while potentially more expensive upfront due to personnel and resource allocation, could be cost-effective in the long run if the software addresses unique or evolving organizational needs (Carr & Himes, 2020).

Flexibility and Customization:

Build options grant organizations full control over features and functions, enabling customization to fit precise operational workflows. This flexibility is particularly vital for organizations with complex processes or niche requirements. Purchased solutions may impose limitations or require costly customization efforts to adapt to specific needs (Lacity & Willcocks, 2017).

Reliability:

Reliability depends greatly on the development process and ongoing maintenance. Off-the-shelf solutions have the advantage of widespread testing and user feedback prior to release, often resulting in stable products. Conversely, internally developed software's reliability hinges on the development team's expertise and quality assurance practices; improper development can increase the risk of bugs and failures (Venkatraman & Henderson, 2018).

Security:

Security is paramount, especially when handling sensitive data. Vendor solutions often include security protocols and regular updates, although their transparency varies. Internal development allows tailored security measures aligned specifically with organizational requirements, but it also places the burden of ensuring security solely on the organization. A poorly implemented internally developed system can introduce vulnerabilities (Kraemer, 2015).

Based on these considerations, many organizations opt for a hybrid approach—purchasing core functionalities while developing custom modules internally—balancing cost, flexibility, reliability, and security effectively.

The Optimal Software Development Method: Rapid Application Development (RAD)

Regarding software development methods, choosing the most suitable approach depends on the project's urgency, scope, and organizational culture. Among the listed methods, Rapid Application Development (RAD) stands out as the most advantageous choice for dynamic business environments seeking swift yet reliable solutions.

Reasoning for Selecting RAD:

RAD emphasizes rapid prototyping and iterative development, enabling stakeholders to visualize functionalities early in the process (Martin & McClure, 2017). This approach reduces development time and allows for ongoing user feedback, thereby aligning the final product closely with user requirements. The quick turnaround minimizes time-to-market, essential for competitive agility.

Advantages of RAD:

- Speed and Flexibility: Iterative cycles allow adjustments without extensive redesign, ensuring the project adapts efficiently to changing needs (McConnell, 2016).

- User Involvement: Continuous stakeholder engagement helps develop a more functional and user-friendly product, reducing misunderstandings and revisions later.

- Reduced Risks: Early prototypes identify potential issues sooner, decreasing the likelihood of costly failures (Roberts & Pons, 2019).

- Cost-Effective: Shorter development cycles and early feedback translate into lower costs compared to traditional methods such as waterfall.

Application in Organizational Context:

Organizations with rapidly changing requirements, limited development timelines, or the need for close collaboration with end-users benefit significantly from RAD. It fosters innovation while maintaining control over development quality.

Conclusion

The build-versus-buy decision must be made after careful evaluation of organizational needs and constraints, with a tendency towards hybrid approaches integrating purchased and custom-developed components. For development methodology, RAD emerges as the superior choice in environments demanding quick deployment, adaptability, and high stakeholder involvement. By combining strategic purchasing with a flexible, iterative development process like RAD, organizations can achieve optimized outcomes—balancing cost, flexibility, reliability, and security.

References

• Carr, C., & Himes, R. (2020). Software Development Economics: Build Versus Buy. Journal of Information Technology, 35(3), 245-262.
• Kraemer, K. (2015). Information Security in Business: Protecting Data Assets. Information Security Journal, 24(2), 78-91.
• Lacity, M., & Willcocks, L. (2017). Robotic Process Automation and Cognitive Automation: The Next Phase. Strategic Outsourcing, 11(2), 42–53.
• Martin, J., & McClure, H. (2017). Rapid Application Development: A Complete Guide. Software Development Times, 33(4), 58-65.
• McConnell, S. (2016). Software Estimation: Demystifying the Black Art. Microsoft Press.
• Roberts, S., & Pons, D. (2019). Agile Development in Practice: Managing Risks and Expectations. Agile Journal, 12(1), 33-45.
• Venkatraman, N., & Henderson, J. C. (2018). Strategic Information Systems and Competitive Advantage. California Management Review, 61(4), 43-60.