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===Application software=== {{Main|Application software}} Application software is the key to unlocking the potential of the computer system.<ref name="pis-ch4-p147_quote1">{{cite book | last = Stair | first = Ralph M. | title = Principles of Information Systems, Sixth Edition | publisher = Thomson | year = 2003 | page = 147 | isbn = 0-619-06489-7 | quote = The key to unlocking the potential of any computer system is application software. }}</ref> [[Enterprise application software]] bundles accounting, personnel, customer, and vendor applications. Examples include [[enterprise resource planning]], [[customer relationship management]], and [[supply chain management software]]. Enterprise applications may be developed in-house as a one-of-a-kind [[proprietary software]].<ref name="pis-ch4-p148">{{cite book | last = Stair | first = Ralph M. | title = Principles of Information Systems, Sixth Edition | publisher = Thomson | year = 2003 | page = 147 | isbn = 0-619-06489-7 }}</ref> Alternatively, they may be purchased as [[off-the-shelf software]]. Purchased software may be modified to provide [[custom software]]. If the application is customized, then either the company's resources are used or the resources are outsourced. Outsourced software development may be from the original software vendor or a third-party developer.<ref name="pis-ch4-p147_quote2">{{cite book | last = Stair | first = Ralph M. | title = Principles of Information Systems, Sixth Edition | publisher = Thomson | year = 2003 | page = 147 | isbn = 0-619-06489-7 | quote = [A] third-party software firm, often called a value-added software vendor, may develop or modify a software program to meet the needs of a particular industry or company. }}</ref> The potential advantages of in-house software are features and reports may be developed exactly to specification.<ref name="pis-ch4-p148_quote1">{{cite book | last = Stair | first = Ralph M. | title = Principles of Information Systems, Sixth Edition | publisher = Thomson | year = 2003 | page = 148 | isbn = 0-619-06489-7 | quote = Heading: Proprietary Software; Subheading: Advantages; Quote: You can get exactly what you need in terms of features, reports, and so on. }}</ref> Management may also be involved in the development process and offer a level of control.<ref name="pis-ch4-p148_quote2">{{cite book | last = Stair | first = Ralph M. | title = Principles of Information Systems, Sixth Edition | publisher = Thomson | year = 2003 | page = 148 | isbn = 0-619-06489-7 | quote = Heading: Proprietary Software; Subheading: Advantages; Quote: Being involved in the development offers a further level of control over the results. }}</ref> Management may decide to counteract a competitor's new initiative or implement a customer or vendor requirement.<ref name="pis-ch4-p148_quote3">{{cite book | last = Stair | first = Ralph M. | title = Principles of Information Systems, Sixth Edition | publisher = Thomson | year = 2003 | page = 147 | isbn = 0-619-06489-7 | quote = Heading: Proprietary Software; Subheading: Advantages; Quote: There is more flexibility in making modifications that may be required to counteract a new initiative by one of your competitors or to meet new supplier and/or customer requirements. }}</ref> A merger or acquisition may necessitate enterprise software changes. The potential disadvantages of in-house software are time and resource costs may be extensive.<ref name="pis-ch4-p148"/> Furthermore, risks concerning features and performance may be looming. The potential advantages of off-the-shelf software are upfront costs are identifiable, the basic needs should be fulfilled, and its performance and reliability have a track record.<ref name="pis-ch4-p148"/> The potential disadvantages of off-the-shelf software are it may have unnecessary features that confuse end users, it may lack features the enterprise needs, and the data flow may not match the enterprise's work processes.<ref name="pis-ch4-p148"/> ====Application service provider==== One approach to economically obtaining a customized enterprise application is through an [[application service provider]].<ref name="pis-ch4-p149">{{cite book | last = Stair | first = Ralph M. | title = Principles of Information Systems, Sixth Edition | publisher = Thomson | year = 2003 | page = 149 | isbn = 0-619-06489-7 }}</ref> Specialty companies provide hardware, custom software, and end-user support. They may speed the development of new applications because they possess skilled information system staff. The biggest advantage is it frees in-house resources from staffing and managing complex computer projects.<ref name="pis-ch4-p149"/> Many application service providers target small, fast-growing companies with limited information system resources.<ref name="pis-ch4-p149"/> On the other hand, larger companies with major systems will likely have their technical infrastructure in place. One risk is having to trust an external organization with sensitive information. Another risk is having to trust the provider's infrastructure reliability.<ref name="pis-ch4-p149"/>
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