1. Why would a large and complex company like Boeing employ off-the-shelf applicationspecific software for accounting, human resources, supply chain management and other core business processes? And why do they choose to own, host and operate all of their own software rather than to for example outsource payroll to ADP Corporation or sales force management to Salesforce.com? [list] Why use off-the-shelf software? Lower cost of ownership o Expensive to create new software o Can get more of the software o Easy to maintain o Inexpensive to upgrade o Ease of use o Many people know how to use basic off-the-shelf software Fulfills business needs o No need to spend more money if basic systems work Easy to get repaired o Many more IT professionals no basic software Reliability o Proven software Compatibility with all computers o Will work on almost every computer Why host and operate all of their own software? Competitive advantage o Boeing’s software is very advanced o Not too many other companies have similar software o Allows Boeing to control market o Bordering on monopolistic control No reliance on outside sources o They control price o IT professionals within company o No outside costs Specific to Boeing’s needs o Specific software More control o No worry about company change o No worry about software company “going under” o Compatible with their systems This study source was downloaded by 100000840760194 from CourseHero.com on 01-31-2022 14:46:34 GMT -06:00 https://www.coursehero.com/file/9394384/Boeing-Case-Study-Answered/ Information technology security
2. On the other hand, why would Boeing develop in-house some of the software applications used in conjunction with its products? [list] Fits Boeing’s specific needs o Developed specifically for Boeing’s use Information technology security o Nobody in the industry has the same IT o Competitive advantage Protects information of customers o No other company would get to see Boeing’s clients No reliance on outside IT professionals o Developed and maintained by Boeing’s IT specialists Flexible for change o Can be upgraded to fit Boeing’s growth/ changes
3. What are the pros and the cons for establishing a limited list of general purpose software products that employees may use within Boeing? [table] Pros Cons Better knowledge of software Less training time Lower cost to maintain Lower cost to install Compatible for most computers Reliability of software companies Proven software Less skilled (cheaper) labor Easier to upgrade Not specific to Boeing’s needs Competition could use same software Reliance on outside IT This study source was downloaded by 100000840760194 from CourseHero.com on 01-31-2022 14:46:34 GMT -06:00 https://www.coursehero.com/file/9394384/Boeing-Case-Study-Answered/
4. In terms of system software, Boeing employs a broad list of these, highly technical software products. The firm purchases some of these products from commercial vendors like Microsoft and Oracle; while others, like Linux, Boeing obtains from open source providers on the Web. Explain Boeing‘s reasoning for making the move to Linux in its data centers. [table – pros and cons] Pros Cons Less expensive (Free) Easy to use Easy to install Inexpensive to maintain Fulfills most of Boeing’s business needs Expert computer skills not required Can install on any computer Not specific to Boeing’s operations Not internally designed
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