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
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