Question

The CEO of a motorbike manufacturing company has decided to design a new system to keep his company at the top in the market. This system will allow the motorbike to send its location continuously to the insurance company while in move. This is done to keep a track of the motorbike in the case of accident, theft, and so on. This is an innovation idea (no other motorbike manufacturer has applied it). So, the CEO does not want to ask another IT company to do it as the information may end up being shared with your competitors in the market. So she has decided to do it internally (i.e. inside her company). This system should be released in three months, so it should be done quickly.

Consider the case above: (25% for each question).

1- What type of sourcing (i.e., insourcing, outsourcing, or self-sourcing) would you recommend the company to adopt? Why would you recommend this type?

2- What are the advantages and disadvantages of sourcing information system recommended in question 1?

3- What kind of system development methodology/ approach (e.g., Waterfall, Linear, and Agile) would you recommend the company to follow? Why would you recommend this approach?

4- List the stages of this methodology/approach used in question 3. Briefly mention key features in each stage.

Answer 1

1- Insourcing, because insourcing is a business practices in which work that would otherwise have been contracted out is performed in house. Insourcing often involves bringing in specialist to fill temporary needs or training existing personnel to perform tasks that would otherwise have been outsourced.

2- advantages ofi nsourcing:

a. competitive advantage

b. trade secrets.

c. organisational culture

d. direction and control

e. capability and focus

- disadvantages of insourcing:

a. higher wages

b. improved working regulations

c. new machinery

d. can take longer to implement new process flows

3- waterfall project methodology because waterfall is a project management approach where a project is completed in distinct stages and moved step by step toward ultimate release to consumer.It is a liner sequential life cycle model and it has no scope on changing the requirements once the project development starts.

4. stages in waterfall project methodology:

a. planning- define the system to be developed

- set the project scope

- develop the project plan

b. analysis- gather the business requirements for the system

- prioritize the business requirements

c. design - design system model

- design technical architecture

d. development - build the technical architecture

- build the database and program

e. testing - write the test conditions

- perform the testing of the system

f. implementation - write detailed user documentation

- provide training for the system user

g. maintenance - build a help desk to support the system user

- provide a environment to support system changes