Organizations acquire information systems through various means: they can be acquired as packaged software, as configurations to large enterprise systems, through devoted development or as a service e.g. cloud computing (O'Brien, 2010). Types of procurements systems includes Enterprise Resource Planning, Oracle, and Gmail.
IS Procurement Strategies
- The contingency approach
- Outsourcing – it is a process in which organizations tend to share information system activities. This helps organizations to cut on costs and focus on internal resources on essential activities.
- Developing systems internally – organizations may use the Rapid Application Development (RAD) and the life cycle development to obtain their own systems.
Advantages of IS Procurement
- They help organization to make clear and better decisions. Organizations which secure information systems are in contact with daily activities in their business processes and can therefore analyse any problems that may arise and come up with means on how to avoid them (Saarinen, 2013).
- Another advantage is that all business processes will be integrated as one. These systems will provide every information that is derived from the business processes.
Disadvantages of IS Procurement
- Acquiring these systems involve a lot of cost and time needed to install these systems.
- Businesses may face major security issues after they have acquired these systems. Since these systems may interact with the internet they may find themselves vulnerable to hacks and interference.
Saarinen, T. and Vepsäläinen, A.P., 2013. Procurement strategies for information systems. Journal of Management Information Systems, 11(2), pp.187-208.
O'Brien, J.A. and Marakas, G.M., 2010. Introduction to information systems (Vol. 13).
O'Brien, J.A. and Marakas, G.M., 2010. Introduction to information systems (Vol. 13). New York City, USA: McGraw-Hill/Irwin.
Saarinen, T. and Vepsäläinen, A.P., 2013. Procurement strategies for information systems. Journal of Management Information Systems, 11