Principles of Information Systems (MindTap Course List)
Principles of Information Systems (MindTap Course List)
12th Edition
ISBN: 9781285867168
Author: Ralph Stair, George Reynolds
Publisher: Cengage Learning
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Chapter 12, Problem 12RQ

Explanation of Solution

Make-versus-buy decision:

  • The decision regarding whether to obtain the necessary software from internal or external sources, simply because it costs too much and takes too long to build a quality information system.
  • It is the act of deciding between manufacturing a product in-house or buying it from an external supplier.
  • Quantitative analysis, such as associated cost of production and whether the business can produce at the desired levels.

Justification:

  • The analysis team assesses the software marketplace to determine whether existing packages can meet the organization’s needs using a tool called request for proposal (RPF)
  • RFP is a formal document that outlines an organization’s software or hardware needs and requests vendors to develop a detailed proposal of how they would meet those needs and at what cost.
  • The RFP outlines the desired system and its requirements and It identifies the pieces of data that the software vendor must include in the proposal...

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