Approaches for System Building in Digital Firm Era - Essay Example

? Approaches for system building in digital firm era AFFILIATION: Approaches for System Building in Digital Era Introduction to building systems for digital firms The latest trend in organizations these days is of digital firms and most of the organizations are bringing changes in their business structures so that they can survive in this digital firm era. One vital area for digital firms is to build new systems so that they can conduct business activities in accordance with the requirements of market and client demands. In every organization, building systems implies changing the systems; system change is basically a type of organization change that is planned as it involves changes in skills of employees, job descriptions, management expertise and definitely hardware and software of system (Costabile et al., 2004). The builders of system have to understand the impact of system change on organization and its processes as a whole. Generally, there are four kinds of system changes such as automation, shifts in paradigm, redesigning of business processes and rationalization. In any kind of systems development, there are six types of core activities that are vital for system effective building i.e. system analysis i.e. study and analysis of any problem or problems of existing systems along with requirements for solutions; system design i.e. information system solution specification which shows the way in which technical and organizational components will get integrated; programming i.e. making program of the system; testing the system; converting system if there is any kind of need for modification; production of final system for organization and maintenance of system so it functions smoothly and efficiently. Approaches for system-building in digital firms In modeling and designing information systems, two methodologies are used i.e. structured and object-oriented. In structured methodology, focus is on data and modeling processes separately; whereas, in object-oriented methodology, a model is viewed as a system in which a collection of objects bring together data and modeling processes. There are numerous methods of building systems that can be used by organizations. The four most common approaches used for system building are traditional system life cycle, prototyping, end-user development and Application Software packages and outsourcing (Oxford Economics, 2009). The oldest method is traditional systems life cycle in which systems are developed following formal stages; system building process proceeds to the next stage only after previous stage’s output is achieved. In prototyping, experimental systems are built rapidly and these systems are comparatively cheaper to other systems; they allow the end users to interact with the systems and evaluate their effectiveness. End-user development approach allows end users to develop information systems either on their own or by taking some help from specialists of information systems. Application software packages and outsourcing implies letting third parties develop information systems for the organizations; although this approach is relatively expensive but the systems developed under this approach are compatible with digital firm requirements from every aspect. Two approaches suitable for digital firm The two approaches most suitable for digital firms are prototyping and application software packages and outsourcing. Both these approaches help technology advanced organizations to successfully prosper within the digital industry as they allow the end users to easily interact and use the features of digital technology. In prototyping system building approach, a specific interactive system is designed which builds a model of a system to determine requirements of system. The primary aim of prototyping is to build an experimental system that is quick and inexpensive one for demonstrating and evaluating the users need for information requirements. The preliminary model of system or its important parts are built for user’s experimentation purpose. Prototype is modified and refined until it matches the requirements of users; it is a most valuable approach when system requirements are uncertain and cannot be predetermined. The approach is ideal for small systems without complex processing requirements. Prototyping can be used in organizations that are small in size and this approach helps organizations in ensuring that they have up-to-date technology within their working environment. Other effective way of building systems in organization is using application software package and outsourcing the systems. In application software packages, there is no need for software program writing, as the program is already pre-written. When software packages are used, they reduce amount consumed for designing, testing, installation and maintenance; it is suitable for organizations that do not have internal information systems (Weinert & Meyer, 2005). Likewise, outsourcing can be done by using an external vendor who will build or operate an organization’s information system; all work regarding information system is done by vendor and it helps in saving development cost of applications and eliminates the need of developing internal information system staff. In today’s digital era, application software packages are used in abundance as they are available in huge variety as they can range from simple programs to complex systems that have hundreds of various programs. The software packages are used for functions that are common in many companies that require data processing resources and for even in-house development when they have shortage of supply. The primary reasons for selecting application software packages are vendor has already done designing of system which saves 50% of time consumed for its development; pretesting of programs is already done that reduces testing time and problems related to technical aspects are eliminated as well; vendor provided installation services for package; system is updated by vendor periodically; customer service by vendor is satisfactory as support staff is well-aware of package features and reduces the need of firm to hire an expertise in-house and vendor also provides documentation services. Hence, technology updating will be done by vendor and firm will have up-to-date technology within its business operations. However, digital firms are now even using Rapid Application Design (RAD), agile development, Joint Application Design (JAD) and other reusable software components that accelerate the development processes of the systems. Most commonly used among these aforementioned applications for information systems in web services are component based development as they are provided a common set of standards enabling firms to link their systems with web services irrespective of their platform for technology as they have standard plug and play architecture. Therefore, digital firms need to ensure that they have information systems compatible with the organization requirements as well as end-users demands so that systems work efficiently and are updated frequently as well. References Oxford Economics (2009). The New Digital Economy: How it will transform business. Retrieved August 13, 2012 from http://www.pwc.com/gx/en/technology/publications/assets/the-new-digital-economy.pdf Costabile, M.F., Fogli, D., Fresta, G., Mussio, P., & Piccinno, A. (2004). Software Environments for End-User Development and Tailoring. PsychNology Journal, 2(1), 99-122. Weinert, S., & Meyer, K. (2005). The Evolution of IT Outsourcing: From its Origins to Current and Future Trends. Retrieved August 13, 2012 from http://elpub.bib.uni-wuppertal.de/servlets/DerivateServlet/Derivate-775/ab0501.pdf Read More