ITPEC IP April 2023 Question 17
Which of the following is the most appropriate purpose of installing a business application software package instead of developing own application software?
Explanation
To reduce the cost of development — a package buys functions that are already built and tested instead of paying to build them.
A business application package, such as accounting, payroll or ERP software, implements the functions that many companies need in the same way. Adopting one replaces most of the design, programming and testing with selection, configuration and data migration, so development cost and time fall. The trade-off is flexibility: the business may have to fit its procedures to the package, or pay extra for customisation.
Answer (b)
Why not others:
- •(a) — a development environment (tools, test servers) is what a company invests in when it builds software itself; a package reduces the need for one
- •(c) — knowledge of development methods comes from doing development, which a package largely avoids
- •(d) — the same: developers' skills grow by building systems, and buying a package is not a training measure
Key rule: Package or own development is a make-or-buy decision: a package wins on cost and lead time when the business processes are standard, own development when the business needs functions no package offers.
System Planning · AI-written, may contain errors
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