Boeing Case

674 Words Oct 24th, 2012 3 Pages
Boeing Software Procurement Case Study

1. Why would a large and complex company like Boeing employ off-the-shelf application-specific software for accounting, human resources, supply chain management and other core business processes? And why do they choose to own, host and operate all of their own software rather than to for example outsource payroll to ADP Corporation or sales force management to Salesforce.com? [list]

Answer:

Reasons why Boeing employ off the shelf application: a. The TCO of developing these application are expensive compare to off the shelf application b. Boeing is an aerospace company, hence application development is not their major concern. c. Is it more efficient for Boeing to employ
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Able to keep the software knowledge secure within the business e. The TCO of some in house software application may be less expensive than acquiring it from external sources f. To attain economies of scale because of the sheer size of Boeing 3. What are the pros and the cons for establishing a limited list of general purpose software products that employees may use within Boeing? [table] Pros | Cons | Employees will not be overwhelmed on how to use the software of Boeing. | Employees may need to learn how to use such limited choice of general purpose software. | Compatibility within the company is well controlled. | External information will have to be converted to Boeing’s software system. | Quality of work that is produced by each employee will be up to the company’s standard. | Employees’ creativity on enabling different software system may be limited. |

4. In terms of system software, Boeing employs a broad list of these, highly technical software products. The firm purchases some of these products from commercial vendors like Microsoft and Oracle; while others, like Linux, Boeing obtains from open source providers on the Web. Explain Boeing‘s reasoning for making the move to Linux in its data centers. [table – pros and cons] Pros | Cons | Cost efficient. For using Linux Boeing can save cost that would increase its net income. | It is hard to understand the system of Linux because most people are not familiar

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