In purchasing the most suitable system off of the shelf and modifying it according to its individual production needs, this company will face various issues. The employees of JC Gear Company may find it difficult to work with this system. The procedures associated with the running of this system may involve a lot of technicalities that the employees of the company are not familiar with them. This makes the whole process of operation very difficult.
Purchasing the system off the shelf may also lead to problems because it may not suit the actual needs of the JC Gearing Company. The operations or task of the company may not be fully suitable with this system. The problem of incompatibility leads to many challenges in relation to the operation of the company in various ways. The employees of the JC Gearing Company may also face challenges in case of system failure because they are familiar with this system fully. This situation or issue leads to losses if not attended to as early as possible (Nguyen, 2012, p.24).
The off the shelf system is associated with inflexibility. The JC Gearing Company may find it difficult to adopt to various changes and processes in the organization. This may, therefore, lead to challenges in the operations of the business. This form of rigidity is dangerous to the company because it results in poor coordination and operation of business activities in the organization.
The JC Gearing company in purchasing the off shelf system will lead to further training costs in order for employees to operate this system. This may lead to heavy financial challenges in the organization or lowering the profitability or general performance of the company.
The development of a system within the organization helps in curbing the functional and technological risks in the organization. The JC Gearing Company will be able to develop a system that meets both the current and future operations of the company. This is helpful in projections of future goals and objectives of the company (Manouselis, 2013, p.18). This helps in suiting to the production processes of the organization reduces chances of failure in production planning. This option also involves the whole organization in developing the system leading to low chances of resistance.
The option of developing a new system is associated with higher development risks. The risk of developing a system is associated with chances of failure leading to the loss of financial resources used in developing a system that may fail to work. This is a very big challenge to JC Gearing Company because the system may fail to work leading loss of finances used in developing the system. The developed system may also make it difficult for JC Gearing Company to adapt to the modern developments in the market of operation. This, therefore, pose a challenge to the management of JC Gearing company to develop systems that can accommodate future technological or business developments in the market.
In conclusion, the development of the new system or purchasing an off the shelf system result in the various levels of risks. These risks depend on the option chosen by the company. The purchase of the off the shelf system is associated with low benefits and low level of risks of developing a system. Developing a system is also associated with higher development risks and chances of failure to work or operate.
Asian Conference on Intelligent Information and Database Systems — P., Chen, S. -M., & Nguyen — N. T. (2012). Intelligent information and database systems: 4th Asian Conference, ACIIDS 2012, Kaohsiung, Taiwan, March 19-21, 2012, Proceedings. Berlin: Springer.
DESRIST (Conference) — Peffers, K, Rothenberger, M., & Kuechler — W. (2012). Design science research in information systems: Advances in theory and practice; 7th international conference, DESRIST 2012, Las Vegas, NV, USA, May 14-15, 2012: proceedings. Berlin: Springer.
Manouselis, N. (2013). Recommender systems for learning. New York: Springer.
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