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Q4-3 What Do Business Professionals Need to Know About Software?

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Figure 4-15 CRRNKECVKQPU
Software Sources and Types

One-of-a-kind application software is developed for a specific, unique need. The U.S.
Department of Defense develops such software, for example, because it has needs that no other
organization has.
You can think of one-of-a-kind application software as the automotive equivalent of a military
tank. Tanks are developed for a very specific and unique need. Tanks cost more to manufacture than
sedans, and cost overruns are common. They take longer to make and require unique hardware
components. However, tanks are highly customizable and fit the requirements of a heavy-duty bat-
tle vehicle very well.
If you’re headed into battle, you wouldn’t want to be driving a four-door sedan. Sometimes
paying for a custom vehicle, while expensive, is warranted. It all depends on what you’re doing.
Militaries, for example, purchase sedans, construction vehicles, and tanks. Each vehicle fills its
own need. You can buy computer software in exactly the same ways: off-the-shelf software,
off-the-shelf with alterations software, or custom-developed software.
Organizations develop custom application software themselves or hire a development vendor.
Like buying a tank, such development is done in situations where the needs of the organization are
so unique that no horizontal or vertical applications are available. By developing custom software,
the organization can tailor its application to fit its requirements.
Custom development is difficult and risky. Staffing and managing teams of software devel-
opers is challenging. Managing software projects can be daunting. Many organizations have
embarked on application development projects only to find that the projects take twice as long—or
longer—to finish than planned. Cost overruns of 200 percent and 300 percent are not uncom-
mon. We will discuss such risks further in Chapter 12.
In addition, every application program needs to be adapted to changing needs and changing
technologies. The adaptation costs of horizontal and vertical software are amortized over all the
users of that software, perhaps thousands or millions of customers. For custom-developed soft-
ware, however, the using organization must pay all of the adaptation costs itself. Over time, this
cost burden is heavy.
Because of the risk and expense, custom development is the last-choice alternative, used only
when there is no other option. Figure 4-15 summarizes software sources and types.

What Is Firmware?

Firmware is computer software that is installed into devices such as printers, print servers, and
various types of communication devices. The software is coded just like other software, but it is
installed into special, read-only memory of the printer or other device. In this way, the program
becomes part of the device’s memory; it is as if the program’s logic is designed into the device’s
circuitry. Therefore, users do not need to load firmware into the device’s memory. Firmware can be
changed or upgraded, but this is normally a task for IS professionals.