2-2 jo

reply to students response to question in 150 words min . Be sure to answer in detail and refer to specific concepts and provide 1 reference

question

Pretend your company is about to launch a new product that will be very data intensive. How would the IT management teams make the decision to build an in-house proprietary system or purchase a commercial off-the-shelf system? Given your project, which would be more beneficial?

 student response

When I worked at Phenomenex, a medical device manufacturing company, there was a time when the company was seeking to develop a new column and increase efficiency of quality control testing.  The IT management team needed to consider the pros and cons of making the instrument in-house or outsourcing to buy the instrument.  Deciding to make or buy the instrumentation involved critical cost comparisons including the cost of purchase, maintenance, production, storage, and proper disposal costs as a result of the production process (Kenton, 2019).  Based on the cost and complexity of the instrument, the IT department decided it would be more beneficial to purchase the Chromeleon 7 software for data collection and outsource the parts needed to manufacture this device.  By the time the parts arrived at Phenomenex, most of the parts simply needed to be assembled.  In the end, the labor, unique design, scientific research, and engineering required on the project costs hundreds of dollars but was so successful, they built eight new machines within two years.  Now the new column output is at its highest, manufacturing is at a very high efficiency rate, and the company has exceeded its initial forecasted profit.

Kenton, W.  (2019).  Make-or-Buy Decision.  Retrieved from https://www.investopedia.com/terms/m/make-or-buy-decision.asp