Encosta Memories is a small family photography business. The business has a good reputation for high-quality photos and enjoys longstanding arrangements with many schools for the provision of school photos. Encosta Memories has traditionally used a small accounting package to manage its operations, with Make Your Business Profitable ‘MYBP' being the package currently in use. Recently, however, a few of the staff in the administration team have complained that MYBP has become slow in processing transactions. The computer that runs the program is also fast approaching its capacity, having not been updated for several years and now also handling some of the business's digital imaging requirements.

As a result of the strained system, Encosta Memories is considering the possibility of an upgrade. However, it is concerned that should it go ahead with an upgrade, it would have to employ a programmer to develop its new system, as well as a full-time IT specialist to keep the system running. It is also unsure of what needs to be done in managing the systems development process.

One of the things particularly troubling Mr De Lago, the part owner of Encosta Memories, is the possibility of investing capital now and having to do so again in a couple of years time as technology changes. However, he does not mind spending a large sum now if the system is a long-term answer, since, as De Lago himself said, ‘Once the system is acquired then the business can get back to normal and do what it
does best - take photos - without having to spend money on IT.'
In light of the details you have about Encosta Memories, prepare a discussion in relation to the following questions:

1. (a) Is this De Lago's statement correct: ‘Once the system is acquired then the business can get back to normal and do what it does best - take photos - without having to spend money on IT'?

(b) Explain your reasoning

2. Explain how it may not be necessary for Encosta Memories to employ a programmer to design a new system.

3. Consider Application Service Provider (ASP), SDLC, and Outsourcing methods. Which of these methods would be the best choice for Encosta Memories to limit the costs of maintaining the system once it is in place within the organisation? Why?

4. Explain five typical systems development problems may Encosta Memories face in developing the new system?

5. Would you recommend that Encosta Memories make or buy the new system? Why?

6. Describe the process that Encosta Memories could use for selecting a vendor for the new system.

7. Identify three possible consequences for Encosta Memories of relying on a single vendor for the system?