Prelims Question 2

An organization may adopt a closed-system or open-system model. Answer the following:

Question #1. Discuss the pro's and con's of each model.

Answer:

Cost

Pros: Source codes are like keys to programmers. By exposing the source codes, programmers can improve, modify and tweak any part of the software. This could reduce development time that translates into lower costs. As OSS is freely distributed, programmers are also able to use this software for their benefits. From this aspect, OSS is free to the extent of having the source codes.

Cons: Although the source codes are provided, there are hidden costs that do not come with the software. Programmers will have to be familiar with integrating open source with other proprietary software. Middleware might be needed in many instances. This gives additional cost. Novice users are also unfamiliar with the bugs and fixes that often occur in OSS. They also need to pay for customer support service or even documentation and manuals.

Functionalities
Pros: The functionalities of OSS are beginning to rival that to commercial software. This is because the global community of programmers and users have a hand in improving the software. In some cases, the OSS offers more functionality.

Cons: Being free comes with hidden cost. In similar fashion, functionalities bring about bugs and usability issues. Users will find the software patches a hassle in OSS. Those who are familiar with commercial software like Microsoft may not get used to the user interface of Open Office. This involves re-learning new software and incurring switching cost.

Sustainability

Pros: One of the greatest things in OSS is the continuous contribution and effort from programmers. Bear in mind that these programmers are improving the software at their own time and cost. They are not being paid in anyway. It is their passion that drives the growth of the software like parents watching their children. Thus, the development of software will be moving at an amazing pace with a large community as compared to commercial software.

Cons: On the other hand, OSS faces major issues in backward compatibility, project management and customer support. Can OSS sustain and compete against commercial software? As most OSS grows from contributions from online community, resources are limited. There is also a need to manage the long-term vision of the software. Customers would demand support and help in using OSS.

OSS is a great threat to commercial software. Commercial software companies never expect that source codes would be freely distributed. Although OSS is "free", users expect more than just the source codes. Documentations, manuals and customer support could incur the additional cost. Switching cost will also comes in the form of training as most users are used to the functionalities of commercial software. Hence, new way has been introduced in the form of commercial open source to address the cons from OSS. In this way, consumers could have the best of both worlds.

Question #2. Cite a company that uses any of this model. Describe briefly how this chosen model affect the entire company.

Answer:

Company: Linux

Linux use open source system to streamline their operation especially in different places and it works great for them. It also brings the company a sense of security.

It made the company grow and faster in information gathering and more linkages developed.


Question #3. Evaluate how an environment affects the organization and its management. Discuss the pro's and con's of not responding to the demands of the environment.

Answer:

The key to successful internal control is having a control environment that sets a tone of integrity which influences the ethical and control consciousness of employees. Strong control environment supported by an ethical tone at the top is the cornerstone of a system of internal controls. Without consideration of the environment, any company may collapse in the future. Sometimes the environment dictates what style of management will be taken.

Therefore environment has the role on the rise and fall of organization and the management.

Pro's:

Responding to the demand of the environment does not guarantee to success of ones company sometimes it depends of the people it has and strategic style of the management.

Con's:

Environment is serving as the feedback instrument, management could gather enough information to analyze the demands of the stakeholders. Not responding to the environment in the long run could not compete with other companies who are up to date in short become obsolete

References: yahoo.com

Rejie G. Abayon



DUE: Friday

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