Firms should consider developing custom software only if
A)it will be used for critical functions like accounts receivable.
B)it will contribute to development of a significant competitive advantage.
C)the firm has the necessary expertise available in-house.
D)the available canned software is very expensive.

Question

Quizplus · Accepted Answer

Custom software development requires considerable resources, including time and money. Therefore, firms should consider developing custom software only if it can provide a significant competitive advantage over existing solutions. If the available canned software is sufficient for the firm's needs, it is often more cost-effective to implement off-the-shelf software instead of investing in custom software development. Having in-house expertise is helpful, but not necessarily a prerequisite for custom software development. Similarly, using custom software for critical functions like accounts receivable might be justified, but it does not necessarily make it a good choice, particularly if it is expensive and does not provide additional benefits. Therefore, option (B) is the best choice.

Firms Should Consider Developing Custom Software Only If