Finance:Selfsourcing

Selfsourcing is the internal development and support of IT systems by knowledge workers with minimal contribution from IT specialists. Knowledge workers develop and utilize their own IT systems, as opposed to contracting out the work in a process known as outsourcing. Knowledge workers are workers who are dependent upon information or who develop and utilize knowledge in the workplace.

The selfsourcing process

For simple computing systems such as customizing reports or creating macros a system can be developed in a matter of hours. However, for more complicating systems, a more formal process must be followed very similar to that of the Systems Development Life Cycle. The primary difference is the inclusion of prototyping.

The first step in the process is planning. This is where goals are set and aligned with the organizational goals and objectives. A project plan is developed and the proposed system is analyzed to determine if any external support is needed. The project plan lays out the what, when and who of the system. It is the salient piece in ensuring successful completion. The second step is analysis which includes the gathering and analyzing of the basic business requirements. The third step is an extension of the second as the basic requirements are identified and prioritized. This puts the knowledge workers in a position to now develop the initial prototype for the fourth step. Prototyping is the process of constructing a model demonstrating the aspects and feasibility of a proposed product. There are two types of prototyping processes: insourcing prototyping and selfsourcing prototyping. Selfsourcing prototyping lets knowledgeable workers refine their prototype until they are satisfied with it and it becomes the final working system. The fifth step is knowledge worker reviewing. This is where knowledge workers evaluate the prototype and suggest changes or additions. Following through with these suggestions is the sixth step where the prototype is revised and enhanced. The final step is maintenance where one must monitor the system and ensure it is achieving its goals.

Issues

It is crucial for the system’s purposes and goals to be aligned with that of the organizational goals. Developing a system that contradicts organizational goals will most likely lead to a reduction in sales and customer retention. As well, due to the large amount of time it may take for development, it is important allocate your time efficiently as time is valuable.

Knowledge workers must also determine what kind of external support they will require. In-house IT specialists can be a valuable commodity and are often included in the planning process.

Once the system is complete it is important to document how it works. This is to ensure that the system can be used if the developing knowledge workers move on through for example a promotion. If one were to get promoted, other workers will come in and attempt to use the system and even attempt to make changes. By documenting the system others can learn how to use and amend changes to the system.nn

Advantages

Improves requirement determination

By selfsourcing, knowledge workers determine the requirements for the system by telling themselves what they want. This is in comparison to insourcing, where the knowledge workers tell the IT specialists what they want. By working from their own thoughts, the knowledge workers will have a tremendous understanding of what they want to the system to become. There is therefore a greater chance for success in terms of the purpose of the system.

Increases knowledge worker participation and sense of ownership

By developing the system themselves, the knowledge workers will take more pride in the system and are more likely exert a greater effort into its completion. This will give the knowledge workers a greater sense of ownership and can lead to increase worker morale. Increased morale can be infectious and lead to great benefits in several other areas.

Increases speed of systems development

Many smaller systems do not require the step-by-step approach and a huge amount of time and resources concentrated on a smaller system. By insourcing and going through every step and with the IT specialists analyzing every move, it may in fact be counterproductive. Selfsourcing can be much faster for smaller projects that do not require the full process of development.

Disadvantages

Inadequate expertise

Many knowledge workers do not have experience with IT tools to develop a selfsourcing system. This is due to their lack the knowledge and expertise with IT tools. As a result, many systems become uncompleted and potentially good ideas are thrown away. With uncompleted projects many worker hours were also wasted which draw workers away from their primary duties.

Lack of organizational focus

Many selfsourcing systems can be disadvantageous because it forms a privatized IT system. This may result in poor integration with systems in the rest of the organization. As a result, uncontrolled and duplicate information can become common and can lead to more problems than benefits.

Lack of design alternative analysis

Another problem is that many employees who create their own IT systems do not analyze all the hardware and software opportunities sufficiently. As a result, more efficient alternatives may not be noticed and utilized. This can lead to inefficient and costly systems.

Lack of documentation

Lastly, knowledge workers are not aware that as time changes they must change and update their own systems without the help of IT specialists. As all systems will and must change over time, knowledge workers must forecast these changes and have the ability to adapt. Knowledge workers must also provide sufficient documentation on how the system works for future use. With little documentation the life of the system depends solely on the few knowledge workers. With documentation, the system can be passed down and used by more workers.

Sources

• Insourcing, Outsourcing? How about Self-sourcing? HRO Today. Retrieved on June 10, 2006
• HP Drops the Ball by Chris Angelini. Reseller Advocate Magazine. Retrieved on June 10, 2006
• Stephen Haag, Maeve Cummings, Donald McCubbrey, Alain Pinsonneault and Richard Donovan Third Canadian Edition Management Information Systems for the Information Age Mcgraw-Hill Ryerson, Canada, 2006