Encosta Memories is a small family photography business. The business has a good reputation for high-quality photos and enjoys long-standing 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 ProfitableMYBP' 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.

(a) How correct is De Lago's statement: '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'? Explain your reasoning.

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

(c) How could Encosta Memories limit the costs of maintaining the system once it is in place within the organization?

(d) Identify the key user requirements that would need to be fulfilled by the new system.

(e) Would you recommend that Encosta Memories make or buy the new system?

(f)Describe the process that Encosta Memories could use for selecting a vendor for the new system