Information Systems Management

Problem statement: the company needs to find ways to incorporate the open source system while minimizing the risks associated with it and utilizing the full benefits. KMS was the pioneer of the Amp Up electronic music system and they have managed to skim the market. They have established many customers since they began. They have tried to maintain a closed system but that is coming under threat because of other developers. The company is at the brink of losing business and the management has to come up with better ways of beating the competition. Already the company has begun to lose some of its client. Internally, the management has to deal with tired personnel who are overwhelmed by the amount of work they have to do. One of the ways through which the company can deal with this problem is by agreeing to use open source.

There are several advantages of using open source such as customer interaction. Customers feel free to interact with the company since there are no restrictions. This will also bring in a flow of ideas from different sources, thus enabling the company to grow. Another advantage is that the programmers work will be lessened. The programmers in the company are already fatigued and they are getting sick. There are also disadvantages of using open source. The major drawback is that the company will lose a substantial amount of revenue especially if the customers do not adjust to the idea of paying loyalties. Since many people can access and modify the company’s code, there is a possibility of infringement and copywriting. Someone can copy another’s work and take it as his own. The company can find itself in trouble if it chooses to use that particular application. Not adapting open source would mean a big loss to the business. The customers will consider using another company that is free of charge and the company that is still closed will find itself at a loss.

The company can use open source instead of proprietary and instead of offering free services, they can charge fees and loyalties. They can issue licenses to the customers in exchange for reasonable fees. This gives the customer the liberty to use the application as he or she chooses. For instance, customers can come up with new songs or find new ways to modify the songs. Music is versatile and customers can choose to alter the songs to the tunes that will fit their preferences. Different generations also have different tastes and by allowing the customers to have access to the codes, the company will get more customers. The company also benefits in terms of maintenance fees. Anyone who can get rid of bugs and add more features can do so.

The company can license its software by using the permissive model. This model allows anyone to use and modify it and therefore will be a major attraction to clients. It will be beneficial to the company because the company can sell it or license it and therefore make a profit. The company reduces the costs of paying programmers since there are many volunteers who program freely and these resources can be used in other ways. The company spends a lot of time trying to come up with new features and applications when it is using proprietary software. This is not the case in open source where new applications are developed regularly.

Marty has to accept the fact that competition is reigning in fast and if she does not take quick action, then her project and her whole company will suffer. The first thing she ought to do, at least for the mean time, is to use open source. She can use this as a short-term measure before the company comes up with another solution. She should allow the customers to have liberty to develop the application before she loses any more clients. The company can then come up with ways of charging fees and loyalties so that they can make up for the lost revenue.

Reference:

Wilson, S., & Kambil, A. (2008, April 1). Open source: Salvation or suicide? Harvard Business Review.