Systems Design Management Problem

THE PROBLEM. This study examined a management problem related to systems design. Two research questions were investigated through the conduct of this study. The first research question sought to ascertain whether a systems design function should be developed in-house by small and medium sized firms, or whether such technology should be acquired through outsourcing. The second research question sought the identification of the factors of greatest significance to small and medium sized business firms in reaching the decision on in-house development versus outsourcing the development of a systems design function.

METHOD. A sample of 150 managers of small and medium sized business was selected from the Dallas area. These individuals were contacted to obtain their agreement to participate in the data collection process for this investigation. A total of 104 (69.3 percent) of the owners and managers selected agreed to participate in the data collection effort. These 104 individuals comprised the research sample for this study.

The 104 members of the research sample were grouped according to the two size classifications--small and medium. The distribution of the members of the research sample by business size classification was 67 small and 37 medium.

Overall selection procedures and decision rules relative to the acquisition of computer technology were identified. Additionally, differences in the selection procedures and decision rules were anal

se, is highly dependent upon the application of computer technology to all facets of management and organization--particularly to the decision-making processes. Other observers have pointed out, however, that new techniques always have economic and social consequences, and, hence, political and ideological implications, that pose problems for society. Computerization has been no exception to this rule, particularly since its applications impinge on every field and open up breathtaking prospects in every sector of society. It is also held that the best manager is one who has a minimum number of decisions to make. This assertion does not mean that managers should not make decisions. Rather, it means that managers should not be burdened with requirements to make routine decisions; that a decision-making system should be established, by which most routine decision-making will not directly involve managers. Obviously, the process of routine decision-making can be facilitated, if standardized procedures are developed and if these procedures are computerized. The major contributions of computers to decision-making will most often be found in the following functions: 1. The conservation of time for attending to problems and inf