Reference no: EM132602264

Question - Bina 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. Bina Memories has traditionally used a small accounting package to manage its operations, with Make Your Business Profitable 'MYBP' 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 programme is also fast approaching its capacity, having not been updated for several years and now also handling some the business's digital image requirements.

As a result of the strained system, Bina 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 Cotton, the part owner of Bina Memories, is the possibility of investing capital now and having to do it 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 Cotton 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 for a discussion in relation to the following questions:

How correct is Cotton's statement that: '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.