Different shareholders of the company have a different
opinion regarding the software. Some of the shareholders think the upgrading of
the existing legacy software is safer because if it requires less cost and the risk
of loss is also low. While there are also many of the shareholders, who support
the idea of building new software, although the cost of building the new
software is high the revenue that company would generate after building a new
system is also very high as some with an upgrading of the system. So it can be
said that there are a different opinion of the shareholders exist.
Decision alternatives of Organizations
Software
There are two decision alternatives available for the organization,
one is building new software and second is to upgrade the existing legacy
software. A building of new software have two situations. Further, one is the
successful deployment of software and second is an unsuccessful deployment of
software (Drake, et al., 2017).
Criteria of Evaluation of Organizations
Software
The criteria of
evaluating the alternating decision of software are the ability of the solution
to increase the efficiency of the software system and that also less likely to
provide risky while deployment of the software the company also need to keep in
mind the cost and the profitability of all alternatives that they can employ in
future.
Outcomes associated with Alternatives of Organizations Software
If the company go
for building the new software system, then there are two possible outcomes, one is a deployment of the software
become successful the company is likely to gain 900,000 dhs profit, in the
other side if the deployment of software become unsuccessful the company would
face loss up to 50,000 dhs.
If the company
chose the second option and just upgrade the legacy system, then there are very
fewer chances for the company to have any risk and loss in the longer run. As
it is known is the payoff table that the profitability of upgrade the legacy
system is 0 DHS and loss of upgrading is also dhs. At this stage, it seems that upgrading of the legacy software is
more convenient for the company because there are fewer chances for the risk
and loss if the deployment of software become unsuccessful.