• What is needed to implement such a system as an infrastructure investment, and how do they determine the total cost of ownership if Dirt Bikes wants to do everything itself?

Setting up an IT infrastructure requires careful thought and planning. The first and possibly most important steps are to conduct a needs assessment to identify what IT infrastructure already exists, where the gaps are, and what will be needed based on Dirt Bikes USAs future goals and objectives (Laudon, 2020 pg. 199). Once these two steps have been taken there are some key questions that warrant careful analysis and discussion.

1. Budget how much money can we afford to dedicate to our IT Infrastructure. It may be wise to conduct a cost-benefit analysis.

2. How much can or should we manage in house and control, where can we outsource?

3. What does our competitors IT infrastructure look like? What are their expenditures? (This information is often not kept secret and can be used as a benchmark)

4. What are our security needs? How much ownership and control do we want to have when it comes to our data?

(Laudon, 2020 pg.199- 200).

• What are the advantages and disadvantages of owning versus outsourcing for each of these components (staff, computer servers, software licensing, and data storage)?

The cost of the IT infrastructure can be quite high. To offset this cost some firms may opt to outsource versus owning and controlling certain components. There are advantages and disadvantages to both. The total cost of ownership includes the original cost of acquiring and installing hardware and software, as well as ongoing administration costs for hardware and software upgrades, maintenance, technical support, training, and even utility costs for running and housing the technology (Laudon, 2020 pg. 198).

Ownership Advantages: Increased productivity and efficiency, heightened security and ownership of data, flexibility for future needs, IT Infrastructure stability, building of human capital for future growth

Ownership Disadvantages: Cost of acquisition, cost of personnel is skill doesnt exist in-house, need for additional specialized personnel, lack of control of data and proprietary information

Outsourcing Advantages: Timely start-up, professional training, less hassle for the company, lower cost, professional support

Outsourcing Disadvantages: Data Sharing compromises security, hidden fees, when issues arise youre at the mercy of their prioritization and ability to respond and resolve quickly, typically youre required to sign a contract which locks you in to cost and term.

• What are the trade-offs? For example: cost versus reliability; ease of use versus control.

Building internal human capital and information systems versus seeking the support of a specialty provider who has readily available expertise and dedicated staff for support.

Resources versus control. Owning the hardware, software, and data management as well as hiring necessary staff for management is a huge cost both in financial terms and in staff time. However, if outsourcing the company loses a great deal of control around equipment, software applications, and how data is stored, protected, and managed.

• Of the 4 key system components -- staff, servers, software and data storage -- are there other combinations of outsourcing (for instance, can they own the server but outsource data storage to a cloud company?)

Yes, Dirt Bikes could certainly choose to have a hybrid model. Perhaps they rent the hardware but purchase and manage their own software licenses. They may also purchase their hardware and software but seek a consulting firm for support and data storage.

• What other future infrastructure needs might be relevant in this decision, for example they be needing other software applications and databases? Will they need internet servers to host the companys web site and e-commerce services?

Dirt Bikes USA should consider their long-term goals for growth and innovation as part of their IT Infrastructure planning and also not assume the systems they currently have in place are meeting their intended objectives as well as they could be. A good approach is to inventory the current services being provided and the systems in place for customers, suppliers and employees. Solicit feedback from these groups on how effective the current systems are and what additional needs they may have (Laudon, 2020 Pg. 199). This will help to drive the decisions for future IT investments. Dirt Bikes USA needs a more robust CRM system as well as a more technology driven marketing approach. The case mentions that Dirt Bikes USAs current marketing efforts are limited to events and magazines (Laudon, 2020). With the progression of social media and other technologies magazines have become outdated and arent typically getting into the hands of very many consumers. Dirt Bikes should consider the use of an e-commerce platform like BigCommerce or Shopify to foster growth and reach a larger consumer base while also making the buying process more streamlined.

Please comment on Post above