SYSTEM ANALYSIS AND DESIGN SAFAA S.Y. DALLOUL

SYSTEM ACQUISITION STRATEGY

UNIT 8: SYSTEM ACQUISITION STRATEGY  Introduction  System Acquisition Strategy  Custom Development  Packaged Software  Outsourcing  Influences on Acquisition Strategy  Business Need  In-House Experience  Project Skills  Project Management  Time Frame

INTRODUCTION

 The design phase is the phase of the SDLC in which the blueprint of the new system is developed, and it contains many steps that guide the project team through planning exactly how the system needs to be constructed.

INTRODUCTION  The requirements that were identified in the analysis phase serve as the primary inputs for design activities.

INTRODUCTION  The main deliverable from the design phase is the system specification, which includes the physical process and data models, architecture design, hardware and software specifications, interface design, data storage design, and program design.

SYSTEM ACQUISITION STRATEGY

 In fact there are three different ways to create new systems for any organization, these are: Developing a custom application in-house (Custom Development) Buying a packaged system and customize it (Packaging) Relying on an external vendor (Outsourcing)

CUSTOM DEVELOPMENT  Custom development provides complete control over the way the system looks and functions.  Custom development also allows developers to be flexible and creative in the way they solve business problems.

CUSTOM DEVELOPMENT  Building a system in-house also builds technical skills and functional knowledge within the company.  Custom application development, however, requires a dedicated effort that includes long hours and hard working.

CUSTOM DEVELOPMENT  Also custom development needs a variety of skills; technical, inter- personal, functional, project management, and modeling all have to be in place to move the project ahead smoothly.  The risk associated with building a system from the ground up can be quite high.

PACKAGED SOFTWARE  Similarly needs such as payroll systems can be met quite well by package software.  Package software ranges from small single functions to huge and complex systems.

PACKAGED SOFTWARE  Companies utilizing packaged software must accept the functionality that is provided by the system.  Most packaged software allow for some customizations.

PACKAGED SOFTWARE  Sometimes packaged software needs some workaround, such as developing custom add-on for the system.  The key challenge of package software is to integrate it with current technologies and systems.

OUTSOURCING  That means hiring external vendors, developers, or service providers.  Generally provides a lower cost. (Why)

OUTSOURCING  But it is a very risky decision  Loosing future development of the system.  Loosing opportunity of learning.  Loosing confidential data.

OUTSOURCING  But it is a very risky decision  Loosing future development of the system.  Loosing opportunity of learning.  Loosing confidential data.

INFLUENCES ON ACQUISITION STRATEGY  Each of the system acquisition strategy has its strength and weaknesses, it's important to understand when to use each of them. Business NeedIn-House ExperienceProject SkillsProject ManagementTime Frame

BUSINESS NEED  If the business need is common, and the solution already exists in the market, then it is good to use packaged system.  In the case of unique needs, or the core (strategic) need then it's better to build in-house system.

IN-HOUSE EXPERIENCE  If native staff have the required functional and technical skills, then it's easier to build the system.  A packaged system may be a good alternative for companies that do not have the needed skills to build the system.

PROJECT SKILLS  The skills that are applied during projects are either technical or functional.  If the company has desire to practice these skills in-house then it is good to develop the system locally

PROJECT MANAGEMENT  Custom applications require excellent project has a highly skilled project manager and a proven methodology.

TIME FRAME  When time is a critical factor, the project team should start looking for a system that is already built and tested.  If a service provider has services in place that can be used to support the company's needs, then a business need could be met quickly.

INFLUENCES ON ACQUISITION STRATEGY Custom developmentPackaged systemsOutsourcing Business needIs uniqueIs commonIs not core In-house experience In-house functional and technical experience exists In-house functional experience exists Functional or technical experience does not exist Project skills There is a desire to build in- house skills The skills are not strategicThe decision is strategic Project management The project has a highly skilled manager and proven methodology The project has a manager to coordinate vendor's efforts. The project has a highly skilled manage of the level of the organization that matches the scope of the outsourcing deal. Time frameIs flexibleIs shortShort or flexible

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