SYS364 Evaluating Alternatives

Objectives of the Systems Analysis Phase determine, analyze, organize and document the requirements of a new information system a system requires software, hardware, people, procedures and data So far, we have analyzed existing systems and developed logical models of proposed systems – now identify software and hardware that will support the requirements of the new system begin with an evaluation of software because it affects all other components of an IS

Where are we in this course? Systems Development Life Cycle See handout Systems Planning Preliminary Investigation Systems Analysis Determining Requirements, Analyzing Requirements, Evaluating Alternatives Systems Design Systems Implementation Systems Operation and Support

Evaluating Alternatives Software Steps in evaluating/purchasing software Hardware Completion of Systems Analysis System Requirements Document Presentation to Management Prototyping

Primary Software Decisions Make vs Buy Horizontal vs Vertical Applications

Why would a company develop software in-house? Satisfy unique requirements Minimize changes in business procedures and policies Meet constraints of existing systems Meet constraints of existing technology Develop internal resources and capabilities

Buying a Software Package Lower costs Requires less time to implement Proven reliability and performance benchmarks Implemented by other companies Requires less technical development staff Future upgrades provided by the vendor

Customizing Software Packages Purchase basic package, then customize Negotiate with vendor to make enhancements Purchase and modify yourself

Other Software Alternatives Outsourcing (e.g. EDS or IBM) End-user Systems (departmental app.) Enterprise Resource Planning (ERP) E.g. Peoplesoft, SAP, J.D.Edwards Application Service Provider (ASP) Package software running on another system Needs secure Internet connect and trust

Analyst’s Involvement (high  low) 1. In-house developed custom software 2. In-house customized package 3. Custom software by consultants 4. End-user applications 5. Outsource customized package 6. Vendor customized package 7. Vendor package with enhancements 8. Install vanilla software package

Steps in Evaluating and Purchasing Software Packages Step 1 - Evaluate the Information System Requirements Identify the key features of the system Estimate volume and future growth Specify any hardware constraints Prepare a Request for Proposal or Quotation (RFP or RFQ)

continued Step 2 - Identify potential software vendors Step 3 – Evaluate software package alternatives Step 4 – Make the purchase Step 5 – Install the software package

Hardware Alternatives Considered during all phases Turnkey purchases, systems integrators Site preparation/considerations air con, fire, security, UPS, cabling, backup Consider Total Cost of Ownership: Green Screen: $500/seat/year PC: 10 X Green Screen cost

Completion of Systems Analysis Systems Requirement Document Requirements of the new system Describes the alternatives that were considered Makes a specific recommendation to management Identifies what developers must deliver in a new system – read by users May include index and glossary of terms

Completion of Systems Analysis Presentation to Management May be preceded by a presentation to a sponsor and/or users Looking to obtain approval for the development of the new system and to gain full support (including financial support)

Management’s Response  Develop an in-house system  Modify the current system  Purchase or customize a software package  Perform additional systems analysis work  Stop all further work

Your Presentation to Management Where do you start?

Your presentation to management Brief overview of purpose and objectives Summarize primary, viable alternatives Explain why recommended alternatives were selected Allow time for Q and A Obtain agreement on a timetable for the next step in the process What makes your team & proposal unique? What is your competitive advantage?

Summary Software Hardware Completion of Systems Analysis