3/5/2009Computer systems1 Preparing the Systems Proposal 1.Ascertaining Hardware needs 2. Ascertaining Software needs 3. Forecasting Costs and Benefits 4. Systems Proposal

3/5/2009Computer systems2 Hardware n inventorying computer hardware n estimating workloads n evaluating computer hardware n acquisition of computer equipment

3/5/2009Computer systems3 Inventorying Computer Hardware n Type of equipment n operation status – on order, operating, in storage, need repair n age of the equipment n projected life of the equipment n physical location n owner of the equipment – department or person n financial arrangement –owned, leased, rented

3/5/2009Computer systems4 Software n Create custom software n buy commercial off-the-shelf (COTS) n Application Service Provider (ASP)

3/5/2009Computer systems5 Costs and Benefits n Forecasting – Estimation of trends n Identifying – tangible benefits – intangible benefits – tangible costs – intangible costs

3/5/2009Computer systems6 Comparing Costs and Benefits n break-even analysis n cash-flow analysis n present value analysis

3/5/2009Computer systems7 Guidelines for Analysis n break-even analysis – project needs to be justified in terms of cost n payback – improved tangible benefits n cash-flow analysis – project is expensive relative to the company size n present value analysis – period is long or cost is high

3/5/2009Computer systems8 System Proposal n cover letter n title page of project n table of contents n executive summary (including recommendations) n outline of system study with appropriate documents n detailed results of the systems study n systems alternatives n system analysts’ recommendations n proposal summary n appendices