1. Preparing System Proposal Nhóm 06 0 GVHD : Nguyễn Thanh Tùng SVTH : Nguyễn Vinh Thanh 51103146 Dương Vũ Thông51104360

2. Learning Objectives  Inventory and appraise current and proposed hardware and software and the way it supports human interactions with technology  Evaluate software by addressing the trade-offs among creating custom software, purchasing COTS software, and outsourcing to an application service provider  Assist decision makers in choosing decision support systems, including recommendation systems and neural nets  Forecast tangible and intangible costs and benefits, and perform a cost- benefit analysis using a number of methods  Professionally write and present an effective systems proposal, incorporating figures and graphs 1 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

3. Systems Proposal  A distillation of all that the system analyst has learned about users, the business, and about what is needed to improve its performance  Systematic methods to:  Acquire hardware and software  Identify and forecast costs and benefits  Perform a cost-benefit analysis 2 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

4. Major Topics  1. Ascertaining hardware/software needs  2. Tangible and intangible costs and benefits  3. Systems proposal  4. Using tables, graphs, and figures 3 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

5. 1. Ascertaining Hardware and Software Needs Steps used to determine hardware and software needs:  Inventory computer hardware currently available  Estimate current and future system workloads  Evaluate available hardware and software  Choose the vendor  Acquire the computer equipment 4 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

6. FIGURE 3.4 Steps in choosing hardware and software. 5 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

7. 1.1 Inventorying Computer Hardware  Type of equipment  Operation status of the equipment  Estimated age of equipment  Projected life of equipment  Physical location of equipment  Department or person responsible for equipment  Financial arrangement for equipment 6 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

8. Estimating Workloads  Systems analysts formulate numbers that represent both current and projected workloads for the system so that any hardware obtained will possess the capability to handle current and future workloads 7 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

9. 8 FIGURE 3.5 Comparisons of workloads between existing and proposed systems 8 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

10. Evaluating Hardware  Time required for average transactions  Total volume capacity of the system  Idle time of the CPU or network  Size of memory provided 9 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

11. People That Evaluate Hardware  Management  Users  Systems analysts 10 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

12. Acquisition of Computer Equipment  Buying  Leasing  Rental 11 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

13. Based on Kendalll & Kendalll – Systems Analysis and Design 7-8e 12 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 FIGURE 3.6 Comparing the advantages and disadvantages of buying, leasing, and renting computer equipment.

14. FIGURE 3.7 Comparison of alternatives for computer acquisition. 14 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

15. Evaluating Vendor Support  Hardware support  Software support  Installation and training support  Maintenance support 13 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

16. FIGURE 3.8 Guidelines for vendor selection. 15 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

17. Other Considerations  Possibility of adding on to the system  Interfacing with equipment from other vendors  Adding more memory  Corporate stability of the vendor 15 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

18. 1.2 Software Alternatives 16 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3  Creating Custom Software  Purchasing COTS Packages  Using an ASP

19. 18 FIGURE 3.9 Comparing the advantages and disadvantages of creating custom software, purchasing COTS packages, and outsourcing to an ASP. Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

20. Software Evaluation  Performance effectiveness  Performance efficiency  Ease of use  Flexibility  Quality of documentation  Manufacturer support 19 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

21. 20 FIGURE 3.10 Guideline for evaluating software Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

22. 1.3 Decision Support Tools  AHP and other multiple-criteria software  Expert systems and neural nets  Recommendation systems  Getting external information from the Web 21 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

23. AHP and Other Multiple-criteria Software  Multiple-Criteria  The objective  Alternatives  Criteria  priority  AHP compares all alternatives until all pairwise comparisons are made 22 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

24. Expert Systems and Neural Nets  Expert systems are rule-based reasoning systems developed around an expert in the field  Neural nets are developed by solving a number of problems of one type and letting the software get feedback on the decisions, observing what was involved in successful decisions 23 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

25. Recommendation Systems  Software and database systems that reduce the number of alternatives by ranking, counting, or some other method  Does not depend on numeric weights  Simply counts the number of occurrences 24 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

26. Selected sources for external information available on the Web 25 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

27. 2. Identifying and Forecasting Costs and Benefits  Judgment methods  Estimates from the sales force  Surveys to estimate customer demand  Delphi studies  Creating scenarios  Drawing historical analogies 26 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

28. 2. Identifying and Forecasting Costs and Benefits (Continued)  If historical data are available  Conditional  There is an association among variables in the model  Unconditional  Do not need to fine or identify any relationships 27 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

29. Estimation of Trends  Graphical judgment  The method of least squares  Moving averages 28 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

30. Graphical Judgment  Looking at a graph and estimating by freehand an extension of a line or curve  Disadvantage  The extension of the line may depend too much on individual judgment  Advantage  The ability to perform what-if analysis 29 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

31. The Method of Least Squares  Find the best-fitting line by minimizing the sum of the deviations from the line  Once the best-fitting line is found, it can be extended to forecast what will happen 30 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

32. Moving Averages  Calculate the arithmetic mean of data from groups or periods, then calculate the next arithmetic mean by discarding the oldest period’s data and adding the next period  Advantage  Useful for its smoothing ability  Disadvantage  Strongly affected by extreme values 31 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

33. Calculating a five-year moving average 32 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

34. 2.1 Identifying Benefits and Costs  Tangible  Intangible 33 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

35. Tangible Benefits  Advantages measurable in dollars that accrue to the organization through the use of the information system  Examples:  Increase in the speed of processing  Access to otherwise inaccessible information  Access to information on a more timely basis  The advantage of the computer’s superior calculating power  Decreases in the amount of employee time needed to complete specific tasks 34 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

36. Intangible Benefits  Intangible benefits are benefits from use of the information system that are difficult to measure  Examples:  Improving the decision-making process  Enhancing accuracy  Becoming more competitive in customer service  Maintaining a good business image  Increasing job satisfaction 35 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

37. Tangible Costs  Those that can be accurately projected by systems analysts and the business’ accounting personnel  Examples:  Cost of equipment  Cost of resources  Cost of systems analysts' time  Cost of programmers’ time  Employees’ salaries 36 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

38. Intangible Costs  Those that are difficult to estimate, and may not be known  Examples:  Losing a competitive edge  Losing the reputation for being first  Declining company image  Ineffective decision making 37 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

39. 2.2 Comparing Costs and Benefits  Break-even analysis  Payback  Cash-flow analysis  Present value analysis 38 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

40. Break-Even Analysis  The point at which the total cost of the current system and the proposed system intersect  Useful when a business is growing and volume is a key variable in costs  Disadvantage  Benefits are assumed to remain the same  Advantage  Can determine how long it will take for the benefits of the system to pay back the costs of developing it 39 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

41. FIGURE 3.11 Break-even analysis for the proposed inventory system. 40 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

42. FIGURE 3.12 Break-even analysis showing a payback period of three and a half years. 41 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

43. Cash-Flow Analysis  Examines the direction, size, and pattern of cash flow that is associated with the proposed information system  Determine when cash outlays and revenues will occur for both not only for the initial purchase, but over the life of the information system 42 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

44. 43 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 FIGURE 3.13 Cash-flow analysis for the computerized mail- addressing system.

45. Present Value Analysis  Way to assess all the economic outlays and revenues of the information system over its economic life, and to compare costs today with future costs and today's benefits with future benefits  Presents the time value of the investment in the information system as well as the cash flow 44 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

46. FIGURE 3.14 Without considering present value, the benefits appear to outweigh the costs. 45 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

47. 46 FIGURE 3.15 Taking into account present value, the conclusion is that the costs are greater than the benefits. The discount rate, i, is assumed to be.12 in calculating the multipliers in this table. Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

48. Guidelines for Analysis  Use break-even analysis if the project needs to be justified in terms of cost, not benefits  Use payback when the improved tangible benefits form a convincing argument for the proposed system  Use cash-flow analysis when the project is expensive, relative to the size of the company  Use present value when the payback period is long or when the cost of borrowing money is high 47 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

49. 3. The Systems Proposal  Cover letter  Title page of project  Table of contents  Executive summary  Outline of systems study with appropriate documentation  Detailed results of the systems study  Systems alternatives  Systems analysts recommendations  Summary  Appendices 48 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

50.  To managers and the IT task force should accompany the systems proposal.  List the people who did the study and summarize the objectives of the study. 49 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.1 Cover letter

51.  Include the name of the project, the names of the systems analysis team members, and the date the proposal is submitted.  Accurately express the content of the proposal  Exhibit some imagination. 50 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.2 Title page of project

52.  Useful to readers of long proposals - more than 10 pages 51 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.3 Table of contents

53.  250 to 375 words  Provides the who, what, when, where, why, and how of the proposal  Some people will only have time to read the summary. 52 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.4 Executive summary

54.  All the methods used in the study  Any questionnaires, interviews, sampling of archival data, observation, or prototyping used in the systems study. 53 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.5 Outline of systems study with appropriate documentation

55.  Describes what the systems analyst has found out about human and systems needs  Problems workers experience when interacting with technologies and systems  Raise the problems or suggest opportunities 54 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.6 Detailed results of the systems study

56.  Presents two or three alternative solutions  Include one that recommends keeping the system the same.  Each alternative should be explored separately. Describe the costs and benefits of each situation.  Clearly indicate what users and managers must do to implement it.  The wording should be as clear as possible 55 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.7 Systems alternatives

57.  Expresses the recommended solution.  The reasons supporting the team’s recommendation  Easy to understand why it is being made  The recommendation should flow logically from the preceding analysis  Clearly relate the human–computer interaction findings to the choice offered. 57 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.8 Systems analysts recommendations

58.  A brief statement that mirrors the content of the executive summary (section 3.4)  Gives the objectives of the study and the recommended solution  The analyst should once more stress the project’s importance and feasibility along with the value of the recommendations for reaching the users’ goals and improving the business  Conclude the proposal on a positive note. 58 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.9 Summary

59.  The last part of the systems proposal  Include any information that the systems analyst feels may be of interest to specific individuals, but that is not essential for understanding the systems study and what is being proposed. 59 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3 3.10 Appendices

60. 4. Using Figures for Effective Communication  Effective use of tables  Effective use of graphs 59 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

61. 4.1 Effective Use of Tables  Integrate into the body of the proposal  Try to fit the entire table vertically on a single page  Number and title the table at the top of the page  Label each row and column  Use a boxed table if room permits  Use footnotes if necessary to explain detailed information contained in the table 60 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

62. FIGURE 3.24 Guidelines for creating effective tables. 61 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

63. 4.2 Effective Use of Graphs  Choose a style of graph that communicates your intended meaning well  Integrate the graph into the body of the proposal  Give the graph a sequential figure number and a meaningful title  Label each axis, and any lines, columns, bars, or pieces of the pie on the graph  Include a key to indicate differently colored lines, shaded bars, or crosshatched areas 62 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

64. 53 FIGURE 3.25 Guidelines for drawing effective line graphs. Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

65. Types of Graphs  Line graphs  Column charts  Bar charts  Pie charts 64 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

66. Line Graphs  Used to show change over time  Changes of up to five variables on a single graph  May also show when lines intersect 65 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

67. Column Charts  Can depict a comparison between two or more variables over time  Used more often to compare different variables at a particular point in time  Easier to understand than line graphs 66 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

68. Special Forms of Column Charts  100 percent stacked column chart  Shows the relationship between variables that makes up 100 percent of an entity  Deviation Column Chart  Useful for emphasizing years that show loss, or pointing out the year in which the company intends to break even 67 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

69. Bar Charts  Used to show one or more variables within certain classes or categories during a specific time period  Sorted or organized  Alphabetical  Numerical  Geographical  Progressive order  Magnitude 68 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

70. Pie Charts  Used to show how 100 percent of a commodity is divided at a particular point in time  Easier to read than 100 percent stacked column charts or 100 percent subdivided bar charts  Disadvantage is they take a lot of room on the page 69 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

71. Figure 10.24 A pie chart is a visually appealing way to display how 100 percent of an entity is divided up at a particular time 70 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

72. Presenting the Systems Proposal  Understanding the audience  Organizing the systems proposal presentation  Principles of delivery 71 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

73. Understanding the Audience  How formal to be  What to present  What type of visual aids to include 72 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

74. Organizing the Systems Proposal Presentation  Introduction  Four to six main points that capsulate the proposal  Conclusion  Questions 73 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

75. Principles of Delivery  Project your voice loudly enough so that the audience can hear you  Look at each person in the audience as you speak  Make visuals large enough so that the audience can see them  Use gestures that are natural to your conversational style  Introduce and conclude your talk confidently 74 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3

76. Summary  Computer hardware  Purchase  Lease  Rental  Software  Custom  COTS  Outsourced 75 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3  Decision support tools  Multiple-criteria decision making  Expert systems  Neural nets  Recommendation systems

77. Summary (Continued)  The systems proposal  Identifying costs and benefits  Break-even analysis  Cash-flow analysis  Present value analysis  Putting together an effective systems proposal  Visual considerations  Oral presentation 76 Based on Kendall & Kendall – Systems Analysis and Design 8e – Chapter 3