2. Needs Analysis & Alternative IT investment strategies Pertemuan 3-4
Matakuliah : A Strategi Investasi IT
Tahun : 2009
Needs Analysis & Alternative IT investment strategies Pertemuan 3-4

3. Introduction
Greater detail the tactical planning steps and how to begin the implementation
Offer logical tasks or steps that will generally performed to accomplish IT projects of any shape
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4. Tactical planning steps
Perform a ‘needs analysis’ to determine IT resources needed for new system
Determine processing volumes to meet new system requirements
Develop IT specifications to achieve new processing volumes
Develop set of IT project alternatives to meet new processing volumes
Analyze and evaluate project alternatives using IT investment methodology
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5. Need analysis
Determining what technology, software, human resources or MIS are necessary to achieve company’s goals and objectives
Current status called a needs report, seeks to document present MIS system or IT capacities
Obtain detail listing of future needs requires information collection efforts
IT Project team responsible of establishing potential scope and size of proposed project
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6. Cost consideration Purchasing, renting, leasing Software Personnel
Hardware maintenance
Warranty
Communication
Use documentation called a RFP (Request For Proposal)
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7. Business Process Reengineering (BPR)
Activities in managing restructuring process to improve efficiency
Process of drastically changing people and process through the use of technologies
Suggest alternative to update IT where possible, remove complexity in process flow and non value added activities, maximize output and communication.
 See figure 3
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8. Alternative IT investment strategies
Continue using system without change
Reorganize system
Upgrade existing system
Replace system
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9. IT outsourcing alternative strategies
Process of contracting out the MIS tasks.
Subcontracting, limited work assignments
Subcontracting, project assignments
Total outsource assignment
 See table 3
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10. Outsourcing benefits Technology improvements Financial gains
Reduce budgets
Productivity improvements
Tax benefits
Enhance core business activities
Facilities management
Management planning
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11. Outsourcing problems Failure to achieve client needs
Poor service quality
Failure to meet timely objectives
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12. Outsourcing barriers Questionable past and observed performance
Lack of experience with outsourcing
Organizational resistance to change
Inadequate preparation and planning
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13. Outsourcing strategy
Develop specific and complete service agreements and measure to monitor the compliance
Include cash penalties for non-compliance
Establish trial period to evaluate outsourcer
Measure IT activities during trial period
Permit the firm to alter business operations if needed
Manage the inevitable cost escalation
Measure and manage service quality
Avoid becoming too dependent on the outsourcer
Bina Nusantara University