1. TK3333 Software Management Topic 2: Needs Identification

2. Contents Project Selection “Request For Proposal” Development The Proposal Solicitation Process

3. Real World Example Vignette: The Hippodrome Theatre Project The Hippodrome Theater in Baltimore, Maryland opened in 1914 as a stop for vaudeville shows. It closed in 1980 due to lack of business. The Greater Baltimore Committee (GBC) presented a plan to rebuild the theater and provide services to the surrounding neighborhood GBC won financial support from the state, city, an adjacent county, financial institutions, and private foundations. The $60 million dollar renovation began in June 2002. Construction was completed on time. The Producers opened on February 10, 2004.

4. Real World Example Vignette: Hospital Goes Wireless El Camino Hospital in Mountain View, California began offering high- speed wireless Internet access to patients and visitors in June 2004 because of long term dialysis treatments Three years ago, the hospital lost $13 million. In their revised strategic plan, they decided technology should become a major focus New technology at El Camino Hospital includes: PC’s and PDA’s for entering orders for patient care, voice over IP for all phones, two levels of security for the hospital’s internal database, new prescription drug order entry systems, and new inventory systems In addition to cost savings, new IT infrastructure: improves efficiency of patient care and increased productivity

5. What is Needs Identification? The initial phase of the project life cycle. Executed by the customer. Starts with recognition of a need, problem or opportunity. Ends with the issuance of Request for Proposal.

6. Identifying Needs, Problems, or Opportunities From the perspective of a customer: Recognise a need, problem, or opportunity – Is there any? Clearly define the problem or need – What is it exactly? Quantify the problem – How serious/important/critical is it? Determine the budget – How much do we have to spend? Prepare a request for proposal – Would you help us to solve our problem? Select the project(s) with the greatest benefit for the cost expended – Which one?

7. Project Selection There are various needs/opportunities but cannot afford to implement all of them. Develop a set of criteria against which each need will be evaluated. List the assumptions. Gather data and information for each need. – Quantitatve and/or qualitative Evaluate each need against the criteria and decide which should move as a project.

8. Preparing a Request for Proposal (RFP) State comprehensively and in detail what is required from the customer’s point of view. Enable contractors or a project team to understand what the customer expects so that they can prepare a thorough proposal. The need may be communicated informally—and sometimes only orally.

9. Guidelines for drafting a formal RFP to external contractors (see pg. 35-37): – statement of work (SOW) – customer requirements – deliverables – customer-supplied items – approvals required by the customer – type of contract Preparing a Request for Proposal (RFP)

10. – the payment terms – the required schedule for completion – instructions for the format and content of the contractor proposals – due date for proposals – evaluation criteria – occasionally will indicate the funds the customer has available Preparing a Request for Proposal (RFP)

11. Soliciting Proposals Methods: – Identify a selected group of contractors in advance and send each an RFP. – Advertise in certain business newspapers. Process considered a competitive situation. – Many contractors, one (or limited) opportunity.

12. Do not provide information that is not provided to all contractors. – Avoid bias; equal chance of getting. May hold a bidders’ meeting to explain the RFP and answer questions. Not all use RFP. Soliciting Proposals

13. Thank You Question? Next class (9/3): – Proposed Solutions