selection and acquisition texts and readings robson, w (1994) strategic management and information...
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Selection and Acquisition Texts and Readings
Robson, W (1994) Strategic Management and Information Systems, Pitman, London, UK
Chapter 12 Lucas, H. (1997) Information technology for
management, McGraw-Hill, USA Chapter 14 and 17
Academic papers Lecture notes
Selection and AcquisitionStrategic management elements – Johnson & Scholes
Strategicanalysis
Strategyimplementation
Strategicchoice
Choice optionsEvaluateSelect
Expectations & objectivesThe environment
resources
Resource planningOrganisational structurePeople and systems
Selection and Acquisition
Software acquisition Hardware acquisition Communications acquisition Outsourcing
Selection and Acquisition
Analysis
Cost/benefit analysis Options
1. Application software2. System software
3. Hardware
1. Build2. Part build / part buy 3. Buy entire application
Selection and Acquisition
Software acquisition continuum
1a In-house systems & application software
1b In-house user application development2 Contract staff working in-house3a Vendor system tailored by in-house staff3b Vendor system contractor tailored3c Vendor system vendor tailored4 Vendor bespoke turnkey solution5 Standard package
In-house
Development
ExternalDevelopment
Selection and Acquisition
Build Implemented in accordance with the
Contract View and the Engineering View of ISO/IEC 12207
Acquisition process Supply process Development process Maintenance process
CONTRACT VIEW
Software life cycle processesFive primary life cycle processes
5.1 Acquisition process
Initiation Request-for-proposalpreparation
Contract preparation& update
Suppliermonitoring
Acceptance& completion
5.2 Supply process
Initiation Preparationof response Contract Planning Execution
& controlReview
& evaluationDelivery
& completion
Selection and AcquisitionRequest-for-proposal - Lucas
Present system (database, I/O, Volumes and Frequencies)
Proposed system (needs items above) Vendor service Reliability data Backup Demonstration Evaluation arrangements Conversion and transition Descriptive material Price
Selection and AcquisitionRequest-for-proposal
ISO/IEC 12207 System requirements Scope statement Instructions to bidders List of software products Terms and conditions Control of subcontracts Technical constraints
NB
Selection and AcquisitionContract preparation & update
All happens before planning begins
ENGINEERING VIEW
5.3 Development process
5.5 Maintenance process
Software life cycle processesFive primary life cycle processes
Systemrequirements
analysis
Processimplementation
Softwarerequirements
analysis
Softwarecoding and testing
Systemarchitectural
design
Softwarearchitectural
design
Softwaredetaileddesign
Softwareintegration
Softwarequalification
testing
Systemintegration
Systemqualification
testing
Softwareinstallation
Softwareacceptance
support
Modificationimplementation
Maintenancereview/
acceptance
Processimplementation
Problem &modification
analysis
Migration Softwareretirement
Selection and Acquisition
Buy (Buy, lease or rent) Large and midrange
computers/systems Personal computers/systems
Selection and AcquisitionSoftware acquisition 1
Vendor position in the marketplace Size, experience, certification
Quality considerations External usability Factors Context of use matters (Users, Tasks &
Environment) Amount of Functionality Internal quality factors
Selection and AcquisitionSoftware acquisition 2
Technology requirements System software, hardware,
communications requirements Ownership
Own or licence, copyright, escrow Cost and funding
Number of quotations Documentation and manuals
Selection and AcquisitionPackages Prioritised Business needs
Unmetneeds
Surplusto needs
Metneeds
Capabilities of standard package
Customisethe package
Modify thebusiness process
Tolerate themismatch
Surround with extra functionality
Map of discrepancies
Selection and AcquisitionSoftware acquisition 3
Demonstration copy. Maturity of the software product. User groups.
Selection and AcquisitionSoftware acquisition 4
Selection and AcquisitionAdvantages of buying
Instantly available (ROI begins immediately)
Sound business procedures
Known & verifiable quality
Low (cost effective) expenditure
Inspectable documentation
Available maintenance
Continual research & updates
Support & training
Selection and AcquisitionDisadvantages of buying
See page 471 Too much
functionality
Selection and AcquisitionBuying off-the-shelf
ISO/IEC 12207 The requirements for the software
product are met. The documentation is available. Proprietary, usage, ownership,
warranty and licensing rights are satisfied.
Future support for the software product is planned.
NB
Selection and AcquisitionStrategic considerations
Prioritise requirements. Cost benefits. End-user computing fit.
Single vendor environment Best of breed for each businees
situation
Selection and AcquisitionHardware acquisition 1
Vendor position in the marketplace. ISO/other standards compliant. Taxonomy issues.
Mainframe, Minicomputer or Microcomputer.
Technical maturity.Large computer,Midrange or PC
• Number of users• Processing speed• Memory capacity• Cost
Selection and AcquisitionHardware acquisition 2
Cost and funding (Buy, lease or rent). Human-Computer Interaction
considerations. Legal considerations - health & safety, EU
directive.
Service level agreements.
Selection and AcquisitionCommunications acquisition
Software
Hardware
Selection and AcquisitionOutsourcing
The term used to describe the provision of IS services by a supplier external to the organisation.
Time-share vendors Service bureaux Facilities management
ExternalIS servicessupplier
Selection and AcquisitionOutsourcing - Time-share vendors
In a time-share system processor time is divided into time-slices and these are shared between users.
Processor time can be measured and sold to subscribing users.
Interactive use of processor time.
Selection and AcquisitionOutsourcing - Service bureaux
An organisation that provides computing or data-processing services for other organisations or individuals - Longley & Shain
Selection and AcquisitionOutsourcing - Facilities management
The use of an independent service organisation to manage and operate a computing installation - Longley & Shain
Can also be described as using an outside firm who specialise in operating, developing and managing various aspects of IT.
Provides management and technical skills
Selection and AcquisitionOutsourcing - Facilities management
Driving factors 1 Business pressures
Perceived to be of a lower cost. IS services are not part of the core
business activity therefore not necessary to have in-house specialisation in IS.
Selection and AcquisitionOutsourcing - Facilities management
Driving factors 2 Technical/People pressures.
Non-availability of qualified technical staff required to provide a mature IS service.
Non-availability of qualified technical staff required to provide a leading edge IS service.
Need for staff to work on new initiatives.
Selection and AcquisitionOutsourcing - Facilities management
Examples Outsource legacy systems and
concentrate on client/server architecture in house.
Outsource network management. Outsource Internet requirements.
Selection and AcquisitionOutsourcing - Facilities management
Model for outsourcing Strategic statement Decide whether to outsource
Identify and evaluate benefits, risks and options Define outsourcing requirements
identify or develop functions to be outsourced, specification of requirements and potential suppliers. Invite tenders.
Choose a contractor Negotiate a contract Implement & monitor
Selection and AcquisitionOutsourcing - Facilities management
Organisational Benefits (perceived) IS annual requirements are known so a fixed
quotation (accountancy fit) can be got for IS service.
Long term salary gains as staff transfer to the FM supplier.
IS service can be guaranteed through Service Level Agreements.
Cost effective access to the expertise of the FM supplier.
Selection and AcquisitionOutsourcing - Facilities management
Organisational Risks Loss of in-house expertise in technology and
applications. Loss of control. Supplier’s lack of business knowledge. True costs are never fully appreciated. People problems. Dependant on supplier reinvesting in new technology. Difficult to bring back in-house
Selection and AcquisitionOutsourcing - Facilities management
Employee Benefits Opportunities for career advancement
in the FM company. Exposure to alternative and leading
edge technology. Opportunity to bring specialised skill to
FM company.
Selection and AcquisitionOutsourcing - Facilities management
Employee Risks Lost opportunities for career
advancement.
Selection and AcquisitionOutsourcing - Facilities management
See handout page 354
Selection and AcquisitionOutsourcing
In some countries, the outsourcing process in governed by Law.
BCS, 1996, option 1E, Q6
Why would this be so?
Review question
Selection and AcquisitionContracting practice
Professional team. Importance of tender documents.
Importance of records Contracting procedures.
Variation charges