BUS 362 - Chapter 7
What system acquisition strategy is this attributed to? 1. Hire expertise company doesn't have 2. May save time and money 3. Lower risk
Outsourcing
What system acquisition strategy is this attributed to? 1. No opportunity to build in-house expertise 2. Reliance on vendor 3. Future options limited 4. Security concerns of losing confidential info 5. Performance of vendor based on contract terms
Outsourcing
What system acquisition strategy is used from the following factors? 1. Business need is not core to business 2. In-house functional or technical experience does not exist 3. Decision for the system acquisition is strategic 4. Project has highly skilled project manager at level of organization that matches scope of the deal 5. Time frame is short or flexible
Outsourcing
What is Software as a Service (SaaS)?
Where vendors develop and hosts their own software. Google providing Google Docs as SaaS
What are the 5 factors that influence the acquisition strategy selection?
1. Business need 2. In-house experience 3. Project skills 4. Project management 5. Time-frame
What are the 3 ways to acquire a system?
1. Custom development 2. Buy or obtain software packages 3. Outsourced development
What are the 4 major considerations within the non-functional requirements?
1. Operational 2. Performance 3. Security 4. Cultural and political
What are the differences between the 3 types of outsourcing contracts and when is it used?
1. Pay for time and expense needed to get job done. (Used when job process is unclear) 2. Any additional costs are absorbed by the outsourcing vendor (low risk for client firm) 3. Outsourcer reaps percentage of completed system's benefits (little risk except to share wealth when system is in place)
What are the 3 ways for which a company can gain more information about a vendor?
1. Request for Proposal (RFP) 2. Request for Information (RFI) 3. Request for Quote (RFQ)
What are the 3 types of outsourcing contracts?
1. Time and arrangement deal 2. Fixed-price contract 3. Value-added contract
What document are the non-functional requirements converted to in the design phase?
Architecture design document.
What is custom development?
Building new system from scratch
What happens during the initial part of the design phase?
Conversion of business requirements of system into system requirements
What is system integration?
Combining packaged software, existing legacy systems and new software written to integrate them. (Unique to packaged software)
What system acquisition strategy is this attributed to? 1. Significant time and effort 2. Add to existing backlogs 3. May require skills that you might not have 4. High costs 5. Risk of project failure
Custom Development
What system acquisition strategy is this attributed to? 1. Get exactly what you want 2. System will be consistent with existing technology and standards 3. Build and retain skills and knowledge 4. Allows team flexibility and creativity. 5. Can create strategic advantage
Custom Development
What system acquisition strategy is used from the following factors? 1. Unique business need 2. In-house functional and technical expertise exists 3. Desire to build in-house skills 4. Has highly skilled project manager with proven methodology 5. Time frame is flexible
Custom Development
What is the system specification? What are the 7 documents that it includes?
Document that contains all of the design documents defined in the design phase. 1. Physical process models 2. Physical data models 3. Architecture design 4. Hardware and software specifications 5. Interface design 6. Data storage design 7. Program design
What is a RFP?
Document that solicits formal proposal from potential vendor that describes in detail of the system/service that is needed. Vendors respond by detailing how they could supply those needs.
What is an application service provider (ASP)?
Firms that supply independent software applications over a network or internet. Can host someone else's software (e.g. SFU hosting Microsoft software)
What document is created for architecture decisions regarding hardware and software to support new system?
Hardware and software specifications
What is outsourcing?
Hiring an external vendor, developer, or service provider to create or supply the system.
What is RFI?
Less detailed request that is sent to potential vendors to obtain general information about products/services. Used for smaller projects with smaller budgets
What system acquisition strategy is this attributed to? 1. No need to reinvent the wheel for common business needs 2. Product is tested and proven 3. Save costs 4. Saves time 5. Can utilize vendor expertise 6. Some customization possible through workarounds
Packaged Software
What system acquisition strategy is this attributed to? 1. Rarely a perfect fit 2. Organizational process must adapt to software 3. Reliance on vendor for maintenance and future upgrades 4. No development in-house skills 5. If need is unique, might be unmet 6. May require system integration
Packaged Software
What system acquisition strategy is used from the following factors? 1. Common business need 2. In-house functional experience exists 3. Skills not strategic 4. Has project manager that can coordinate vendor's efforts 5. Time frame is short
Packaged Software
What is the system architecture?
Set of physical processing components, hardware, software, people and the communication among them that will satisfy system's requirements.
What are packaged software and how can it be acquired (2 ways)?
Software programs that have been written by outside vendor. Can be purchased or obtained from Application Service Provider (ASP) or Software as a Service (SaaS)
What is the final deliverable for the design phase?
System specifications
What are system requirements?
Technical details for building the system.
What kind of business requirements influence the system requirements?
The non-functional requirements.
What is RFQ?
Used when a list of equipment is so complete that a vendor only needs to provide a price, without any analysis or description of what is needed.