BIS4225.

17
System Selection and
Acquisition

1
 Acquisition Strategy
Factors to consider:
Impact on organizations and
their practices.
Effects of external provision of
IS elements on an organization.
Trends in computer technology.

2
 Acquisition Strategy
Entities involved:
External IS Dept
Vendor (Supply)

IS Dept
(Purchase)

User Dept

3
 Pointers
Software drives almost all
IS selection, not hardware.
Software has a longer life-
span than hardware.
Connecting two vendors
solution is difficult.
4
 Criteria Setting
Select Criteria, for example:
Hardware capability
Software capability
Vendor support
Cost
Assign Weights to each Criteria

5
 Selection Process
Calculate scores for various
alternatives
Calculate candidates (vendors)
rating
Select highest score

6
 Acquisition
In-house Development
Standard Packages
External Acquisition of IS
Services (Outsourcing)

7
 Outsourcing
Time-share Vendors
Software loaded and run on external
processing capability.
Service Bureau
External service charged by time or by
application of a contracted task.
Facilities Management
All IS elements remain in client premises, but
managed by external party.
8
 Outsourcing
Phases of Outsourcing:
Internal Analysis and Evaluation
Needs Assessment and Vendor
Selection
Implementation and
Management

9
 Payments
Payment Alternatives:
Outright purchase
Temporary purchase
Operating lease
Purchase lease

10
 Changeover
Changeover

Cold start
(direct)
OLD
NEW

Parallel OLD
NEW

Phased/ OLD
Pilot NEW

11
 Changeover
The changeover approach
should be determined before
an acquisition is made.
Recognize constraints, and
provide for them throughout
the project.

12