1. SYSTEMSDESIGNANALYSIS 1 Chapter 13 The Systems Proposal Jerry Post Copyright © 1997

2. SYSTEMSDESIGN 2 Determine Hardware Requirements  Inventory existing hardware.  Estimate workloads.  Evaluate hardware vendors.  Purchase or lease? Inventory Computer Hardware Estimate Workloads Evaluate Software Evaluate Hardware Choose Vendor Choose Vendor

3. SYSTEMSDESIGN 3 Inventory Equipment  Type of equipment  Manufacturer  Model Number  CPU  Storage  Input  Output  Networks  Status  Estimated age  Projected life  Physical location  Department responsible  Financial purchase/lease

4. SYSTEMSDESIGN 4 Estimating Workloads

5. SYSTEMSDESIGN 5  Benchmarks  Experience with similar systems.  User groups.  Trials on vendor hardware.  Number of users!  Expansion and upgrades.  Product life cycle  Common: 3 years  Stretch: 5 years  Price/Performance  Price drops over time  New machine is introduced Higher price Better performance Time Sales Pentium Pentium Pro 1997 Time Price/performance Pentium Pentium Pro

6. SYSTEMSDESIGN 6 Lease versus Buy  Ownership  Control  Lock-in  Up-front costs  Maintenance  Depreciation  Net present value Time Lease: Costs Time Buy: Costs

7. SYSTEMSDESIGN 7 Software Evaluation  Effectiveness  Perform all required tasks  Future tasks?  Capacity  Efficiency  Response time  Data entry  Data storage  Ease of Use  User interface  Help system  Flexibility  Documentation  Support

8. SYSTEMSDESIGN 8 Forecasting Costs and Benefits  Benefits  Improved sales  Decreased expenses  Better decisions  Costs  Hardware  Software  Operations  Regression  Y = b 0 + b 1 X 1 + b 2 X 2 + …  Dependent (Y)  Independent (X.)  Find line that best fits the data points.  Moving Average Time Sales New system Old system Time Sales