PLANNING AND PREPARATION

Many experienced executives react in the opposite way. Before outsourcing, the organization develops the broad outlines of the kind of system it needs.

A GAME PLAN FOR EFFECTIVE SCOPING A company taking this approach to outsourcing begins by putting in place a structure to scope the project, asking where, what and how. - Where is there a real need for new or improved automation? Where can we gain major improvements in service quality, cost and or performance? - What should the new system do? - How should it do it? (relevant technology, organizational change required)

A GAME PLAN FOR EFFECTIVE SCOPING Effective scoping requires a careful design / arrangement of the interrelationships among the 3 essential components of good inf. syst. planning: Knowledge insiders Knowledge insiders Technical expertise who know the technology options Technical expertise who know the technology options Creative a new insights on the part of line managers about the potential for improvement inherent / nature in one or more technology solutions. Creative a new insights on the part of line managers about the potential for improvement inherent / nature in one or more technology solutions.

Get Real : Assessing the Difficulty of Outsourcing Every day the financial press announce senior executive who link improving profitability with the company’s cutting one or more “non-core” functions or businesses. Every day the financial press announce senior executive who link improving profitability with the company’s cutting one or more “non-core” functions or businesses. Increasingly, the trend has turned to selective IT outsourcing as companies learn the problems of doing it extensive. Increasingly, the trend has turned to selective IT outsourcing as companies learn the problems of doing it extensive. ASSIGNMENT : p.42 – p.43 A Medical Systems Company

An Outsourcing Decision Matrix Outsourcing Matrix: Level of Risk Inherent in the Project Outsourcing Matrix: Level of Risk Inherent in the Project See : Figure 1, page 44. See : Figure 1, page 44.

The Where : How to Do Systems Thinking Managers need to improve their ability from emphasizing specialization to viewing operations and effective performance in terms of systems, workflows and processes. “Reengineering”, systems specialists used the following framework when looking at a company’s work processes: simplify, integrate, automate. ASSIGNMENT : p.46 - p.49 Questions of manager for new automation (include the examples)

The What : Working Through the Broad Outlines of a New System Management must have idea of what a new system do, look like & accomplish. What is the new interconnection? How will work & data “flow” in the new processing mode? Visualize a New System in Its Organizational Context Visualize a New System in Its Organizational Context

The What : Working Through the Broad Outlines of a New System Errors made by experience line manager : 1. Forget or omit critical steps 2. Specify requirements that simply imitate existing procedures and routines (experience contractor believe 80% of reports are unnecessary and redundant)

The What : Working Through the Broad Outlines of a New System Effective new system is not simply automated the previous way of passing papers, data or materials between functions. Interaction and exchange – mutual education – is required between users and outsourcer technical people ASSIGNMENT : p.51 – p. 52 Mr. Elton Systems planning discussions are preceded the actual design and implementation of the new software. They provided the outsourcer with parameters for the system.

How New Technology Can Engage the Creativity of Line Managers Strengthen Line-Manager Capabilities Strengthen Line-Manager Capabilities Site Visits (seeing what other company have done with similar automation) Site Visits (seeing what other company have done with similar automation) Control the Potentials of Client/Server Technology Control the Potentials of Client/Server Technology Avoiding User Errors Avoiding User Errors

Implications for Contractor Selection The outsourcer in a client/server environment should view the system they will be developing and/or operating as being evolutionary, a work in progress that serves strategic as well as tactical needs of the clients business managers. ASSIGNMENT : p.57 – p. 58 Outsourcing information processing operation

The elements of a client-based planning strategy Great deal of cooperation and interaction between contractor & line manager / user in client organization is required. Great deal of cooperation and interaction between contractor & line manager / user in client organization is required.

Plan and Execute OR Execute and Then Plan Making intelligent systems design choices obviously requires thoughtful analysis, some must take place before any discussions with vendors or contractors.