1. Pertemuan – 16a Matakuliah: M0304/Corporate Information System Management Tahun: 2008

2. Fakultas Ilmu Komputer Modul-16-2 M ETODOLOGI P EMBELIAN P AKET S OFTWARE

3. Fakultas Ilmu Komputer Modul-16-3 T HE M AKE-OR- B UY D ECISION Decision should be made jointly by business managers and IS professionals Advantages of purchasing: – Cost savings – Faster speed of implementation Disadvantages of purchasing: – Seldom exactly fits a company’s needs – Often forces trade-offs

4. Fakultas Ilmu Komputer Modul-16-4 P URCHASING M ETHODOLOGY The Purchasing Steps Figure 16.1 The Purchasing Process

5. Fakultas Ilmu Komputer Modul-16-5 P URCHASING M ETHODOLOGY Initiating the Purchasing Process Figure 16.2 Comparison of Costs and Building vs. Purchasing a System

6. Fakultas Ilmu Komputer Modul-16-6 P URCHASING M ETHODOLOGY Establish Criteria for Selection Figure 16.3 Key Criteria for Software Package Selection

7. Fakultas Ilmu Komputer Modul-16-7 P URCHASING M ETHODOLOGY Develop and Distribute the RFP Request for proposal (RFP) – a formal document sent to potential vendors inviting them to submit a proposal describing their software package and how it would meet the company’s needs

8. Fakultas Ilmu Komputer Modul-16-8 Develop and Distribute the RFP Figure 16.4 Sample RFP Table of Contents

9. Fakultas Ilmu Komputer Modul-16-9 Evaluation steps: – Review vendors’ responses from RFPs – Request demonstrations of leading packages – Request references from users of software packages in other companies – Assess how well package capabilities satisfy company’s needs – Understand extent of any additional development efforts or costs to tailor software – Make decision P URCHASING M ETHODOLOGY Evaluate Vendor Responses to RFP and Choose Package

10. Fakultas Ilmu Komputer Modul-16-10 P URCHASING M ETHODOLOGY Evaluate Vendor Responses to RFP and Choose Package Figure 16.6 Matching Company Needs with Capabilities of the Package

11. Fakultas Ilmu Komputer Modul-16-11 If no software package modifications required: – Skip system design and building steps – Move directly to system testing – Develop any necessary process changes If software package is modified: – Consider contracting with vendor or a third party for changes versus modifying in- house – Determine if changes are required to other existing company systems P URCHASING M ETHODOLOGY Construction Phase

12. Fakultas Ilmu Komputer Modul-16-12 – Business managers and users – IS professionals – Project manager – usually a business manager – Software vendor personnel – Sometimes includes a third-party implementation partner – Purchasing specialists – Attorneys P URCHASING M ETHODOLOGY Project Team for Purchasing Packages

13. Fakultas Ilmu Komputer Modul-16-13 P URCHASING M ETHODOLOGY Purchasing Advantages and Disadvantages Figure 16.7 Advantages and Disadvantages of Purchasing Packaged Software

14. Fakultas Ilmu Komputer Modul-16-14 S PECIAL C ASE: E NTERPRISE S YSTEM P ACKAGES Enterprise Resource Planning (ERP) system packages: – Companies purchase to achieve business benefits and IT platform benefits – Enables access to integrated data for better decision making – Often require heavy reliance on third-party consultants – Implementation efforts usually complex, and sometimes not successful

15. Fakultas Ilmu Komputer Modul-16-15 S PECIAL C ASE: E NTERPRISE S YSTEM P ACKAGES Factors that need to be managed well for ERP implementation to be successful: – Top management is engaged in the project, not just involved – Project leaders are veterans, and team members are decision makers – Third parties fill gaps in expertise and transfer their knowledge – Change management goes hand-in-hand with project planning – A satisfying mindset prevails Brown and Vessey, 2003

16. Fakultas Ilmu Komputer Modul-16-16 N EW P URCHASING O PTION: A PPLICATION S ERVICE P ROVIDERS (ASPs) New trend beginning 2000s Purchasing option: purchaser elects to use a “hosted” application rather than to purchase the software application and host it on its own equipment ASP is an ongoing service provider Company pays third party (ASP) for delivering the software functionality over the Internet to company employees and sometimes business partners

17. Fakultas Ilmu Komputer Modul-16-17 N EW P URCHASING O PTION: A PPLICATION S ERVICE P ROVIDERS (ASPs) Some advantages: – Cost savings and faster speed of implementation – Usually involves monthly fees rather than large infrastructure investment Disadvantages: – Dependence on an external vendor for both software and ongoing operations – Good assessment of required service levels even more critical

18. Fakultas Ilmu Komputer Modul-16-18 end