1. Selection and Acquisition Texts and Readings Robson, W (1994) Strategic Management and Information Systems, Pitman, London, UK Chapter 12 Lucas, H. (1997) Information technology for management, McGraw-Hill, USA Chapter 14 and 17 Academic papers Lecture notes

2. Selection and Acquisition Strategic management elements – Johnson & Scholes Strategic analysis Strategy implementation Strategic choice Choice options Evaluate Select Expectations & objectives The environment resources Resource planning Organisational structure People and systems

3. Selection and Acquisition Software acquisition Hardware acquisition Communications acquisition Outsourcing

4. Selection and Acquisition Analysis Cost/benefit analysis Options 1. Application software 2. System software 3. Hardware 1. Build 2. Part build / part buy 3. Buy entire application

5. Selection and Acquisition Software acquisition continuum 1a In-house systems & application software 1bIn-house user application development 2Contract staff working in-house 3aVendor system tailored by in-house staff 3bVendor system contractor tailored 3cVendor system vendor tailored 4Vendor bespoke turnkey solution 5Standard package In-house Development External Development

6. Selection and Acquisition Build Implemented in accordance with the Contract View and the Engineering View of ISO/IEC 12207 Acquisition process Supply process Development process Maintenance process

7. CONTRACT VIEW Software life cycle processes Five primary life cycle processes 5.1 Acquisition process Initiation Request-for-proposal preparation Contract preparation & update Supplier monitoring Acceptance & completion 5.2 Supply process Initiation Preparation of response ContractPlanning Execution & control Review & evaluation Delivery & completion

8. Selection and Acquisition Request-for-proposal - Lucas Present system (database, I/O, Volumes and Frequencies) Proposed system (needs items above) Vendor service Reliability data Backup Demonstration Evaluation arrangements Conversion and transition Descriptive material Price

9. Selection and Acquisition Request-for-proposal ISO/IEC 12207 System requirements Scope statement Instructions to bidders List of software products Terms and conditions Control of subcontracts Technical constraints NB

10. Selection and Acquisition Contract preparation & update All happens before planning begins

11. ENGINEERING VIEW 5.3 Development process 5.5 Maintenance process Software life cycle processes Five primary life cycle processes System requirements analysis Process implementation Software requirements analysis Software coding and testing System architectural design Software architectural design Software detailed design Software integration Software qualification testing System integration System qualification testing Software installation Software acceptance support Modification implementation Maintenance review/ acceptance Process implementation Problem & modification analysis Migration Software retirement

12. Selection and Acquisition Buy (Buy, lease or rent) Large and midrange computers/systems Personal computers/systems

13. Selection and Acquisition Software acquisition 1 Vendor position in the marketplace Size, experience, certification Quality considerations External usability Factors Context of use matters (Users, Tasks & Environment) Amount of Functionality Internal quality factors

14. Selection and Acquisition Software acquisition 2 Technology requirements System software, hardware, communications requirements Ownership Own or licence, copyright, escrow Cost and funding Number of quotations Documentation and manuals

15. Selection and Acquisition Packages Prioritised Business needs Unmet needs Surplus to needs Met needs Capabilities of standard package Customise the package Modify the business process Tolerate the mismatch Surround with extra functionality Map of discrepancies

16. Selection and Acquisition Software acquisition 3 Demonstration copy. Maturity of the software product. User groups.

17. Selection and Acquisition Software acquisition 4

18. Selection and Acquisition Advantages of buying Instantly available (ROI begins immediately) Sound business procedures Known & verifiable quality Low (cost effective) expenditure Inspectable documentation Available maintenance Continual research & updates Support & training

19. Selection and Acquisition Disadvantages of buying See page 471 Too much functionality

20. Selection and Acquisition Buying off-the-shelf ISO/IEC 12207 The requirements for the software product are met. The documentation is available. Proprietary, usage, ownership, warranty and licensing rights are satisfied. Future support for the software product is planned. NB

21. Selection and Acquisition Strategic considerations Prioritise requirements. Cost benefits. End-user computing fit. Single vendor environment Best of breed for each businees situation

22. Selection and Acquisition Hardware acquisition 1 Vendor position in the marketplace. ISO/other standards compliant. Taxonomy issues. Mainframe, Minicomputer or Microcomputer. Technical maturity. Large computer, Midrange or PC Number of users Processing speed Memory capacity Cost

23. Selection and Acquisition Hardware acquisition 2 Cost and funding (Buy, lease or rent). Human-Computer Interaction considerations. Legal considerations - health & safety, EU directive. Service level agreements.

24. Selection and Acquisition Communications acquisition Software Hardware

25. Selection and Acquisition Outsourcing The term used to describe the provision of IS services by a supplier external to the organisation. Time-share vendors Service bureaux Facilities management External IS services supplier

26. Selection and Acquisition Outsourcing - Time-share vendors In a time-share system processor time is divided into time-slices and these are shared between users. Processor time can be measured and sold to subscribing users. Interactive use of processor time.

27. Selection and Acquisition Outsourcing - Service bureaux An organisation that provides computing or data-processing services for other organisations or individuals - Longley & Shain

28. Selection and Acquisition Outsourcing - Facilities management The use of an independent service organisation to manage and operate a computing installation - Longley & Shain Can also be described as using an outside firm who specialise in operating, developing and managing various aspects of IT. Provides management and technical skills

29. Selection and Acquisition Outsourcing - Facilities management Driving factors 1 Business pressures Perceived to be of a lower cost. IS services are not part of the core business activity therefore not necessary to have in-house specialisation in IS.

30. Selection and Acquisition Outsourcing - Facilities management Driving factors 2 Technical/People pressures. Non-availability of qualified technical staff required to provide a mature IS service. Non-availability of qualified technical staff required to provide a leading edge IS service. Need for staff to work on new initiatives.

31. Selection and Acquisition Outsourcing - Facilities management Examples Outsource legacy systems and concentrate on client/server architecture in house. Outsource network management. Outsource Internet requirements.

32. Selection and Acquisition Outsourcing - Facilities management Model for outsourcing Strategic statement Decide whether to outsource Identify and evaluate benefits, risks and options Define outsourcing requirements identify or develop functions to be outsourced, specification of requirements and potential suppliers. Invite tenders. Choose a contractor Negotiate a contract Implement & monitor

33. Selection and Acquisition Outsourcing - Facilities management Organisational Benefits (perceived) IS annual requirements are known so a fixed quotation (accountancy fit) can be got for IS service. Long term salary gains as staff transfer to the FM supplier. IS service can be guaranteed through Service Level Agreements. Cost effective access to the expertise of the FM supplier.

34. Selection and Acquisition Outsourcing - Facilities management Organisational Risks Loss of in-house expertise in technology and applications. Loss of control. Supplier’s lack of business knowledge. True costs are never fully appreciated. People problems. Dependant on supplier reinvesting in new technology. Difficult to bring back in-house

35. Selection and Acquisition Outsourcing - Facilities management Employee Benefits Opportunities for career advancement in the FM company. Exposure to alternative and leading edge technology. Opportunity to bring specialised skill to FM company.

36. Selection and Acquisition Outsourcing - Facilities management Employee Risks Lost opportunities for career advancement.

37. Selection and Acquisition Outsourcing - Facilities management See handout page 354

38. Selection and Acquisition Outsourcing In some countries, the outsourcing process in governed by Law. BCS, 1996, option 1E, Q6 Why would this be so? Review question

39. Selection and Acquisition Contracting practice Professional team. Importance of tender documents. Importance of records Contracting procedures. Variation charges