REQUEST FOR PROPOSAL (RFP)Alternate Approaches to Systems DevelopmentAPPLICATION SOFTWARE PACKAGESUSE APPLICATION PACKAGES:CUSTOMIZATIONAdvantages to Software PackagesEFFECTS OF CUSTOMIZING SOFTWARE ON TOTAL IMPLEMENTATION COSTSPACKAGE EVALUATION CRITERIAIn-House Development - IS StaffEND-USER DEVELOPMENTApplications Development PackagesFourth Generation LanguagesDisadvantages of 4GLSlide 14Slide 15Slide 16Slide 17Managerial Issues with EUCSlide 19OUTSOURCINGADVANTAGES OF OUTSOURCING:DISADVANTAGES OF OUTSOURCING:IS Development with OutsourcingAdvantages of OutsourcingDisadvantages of OutsourcingSlide 7.1REQUEST FOR PROPOSAL (RFP)Detailed list of QuestionsSubmitted to Vendors to Determine if Vendor’s Product meets Organization’s Specific RequirementsSlide 7.2Alternate Approaches to Systems Development•Software Packages•In-house Development•End-User Development•Application Development Packages•OutsourcingSlide 7.3APPLICATION SOFTWARE PACKAGES Rewritten, Pre-coded Application Software, Commercially Available For Sale Or Lease•Geared To Common Requirements•Customization: –Modification of Software to Meet Organization’s Needs•Must Weigh Costs / BenefitsSlide 7.4USE APPLICATION PACKAGES:•Where Functions are Common to many Companies•Where In-House Resources are Scarce•When Microcomputer Applications are being Developed for End UsersSlide 7.5CUSTOMIZATIONModifying Software Package To Meet Organization’s Unique RequirementsWithout Destroying IntegrityOf PackageRaises Development CostsSlide 7.6Advantages to Software Packages•Reduces the amount of design, testing and installation time•Well pre-tested•Short time frame from problem definition to implementation•Vendor ReliabilitySlide 7.7EFFECTS OF CUSTOMIZING SOFTWARE ON TOTAL IMPLEMENTATION COSTS02468100.5 1 2 3 4 5% LINES OF CODE CONVERTEDTOTAL IMPLEMENTATION COSTSSlide 7.8PACKAGE EVALUATION CRITERIA•Functions Included•Flexibility•User Friendliness•Hardware & Software Resources•Database/file Characteristics•Installation Efforts•Maintenance•Documentation•Vendor Quality•CostSlide 7.9In-House Development - IS Staff•Advantages–Source code available–Future enhancements are easier (why?)–All functions are included in software–Analysts/Programmers can train users•Existing relationships with users•Disadvantages–Personnel/expertise/time requirements–Longer development time frameSlide 7.10END-USER DEVELOPMENTEnd-users Develop Information SystemWith Little Help From Technical SpecialistsUsing 4th Generation ToolsSlide 7.11Applications Development Packages•Fourth Generation Languages (4GL)•Query Languages–QBE - Query By Example–SQL - Structured Query Language•Report Generators–Spreadsheets–Integrated packages–Database Management Systems (using it to develop a system versus use it to get information)Slide 7.12Fourth Generation Languages•Improves productivity 25% to 500%•Used when manipulating small files•Used with simple logic•Permits rapid system development•User friendlySlide 7.13Disadvantages of 4GL•Slow responses with large files•Inefficient use of computer resources•Example of a disaster–NJ Dept of Motor Vehicle•IDEAL system •Rewritten in COBOL to improve computer response and efficiencySlide 7.14END-USER DEVELOPMENTSTRENGTHS:•Increased Productivity Using 4th Generation Tools•Query Languages•Graphics•Report Generators•Application Generators•Short Development Time•End Users know their requirements•OK with smaller, departmental projectsSlide 7.15END-USER DEVELOPMENTWEAKNESSES:•Relatively Inefficient•Slow Transaction Processing•May Carry High Cost•Large Files Can Degrade Performance•Nonprocedural Approach May Hamper Logic & Updating Requirements•Not recommended for company-wide projects•Limited skills of the End Users•Accuracy/Consistency of ReportsSlide 7.16END-USER DEVELOPMENTMANAGEMENT BENEFITS:•Improved Requirements Determination•Increased User Involvement & Satisfaction•Development Controlled By Users•Reduced Application BacklogSlide 7.17END-USER DEVELOPMENTMANAGEMENT PROBLEMS:•Insufficient Review / Analysis•Lack Of Standards & Controls•Uncontrolled Data•Proliferation Of “Private” Information SystemsSlide 7.18Managerial Issues with EUC•Managing the hardware–Acquiring the hardware–Compatibility –Economies of Scale•Managing the software–Accuracy of end-user programs–Calculation consistency–Reinvention of the wheel–Lacking of testing/documentationSlide 7.19Managerial Issues with EUC•Managing the data–Security of the data–Integrity of the data–Eliminate Redundancy•Managing the people–Training Schedule–Liaisons between departmentsSlide 7.20OUTSOURCINGCONTRACTING:•Computer Center Operations•Telecommunications Networks•Application Development To External VendorsSlide 7.21ADVANTAGES OF OUTSOURCING:•Economy•Service Quality•Predictability•Flexibility•Making Fixed Costs Variable•Freeing Up Human Resources•Freeing Up CapitalSlide 7.22DISADVANTAGES OF OUTSOURCING:•Loss Of Control•Vulnerability Of Strategic Information•DependencySlide 7.23IS Development with Outsourcing•Hire an outside consultant to–Develop the system as designed by internal staff–Design and develop the systemSlide 7.24Advantages of Outsourcing•Access to IS Expertise•Shorter Development Time Frame•Usually Excellent Quality–Depends on vendor•Cost ??Slide 7.25Disadvantages of Outsourcing•Ownership of source code–Ability to add future enhancements•Difficult for internal personnel to answer user questions•Vendor issues–Are their answers what is best for my organization or their organization?•Cost•Personnel issues such as