IS ACQUISITION 1) List and briefly discuss the 5 steps of the information systems acquisition process.

The acquisition process of an IT application has five major steps : 1. 2. 3. 4. 5. Planning, Identifying and Justifying IT-based System Creating an IT architecture Selecting an acquisition option Testing, installing, integrating and deploying IT application Operations, maintenance and updating

Step 1 : Planning, Identifying and Justifying IT-based System IT based system are usually built as enabler of some business processes. Their planning must be aligned with the organizations overall business plan and the specific tasks they intend to support. The system may need to be justified. The output of this step is the decision to invest in a specific application and a timetable, budget and assigned responsibility. Step 2 : Creating an IT architecture The architecture plan includes the following : Data required to fulfil the business goals and vision Application modules that will deliver and manage the information and data Specific hardware and software on which the application will run Security, scalability and reliability required by the applications Human resources and procedures for implementing the project Step 3: Selecting an acquisition option The major options are : Build the system in-house Have vendor build a custom made system Buy an existing application and install it, with or without modifications, in house or through a vendor Lease standard software from an ASP, or lease through utility computing or a software as a service (SaaS) arrangement Enter into a partnership or alliance that will enable the company to use someone elses application Use a combination of these approaches.

Step 4 : Testing, installing, integrating and deploying IT application Once an acquisition option has been selected, the next step involves getting the application up and running on the selected hardware and network environment. A series of tests are required: Unit testing Integration testing Usability testing Acceptance testing After the application pass all of the test, they can be rolled out to the users.

Step 5 : Operations, maintenance and updating It usually takes as much time, effort and money to operate and maintain an application as it does to acquire and install it in the first place. For the maximizing of its continual usage, an application needs to be continually updated.

The process of IT application acquisition

1) List the options of system acquisition The major options are : a. Build the system in-house b. Have vendor build a custom made system c. Buy an existing application and install it, with or without modifications, in house or through a vendor d. Lease standard software from an ASP, or lease through utility computing or a software as a service (SaaS) arrangement e. Enter into a partnership or alliance that will enable the company to use someone elses application f. Use a combination of these approaches.

2) Describe some implementation and management issues. Conversion from old to the new system Training Changes in priorities affecting acceptance of the application Resistance to changing processes to maximize the benefit from the application.

1) What is involved in identifying IT projects? The sources of proposed or suggested IT project applications are :

Request from user departments Vendors recommendation Need to comply with new government regulations Auditors recommendation Recommendation of the steering committee Recommendation of the IS department Top management requests Search for high payoff projects.

1) How is such identification done?

2) What is the basic idea of justifying an application? There are 2 parts in evaluating the application : a) First, it is necessary to explore the need for each system that is, find the information needs of the users and how the application will meet those needs. b) Second, it is necessary to justify it from a cost-benefit point of view. The cost benefit justification looks at the wisdom of the specific IT investment compared to investing in alternative IT or other project.

1) What is the benefit of a project management approach?

2) What is a milestone? It signifies a key event in the completion of the project. Milestones are used to more accurately determine whether or not the project is on schedule.

3) What is one mistake that can turn a project into a runaway project? Did not define the scope and prove its feasibility. Runaway projects seems to have no end and usually fail eventually wasting a lot of time and resources.
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4) List the major acquisition and development strategies. The major options are buy, lease and develop in house. a) Buy the application (Off the shelf approach) Known as turnkey approach. Can be cost-effective and time saving strategy compared with in house application development. The advantages : Many different types of off-the-shelf software are available. Much time can saved by buying rather than building. The company can know what it is getting before it invests in the software. The company is not the first and only user. Purchased software may avoid the need to hire personnel specially dedicated to a project. The vendor updates the software frequently. The price is usually much lower for a buy option. Disadvantages : Software may not exactly meet the companys needs. Software may be difficult or impossible to modify or it may require huge business process changes to implement. The company will not have control over software improvements and new versions. Purchased software can be difficult to integrate with the existing systems. Vendors may drop a product or go out of business. a) Lease the application In those cases where extensive maintenance is required or where the cost of buying is very high, leasing is very advantageous, especially for small to medium enterprise. Leasing also advantageous when a company wants to experiment with a package before making a heavy up-front buy investment. Leasing can be done in one of several ways : Lease the IT application from an outsourcer and then install it on the companys premises. Lease the IT application from an application service provider (ASP) that hosts the application at its data center. A concept related to the lease option is software-as-a-service (SaaS). a) In House Development (insourcing) Can be time consuming and costly, it may lead to IT application that better fit an enterprises strategy and vision and differentiate it from competitors.
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 There are three major options for in-house development: Build from scratch This option is expensive and slow but it will provide the best fit to the organizations needs. Build from components The required application are often constructed from standard components. Commercially packaged and homegrown components must integrate tightly for component-based development to meet its requirements. Integrating application The application integration option is similar to the build from components option but instead of components being used, entire application are employed. This is an especially attractive option when IT application from several business partners need to integrated.

1) Compare the buy against the lease option. Buy Lease

2) List the in-house development approaches. Several methods can be used when develop IT applications in house. Two major development methods are : a) System development life cycle (SDLC). b) Prototyping methodology With a prototyping methodology, an initial list of basic system requirements is defined and used to build a prototype. The prototype is then improved in several iterations, based on users feedback. This approach can be very rapid. The prototype is then tested and improved, tested again and developed further, based on users feedback.

1) Describe end-user development and cite its advantages and limitations. Also known as end user computing Is the development and use of ISs by people outside the IS department. This includes users in all functional area at all skill levels and organizational levels : manager, executives, staff, secretary and others. Advantages Limitations End user may not be skilled enough in computers, so quality and cost may be jeopardized. Many end users do not take time to document their work and may neglect proper security measures. Substandard or inappropriate tools used in IT application development Risk associated with the development process Data management risks 1) List other acquisition options. Join an E-Marketplace or an E-Exchange The company plugs itself into an e-marketplace. Eg: place catalog in Yahoos marketplace. Join a third party auction or reverse auction The company can plug into a third party auction or reverse auction site fairly quickly.alternatively, a company can join a B2B exchange taht offers auction. Engage in joint ventures There are several different partnership or joint venture arrangements that may facilitate EC application development. Eg: 4 banks in Hong KLong have developed a joint e-banking system. Join a public exchange or a consortium A company can join a public exchange or join a consortium ( a vertical exchange owned by a group of big players in an industry) which may have applications fdeveloped to fit the needs of companies in the industry. Hybrid approach Combines the best of what the company does internally with an outsources strategy. Hybrid models work best when the outsourced partners offers higher security levels, faster time to market, and superb service level agreements. 1) What are the major factors driving a switch to software-as a service?
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The major factor driving to SaaS: i. Reducing the risks involved in acquiring new software. ii.Influencing product and service quality via an ongoing relationship with vendors iii.Changing usage commitment as business circumstances change iv.Preparing financially justifiable business cases v.Predicting ongoing expenses more accurately, which is important with IT budgets being tightened and scrutinized for better return on investment and value. 2) List five criteria for selecting a development option. a) The functionality and flexibility of packages b) Information requirements c) User friendliness of the application d) Hardware and software resources e) Vendor quality and track records 1) List the major steps of selection of a vendor and a software package a) Determine the evaluation criteria and weigh the importance of each b) Identify potential vendors c) Evaluate vendors and packages and interview current users d) Choose the vendor and package based on criteria, weights and feedbacks e) Negotiate a contract and get legal advice f) Establish a service-level-agreement (SLA). 1) List three major implementation issues. a) Do a detailed architecture study Some company rush this process, which can be a big mistakes. If the high level conceptual planning is wrong, the entire project is a great risk. a) Security and ethics During the IT acquisition process, pay close attention to security risks. It is likely that vendors and business partners will be involved. Protecting customers privacy is a must, and consideration of how to use clickstream and other data legally is essential. a) Evaluate the alternatives to in house system developments In house development requires highly skilled employees to undertake a complex project. Organizations may sometimes find it preferable to acquire IT resources rather than build-in-house.