Information Technology Reference
In-Depth Information
Generating Systems Design Alternatives
When people or organizations require a system to perform additional functions that an ex-
isting system cannot support, they often turn to outside vendors to design and supply their
new systems. Whether an individual is purchasing a personal computer or a company is
acquiring an expensive mainframe computer, the system can be obtained from a single vendor
or multiple vendors. If the new system is complex, the original development team might
want to involve other personnel in generating alternative designs. In addition, if new hardware
and software are to be acquired from an outside vendor, a formal request for proposal (RFP)
can be made.
Request for Proposals
The
request for proposal (RFP)
is an important document for many organizations involved
with large, complex systems development efforts. Smaller, less-complex systems often do not
require an RFP. A company that is purchasing an inexpensive piece of software that will run
on existing hardware, for example, might not need to go through a formal RFP process.
In some cases, separate RFPs are developed for different needs. For example, a company
might develop separate RFPs for hardware, software, and database systems. The RFP also
communicates these needs to one or more vendors, and it provides a way to evaluate whether
the vendor has delivered what was expected. In some cases, the RFP is part of the vendor
contract. The Table of Contents for a typical RFP is shown in Figure 13.5.
request for proposal (RFP)
A document that specifies in detail
required resources such as
hardware and software.
Figure 13.5
Johnson & Florin, Inc.
Systems Investigation Report
A Typical Table of Contents for a
Request for Proposal
Contents
COVER PAGE (with company name and contact person)
BRIEF DESCRIPTION of the COMPANY
OVERVIEW of the EXISTING COMPUTER SYSTEM
SUMMARY of COMPUTER-RELATED NEEDS and/or PROBLEMS
OBJECTIVES of the PROJECT
DESCRIPTION of WHAT IS NEEDED
HARDWARE REQUIREMENTS
PERSONNEL REQUIREMENTS
COMMUNICATIONS REQUIREMENTS
PROCEDURES to BE DEVELOPED
TRAINING REQUIREMENTS
MAINTENANCE REQUIREMENTS
EVALUATION PROCEDURES (how vendors will be judged)
PROPOSAL FORMAT (how vendors should respond)
IMPORTANT DATES (when tasks are to be completed)
SUMMARY
Financial Options
When acquiring computer systems, several choices are available, including purchase, lease,
or rent. Cost objectives and constraints set for the system play a significant role in the choice,
as do the advantages and disadvantages of each. In addition, traditional financial tools, in-
cluding net present value and internal rate of return, can be used. Table 13.2 summarizes
the advantages and disadvantages of these financial options.
Determining which option is best for a particular company in a given situation can be
difficult. Financial considerations, tax laws, the organization's policies, its sales and transac-
tion growth, marketplace dynamics, and the organization's financial resources are all impor-
tant factors. In some cases, lease or rental fees can amount to more than the original purchase
price after a few years.
