Systems Development: Design, Implementation, Maintenance, and Review - Principles of Information Systems - page 548

Figure 13.6

High

The Stages in Preliminary and
Final Evaluations
The number of possible alternatives
decreases as the firm gets closer to
making a final decision.

Preliminary
evaluation

Number of
alternatives

Final
selection

Final
evaluation

Low

Time

equipment and systems purchases. 35 In addition, four other approaches are commonly used:
group consensus, cost/benefit analysis, benchmark tests, and point evaluation.

Group Consensus
In group consensus , a decision-making group is appointed and given the responsibility of
making the final evaluation and selection. Usually, this group includes the members of the
development team who participated in either systems analysis or systems design. This ap-
proach might be used to evaluate which of several screen layouts or report formats is best.

group consensus
Decision making by a group that is
appointed and given the
responsibility of making the final
evaluation and selection.

Cost/Benefit Analysis
Cost/benefit analysis is an approach that lists the costs and benefits of each proposed system.
After they are expressed in monetary terms, all the costs are compared with all the benefits.
Table 13.3 lists some of the typical costs and benefits associated with the evaluation and
selection procedure. This approach is used to evaluate options whose costs can be quantified,
such as which hardware or software vendor to select.

cost/benefit analysis
An approach that lists the costs and
benefits of each proposed system.
After they are expressed in
monetary terms, all the costs are
compared with all the benefits.

Benchmark Tests
A benchmark test is an examination that compares computer systems operating under the
same conditions. Most computer companies publish their own benchmark tests, but some
forbid disclosure of benchmark tests without prior written approval. Thus, one of the best
approaches is for an organization to develop its own tests and then use them to compare the
equipment it is considering. This approach might be used to compare the end-user system
response time on two similar systems. Several independent companies and journals also rate
computer systems.

benchmark test
An examination that compares
computer systems operating under
the same conditions.

Point Evaluation
One of the disadvantages of cost/benefit analysis is the difficulty of determining the monetary
values for all the benefits. An approach that does not employ monetary values is a point
evaluation system . Each evaluation factor is assigned a weight, in percentage points, based
on importance. Then each proposed information system is evaluated in terms of this factor
and given a score, such as one ranging from 0 to 100, where 0 means that the alternative does
not address the feature at all and 100 means that the alternative addresses that feature per-
fectly. The scores are totaled, and the system with the greatest total score is selected. When
using point evaluation, an organization can list and evaluate literally hundreds of factors.
Figure 13.7 shows a simplified version of this process. This approach is used when there are
many options to be evaluated, such as which software best matches the needs of a particular
business.

point evaluation system
An evaluation process in which each
evaluation factor is assigned a
weight, in percentage points, based
on importance. Then each proposed
system is evaluated in terms of this
factor and given a score ranging
from 0 to 100. The scores are
totaled, and the system with the
greatest total score is selected.