Preparing the Feasibility Study


Assignment Overview

Organizations install information systems to achieve competitive advantage, provide services to customers, and to simplify operations. These considerations are key points and enter into the choice of development alternatives. Using software packages can save time and effort in systems development, and management can purchase it immediately and negotiate customization with the vendor. A popular alternative is selecting COTS software to maintain control internally. When selecting COTS, the total cost of ownership (TOC) must be considered. The system must also support future growth to accommodate higher transaction volumes, storage capacity, and new business requirements. The TOC is calculated by adding all development cost and future expenses relative to maintenance and support. Software options and their application are described as follows.

Develop In-house

This option is chosen for applications that are strategic to the company or simply to satisfy unique system requirements or hardware constraints. Organizations having other in-house systems may find in-house development a necessity to easily interface to other applications.

Purchase COTS

Investigating software packages and comparing them to in-house development is usually done before the feasibility study is completed. The advantages of package software include lower cost, shorter implementation cycle, reliability, available upgrades, and vendor’s reputation.

Outsourcing

One main reason for outsourcing is cost reduction on non-strategic activities. Outsourcing companies offer specialized systems design and IT services including conversion, training, and maintenance support. The decision to outsource is consistent with downsizing staff and equipment.

You can review the following articles to gain insight into how alternatives are considered.

Ledeen, K. (2009). Build v. buy a decision paradigm for information technology applications. Nevo Technologies. Retrieved from http://www.nevo.com/our-knowledge/whitepapers/BuildVsBuy.pdf

Webster, B. (2008, August 27). Buy vs. build software applications: The eternal dilemma. Baseline. Retrieved from http://www.baselinemag.com/c/a/Application-Development/Buy-vs-Build-Software-Applications-The-Eternal-Dilemma/

FSOKX. (2013). Outsourcing performance metrics: What matters, and why. Thought Leadership Perspectives. Retrieved from http://www.fsokx.com/Thought-Leadership-Prespecitves/Outsourcing-Performance-Metrics-What-Matters-and-Why

CS211 (2007). Transition to systems design. [PPT presentation]. Retrieved from http://www.peter-lo.com/Teaching/CS211/L06.pdf

Optional Material

Office of the Secretary of Defense. (2009). Report of the defense science board task force on integrating commercial systems into the DOD effectively and efficiently. Retrieved from http://www.acq.osd.mil/dsb/reports/ADA494760.pdf

Emery, P. (February, 2007). Evaluating RM software alternatives in a real world environment. The Information Management Journal. Retrieved from http://www.arma.org/bookstore/files/Emery1.pdf

Case Assignment

Based on the assigned materials, write a paper answering the following questions.

Suppose you were a business analyst developing a new information system to automate the sales transactions and manage inventory for each retail store in a large chain. The system will be installed at each store and exchange data with a main server in the head office. Based on the Case readings, discuss the decision criteria you will use to evaluate in-house development versus buying a COTS application. What option would you recommend?

Assignment Expectations

Your paper should be short (2-4 pages, not including cover sheet and references) and to the point. It is to be structured as a point/counterpoint argument, in the following manner.

You are expected to:
•Begin this paper by stating your position on these questions clearly and concisely
•Cite appropriate sources and answer questions directly. Be sure to make the most effective case you can. Then present the best evidence you can, again citing appropriate sources.

By the end of your paper, you should be able to unequivocally re-affirm your original position.

You will be particularly assessed on:
•Your ability to see what the module is all about and to structure your paper accordingly.
•Your informed commentary and analysis -- simply repeating what your sources say does not constitute an adequate paper.
•Your ability to apply the professional language and terminology of systems design and analysis correctly and in context; you are expected to be familiar with this language and use it appropriately.
•Your effective and appropriate use of in-text citations to the assigned readings and other source material to support your arguments. Refer to the TUI Course Guidelines and or the Purdue University APA formatting and style guide (see optional readings for Module 1) for the proper formats

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