REQUEST FOR PROPOSAL (RFP)

1
REQUEST FOR PROPOSAL (RFP)

• Detailed list of Questions
• Submitted to Vendors
• to Determine if Vendors Product meets
  Organizations Specific Requirements

2
Alternate Approaches to Systems Development

• Software Packages
• In-house Development
• End-User Development
• Application Development Packages
• Outsourcing

3
APPLICATION SOFTWARE PACKAGES

• Rewritten, Pre-coded Application Software,
  Commercially Available For Sale Or Lease
• Geared To Common Requirements
• Customization
• Modification of Software to Meet Organizations
  Needs
• Must Weigh Costs / Benefits

4
USE APPLICATION PACKAGES

• Where Functions are Common to many
  Companies
• Where In-House Resources are Scarce
• When Microcomputer Applications are being
  Developed for End Users

5
CUSTOMIZATION

• Modifying Software Package To Meet Organizations
  Unique Requirements
• Without Destroying Integrity
• Of Package
• Raises Development Costs

6
Advantages to Software Packages

• Reduces the amount of design, testing and
  installation time
• Well pre-tested
• Short time frame from problem definition to
  implementation
• Vendor Reliability

7
EFFECTS OF CUSTOMIZING SOFTWARE ON TOTAL
IMPLEMENTATION COSTS
10
8
6
TOTAL IMPLEMENTATION
4
COSTS
2
0
0.5
1
2
3
4
5
LINES OF CODE CONVERTED
8
PACKAGE EVALUATION CRITERIA

• Functions Included
• Flexibility
• User Friendliness
• Hardware Software Resources
• Database/file Characteristics
• Installation Efforts
• Maintenance
• Documentation
• Vendor Quality
• Cost

9
In-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 frame

10
END-USER DEVELOPMENT

• End-users Develop Information System
• With Little Help From
• Technical Specialists
• Using 4th Generation Tools

11
Applications 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)

12
Fourth Generation Languages

• Improves productivity 25 to 500
• Used when manipulating small files
• Used with simple logic
• Permits rapid system development
• User friendly

13
Disadvantages 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 efficiency

14
END-USER DEVELOPMENT

• STRENGTHS
• 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 projects

15
END-USER DEVELOPMENT

• WEAKNESSES
• 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 Reports

16
END-USER DEVELOPMENT

• MANAGEMENT BENEFITS
• Improved Requirements Determination
• Increased User Involvement Satisfaction
• Development Controlled By Users
• Reduced Application Backlog

17
END-USER DEVELOPMENT

• MANAGEMENT PROBLEMS
• Insufficient Review / Analysis
• Lack Of Standards Controls
• Uncontrolled Data
• Proliferation Of Private Information Systems

18
Managerial 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/documentation

19
Managerial Issues with EUC

• Managing the data
• Security of the data
• Integrity of the data
• Eliminate Redundancy
• Managing the people
• Training Schedule
• Liaisons between departments

20
OUTSOURCING

• CONTRACTING
• Computer Center Operations
• Telecommunications Networks
• Application Development To
  External Vendors

21
ADVANTAGES OF OUTSOURCING

• Economy
• Service Quality
• Predictability
• Flexibility
• Making Fixed Costs Variable
• Freeing Up Human Resources
• Freeing Up Capital

22
DISADVANTAGES OF OUTSOURCING

• Loss Of Control
• Vulnerability Of Strategic Information
• Dependency

23
IS Development with Outsourcing

• Hire an outside consultant to
• Develop the system as designed by internal staff
• Design and develop the system

24
Advantages of Outsourcing

• Access to IS Expertise
• Shorter Development Time Frame
• Usually Excellent Quality
• Depends on vendor
• Cost ??

25
Disadvantages 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 layoffs.