3/5/2009 Computer systems 1

Preparing thePreparing theSystems ProposalSystems Proposal

1. Ascertaining Hardware needs

2. Ascertaining Software needs

3. Forecasting Costs and Benefits

4. Systems Proposal

3/5/2009 Computer systems 2

HardwareHardware

inventorying computer hardwareinventorying computer hardware estimating workloadsestimating workloads evaluating computer hardwareevaluating computer hardware acquisition of computer acquisition of computer

equipmentequipment

3/5/2009 Computer systems 3

Inventorying Computer Inventorying Computer HardwareHardware

Type of equipmentType of equipment operation statusoperation status

– on order, operating, in storage, need on order, operating, in storage, need repairrepair

age of the equipmentage of the equipment projected life of the equipmentprojected life of the equipment physical locationphysical location owner of the equipmentowner of the equipment

– department or persondepartment or person financial arrangement financial arrangement

– owned, leased, rentedowned, leased, rented

3/5/2009 Computer systems 4

SoftwareSoftware

Create custom softwareCreate custom software buy commercial off-the-shelf buy commercial off-the-shelf

(COTS)(COTS) Application Service Provider (ASP)Application Service Provider (ASP)

3/5/2009 Computer systems 5

Costs and BenefitsCosts and Benefits

ForecastingForecasting– Estimation of trendsEstimation of trends

IdentifyingIdentifying– tangible benefitstangible benefits– intangible benefitsintangible benefits– tangible coststangible costs– intangible costsintangible costs

3/5/2009 Computer systems 6

Comparing Costs and Comparing Costs and BenefitsBenefits

break-even analysisbreak-even analysis cash-flow analysiscash-flow analysis present value analysispresent value analysis

3/5/2009 Computer systems 7

Guidelines for AnalysisGuidelines for Analysis break-even analysisbreak-even analysis

– project needs to be justified in terms of costproject needs to be justified in terms of cost paybackpayback

– improved tangible benefitsimproved tangible benefits cash-flow analysiscash-flow analysis

– project is expensive relative to the company project is expensive relative to the company sizesize

present value analysispresent value analysis– period is long or cost is highperiod is long or cost is high

3/5/2009 Computer systems 8

System ProposalSystem Proposal cover lettercover letter title page of projecttitle page of project table of contentstable of contents executive summary (including recommendations)executive summary (including recommendations) outline of system study with appropriate outline of system study with appropriate

documentsdocuments detailed results of the systems studydetailed results of the systems study systems alternativessystems alternatives system analysts’ recommendationssystem analysts’ recommendations proposal summaryproposal summary appendicesappendices