Systems Acquisition and Management

Systems Acquisition and Management

Learning Outcomes

  • LO 1: Describe life cycles for systems acquisition.
  • LO 2: Specify requirements for systems acquisition and evaluate challenges.
  • LO 3: Assess methods for the acquisition, development, and implementation of information systems.
  • LO 4: Compare and evaluate methods for software acquisition (COTS, FOSS, bespoke, outsourcing).
  • LO 5: Understand principles and processes of vendor selection and contract management.
  • LO 6: Identify major issues in IT-related organizational transformation and human resistance.

Assessment Structure

  • Continuous Assessment (CA): 40%
    • Assignment 1: 20%
    • Assignment 2 (Case Study): 20%
  • Final Examination (FE): 60%
    • Duration: 2 hours, consisting of 6 questions.

Introduction to Systems Acquisition

  • What is Systems Acquisition?
    • Process for selecting, purchasing, or developing information systems (hardware, software, services).
    • Aligns with organizational objectives to support operations.

Importance of Systems Acquisition

  • Improved Operational Efficiency: Automates tasks, streamlines workflows, boosts productivity.
  • Cost Reduction: Minimizes labor costs and operational expenses.
  • Support for Business Growth: Adapts to manage increased data and users as organizations expand.
  • Staying Competitive: Provides better products/services efficiently compared to competitors.

Life Cycle of Systems Acquisition

  • Follows a waterfall model including:
    1. Initiation
    2. Planning
    3. Procurement
    4. System Development
    5. System Implementation
    6. Maintenance & Operations
    7. Closeout
  • Each phase ensures alignment with business needs and risk minimization.

Initiation Phase

  • Recognition of the need for a new system and decision to seek solutions.
  • Involves feasibility studies to assess cost, time, and resources.

Planning Phase

  • Organizes and creates a roadmap for system development.
  • Sets clear goals, budget, and resource allocation.

Procurement Phase

  • Involves purchasing or obtaining resources needed for the system.
  • Requests proposals from vendors and selects the best option based on review.

System Development Phase

  • The actual creation or customization of the system takes place here.
  • Includes system design, configuration, and testing.

System Implementation Phase

  • Installation of the system and training employees on its use.
  • Involves data migration from legacy systems to the new solution.

Maintenance & Operations Phase

  • Ensures the system runs smoothly post-launch.
  • Regular updates, support for users, and monitoring for issues.

Closeout Phase

  • Review of system performance against initial goals.
  • Completion of documentation and tasks related to the project.

Hardware and Software Requirements

Key Components:

  1. Bring Your Own Device (BYOD): Policy allowing personal devices for work to enhance flexibility but secure risks.
  2. Infrastructure: Physical and organizational structures supporting IS operations.
  3. Telecommunication and Storage: Key components enabling effective information transfer and data management.
  4. Software Types: COTS, FOSS, custom-built, outsourcing vs in-house development.

Challenges in Using New Information Systems

  1. Change resistance from employees.
  2. Insufficient training leading to poor system usage.
  3. Limited stakeholder involvement in planning.
  4. Data quality issues within the system.
  5. Integration problems with existing systems.
  6. Unexpected costs can lead to budget overruns.

Information Systems and Underpinning Technology

  • Components of Information Systems: Includes hardware, software, data, processes, and people.
  • Essential Technologies: Cloud computing, databases, networking, and AI are crucial in modern IS.

Management of Organizational Issues in Systems Acquisition

  1. Resistance to Change: Employees may fear loss of jobs or struggle with new systems.
  2. Managing IT Changes: Consistent assessment of readiness, engagement, and training during transitions.
  3. Motivating Employees: Communicating the benefits of systems to drive acceptance and effective use.