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4) SYSTEM'S EVALUATION AND CHOICE (4.1 FEASIBILITY TEST (2)…
4) SYSTEM'S EVALUATION AND CHOICE
4.1 FEASIBILITY TEST
2) Operational Feasibility
Covers 2 aspect :
1) Technical performance : whether information system can provide the right info at right time and place
2) Acceptance within the organization
OF is function of HR for project.
How system operate & how users will accept it
OF :
-whether organization has ability and willing to provide training for users
-entails the new information system getting full support from management
3) Economic Feasibility
Determine whether a proposed information system will yield benefits that exceed its costs
A good starting point for evaluating an investment is to estimate the costs and benefits as cash flows and analyze it payback period, ROI and NPV
1) Technical FeasIbility
Determine whether a proposed information system is possible given the current state of technology
A project is technically feasible if the technology is available and capable to meet user request
TF must access the suitability of hardware and software to be acquired and either it is compatible with existing information system or not.
TF must also access the ability of the proposed system to interface with the systems used by the organization's customer & supplier
4) Schedule Feasibillty
Is there any specific deadline
4.2 COST-BENEFIT
ANALYSIS
1) Costs
Tangible cost
: Cost that can be determined at a specific RM
eg : hardware & software purchase
Intangible cost
: RM can't be accurately determined
eg : the cost of customer dissatisfaction
Direct cost
: Directly associate with the development of a specific information system
eg : salaries of project team members
Indirect cost/overhead cost
: Cannot be specifically attributed to the development of a particular information system
eg : monthly rental
Fixed cost
: Constant cost that don't depend on level of activity
eg : 1) recurring cost ( hardware and software maintenance
2) One-time cost : software purchases
Variable cost
: Vary cost that proportion to a level of activity
eg : OT wages
2) Benefits
Tangible benefits : Increase benefits or reduce cost
eg : increase sales or labor reduction
When benefits is largely intangible, the traditional analysis of cost and benefits is less suitable. May prevent to develop system that important to the organization
Need to seek creative ways
Sources quantifying intangible benefits and manipulate into financial terms are customer and employees opinion surveys, statistical analysis, expected value method and simulation models
Overstated or understated may pushed forward by its proponents or killed by its opponent
4.3 SYSTEM EVALUATION
& CHOICE
1) Identify potential
vendors
Locate vendors selling packages that might satisfy your needs
To keep process to a reasonable period of time, it is advisable to limit the final group of vendors to about 3 or 4
Request for proposal(describe the current situation and the detailed rq of organization) is distributed to the vendors
When the vendors responses the request, they are evaluated according to the list of criteria identified by you.
Organization can arrange for vendor presentation and on-site visits to help gather additional info to see the system in actual working environment
Organization may also interview the users and see the system in operation
2) Select and Purchase
the Software Package
Contract to protect both parties is important
Once contract signed, vendor would install the package with 1) built-in functionality, 2) degree of uniqueness and 3) willing of organization and vendor to compromise the issue between organization and need and software features
3) Install the
Software Package
The systems need to to be tested, users trained and conversion strategy to move from the old system to the new one
Maintenance must be done
Analyze rq of info system by identifying key features :
Summarize of 1) system's transaction vol, expected growth figure 3) external constraint