Systems Analysis

and Design

Chapter 2
Systems and RFP
Learning Objectives
 Explain outsourcing.
 Describe six different sources of
software.
 Discuss how to evaluate off-the-shelf
software.
 Explain RFP and its role in software
development.

Chapter 2 2
Introduction
 There are various sources of system for
organizations.
 Most of a corporation’s application system
is created by external sources.
 Much in-house coding involves making
components work together.
 There are criteria to evaluate system from
different sources.
Chapter 2 3
Systems Acquisition: Outsourcing

 Outsourcing: Turning over

responsibility of some or all of an
organization’s information systems
applications and operations to an
outside firm

Chapter 2 4
Systems Acquisition: Outsourcing
(Cont.)
 Outsourcing Example
• Shell Oil outsource spending: $3.2
billion (2008)
• Shell’s outsourcing vendors (2008-
2011): EDS, T-Systems, AT&T, IBM,
Logica, Wipro, Accenture

Chapter 2 5
Outsourcing (Cont.)
 Reasons to outsource
 Cost-effectiveness
 Take advantage of economies of scale
 Make up for lack of in-house knowledge
 Free up internal resources
 Reduce time to market
 Increase process efficiencies
 System development is a non-core activity for the
organization
Chapter 2 6
Sources of Systems
1. Information technology services firm
2. Packaged software producers
3. Enterprise-wide solutions
 Enterprise Resource Planning (ERP)
4. Cloud computing
5. Open source software
6. In-house developers

Chapter 2 7
Sources of System (Cont.)

FIGURE 2-1
Sources of Application Software

Chapter 2 8
Sources of System (Cont.)

Chapter 2 9
Information Technology (IT)
Services Firms
 Help companies develop custom
information systems for internal use
 Develop, host, and run applications for
customers
 Provide other services

Chapter 2 10
Information Technology (IT)
Services Firms
 Examples in Malaysia
 DellGlobal Business Center Sdn Bhd
 IBM Malaysia Sdn Bhd
 WEBSE Sdn. Bhd.
 Century Software (M) Sdn. Bhd.
 Software International Corporation (M) Sdn
Bhd

11
Packaged Software Producers
 Serve many market segments
 Provide software ranging from broad-
based packages (i.e. general ledger) to
niche packages (i.e. day care
management)
 Pre-packaged, off-the-shelf software

Chapter 2 12
Packaged Software Producers
(Cont.)
 Software runs on all size computers, from
microcomputers to large mainframes.
 Prepackaged software is off-the-shelf,
turnkey software (i.e. not customizable).
 Off-the-shelf software, at best, meets 70% of
organizations’ needs.

Chapter 2 13
Prepackaged Software

Chapter 2 14
Enterprise Solutions Software
 Enterprise Resource Planning (ERP)
systems integrate individual traditional
business functions into modules enabling
a single seamless transaction to cut
across functional boundaries.
 SAP AG is the leading vendor of ERP
systems.

Chapter 2 15
 Enterprise Solutions Software (Cont.)

© Copyright SAP AG. All rights reserved.)

Chapter 2 16
Cloud Computing

 The provision of computing resources,

including applications, over the Internet, so
customers do not have to invest in the
computing infrastructure needed to run
and maintain the resources

Chapter 2 17
Cloud Computing (Cont.)

 Examples:
 Google Drive – users store what they want on
servers
 Salesforce.com – online customer relationship
management (CRM) software
 Microsoft Azure platform
 Amazon.com cloud infrastructure and
services

Chapter 2 18
Cloud Computing (Cont.)
 Heavy growth predicted
 Benefits:
 Free internal IT staff
 Faster access to application than via internal
development
 Lower cost than internal development

 Concerns
 Security
 Reliability
 Regulation compliance
Chapter 2 19
Open Source Software
 Freely available including source code
 Developed by a community of interested
people
 Performs the same functions as
commercial software
 Examples: Linux, mySQL, Firefox
 How to make money?
 Provide maintenance/services
 Sell a more featured version of the free
software
Chapter 2 20
In-House Development
 If sufficient system development expertise with
the chosen platform exists in-house, then some
or all of the system can be developed by the
organization’s own staff.
 Hybrid solutions involving some purchased and
some in-house components are common.

Chapter 2 21
Sources of Software Components

Chapter 2 22
Selecting Off-the-Shelf Software
 Cost: comparing the cost of developing
the same system in-house with the cost of
purchasing or licensing the software
package
 Functionality: the tasks that the software
can perform and the mandatory, essential,
and desired system features

Chapter 2 23
Selecting Off-the-Shelf Software
(Cont.)
 Vendor support: whether and how much
support the vendor can provide and at
what cost
 Viability of vendor: can vendor continue
to adapt/update software to changes in
systems software and hardware

Chapter 2 24
Selecting Off-the-Shelf Software
(Cont.)
 Flexibility: the ease with which software is
customized
 Documentation: understandable and up-
to-date user’s manual and technical
documentation

Chapter 2 25
Selecting Off-the-Shelf Software
(Cont.)
 Response time: how long it takes the
software package to respond to the user’s
requests in an interactive session
 Ease of installation: a measure of the
difficulty of loading the software and
making it operational

Chapter 2 26
Request For Proposal (RFP)
 A request for proposal (RFP) is a
document provided to vendors to ask them
to propose hardware and system software
that will meet the requirements of a new
system.

Chapter 2 27
Request For Proposal (RFP)
(Cont.)
 Sometimes called a Request For
Quote (RFQ)
 Analyst selects best candidates
based on:
 vendor bids
 a variety of information sources

Chapter 2 28
RFP Process
Request for Proposal Posted

Vendors submit Questions

Answers to Questions Posted

Proposals are Received

Execute Evaluation and Validate Scores

Notify Short-Listed Vendors

Demonstrations by Vendors

Select Successful Vendor

29
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 30
Identify the RFP for these
systems
 CSIT In-Class Student Attendance System
 TNB ICT Meeting Room Booking System
 UNITEN Online Application System for
International Students
 KFC Mobile Apps Ordering System

* Who, What, Why, State of Purpose*

31
CSIT In-Class Student
Attendance System
 Who: CSIT Head of Departments
 What: A new system that allows students’ attendance
taking to be done using thumb scanning devices.
 Why: Old methods used are easily misused by
students to cheat their attendance.
 State of Purpose: To change to a new system.
Students need to scan their thumbs using a
thumbscanner as they enter each class sessions.
The scanner will then update students’ attendance
accordingly into the database. Lecturers will validate
by the end of each class. 32
TNB ICT Meeting Room
Booking System
 Who: TNB ICT Senior Operation Manager
 What: An online system that allows staffs to book any
meeting room using their computer or mobile phone
 Why: The current booking system can only be used
through intranet. This caused problems to staffs who are
outside of TNB ICT
 State of Purpose: To improve the current system. To
allow booking feature accessible outside of TNB ICT’s
intranet by using the internet. Staffs can login into the
system anywhere as long as there’s internet access, and
do booking without any location restriction.
33
Information Sources For RFP
 Vendor’s proposal
 Running software through a series of tests
 Feedback from other users of the vendor’s
product
 Independent software testing services
 Articles in trade publications

Chapter 2 34
System Service Request (SSR)

 A standard form for requesting or proposing

systems development work within an
organization (to be done internally).
 Will be processed and controlled by internal
unit within an organization.

 Normally, for smaller scale system, e.g., Staff

Request for Facilities Booking, Company’s
Car or Van Booking System

Chapter 2 35
 Template of SSR
Example of complete SSR
https://www.chegg.com/homework-
help/questions-and-answers/create-
system-request-form-srf-system-request-
project-name-internship-app-project-
sponsor--q29563205

Chapter 2 36
Example of SSR
Company’s Car or Van Booking System
 Project Name: UNITEN Van Booking System
 Project Sponsor: Marketing Department
 Business Need
 Background: Marketing Department has been given the responsibility to promote all
programs held at UNITEN.
 Business Opportunity: To save mileage cost claims among Marketing Department staffs
 Business Objective: To prioritize the use of vans available at UNITEN for Marketing
Department specifically for marketing purpose
 Functionality: Priority 1 Feature Login into system – only marketing dept staffs

Priority 2 Feature Select Date and time

Priority 3 Feature Select Van

Priority 4 Feature Get confirmation of booking

 Expected Value:
 Tangible: 60% saving in cost claims
 Intangible: Happier Marketing dept staff for not being stress facing traffics
 Special Issues/Constraints: must be accessible only by Marketing Dept staffs

Chapter 2 37
Summary
 In this chapter you learned how to:
 Explain outsourcing.
 Describe six different sources of software.
 Discuss how to evaluate off-the-shelf
software.
 Explain RFP and its role in software
development.

Chapter 2 38