Chapter 13 - Preparing the Systems Proposal
- Methods Available
- Ascertaining Information Systems (hardware, software, data, people, procedures) Needs
- Inventorying Computer Hardware (Fig. 13.2)
- Estimating Workloads (Fig. 13.3)
- Evaluating Computer Hardware
- Acquisition of Computer Equipment (buying, leasing, renting) (Fig. 13.4)
- Software Evaluation (Fig. 13.8)
- Data Needs Evaluation
- Evaluating Personnel Needs
- Evaluating Procedures Needs
- Identifying and Forecasting Costs and Benefits
- Forcasting Costs and Benefits
- graphical judgement
- method of least squares
- moving averages
- Identifying Benefits and Costs
- Tangible Benefits
- Intangible Benefits
- Tangible Costs
- Intangible Costs
- Comparing Costs and Benefits
- Break-Even Analysis
- Payback
- Cash-flow Analysis
- Present Value (assess all the economic outlays and revenues of the IS over its economic life comparing costs and benfits today with future costs and benefits)
- Guidelines for Analysis
- Use break-even analysis if the project needs to be justified in terms of cost, not benefits, or if benefits do not substatially improve with the proposed system.
- Use payback when the improved tangible benefits form a convincing argument for the proposed system.
- Use cash-flow analysis when the project is expensive relative to the size of the company, or when the business would be significantly affected by a large drain on funds.
- Use present value when the payback period is long or when the cost of borrowing money is high.
- Examining Alternative Systems
Exercises: Problems #1, 12(due - noon Nov. 5, 1998)
e-mail to summers_wayne@ColumbusState.edu your answers to the following problems:
turn in on Oct. 27th a solution to Group Project # (this may be completed in a small group of 3 to 4 students)
Explore the MRE HyperCase company and e-mail the answers to the questions #1,2,3 on page 443. [This can be done in a group of 2-3]