-06-

IS Acquisition
--Susith Sanasuma

What is Obtain the information system resources needed to provide the services necessary to meet a
Acquisition? specific set of needs.

Automating – Doing things faster, cheaper, & more accurately

Why (value) Informating – Doing things better (improve processes & Support organizational learning)
Acquisition? Strategizing – Doing things smarter (gain or sustain a competitive advantage over rivals)
Turning benefits of automating & informating into strategic advantage

• Difficult to measure and quantify Effectiveness and Efficiency

• Time Lags – Benefits do not always occur at the same time as implementation
• Redistribution – may redistribute the pieces rather than grow
• Mismanagement – Bad business model not overcome by good IS
• Innovation is often fleeting – Advantages gained are short lived
• Innovation is often risky – Superior products may not win race
Difficulties of
• Innovation choices are often difficult – Cannot foresee the future
Acquisition
• The Innovator’s Dilemma – New technologies, products, or services that eventually surpass
[Productivity
dominant technologies
Paradox]
Solution – Disruptive growth engine
(Helps organizations respond to disruptive innovations more effectively)
1. Start early
2. Educate organization
3. Build a team of expert innovators
4. Executive leadership

Cost-Benefit Analysis
Justification of Brainstorm / Assign a Monetary Value Costs & Benefits / Compare Costs & Benefits
Acquisition Multi-Criteria Analysis
Identifies a set of goals or objectives and then attaching weights (scores)

• Process requirements – willing to do whatever it takes to implement the change.

Requirements
• Resource requirements – need to have the human capital necessary
of Acquisition
• Risk tolerance requirements – members must tolerate the risk and uncertainty.

E-Business • Choosing Enabling/Emerging IT Technologies

Innovation
• Matching Technologies to Opportunities
Cycle
• Executing Business Innovation for Growth (change is actually implemented)
(Acquisition
Cycle) • Assessing Value created for customers and internal operations

Build [System Development]

provide a better match to the current work processes
provide a potential competitive advantage
software development can be extremely costly
it can take months or even years to develop custom software.
tend to automate existing business process even it is poor

Buy [off-the-shelf software]

less risky (can test drive the s/w before acquire it)
Options for
quicker deployment
Acquisition
maintenance & support costs may become expensive
software may not be an exact match to the needs & work processes of the organization.
Poor existing business process will adapt by buying S/W

Lease [chose a S/W service provider]

No need to purchase and install additional H/W and S/W
service provider handles H/W & S/W maintenance and upgrades
Complex pricing arrangements and hidden cost may reduce cost savings
Performance issues over time