Course Name

Year

BINUS University

: 108R-Corporate Information System

Management
: 2012

Course : 0304M Corporate Information

System Management
METHODOLOGIES FOR PURCHASED
SOFTWARE PACKAGES
Session 10
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CHAPTER 10

METHODOLOGIES FOR
PURCHASED SOFTWARE
PACKAGES
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Detail Material
Focuses on the selection, design, and implementation of
purchased software packages

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Learning Outcome
Understanding the overall business and IT Benefits that an
organizations needs to consider when it has a choice
between purchasing a software application and developing
a customized application
Describe in detail the process steps for selecting, preparing
for, and implementing a software application package, as
well as some of the project team roles and keys to success

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METHODOLOGIES FOR PURCHASED SOFTWARE

PACKAGES
Make or Buy Decision
Purchasing Methodology
Initiating the Purchasing Process
Definition Phase
Construction Phase
Implementation Phase
Project Team for Purchase Packages
Managing a Purchased system Project
Purchasing Small Systems
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PURCHASING METHODOLOGY
Purchasing Steps
Initiating purchasing process
Definition Phase

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Definition Phase

Requirements Definition
Create short list of suitable packages
Establish criteria for selection
Develop and distribute the RFP (Request for Proposal)
Evaluate vendor responses to RFP and choose package
Negotiate Contract

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Phases and Steps of SDLC when Purchasing a Package

DEFINITION
-Feasibility Analysis
-Requirements Definition
-Create Short List of Packages
-Establish Evaluation Criteria
-Develop and Distribute RFP
-Choose Package
-Negotiate Contract

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CONSTRUCTION
-System Design
-System Building
-System Testing

IMPLEMENTATION
-Installation
-Operations
-Maintenance
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COMPARISON OF COSTS FOR BUILDING VS PURCHASING A SYSTEM

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KEY CRITERIA FOR SOFTWARE PACKAGE SELECTION

The Package
Functional capabilities of the packaged system
Technical requirements the software must satisfy
Amount and quality of documentation provided
The Vendor
Business characteristics of the vendor firm
Vendor support of the package initial and ongoing

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EXAMPLE OF EVALUATION WORKSHEET

FOR VENDOR DEMONSTRATION

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EXAMPLE OF EVALUATION WORKSHEET

FOR VENDOR DEMONSTRATION

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Needs of
The Company

Capabilities of
the Package

Identify
Discrepancies

Choose
Alternatives

Modify
the Package
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Change
Procedures

Live with
Differences
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MATCHING COMPANY NEEDS WITH CAPABILITIES OF THE PACKAGE

IMPLEMENTATION PHASE
Installation
Operations
Maintenance

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PURCHASING PACKAGE
ADVANTAGES
Reduced time to implement
Lower overall acquisition costs
Reduced need for internal IS resources
High application quality (debugged and best practices)
Infusion of external expertise (IS, Business)
DISADVANTAGES
Risk due to lack of package knowledge
Risk due to extent of organizational changes required
Initial and ongoing dependance on vendor

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OPEN SOURCE SOFTWARE

A large pool of volunteer testers and developer facilitate the
construction of reliable, low cost software in a relatively short
amount of time
The ability to modify source code to add new features, not those
on the priority list developed by marketing department of software
vendor
Do not become dependent on one vendor or proprietary code
Acquisition cost is the same for one copy, It can be much less
expensive to make software available to large number o fusers
Use the software for any purpose, to distribute with software for
profit making activities
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NEW PURCHASING OPTIONS : APPLICATION SERVICE

PROVIDES (ASP)
ASP provider may be a specialist in he particular hosted
software.
Major technology vendors such as microsoft and oracle
provide a variety of data storage and application software
via ASP hosting options
Advantage for choosing an ASP :
Cost Saving
Faster speed of implementation

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SUMMARY
Purchasing package software is an alternative to custom software
development that increasing pursued by organization of all size
Process for purchasing an application is based on life cycle
phases as a custom approach : Definition, Construction, and
Implementation
Construction phase activities varies depending on whether or not
the source code of package is modified , which may be done by
vendor
Expertise implementation of packaged system has become an
important IT capability, manager have been created in order to
manage relationships with IT vendors, Organization are increasing
considering open source packages in addition to proprietary
application packages
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