Transcript Introduction to Project Management Lecture Outline

Information Technology
Project Management
Buying Packaged Software: RFPs
and Vendor Selection
Why create software when
you can buy it?

Many times, the best solution is to buy
packaged software
 Often begins with the development of a
Request for Proposal (RFP)
 Detailed list of questions submitted to
vendors
RFP
What Should an RFP
Contain?

Key dates in the proposal process
– RFP release, proposal due date, proposal
evaluation, and so forth

Contact information
– Who the vendor may contact and how
communication should be done

Information about your business and your
requirements
Criteria for Evaluating Vendor
Software Packages

Financial viability of vendor
 Other vendor characteristics
 Contract terms and conditions
 Opinions of other users of the package
 Package characteristics

Financial Viability of the
Vendor
Does the vendor have sufficient capital/surplus
to meet its on-going obligations and to absorb
any unexpected financial losses?
 Does the vendor have any contingent liabilities
(e.g., lawsuits) that could adversely affect its
financial condition?
 Has the vendor achieved profitability from its
operations?
 Is there a concentration of revenue in one or
relatively few customers?
Other Vendor Characteristics

Does vendor provide timely on-site and/or
telephone support?
 Does vendor track user questions/problems?
 Does vendor adequately test new products and
releases?
 Does vendor have sufficient knowledgeable staff?
 Does vendor provide quality training and
documentation?
Contract Terms and
Conditions

If source code is not a deliverable, will it be
maintained at a third party location (e.g.,
bank vault), and be made available in the
event the vendor goes out of business?
 Is the timeframe within which the vendor is
required to respond to problems/questions
clearly defined?
 Is the extent of vendor support, training,
and documentation clearly defined?
Contract Terms and
Conditions cont’d

Is the timetable for all deliverables and payments
clearly defined?
 Has a favorable relationship between deliverables and
payables been negotiated?
 Are all costs clearly defined?
 Are there penalties if contractual agreements are not
met by the vendor?
 Does the contract allow for in-house use of the
package for acceptance testing purposes prior to
purchase?
Opinions of Other Users of
the Package

How satisfied are they? Would they purchase it
again?
 How responsive is the vendor to problems?
 Is the system easy to use?
 What kind of conversion/implementation
problems were encountered?
 How difficult is it to interface the package with
existing systems?
 What other products were considered and why
did they select this one?
Package Characteristics

Does it provide the needed functionality?
 Is it easy to use?
 Is its design flexible enough to allow changes?
 Does it have good documentation and help
screens?
 Does it use current but proven technology for
which support is available?
 Does it include appropriate control features?

Pros and Cons of Packaged
Software
Pros

Cons
Remember: Customizing
Packaged Software Drives Up
Total Costs
TOTAL IMPLEMENTATION
COSTS
10
8
6
4
2
0
0.5
1
2
3
4
% LINES OF CODE CONVERTED
5
Project Management
Challenges Remain



Just because you buy software or enter into an
outsourcing arrangement doesn’t mean that you
can count on the vendor to manage the project
Requirements still have to be determined and
system still have to be implemented along with
accompanying organizational changes . . . And
these are the two key areas where project often go
awry
The same project management principles apply