Managing Information Technology

392 Part III • Acquiring Information Systems

in detail, we then briefly discuss the project team roles,
how to effectively manage a purchased system project, and
the major advantages and disadvantages of purchasing a
packaged system.
Although at first glance it appears relatively easy to
purchase packaged software, many instances of systems
implementation problems have arisen because an organi-
zation simply did not understand what was involved in
acquiring and installing the software package that was
purchased. Our description of the purchasing steps
assumes that an initial approval has been received for a
new system that is of sufficient size to merit a full
purchasing process. As we will discuss, the package
selection should be a joint decision between business
managers who can assess the organizational benefits and
risks and IS professionals who can help assess the bene-
fits and risks from a technical as well as ongoing support
perspective.
Note that our focus here is on what has been referred
to as a “dedicated” package that offers a solution to a
particular business problem, rather than a personal produc-
tivity suite (e.g., Microsoft Office). Our discussion also
assumes that an organization has its own IS specialists.
Organizations that have no IS specialists will need to rely
on the vendor or outside consultants, or both, to provide
the necessary IS expertise.

The Purchasing Steps

The template for the purchasing process steps is shown in

Figure 10.1. The steps for purchasing application packages

fit into the three life-cycle phases introduced in Chapter 8:

Definition, Construction, and Implementation. In the

systems development life cycle (SDLC) methodology

described in Chapter 9, detailed systems specifications

(what the system is to do) are documented in the Definition

phase; the system is built in the Construction phase; and

the system is installed, operated, and maintained in the

Implementation phase.

Because customized application development using

an SDLC process historically came first, the process for

purchasing packages is referred to here as a modified

SDLC approach. In the Definition phase, an organization

not only defines its system needs but also then uses these

requirements to identify potential vendors and solutions

and then collect enough information to be able to evaluate

them. In comparison to the SDLC process for custom soft-

ware, the Definition phase is expanded to include five

additional steps, beginning with creating a short list of

potential packages.

Because an off-the-shelf packaged solution has

already been designed, built, and tested by a vendor, the

Construction phase is radically reduced. An exception here

Implementation

Installation

Operations

Maintenance

Construction

System Design (for package modifications)

System Building (for package modifications)

System Testing

Definition

Feasibility Analysis

Requirements Definition

Create Short List of Packages

Establish Evaluation Criteria

Develop and Distribute RFP

Choose Package

Negotiate Contract

FIGURE 10.1 Phases and Steps of Systems Development Life Cycle when Purchasing a Package