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Case Study-AW421 Online Services

Preparing the Feasibility Study

 
For Module 4, your assignment is to become familiar with the cost benefit analysis method to justify software selection. Follow the example given at FreeTutes, available at the link below. The CBA template is a good example of a typical cost benefit analysis, and the site contains other links to systems analysis. Use
the cost categories given on the site to develop the SLP. You will not be calculating the “select evaluation methods” since this requires math formulas.
 

SLP Assignment

 
Calculate a cost benefit analysis (CBA) for the inventory COTS acquisition you investigated in Case 4. Include major cost categories associated COTS purchase price, personnel, equipment, supplies, 5-year maintenance, training, and consultant fees. Be detailed in your categories to show where the money is being spent and what the benefits will be for the proposed system.
 
Follow the CBA example for this assignment and include a short written explanation of your analysis.
 
Use the following site as a reference to the Performing Cost Benefit Analysis.
Please note that tangible benefits are those that can be quantified in terms of dollars or unit volumes such as reduced expenses, increases throughput, or fewer processing errors. Alternatively, intangible benefits cannot be quantified and examples are customer goodwill, employee morale, better decision making, etc.
 

Preparing the Feasibility Study

Assignment Overview

 
Organizations install information systems to achieve competitive advantage, provide services to customers, and to simplify operations. These considerations are key points and enter into the choice of development alternatives. Using software packages can save time and effort in systems development, and management can purchase it immediately and negotiate customization with the vendor. A popular alternative is selecting COTS software to maintain control internally. When selecting COTS, the total cost of ownership (TOC) must be considered. The system must also support future growth to accommodate higher transaction volumes, storage capacity, and new business requirements. The TOC is calculated by adding all development cost and future expenses relative to maintenance and support. Software options and their application are described as follows.
 

Develop In-house

 
This option is chosen for applications that are strategic to the company or simply to satisfy unique system requirements or hardware constraints. Organizations having other in-house systems may find in-house development a necessity to easily interface to other applications.

Purchase COTS

 
Investigating software packages and comparing them to in-house development is usually done before the feasibility study is completed. The advantages of package software include lower cost, shorter implementation cycle, reliability, available upgrades, and vendor’s reputation.
 

Case Assignment

 
Based on the assigned materials, write a paper answering the following questions.
Suppose you were a business analyst developing a new information system to automate the sales transactions and manage inventory for each retail store in a large chain. The system will be installed at each store and exchange data with a main server in the head office. Based on the Case readings, discuss the decision criteria you will use to evaluate in-house development versus buying a COTS application. What option would you recommend?
 

Assignment Expectations

 
Your paper should be short (2-4 pages, not including cover sheet and references) and to the point. It is to be structured as a point/counterpoint argument, in the following manner.
 
You are expected to: Begin this paper by stating your position on these questions clearly and concisely Cite appropriate sources and answer questions directly. Be sure to make the most effective case you can. Then present the best evidence you can, again citing appropriate sources.
 
By the end of your paper, you should be able to unequivocally re-affirm your original position.
 
You will be particularly assessed on
 
Your ability to see what the module is all about and to structure your paper accordingly. Your informed commentary and analysis — simply repeating what your sources say does not constitute an adequate paper.
 
Your ability to apply the professional language and terminology of systems design and analysis correctly and in context; you are expected to be familiar with this language and use it appropriately.
 
Your effective and appropriate use of in-text citations to the assigned readings and other sourcematerial to support your arguments. Refer to the TUI Course Guidelines and or the Purdue University

Product code: Case Study-AW421

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