Infrastructure Issues What are the issues in acquiring and managing the IT infrastructure.
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Transcript of Infrastructure Issues What are the issues in acquiring and managing the IT infrastructure.
Installation
Acquisition RFP and RFQ
benchmarks and penalties
MaintenanceService
Preventive and restorative maintenance Outsourcing
Outsourcing of IT Functions
Traditional Outsourcing: removing IT from a function for a long term (10 years)
Transitional Outsourcing: using outside services to move to a new environment over a short term (1-3 years)
Product Acquisition: purchasing functionality rather than building it
Outsourcing Difficulties
Contracts are structured for long periods (10 years is normal)
Early benefits are clear for the customer; late benefits to the outsource supplier(When the benefits start building for the outsourcer,
the customer starts wanting change)Few outsourcers large enough for big projects
(EDS, CSC, IBM, AT&T)Technology evolution changes strategic IT
relevance
Outsourcing Features
More than half of all firms are considering some sort of outsourcing activity
Acceptance of strategic alliancesWin-win alliances in many business areas
IT’s changing environmentFocus on networking and integration places
extraordinary pressures on legacy and state of the art systems management
Outsourcing Drivers
Management concern for cost and quality
Breakdown in IT performanceSupplier pressuresSimplified Company
management agendaFinancial FactorsCorporate culture
Request for Proposals
OBJECTIVE: OPEN, FAIR COMPETITION WITH UNDERSTOOD CRITERIA
Qualified vendors should be offered an opportunity to bid.
Intelligence
In-houseVendorsConsultantsLiteratureSimilar installationsReview services (Auerbach, DataPro)
RFP Process
First Pass:
Eliminate unacceptable alternatives; reduce the choices to 2-4 alternatives.
Second Pass:
Select the final product.
Need to publish:
Written requirementsFormal presentation
Don't let vendors run the selection
Evaluation standards
RFP Contents
IntroductionInstructions
ObjectivesContactsTimetable
System RequirementsMandatory RequirementsDesirable Features
Evaluation Method
Evaluation Criteria
Features TableHard Dollar Evaluations
Soft Dollar Evaluations
Delivery DateAcceptance Criteria & PenaltiesMandatory FeaturesDesirable features
Acquisition Strategies
Rent: Short term, complete vendor support, high cost
Lease: Intermediate term, local support, user specified equipment
Purchase: Cheaper, total user responsibility
Contract: Full vendor responsibility, contract sensitive
Validation
Test the proposed system to assure that it does what you want: Modeling Simulation Benchmarking Work sample analysis
Managing Product Contracts
You get what you negotiateInstallation is expensive
3%-15% of the installation costOngoing SupportLease Conditions
By user By device Site
Customization
Managing Service Contracts
It depends on what you want Commodity
Service level agreementsPenalties
RelationshipDispute resolution
Contracts and incentivesExit criteria