HI-600: Analysis and Design of Health Information Systems

Design: Part ISystem Acquisition Strategies

TRANSITION FROM ANALYSIS TO DESIGN

ANALYSIS DESIGNWhat are the

business needs?

How do webuild it?

Business requirements

System Requirements

Logicalprocess and data models

Physicalprocess and data models

Activities of the Design Phase

SYSTEM ACQUISITION STRATEGIES

• Custom Development

• Packaged Software

• Outsourcing

Custom Development

PROS• Flexible and

creative development

• Utilize current technologies

• Improve skills and knowledge of own IT

• Cheaper to develop and maintain

CONS• Dedicated, time

demanding effort• Requires high

skilled IS professionals

• Higher risk• Can cost more

than expected

Packaged Software

PROS• Tested and

packaged• Faster

implementation• Proven

performance on core processes

• Standardization• Existing user base

and expertise

CONS• Addresses only

common needs• May require

custom add-on (workaround)

• Systems integration is challenging

• Usually expensive• Long-term

commitment

Outsourcing

PROS• Low cost of entry • Short setup time• Reduced cost of IT

staff and infrastructure

CONS• Compromising

confidential information

• Losing control over future development

• Losing important skills of in-house professionals

• Application Service Provider (ASP)• Software as a

Service (SaaS)

Outsourcing Contract Types• Time and Arrangements• Fixed-price contract• Value-added contract

INFLUENCES ON THE ACQUISTION STRATEGY

SELECTING AN ACQUISITION STRATEGY

• More information gathering• Sources

– Own IT– Vendors

• Approaches– Request For Proposal (RFP)– Request For Information (RFI)– Request For Quote (RFQ)

• Merging of analysis results into a matrix of alternatives and criteria

Developing an Alternative Matrix

Sample Alternative Matrix Using Weights

Purchasing vs. Custom• Uniqueness of the system need• Cost and Resources• Maintenance• Future business states and agility /

scalability that will need to be built in• General advise• General needs: Purchase; Specific needs:

Custom• RFP from vendors and from own IT• Consider hybrid