Moving into Design

Learning Objectives

  • Explain the initial transition from analysis to design.
  • Create a system specification.
  • Describe three ways to acquire a system: custom, packaged, and outsourced alternatives.
  • Create an alternative matrix.

Transition from Requirements to Design

Key Ideas

  • In Systems Analysis we figure out what the business needs
  • In System Design we figure out how to build the system that fulfills those needs
  • All of the “logical” work from Systems Analysis is converted to the “physical”

Key Definitions

  • Design phase
    • Decide how to build the system
    • Create system requirements that describe all technical details for building the system
  • System specification
    • Final deliverable from design phase
    • Conveys exactly what system the development team will implement during the implementation phase

Design Phase Steps

  • Decide to build, buy, or outsource the system.
  • Plan the technical "skeleton" (architecture).
  • Plan for security and global users.
  • Select specific hardware and software tools.
  • Design how users will navigate and see info (UI).
  • Write the logic for how the system processes tasks.
  • Design how and where data is stored.
  • Finalize the "System Specification" (the master blueprint).

The Final System Blueprint

  • The Strategy: Should we build, buy, or hire?
  • The Scorecard: Why we chose this specific option.
  • The Map: How the servers and cloud connect.
  • The Shopping List: Exact hardware and software needed.
  • The User View: Screen mockups and button layouts.
  • The Logic: Instructions for the programmers.
  • The Vault: How and where data is safely stored.
  • Access Rights: Who can see or change the data (CRUD).

System Architect

  • source:Aws.amazon.com
    •

    System Acquisition Strategies

    Ways to Acquire a New System

    • Custom Build: Build it yourself from scratch.
    • Software Package (Off-the-shelf):
      • On-Premise: Buy and host it yourself.
      • Cloud/Hosted: Rent access from a provider.
    • Outsource: Pay a partner to build or buy/configure it for you.

    Custom Development (In-House)

    PROS (The "Why") CONS (The "Risk")
    Exact Fit: No wasted features. Time Intensive: Takes months, not days.
    Integration: Matches your tech stack. Resource Drain: Pulls staff from other tasks.
    In-House Knowledge: You own the expertise. Higher Cost: Salaries + Maintenance add up.
    Competitive Edge: Your rivals don't have it. Success Risk: High chance of scope creep or failure.

    Purchased Software (SaaS / Packages)

    PROS (Speed & Cost) CONS (Fit & Control)
    Battle-Tested: Proven and reliable. Imperfect Fit: Requires "workarounds."
    Rapid Start: Available almost instantly. Process Change: You must adapt to it.
    Shared Costs: Much cheaper upfront. Vendor Dependency: You rely on their help.
    Built-in Expertise: Vendor handles tech. Hidden Complexity: Hard to link to old apps.

    Cloud-Based Software (ASP & SaaS)

    • ASP vs. SaaS:
      • ASP: Provider hosts someone else's app.
      • SaaS: Vendor hosts their own app (standard today).
    • The Benefit: Massive savings on hardware and maintenance.
    • The Risks:
      • Security: Is our data safe on their servers?
      • Performance: Are we limited by internet speed?
    • The Strategy: Vet the company as much as the code. Will they be around in 5 years?

    Systems Integration: The "Digital Glue"

    • The Concept: Connecting disparate tools (legacy, packages, and custom code) into one ecosystem.
    • The Core Challenge: Data mapping—ensuring two systems interpret the same information the same way.
    • The Professional Niche: Integration consulting is a major industry because "talking" between systems is rarely straightforward.

    Outsourced Development

    PROS (The Benefits) CONS (The Risks)
    Instant Expertise: Hire skills you don't have. No Skill Growth: Team learns nothing new.
    Speed & Value: Often faster and cheaper. Vendor Lock-in: You rely on them for fixes.
    Lower Internal Risk: Vendor handles the build. Limited Flexibility: Hard to pivot mid-project.
    Focus: Keeps your team on core tasks. Data Security: Sharing info with third parties.
    Accountability: Performance tied to contract. Contract Ties: Quality is only as good as the SLA.

    Outsourcing Strategy

    • Definition: Hiring external experts to build or provide your system.
    • Custom Options: They can build a one-of-a-kind tool just for you.
    • The Goal: Lower costs and gain access to high-level expertise quickly.
    • Critical Risks:
      • Security: Privacy of company data.
      • Independence: Losing the ability to grow the system ourselves.
      • Skill Gap: Missing the chance to train staff.

    Outsourcing Contracts

    • Time and arrangements
    • Fixed-price
    • Value-added

    Outsourcing: The Golden Rules

    • Communicate: Keep the lines open; never "set it and forget it."
    • Lock Requirements: Finish the plan before signing the check.
    • Partnership: Treat the vendor as an extension of your own team.
    • Manage the Link: Assign a dedicated lead to oversee the vendor.
    • Knowledge is Power: Never outsource a process you don't understand.
    • Stay Agile: Aim for long-term trust but short-term, flexible contracts.

    Influences on the Acquisition Strategy

    What factors do we consider?

    Acquisition Strategy Selection Factors

    Selecting an Acquisition Strategy

    How do we choose?

    Developing Our Options: The Fact-Finding Mission

    • Goal: Collect hard data to compare our three paths.
      • The Market: Which vendors already have a "ready-to-go" product?
      • The Tech Stack: What languages, databases, and tools would we need to build it?
      • The Partners: Which outside firms have the right experience to build it for us?

    The Procurement Toolkit

    • RFI (Information): Gathering facts. "What can you do?"
    • RFP (Proposal): Detailed plans. "How would you solve our specific business problem?"
    • RFQ (Quote): Commodity pricing. "We know what we need; what is your best price?"

    Inside the RFP: The Vendor's Guide

    • The Mission: Clear description of what the system must do.
    • The Rules: Special technical constraints and security needs.
    • The Scorecard: How we will grade and select the winner.
    • The Format: Specific instructions on how to submit the bid.
    • The Deadline: Our expected project schedule and milestones.
    • The Context: Extra details to help vendors provide a fair, accurate price.

    The Alternative Matrix: Data-Driven Choice

    • Centralized View: Merges all feasibility studies into one table.
    • Three Pillars: Evaluates Technical, Economic, and Organizational fit.
    • Weighted Importance: Gives more "power" to the factors that matter most to the business.
    • Scoring System: Objectively grades how each option (Build/Buy/Outsource) performs.

    Sample Alternatives Matrix

    Tune Source Alternatives Matrix

    Thank you

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