Information Technology (IT) Acquisition

IT Acquisition

Activity 9: Value Proposition

The adoption and implementation of more complete and appropriate e-business structures will provide immense intangible value to the company as well as an estimated economic benefit $2 million over the life of the project.

Activity 10: Acquisition Strategy

The proposed project is the acquisition and implementation of a new IT security system and stronger E-business structures. The total initial development cost of the project is estimated at $264,600, with recurring costs of $87,000 per year in order to maintain the project, for total costs of $786,600 over the six-year course of the project. Fiscal benefits will not be realized until Year 1 of the project (the year following initial implementation of the project), and will be approximately $200,000 this year, $350,000 in the following year, and with diminishing returns in following years. This new IT security system adoption is necessary to protect the business form theft and copyright infringement, and to enhance sales.

2. System Life Cycle

Planning has already primarily been accomplished, and consisted of identifying and comparing alternative solutions as well as providing in=depth risk assessments of the alternative selected. Acquisition will be carried out following project approval, and will consist of hardware and software upgrades as well as training for store managers. Implementation will require on-task training of relevant staff and ongoing maintenance of the system. Operations will continue after incorporating necessary changes and adjustments, and project disposal will be achieved in approximately six years with the acquisition of an updated system.

3. Basic Acquisition Approach

The basic approach to acquisition for this project is an aggressive risk-benefit assessment of various alternatives, systems and vendors, training and implementation programs, etc. Ample research and client referrals will be used to identify appropriate and qualified suppliers of the needed IT security system.

Market Research

Market research will be conducted to determine appropriate capabilities and costs.

Use of Competition

Closed bids will be received form selected vendors in a two round process that will instill greater competition into the acquisition process.

Potential Sources

RSA, United Security Providers, and Astaro internet Security will all be explored as potential vendors for the necessary IT system and software.