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Purchasing and Financial Management of Information Technology


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Table of Contents

IT Acqusition Policy: Introduction; The Objectives of Purchasing; What Makes IT Purchasing Different?; IT Strategy and Purchasing; IT Value; Foundations of IT Purchasing Policy; Purchasing Procedures; Dealing with Suppliers: Introduction; Good supplier relationships; Poor Supplier Relationships; Joint Development; Good Suppliers; Supplier Management Strategies; Handling Salesmen; Negotiating; Using Formal Tenders; Total Outsourcing; Sources Of Supplier Information; IT Costs and Cost Management: Are We Getting Value From IT?; The Dynamics Of IT Cost Growth; Identifying IT Costs; Managing hidden costs; Training costs; Managing Maintenance and Support Costs; Testing, Installation and Implementation; Invisible Costs; Chargeback; Outsourcing; Evaluating and Reviewing IT Investments: Principles Of IT Evaluation; IT Benefits; Why IT Expenditure is Difficult to Evaluate; Methods Of Evaluating IT Expenditure; IT Expenditure Benchmarking; Reviewing and Auditing IT Systems; IT Budgeting, Accounting and Cost Control: Introduction; Prerequisites For Good IT Budgeting; Why Good Budgeting Is Important; Four Basic Approaches to Budgeting; Ownership; Practical Rules For Budget Ownership; The Scope Of IT Budgeting; Roles In The IT Budgeting Process; Building a Budget; Project And Expenditure Justification; Chargeback Budgeting; Phasing a Budget; Reporting Against Budget; Forecasting; Good Monitoring And Reporting Practices; Tracking Hardware And Software; Accounting For IT; A Final Checklist; Specifying Hardware and Systems Software:
Introduction; Two Approaches To Specification; Important Definitions; Specifying Processors; Specifying Desktop Machines; Specifying Portable PCs; Specifying On-Line Storage; Specifying Printers; Specifying Communications Requirements; System Software; Specifying Ergonomics; Specification of Application Software: Introduction; The Importance Of Good Software Specification; Specifying Requirements for Packaged Software; Functional Requirements; Specifying Custom Software Requirements; Conclusion; Purchasing and Other IT Products and Services: Introduction; Purchasing Hardware Maintenance; Purchasing Consultancy Services; Purchasing Systems Integration Services; Purchasing Contract Staff; Purchasing Resilience and Disaster Recovery Capability; Security; Evaluation and Selection of IT: Introduction; Overview of Evaluation Steps; Supplier Presentations; Demonstrations; Benchmarking; Weighted Ranking Methods; Reference Sites and Site Visits; Summary; Risk and Risk Management: Introduction; Supplier Risks; Hardware Purchasing Risks; System Software Risks; Packaged Software Risks; Custom Software Risks; Consortium Risks; People Risks; Major Project Risks; Quantifying Risk; Conclusion - Risk and Rationality; Legal Aspects of Purchasing: Introduction; Contracts - Basic Principles; Standard Contracts; Negotiated Contracts; Escrow and Related Matters; Licences; Other Contract Issues; Conclusion.

Promotional Information

* Shows how to deal with suppliers * Explains how to evaluate IT costs and benefits * Demonstrates how to budget and control costs

About the Author

Frank Bannister is a Senior Lecturer in Information Systems at Trinity College, Dublin. After graduating from university, he joined the Irish civil service and worked in operations research and economic policy for three years prior to joining Price Waterhouse as a management consultant in 1978. Over the following sixteen years to 1994, he worked with Price Waterhouse on a wide range of information systems assignments in Ireland, the U.K. and Europe in both the public and private sectors, specialising in financial modelling, system design & development and in system specification & selection. He remained a Consulting Associate with PricewaterhouseCoopers Consulting until their take-over by IBM in January 2003. In 1994 he moved to Trinity College where he is currently Director of Studies for the Management Science and Information Systems (MSISS) programme. His currently teaching responsibilities include strategic information systems and decision making and modelling. His research interests are in IT value and evaluation, IT acquisition as well as in e-government and e-democracy. Frank has written many articles on information technology and systems and has lectured extensively on these and related topics in Ireland and the UK.

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