response 6 week

Kevin

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Respond to the post and include citations

The triple constraints of project management are time, cost, and scope. A change in any of the three has a direct effect on the others as well as the projects overall quality. However, unsuccessfully managing the scope of the applicant tracking system will result in the system becoming too complicated or larger than originally planned (IT Project Management, 2022). Not managing the scope would raise costs and take more time. So, I believe managing the scope would be the most important constraint.

 

There would be a few different approaches to take when managing the scope of the new applicant tracking system. Managing the time and cost of a project can be controlled with the scope.

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Scope and Time:

 If time is running out on a project, reducing your projects scope will also reduce the time of your project. If the stakeholders come up with extra implementations, you can also increase the time by increasing the scope.

 

Scope and Cost:

Reducing the scope will result in executing fewer task which will also lower the cost. And vice versa, a larger projects scope results in higher costs (Westland, 2022).

Reference

s

IT Project Management. (2022). Retrieved from https://learn.umgc.edu/d2l/le/content/622997/viewContent/25150642/View

 Westland, J. (n.d.). The triple constraint in Project Management: Time, scope … Project Manager. Retrieved February 24, 2022, from

The Triple Constraint in Project Management: Time, Scope & Cost

Deborah

Respond to the post and include citations

“There are four key variables associated with any project, and they are time (schedule), resources (human and financial), the scope of work, and quality. Time, Cost, and Scope are often referred to as the Triple Constraints as a change in any of these three has an impact on the others and the project quality”. (UMGC, 2022). I chose “cost” as the most critical constraint for the project of implementing an enterprise hiring system.

I chose Cost because it is the heartbeat of the project. Every individual interviewed expressed they wanted a fast, functional, capable, and able to install quickly, but the chief information officer (CIO) wanted a cost-effective system. MTC has a reputation to uphold, and the shareholders want to take this business globally, and to do that cost of any new system is a factor. The triple constraints rely on each other to keep balance. If the scope changes, the budget changes (cost), and so does the timeline (time). Costs drive deadlines which in turn drives people to complete the job. Every aspect of implementing a new hiring system is tied to cost.

Selecting the best method of communication is key to successful implementation. “Electronic communication (email or updates to the MTC website) is best when the communication is simple in nature, like announcing the meeting date and time.

The best way to communicate is with a face-to-face meeting, video conference, or phone to discuss implementing a new project at least weekly or bi-weekly. (Zucker, 2019)

UMGC. (2022). IT Project Management. Retrieved from IT Project Management: https://learn.umgc.edu/d2l/le/content/622997/viewContent/25150642/View

Zucker, A. (2019, December 2). Engage Your Stakeholders. Retrieved from Project Management Essentials: 2019

Isaac

Respond to the post and include citations

Time or scheduling of the triple constraints of project management involves the time to complete tasks, the timeframe of the project, and setting a deadline for completion of a project (Lucidspark 2022). Depending on the time needed will affect the other sides of the triple constraints triangle through cost/resources and scope/quality. An example of this is if a project needs to be completed quickly or needs a reduction in time than costs will go up and quality can suffer (UMGC 2022). However time is important for any project to meet demands of customers, clients, or even a organization itself to stay competitive. Taking too long and ones organization will fall behind, lose out on sales, and lose out on customers. 

For MTC, they are currently working on getting new contracts that require more consultants. The issue is needing a new hiring process to meet the new demand to stay competitive and gain these contracts. There biggest issue is “Time”. MTC needs the project of changing their hiring process done quickly that meets deadlines that are realistic while still having some wiggle room for possible complications during the project. 

The reason I picked “Time” as the most important constraint for MTC project of new hiring system is there is already pressure to complete the project to meet the demand of having enough consultants within 60 days of signing a new contract for two new possible contracts (MTC Case Study UMGC 2019). Scope and Cost are both important in the project but isn’t the main issue the project has for completion. If MTC can’t hire enough consultants than they lose out on the contracts and lose reputation for future dealings. 

Reference

Lucidspark (Retrieved 2/25/2022) The Triple Constraint Theory in Project Management 

https://lucidspark.com/blog/the-triple-constraint-theory-in-project-management

MTC Case Study UMGC (11/23/2019) Maryland Technology Consultants Case Study 

https://learn.umgc.edu/d2l/le/content/622997/viewContent/25150590/View

UMGC. (2022). IT Project Management. Retrieved from IT Project Management: 

https://learn.umgc.edu/d2l/le/content/622997/viewContent/25150642/View

 

 

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IT Project Management

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IT Project Management

In this course, we will briefly overview what project management entails and the role of a

project manager. To become a good project manager, you should complete further study

in this area. Project management certificates are offered by universities such as UMGC,

and there is at least one recognized certification authority—the Project Management

Institute (PMI). PMI evaluates both your experience as well as your knowledge before a

certification is awarded, because project management is best learned from a combination

of classroom study and real-world experiences. To best understand a discussion of project

management, you should be familiar with the following definitions:

Term Definition Examples

project temporary endeavor
undertaken to create

a unique product,

service, or result

with a specific start

and end

build a house; write a research paper; plan
a wedding.

project
scope

describes the work
that must be

accomplished to

complete the

project

three-bedroom, two-bath house
completed and occupancy certificate

obtained; research paper submitted to

professor; wedding held

project
manager

“expert” responsible
for planning,

managing, and

controlling all

aspects of a project

construction manager; student; wedding
planner

Learning Resource

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Term Definition Examples

project
management

the application of
knowledge, skills,

tools, and

techniques to

project activities to

meet project

requirements

Overseeing the construction for building
the house; developing the “to-do” list for

researching and writing the

research

paper; defining activities for the wedding

planning notebook

project
deliverables

concrete, tangible
outcomes, results, or

products generated

as a result of a

project

drywall completed on new house
construction; first draft of research paper

written; wedding invitations printed

milestones key dates when
specific, critical tasks

or groups of

activities are

completed

March 15: electrical wiring completed;
May 1: research completed; June 1:

reception hall booked

contingency anticipating delays
or problems, and

having an alternative

solution or strategy

planned

backup plumber and electrician identified
in case primary contractors are

unavailable; reserve an extra day before

the paper is due in case of delay; have

tents ready in case it rains on the wedding

day

What is the role of a project manager? Is the role of an IT project manager different? A

project manager must control the four key variables associated with any project: time

(schedule), resources (human and financial), scope of work, and quality. The project

manager leads the development of a project plan that takes all of these into consideration.

Depending on the organization and scope of a project, there may be both a

business

project manager and a technical project manager assigned to an IT project. It is essential

that the business owns the solution (fully responsible for its success). IT’s role is to help

the business identify the best technology solution for the business problem.

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Project Management Variables

Frequently, trade-offs are required during the establishment and life of a project. Project

management is the science of making intelligent, conscious trade-offs. While it is likely

impossible to eliminate problems within a project of any size, having a sound project

management methodology puts in place a process and means with which to deal with

issues as they arise. As things change, the project manager must adjust the four variables

to keep them in balance. For instance, the budget may be limited, which can restrict the

scope of the work and the number of people who can work on the project. Or, the project

may have a firm deadline, which can drive costs up since more people would have to be

hired to complete the project on time. When any one of the four variables changes, it will

have an impact on at least one (and often more than one) other variable. Time, Cost and

Scope are often referred to as the Triple Constraints of project management as a change

in any one of these three has an impact on the others and the project quality. A strong

project manager pays close attention to the project plan and the progress of the project

against the plan, and manages the variables appropriately to ensure successful completion

of the project. Successful completion is accomplished if the project is delivered on time,

stays within the allocated budget, and performs the required functions correctly. This role

is the same for any project manager, including an IT project manager.

The project methodology provides the structure and processes to define and plan a

project, monitor its progress, and evaluate its end result. A standard methodology also

provides for consistency, allows the process to be refined and improved over time by

incorporating lessons learned, and increases the transferability of skills among team

members. Project methodologies include project initiation, project planning, and project

execution.

Project Initiation

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The first step is the selection of strategic projects. However, the project manager does not

select the projects alone; usually that is done by senior management after the

presentation of a business case that outlines the business need (problem or opportunity)

and options for potential solutions (how to address the need rather than specific

products). Often a feasibility study is undertaken to determine the viability of the effort

and potential solutions. The feasibility study can also include cost estimates and identify

potential risks.

Project Planning

Once senior management approves the business case and allocates resources, the project

manager ensures the project plan is fully developed and executed according to plan. The

project plan provides the road map for the project. The project manager is responsible for

building a realistic plan to achieve the desired results and then monitoring to ensure that

tasks are completed on schedule, resources are available as planned, and key milestones

and deliverables are met. Clearly defining the project scope and business requirements are

key to project planning. A smart project manager makes sure that his or her plan has

SMART criteria. The SMART criteria below will help to ensure that clear, understandable

and measurable objectives have been established for the project:

Specific

Measurable

Agreed upon

Realistic

Time framed

These objectives are documented in the project plan and used throughout the project’s

life to help keep the project on track. A sound project plan is:

easy to understand—Tasks and deliverables are specifically presented in commonly

understood, well-defined terms.

readable—Graphical representation follows standard structure and layout.

communicated to all key stakeholders—Those involved and affected know what the

plan is.

appropriate to the project’s size, complexity, and importance—The plan is not overly

involved or complicated for a minor, small-cost, short-term project, and is not too

general and abbreviated for a complex, high-cost, long-term, high-priority project.

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prepared by the team—Project team members contribute to the project plan

development, rather than a project manager developing it in a vacuum.

Project Execution

This is where the project plan provides the roadmap, and the project work is carried out.

The project manager monitors progress against the plan, managing any changes and

mitigating risks as they become known. Project risk management involves identifying

potential events or conditions that could have a negative effect on the project, estimating

the impact if the risk occurs, determining a mitigation strategy to reduce the likelihood of

the risk occurring, and identifying what will be done if the event or condition actually

arises. Keep in mind that the job of the project manager is to stay on top of all the

variables and manage the cost, schedule (time), scope, and quality. Routine status reports

are an important part of tracking the progress of the project. This monitoring

process

helps the project manager keep time, cost, and scope in balance. He or she must seek

additional resources (money or people) or a schedule change (time) when the scope

increases, and must be able to articulate the effect on quality if additional resources or a

schedule change are not authorized. The project manager is responsible to senior leaders

to monitor the variables, keep leadership informed, and propose solutions for changes as

they occur.

For our purposes, we will assume that a correct business process redesign occurred and

the best solution was chosen. So what do we need from a project

management

perspective? It would seem easy enough: plan the work and work the plan, and voilà! The

solution is implemented on schedule and on budget.

Of course, anyone who has participated in a project knows that it rarely happens that

way. Building a house gets complicated because two solid weeks of rain delay the pouring

of the concrete. You thought you could conduct your term paper research on Saturday,

but a friend had a ticket for the big game and you could not decline his offer; therefore,

you didn’t gather the information so you could begin writing your paper on Sunday. And

planning a wedding—there are so many potential issues there—the bridesmaids hate their

dresses, the caterer backed out, the organist broke her wrist, and so forth. You get the

idea; even the best-planned project will have challenges.

The four variables are interdependent; you cannot change one without affecting the

others. For example:

Decreasing a project’s time frame means either increasing the cost of the project or

decreasing the scope of the project to meet the new deadline.

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Increasing a project’s scope means either increasing the project’s time frame or

increasing the project’s cost (or both) to meet the increased scope changes.

Decreasing a project’s resources (either people or money) will necessitate a

reevaluation of the scope and/or the quality. The scope may need to be reduced to

avoid decreasing the quality. If the scope must remain unchanged, quality will suffer.

Increasing a project’s quality requirements will require more time and money to

incorporate more perfection and test all possible outcomes for correctness.

Having a well-prepared project plan can help reduce the risk of project failure, but it

cannot eliminate the possibility of failure. There are many reasons why even a well-

planned project can fail. Some common project problems result from mismanagement

(Whitten & Bentley, 2008, p. 81):

failure to establish upper-management commitment to the project

poor expectations of management (expectations of users and managers not in

agreement, or expectations change over the life of the project)

premature commitment to budget and schedule

overly optimistic

mythical man-month (unrealistic estimate of the amount of work an individual can

perform on the project)

inadequate people-management skills

failure to adapt to business change

insufficient resources

failure to work the plan

As you review this list, how many of these causes are related to hardware, software, or

other technology issues? Right—none! This indicates that it is frequently the human

aspect of projects that creates most of the problems and greatly increases the risk of

failure. Therefore, the importance of paying attention to the softer skills of managing

people on IT projects cannot be overemphasized.

If you look back at the list of causes of project failures, you will see that many connect to

one or more of these interrelated elements. For example, premature commitment to

budget and schedule will definitely affect the time and cost variables. Let’s relate this

cause to our earlier examples.

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Project Cause of Failure Project Cause of Failure

Building a

House

estimating the construction budget with insufficient research into

the current costs of construction materials, or assuming stable

pricing

Preparing a

research

paper

planning your schedule to complete the paper without considering

other course assignments or personal requirements

Planning a

wedding

establishing a budget for “dear old dad” without obtaining the costs

of catering the reception

Scope Management

Failure to manage the scope of a project will result in scope creep—the natural tendency

of projects to become bigger than originally intended, with detrimental impact on cost,

time, and outcome. Using our previous examples, some scope creep occurs when while

building a house, we decide to add a home theater in the basement; you decide to add a

PowerPoint presentation to your research paper; and the wedding reception

entertainment changes from Cousin George, the DJ, to an eight-piece jazz ensemble.

Since almost no project goes exactly according to plan, the project manager needs a tool

to detect and manage the changes. The process of change management is this tool. The

project manager documents all approved changes, revises the project plan accordingly,

and then continues managing and monitoring the project.

To minimize inadvertent scope creep, effective project managers define a change

management process specifically related to the project. (This is different from the

organizational change management strategies that relate to generally managing the

changes within the organization that a new solution may create.) At the risk of

oversimplifying this concept, for the purposes of our discussion, we are talking about a

structured process (part of an overall project management methodology) to address

changes in requirements or expectations on the specific project outcome.

As you can imagine, changes affect resources. A change may require additional staff

hours, hardware and/or software costs, testing, systems configurations, and/or the

assessment of impact on related IT components. There are times when these changes are

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necessary to maximize the intended business solution, address some unforeseen problem,

or meet a changing business strategy or requirement. Having a structured methodology in

place means that the change is treated as a potential mini-project:

The requirements are documented and analyzed.

The impact (time, money, and other resources) is analyzed, and the effects on budget

and schedule are defined.

At this point, the business sponsor or project owner may decide whether or not to

proceed with the change.

In many larger organizations, a change control board (CCB) exists for just such situations.

Representatives from the affected areas review the documentation and decide whether or

not to proceed. If the decision is to proceed, the additional impact is inserted into the

project plan, and appropriate adjustments are made.

What Makes an Effective Project Manager?

The critical skills needed for IT or business project managers are the ability to (1) manage

people and (2) manage the project effectively. The project team can be staffed with

technical expertise, but it is much more difficult, if not impossible, to make up for a

project manager’s shortcomings in the areas of understanding the business and addressing

the human aspects. Project managers must also address team issues to help guide the

project team. People should be recognized for their contributions and successes and held

accountable for failing to meet commitments. Far too often, members of project teams

know things aren’t going well, but bolster themselves by vowing to get caught up next

week. Addressing problems as early as possible in the project allows time to make

corrections and help keep the project on target.

If we look back at our definition of project manager, it seems like this individual bears

most of the responsibility for making projects successful. Although he or she may

delegate various tasks, the buck frequently stops with the project manager. Because of

the many hats project managers wear, the variety of skills they must have, and the

constant juggling act they must perform, it is no wonder that highly capable and skilled

project managers can be scarce and are in great demand. Let’s look at the skills, or

competencies, a good project manager must have.

Project Manager Competencies

Competencies Description

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Competencies Description

business

achievement

connects projects with corporate strategy and objectives

partners with and involves stakeholders throughout the

process

provides quality perspective

people

management

communicates

effectively

facilitates team process

coaches team members to work cohesively and fosters a

spirit of collaboration

provides resources and training to develop team members

prepares, monitors, and controls project plan—gathers input

and adjusts as needed

problem-

solving

displays initiative to show creativity and innovation

calculates risks and prepares contingencies

applies critical thinking to problem resolutions

provides systems perspective

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Competencies Description

influence understands and is sensitive to interpersonal motivations and

behaviors of others

is aware of corporate political landscape and can navigate it

effectively

understands the implications of project decisions and

manages risks

knows how to enlist cooperation and build consensus among

business managers, users, and IT staff

self-

management

displays self-confidence, but with humility

“walks the talk”

has personal accountability

works well under pressure and adverse conditions

Successful project managers combine knowledge and skills with experience in

participating and managing projects. Lessons learned from past projects can help inform

best practices to be applied to future projects. Consistent application of a sound project

management methodology along with strong interpersonal and leadership skills enable

project managers to help organizations gain strategic advantage through successful

project delivery.

References

Whitten, J. L., & Bentley, L. D. (2008). Introduction to systems analysis and design. New

York, NY: McGraw-Hill.

© 2022 University of Maryland Global Campus

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All links to external sites were verified at the time of publication. UMGC is not responsible for the validity or integrity

of information located at external sites.

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Implementing a SaaS

Solution

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Implementing a SaaS Solution

Differentiating Between Commercial Off-the-Shelf Software (COTS)

and SaaS Solutions

Up to this point, we have been using the term commercial off-the-shelf (COTS) to include

software-as-a-service (SaaS) solutions. COTS is most-often used to refer to applications

that are purchased and installed at the user location, either on a personal computer or on

a server for multiple individuals to use. This includes such familiar purchased software as

word processing or spreadsheet applications. Some COTS solutions come with vendor

maintenance and updates, while others require an additional payment to be made for an

upgraded version. Once the organization purchases a COTS solution, the vendor’s

involvement in the day-to-day operation is nonexistent.

A SaaS solution, on the other hand, is usually leased or subscribed to by the customer, and

the software is owned by the vendor, runs on the vendor’s hardware, and is accessed via

the internet as a “service.” Microsoft is now providing its office applications as a service

via Office 365 for Business, which is provided as a subscription service rather than a

purchased download. In that instance, it becomes a SaaS application. Even though it is a

COTS product, the way it is delivered to the end user via the internet, along with ongoing

service and maintenance from the vendor, makes it a SaaS solution. Other well-known

SaaS products are SalesForce (customer relationships management system), Amazon Web

Services (eCommerce platform), and DocuSign (electronic signature services). For SaaS

solutions, the vendor is responsible for the day-to-day operation of the system, for the

ongoing operation and maintenance of the system, for protecting the sensitive business

data housed in the system, for upgrading and enhancing the system, and for providing

training and support. Usually all that is required at the customer location is an internet

connection and end-user devices to connect to the system.

Unique Considerations for Selecting a SaaS Solution

Learning Resource

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When a SaaS solution is being considered, a primary aspect is that the relationship with

the vendor is very different from a solution that is hosted on-site at the organization. A

long-term relationship is established with the vendor beginning with the lease or

subscription to the system. The customer becomes reliant upon the vendor for all the

services listed above.

Since the system is not purchased (instead, the customers are “renting” or “leasing” the

software and services), the customer will make monthly or annual payments for its use;

these can either be a set amount or can fluctuate depending on the actual use of the

system. A Service Level Agreement (SLA) is used to document the responsibilities and

commitments of the vendor and the customer. Most vendors of SaaS solutions have an

SLA already developed for their customers; this should be studied thoroughly, and

changes negotiated if necessary, prior to the customer signing up for the services.

One big consideration is that the system is operated at the vendor’s location. It is much

more likely that a vendor supporting multiple customers can achieve a higher level of

security for the system than an individual organization. The vendor has the combined

resources to hire and retain security experts to manage the system, the hardware, the

network, and the facility. Many SaaS vendors have implemented a distributed system so

that hardware, software, and databases are housed at multiple locations; many vendors

provide “hot backup” meaning that the database is replicated elsewhere so that if one

database or system is unavailable, there is an automatic switch to the replicated database.

SaaS vendors also can afford to offer quick recovery at a much lower cost than is available

to an individual organization. They are also much more likely to have physical security

measures in place to protect the data center, including fire suppression, surveillance,

access security, and guards.

Since SaaS solutions depend on use of the internet to connect users to the application or

system, the following should also be considered:

the availability and speed of the internet connection;

protection of proprietary or personal information transmitted via the internet; and

location of the system. Some government systems are required to be hosted within

the United States, and not overseas.

Identifying COTS/SaaS Solutions

Over the past decades, COTS and SaaS solutions have proven to be viable models for

acquiring software. SaaS is now a mature model that can be relied upon if a vendor is

selected based on a deliberate evaluation and selection process. There are many sources

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for locating a vendor, including technical journals, industry survey, vendor advertisements,

advisory or consultancy services, and even internet searches. An organization would be

wise to identify a few solutions that appear to meet their needs and then conduct a

detailed evaluation of each one. It is important to identify solutions that align with

achieving the business strategy, improve the process(es), and meet the requirements.

Evaluating COTS/SaaS Solutions

In evaluating a COTS or SaaS solution, four major factors are involved: user requirements,

system performance requirements (system quality and security requirements), the vendor,

and cost. The method for evaluating each of these is discussed below.

Most SaaS vendors provide access to a “free” trial version of their system. During the

product evaluation period, the trial version can be used to determine the basic

functionality and performance of the system. This version of the software is used for

marketing purposes and may not exactly represent how the software would function in a

specific situation. Some vendors may offer to provide access to a more robust version of

their system in order to allow further testing and evaluation. An organization should try

out the software for itself and not rely on vendor demonstrations, which can be set up to

appear to provide functionality and ease of use that is actually not part of the system.

User Requirements

The first step in evaluating a COTS/SaaS solution is to address the user requirements and

answer the following questions:

How closely do the capabilities and functions of the solution meet the

requirements?

Conversely, are there a lot of extra “bells and whistles” that the organization does

not need or would not use, but add to the cost and complexity of the system?

How closely does the application package fit the process used by the organization?

If the solution is implemented, would the organization be able to use it for their

process? Will the business process need to change significantly, requiring additional

training and other organizational changes? Would the changes in the process used

by the vendor’s solution actually help improve the business process? The more the

business process has to adapt to the system, the less likely the system is to be

accepted by the users. If significant differences exist between the system and the

process in use, and major changes are required to the off-the-shelf system, the cost,

complexity, and risk may well outweigh any benefits of the COTS solution. However,

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if the organization is seeking to improve its business processes, COTS/SaaS

solutions often implement optimized business processes in the software, a benefit

for the organizations that implement them.

How much configuration or customization will be needed to put the COTS system

into use? Some COTS products allow or require extensive configuration or

customization in order to make the system useful to any organization. Others

require minimal configuration to set the system up for use in a specific organization.

These activities are major determinants of initial cost and implementation time, and

add to the ongoing maintenance costs.

Configuration is functionality that can be created using built-in workflow tools

and templates that come with the product.

Customization is functionality that is added to or replaces functionality as

provided by the vendor. There is no guarantee that customizations will be

compatible with future upgrades, and they can be extremely costly to maintain

over time.

How much and what data will need to be migrated to the new application/system?

How easily can that be accomplished and at what cost? The organization likely has

information that supports the process for which a system is being sought, and that

information will most likely need to be imported into the new system. If the data is

already in electronic form (in a spreadsheet or database), the migration of that data

should be accommodated. However, if data is in paper form, decisions will need to

be made about how much of the existing data is to be manually entered into the

system, and in what form it will be entered.

Migrating data into a new system can be very time consuming and costly, so these are

important considerations for the organization.

System Performance Requirements

Next, the quality of the COTS/SaaS solution is evaluated answering the following types of

questions regarding the attributes of the system (which are specified as system

performance requirements):

Usability—Can new users quickly adapt to the software? How easy is the system to

use, and how is help provided for the users? Does the vendor provide training? Is

online help provided in the system? Is user support provided (e.g., a help desk or

documentation)?

Scalability—Can the system accommodate the anticipated number of eventual users

and/or records/transactions? Can it be scaled back if there are actually fewer users

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or transactions?

Availability—Will the system be available for use when needed? If there is any

anticipated maintenance downtime, is that compatible with the organization’s

needs?

Reliability—Does the system create and maintain the data correctly?

Maintainability—What is the vendor’s approach to maintenance and how often are

updates applied? How quickly can corrections be implemented?

Performance—Is the system able to meet response time requirements? Is it able to

handle the volume of the expected workload (or number of transactions)?

Portability—Does the system run or operate on the types of end-user devices and

operating systems that the organization uses or anticipates using?

Interoperability—Is the system capable of exchanging data with any required legacy

(existing) system?

Security—What security protections are provided by the vendor? What security

steps are needed within the organization? How is the system protected from

malicious or accidental actions? How will users authenticate to the system and be

authorized to perform functions and/or access data? Does the system effectively

prevent unauthorized access and prevent unauthorized ability to change data? How

is data protected as it is transmitted and when it is stored? Does the system keep a

log of who logged in, when they logged in, what information they accessed and what

changes they made? What data backup and recovery is provided by the vendor?

The answers to these questions will help determine whether the system provides

adequate security.

Vendor Ability

The vendor’s ability to support the organization and provide the services needed is a third

area of consideration. The organization should do its due diligence and consider the

financial stability of the vendor and look at such things as how long they have been in

business, how robust their customer support is, and their industry reputation. The number

of paying customers and the length of time they have been with the SaaS vendor is a

good indication of the quality of the software and the vendor’s services. In evaluating a

SaaS vendor, it is a good idea to check with some of their customers to learn about their

experience with the SaaS. The organization needs to ensure the vendor will be able

support it for some time to come. Keep in mind that once the organization signs up, the

expectation is that there will be a long-term relationship—the organization does not want

to keep changing its SaaS software and vendor, and the vendor will want to keep the

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organization as a long-term customer providing recurring revenue. At the end of the day,

the organization is responsible for the use of the system as it impacts their employees and

customers. Although the vendor owns and hosts the system, the reputation of the

organization can be at risk if issues arise and are not properly addressed.

Total Cost of Ownership (TCO)

The fourth area of consideration is the cost of the COTS/SaaS solution. In determining

how a system is to be acquired and/or which system is to be acquired, the organization

must consider the total cost of ownership (TCO) of the solution. The TCO for each

alternative can be estimated in order to make comparisons. This concept is something we

are very familiar with when we are making a major purchase in our daily lives. In general

terms, the total cost of ownership (TCO) is the sum of all costs associated with an

acquisition that will accumulate over the life of the asset. One of the personal acquisitions

for which we use the TCO is the purchase of a new car. Clearly, the purchase price is not

the only consideration. Today, automakers recognize the importance of the TCO to their

customers; in their advertising, they talk about gas mileage, resale value, length of

warranty, free servicing over some period of time, and special financing terms.

The table below identifies the cost categories of an IT TCO. Although there are several

ways of categorizing and listing the costs, this list contains some of the often overlooked

and crucial costs that are important to understand. The specifics of how the categories

apply to a SaaS solution are also provided.

Cost Categories of an IT TCO

Cost Categories Description

Costs as Applied to SaaS

Solution

acquisition The costs of acquiring IT

assets: the lease, purchase,

or subscription cost of

hardware and software,
including research, travel,

freight, and tax; and/or the

cost of developing the

software from scratch.

Lease or subscription costs for

software and system (SaaS

vendor).

Purchase or lease of end-user
hardware devices (PCs, tablets,

printers, etc.).

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Cost Categories Description
Costs as Applied to SaaS
Solution

communications The cost of all

communications, including

network costs, wiring,

service provider fees,
communications hardware,

and software.

Initial setup costs of Internet

Service Provider (ISP) and

ongoing monthly charges.

security

The costs of ensuring

security of the IT

infrastructure and data,

including security software,
usage monitoring, and

facility security costs.

Most security services provided

by vendor, documented in the

SLA.

End-user policies and device
protection are the responsibility

of the customer organization.

installation The costs of making IT

assets operational; could

include building

modifications, increased
cooling requirements, and

increased utility capacity at

the datacenter.

Responsibility of the

vendor.

configuration The costs associated with

COTS or SaaS software to

set it up to function

correctly within the
organization; using built-in

tools such as workflow,

report layout, terminology

and/or organizational logo.

Costs to configure SaaS to

function for the organization

(e.g., workflow, reports,

terminology, logo).

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Cost Categories Description
Costs as Applied to SaaS
Solution

customization The costs of making

changes to the COTS or

SaaS software that are

unique to the organization.
The ongoing cost of

maintaining these changes

over time and testing

future upgrades must be

considered as well.

Costs to make changes to the

software for the specific

customer; may cause additional

cost for maintenance.

testing The costs of preparing test

cases and using the system

to determine whether it is

functioning properly and
meets the requirements.

Also includes the costs of

recording deficiencies and

re-testing when changes

are made.

Costs generally are limited to

the customer creating and using

test cases to ensure the system

works as needed. This is very
different from using a

demonstration or “free trial”

system before selection; it is

testing the actual system after it

is configured and is operational

for the customer.

support The cost of keeping the

infrastructure functioning

as planned; could include a

help desk, hardware
technicians,

telecommunications

specialists, programmers,

and maintenance support

staff.

Most costs borne by vendor.

There may be an additional

charge for user help-desk

support or technical support, or
it may be included in the

monthly/annual fee.

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Cost Categories Description
Costs as Applied to SaaS
Solution

maintenance The cost of keeping IT

assets current and in a

condition that can meet

their planned functions;
includes updates and

enhancements as well as

fixes for problems; could

include maintenance

contracts, programmers,

and telecommunications
specialists.

These costs are borne by the

vendor. The customer pays a

monthly/annual fee for ongoing

service and system
maintenance.

coordination

costs

The costs related to

keeping the infrastructure

tuned to maintain optimal

performance when changes
to an infrastructure

element are required

These costs are borne by the
vendor.

disaster

recovery

The costs of ensuring

continued operation of the

infrastructure, including

maintenance of a current
plan, cost of backup sites

and equipment, costs of

emergency power, and

costs of practice exercises.

Most of these costs are borne

by the vendor (if the vendor

provides disaster recovery

services) since the vendor is
responsible for its hardware,

software and internet access;

but the organization is

responsible for its own

infrastructure (end-user devices,

internet access, local power,
etc.).

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Cost Categories Description
Costs as Applied to SaaS
Solution

organizational

change

management

Any costs associated with

organizational changes

resulting from

implementation of the
system; includes such

things as consolidating

departments, establishing

new groups or

responsibilities,

reorganizing or reassigning
personnel.

Always a customer cost.

data migration The costs of determining

what existing data (either in

electronic or paper form)

would need to be entered
into the system to get

started, and entering that

data.

The customer must bear the

cost of determining what

existing data (electronic or

paper) is to be entered into the
system.

The cost of entering the data is

borne by the customer;

sometimes the vendor is willing

to assist for a fee.

SaaS solutions generally offer many of these categories of service as part of their initial

fee and/or the ongoing maintenance fee. All must be taken into consideration when

developing the TCO.

Making the Selection

In the end, a cost-benefit analysis can be used to determine which solution best meets the

needs of the organization. All four factors discussed above must be considered, with the

organization determining which of them is most important or which combination of the

factors best suits that organization, considering any specific needs, such as security of

highly sensitive data, particular functionality that must be present, controlling costs, etc.

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Implementing the System

Implementation of a COTS or a SaaS solution is a major project for the organization. A

system owner and a project team should be designated, and best practices for IT project

management should be employed. A project plan for implementing a SaaS solution should

include the following steps:

Establish the vendor agreement, contract or SLA; a mechanism needs to be put in

place to give the organization access to the system, identify responsibilities of the

vendor and the customer, and lay out initial and ongoing costs.

Acquire the end-user hardware and telecommunications, if necessary, and/or

validate the capability of existing hardware and telecommunications to access and

use the system.

Configure the system for use in the organization; identify what needs to be done to

implement the organization’s desired workflow, reports, terminology, logo, etc.;

identify who will configure the system and how it will be done, and whether there is

any additional

cost.

Develop a plan for User Acceptance Testing (UAT), and test the configured system to

ensure requirements are met and that it is functioning correctly, including use of any

user support tools or services provided. The UAT plan explains how each

requirement will be specifically tested to ensure it is working properly and the

requirement is met. For example, if the requirement is that the system determine the

customer’s city and state based on the zip code entered, then a zip code would be

entered into the system and the result would be checked to ensure the correct city

and state were provided.

Apprise the employees of what is taking place and why, and make any organizational

or process changes that are needed. Leaders of the organization need to be involved

as sponsors and coaches to encourage system adoption and use, and they should

employ change management techniques to ensure a smooth transition.

Train administrative personnel in their role(s) for supporting the system.

Conduct user training.

Migrate the data needed to operate the system; determine how this will be done

(electronically, manually, etc.), who will do it, how long it will take, and what it will

cost.

Oversee operations to ensure continued end-user support and system maintenance

are performed by the vendor according to the SLA; identify any need for support or

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maintenance by the organization itself, such as hardware and software upgrade for

end-user devices, a local help desk, etc.

Using a comprehensive project plan as laid out above will help ensure a successful

implementation and ongoing support for the new system.

© 2022 University of Maryland Global Campus

All links to external sites were verified at the time of publication. UMGC is not responsible for the validity or integrity

of information located at external sites.

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