E-business and IT security system acquisition strategy and cost-benefit analysis

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.

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.

Contract Type

The contract will be an ongoing service contract, in order to ensure that appropriate maintenance and support services will be provided throughout the project lifecycle.

Risk Assessment

Risks inherent to the project include poor support and training services and even the potential dissolution of the vendor tired to a service contract. Risks can be

managed through the inclusion of a failure-to-provide clause listing monetary compensation for failure to live up to the full terms of the contract.