System Procurement Process

Topics: Procurement, Enterprise resource planning, Purchasing Pages: 3 (688 words) Published: March 10, 2013
Computer-based System
Acquiring a system for an organization to meet predefined need. Deciding about the best approach to acquire a system and the best supplier. A system may be bought as a whole, bought as separate parts and then integrated or especially designed and developed. Some system specification and architectural design must be done before procurement decision like provide the supplier or contractor with specification about the required system, the specification/ architectural design will help identify commercial off-the-shelf (COTS) sub-systems that might be bought or large systems consist of a mix such as cost and especially developed components.

The glue ware includes the use of S/W allows more use of H/W components, the S/W act as a glue ware between the different components of H/W, cost of developing glue ware may counter balance savings from using COTS, COTS is usually cheaper than developing a component from scratch.

The process for procuring a large and complex software-intensive system is long and complex. It involves numerous internal and external participants, including internal organizational units located in the UK as well as contractors and co-operating organizations located in elsewhere across Europe.

Fig. 1. Overview of Processes involved in Procurement
As shown in Figure 1, the procurement processis embedded in the overall business
process of the organization.Operations processesinitiate a procurement process by stating the need for a new system, to replace an existing one. The requirements process de-
fines user and system requirements. The contracts & purchasing process uses the whole
or a subset of these requirements in an invitation to tender. Tenders are evaluated and
a contract is agreed between the contractor and the organization. The organization then
launches a contractor monitoring process where technical progress is monitored. If systems, or components thereof, are safety-critical,...
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