1.7Systems planning

Building an information system does not start with writing code—it proceeds in order: deciding why, what, and how. This section walks through the whole upstream flow of systems planning: from initial planning, through requirements definition, to placing an order externally (procurement).

1.7.1Systems planning

• Systems planning is the process of setting the overall direction for what system to build, in what order of priority, on what schedule, and with what budget, to solve a business or management problem. Alignment with business strategy is essential.
• Systems planning is often carried out in two stages: a systems concept (a broad direction from a management perspective) and the more detailed systems plan that makes it concrete (scope, structure, schedule, and so on).

1.7.2Requirements definition

• Requirements definition is the process of gathering what users (on the ground) want the system to do and organizing it into a clear specification—the functions, performance, and constraints to be realized. It forms the basis for all subsequent design and development.
• Proceeding to development with inadequate requirements definition often leads to rework after completion, when the result turns out to differ from what was expected. It is important to separate business requirements (what the business needs), functional requirements (functions the system must have), and non-functional requirements (needs other than functions, such as performance, availability, and security).

1.7.3Procurement planning and execution (RFI, RFP, competitive quotation)

• RFI (Request For Information) is a document requesting information—technical capability, track record, and so on—from multiple candidate vendors. It is used at the information-gathering stage, before narrowing down the vendor.
• RFP (Request For Proposal) is a document that presents the requirements definition and requests a concrete proposal—system configuration, estimated cost, schedule, and so on—from candidate vendors. It is used at a stage more advanced than the RFI.
• A competitive quotation (multiple bidding) gathers quotes from several vendors for the same requirements and compares price and proposal content. It prevents bias toward a particular vendor and supports a fair, sound procurement decision.

Picture a manufacturing company renewing an aging inventory management system, and walk through this section's flow. Management first recognizes the business problem—lost opportunities and cost from stockouts and excess inventory—and, as systems planning, positions a new inventory management system as a high-priority initiative, settling on a rough budget and schedule. Next, staff interview the people who actually handle inventory day to day and proceed with requirements definition. Here they organize items such as "we want an automatic alert when stock falls below the reorder point" (a functional requirement derived from a business requirement) and "the screen must render within three seconds even with 50 concurrent users" (a performance requirement, a type of non-functional requirement), compiling them into a specification document. Since the company has no in-house engineers capable of building such a system, it decides to order the work from an external vendor. It first sends an RFI to several candidate IT vendors, gathering information on each company's technical capability, track record, and available technologies. Based on that information, it narrows the candidates down to a handful, then sends an RFP, presenting the requirements definition and requesting a concrete proposal covering system configuration, estimated cost, and development schedule. It compares the proposals and quotes submitted by each vendor as a competitive quotation, and, weighing not just price but the feasibility of each proposal and the vendor's support structure, makes the final vendor decision. Had the RFP been sent with vague requirements, each vendor's proposal would have rested on different assumptions, making a fair comparison impossible.

1.7.4Section summary

• Systems planning sets the overall direction (priority, schedule, budget) for a system that solves a business problem
• Requirements definition is the upstream step of organizing business, functional, and non-functional requirements into a specification
• Procure fairly in order: RFI (gather information) then RFP (present requirements, request a concrete proposal) then competitive quotation (compare multiple vendors)