The Realities of Buying The Realities of Buying Commercial Off-The-Shelf Commercial Off-The-Shelf

SystemsSystems

Herb Potter, Brewer Consulting ServicesHerb Potter, Brewer Consulting Services

Ann Thompson, City of OlympiaAnn Thompson, City of Olympia

Ron Seymour, Dept. of Financial InstitutionsRon Seymour, Dept. of Financial Institutions

Tom Neitzel, Health Care AuthorityTom Neitzel, Health Care Authority

Today’s GoalsToday’s Goals

Bust myths about COTS systemsBust myths about COTS systems

Share our experiencesShare our experiences

Provide you with more information so that Provide you with more information so that you can make informed decisionsyou can make informed decisions

Not to frighten or discourage youNot to frighten or discourage you

What’s a “COTS” Why All The What’s a “COTS” Why All The Hoopla Over Them?Hoopla Over Them?

A product that is A product that is – Sold, leased, or licensed to the general publicSold, leased, or licensed to the general public– Offered by a vendor trying to profit from itOffered by a vendor trying to profit from it– Supported and evolved by the vendor, who Supported and evolved by the vendor, who

retains the intellectual property rightsretains the intellectual property rights– Available in multiple, identical copiesAvailable in multiple, identical copies– Used without modification of the internalsUsed without modification of the internals

Not to be confused with public domain Not to be confused with public domain software, COTS-based systems, or software, COTS-based systems, or “freeware”.“freeware”.

What’s a “COTS” Why All The What’s a “COTS” Why All The Hoopla Over Them?Hoopla Over Them?

COTS Systems can fulfill a need without COTS Systems can fulfill a need without full-scale developmentfull-scale development

Vendor can provide varying levels of Vendor can provide varying levels of support (part or all of it)support (part or all of it)

Some support from other users of the Some support from other users of the COTS systemCOTS system

Where Do We Start?Where Do We Start?

Strategic business planStrategic business plan

Understand what business you’re inUnderstand what business you’re in

Understand the organizational cultureUnderstand the organizational culture

Organization must be ready for changeOrganization must be ready for change

Opportunities for business process Opportunities for business process improvementsimprovements

Skilled project management is crucialSkilled project management is crucial

Inform everyone – This will be hard work! Get Inform everyone – This will be hard work! Get used to it!used to it!

The AcquisitionThe Acquisition

For most state agencies, it starts with the For most state agencies, it starts with the IT Portfolio, feasibility study or funding IT Portfolio, feasibility study or funding request.request.Business requirements gatheringBusiness requirements gathering– Don’t overlook the “automagic”Don’t overlook the “automagic”– Be mindful of technical standards and Be mindful of technical standards and

installed infrastructureinstalled infrastructure

Include the right people – those who have Include the right people – those who have to live with the selectionto live with the selection

The AcquisitionThe Acquisition

Perhaps issue an RFIPerhaps issue an RFIDevelop the RFP, which should reflect the Develop the RFP, which should reflect the business requirementsbusiness requirements– Use cases, business models, process flowsUse cases, business models, process flows– Get all the costs – licensing, consulting, training, Get all the costs – licensing, consulting, training,

maintenancemaintenance

Include source code escrow requirementInclude source code escrow requirementEvaluate responses according to the Evaluate responses according to the requirementsrequirementsShort list of vendorsShort list of vendors

The AcquisitionThe Acquisition

Demos (make sure the right people Demos (make sure the right people participate) – compare to responsesparticipate) – compare to responses

On-site visits to customer sites (without On-site visits to customer sites (without vendors present)vendors present)

Check references…and then someCheck references…and then some

Check the vendors’ business financialsCheck the vendors’ business financials

Make the selectionMake the selection

Negotiate and sign the contractNegotiate and sign the contract

The ImplementationThe Implementation

Effective project management practicesEffective project management practices

Users must be involved in the planningUsers must be involved in the planning

Plan for data conversions and interfaces Plan for data conversions and interfaces

COTS “Horticulture”COTS “Horticulture”

COTS systems tend to spring forth “seeds”COTS systems tend to spring forth “seeds”

AccessFileMaker

Excel Interfaces Custom Add-ons

Reports

Word

Queries

COTS Care & FeedingCOTS Care & Feeding

Expect maintenance costs of 20% - 25% Expect maintenance costs of 20% - 25% of purchase priceof purchase price

COTS version upgradesCOTS version upgrades

Operating system upgradesOperating system upgrades

Hardware upgradesHardware upgrades

Good project management practices are Good project management practices are crucial (note the theme here)crucial (note the theme here)

General support will likely involve IT staffGeneral support will likely involve IT staff

Vendor RelationshipsVendor Relationships

Preview offered by other users during Preview offered by other users during reference checksreference checks

First impressionsFirst impressions

Vendors and VARSVendors and VARS

How long will the marriage last?How long will the marriage last?– When all is blissfulWhen all is blissful– Irreconcilable differencesIrreconcilable differences

Summary – Lessons LearnedSummary – Lessons Learned

More to COTS than meets the eyeMore to COTS than meets the eye

Must have executive level support and Must have executive level support and user supportuser support

Organizational culture can make or break Organizational culture can make or break the projectthe project

The purchase is just the beginningThe purchase is just the beginning

Vendors must be evaluated thoroughlyVendors must be evaluated thoroughly

Effective project management is criticalEffective project management is critical

Summary – Lessons LearnedSummary – Lessons Learned

The relationship with the vendor may last The relationship with the vendor may last for several yearsfor several yearsOrganization must make the COTS fit the Organization must make the COTS fit the business or make the business fit the business or make the business fit the COTSCOTSIt’s not just the software, so identify all the It’s not just the software, so identify all the costs of using itcosts of using itImplementing and supporting COTS can Implementing and supporting COTS can be as labor intensive as building it yourselfbe as labor intensive as building it yourself

More Information – Will Be Posted More Information – Will Be Posted on the IPMA Web Siteon the IPMA Web Site

Software Engineering Institute web siteSoftware Engineering Institute web site– COTS Product Evaluation Process paper and COTS Product Evaluation Process paper and

other documentsother documents

Tom Neitzel’s presentation to the DIS CABTom Neitzel’s presentation to the DIS CAB

OFM Enterprise RoadmapOFM Enterprise Roadmap–   www.ofm.wa.gov/roadmap/default.htmwww.ofm.wa.gov/roadmap/default.htm.  . 

Dye Management paper on why projects Dye Management paper on why projects failfail