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Your project has been divided into four phases corresponding with <br />the objectives stated above. The activities of each phase are <br />described below. <br />Phase I — Define System Requirements <br />Phase I consists of documenting your current and future data <br />processing requirements. The documentation will include a <br />definition of your current flow of information and current and <br />future transaction volumes. Documentation is prepared in order <br />to identify your system requirements and collect the information <br />necessary to prepared vendor Requests for Proposal during Phase <br />III. Phase I consists of extensive interviews with your staff to <br />provide require information. Your current procedures, method of <br />handling documents, and filing and record keeping processes will <br />be analyzed. Observations about improving the content and flow <br />of information may be made at this time. Existing transaction <br />counts and projections of future volumes will be determined. <br />The end product of Phase I will be a document describing your <br />current and long term information requirements along with general <br />recommendations about the potential benefits and resulting <br />priorities of various information system segments. <br />Phase II — Develop Cost Analysis of System Alternatives <br />The focus of Phase II will be to identify alternatives for <br />satisfying your information requirements and to compare and <br />contrast the relative benefits and costs of each. Some <br />alternatives which will be considered include: <br />1. A new centralized in —house computer system, <br />2. Several decentralized microcomputers, <br />3. Improvement of your current system, <br />4. An improved service bureau system, <br />5. A combination of one or more of the above. <br />rte' C. <br />D <br />n <br />nip (vi (l1- <br />LITTLE: <br />;,ivi DA <br />The total cost of each alternative will he estimated, including, <br />where possible, both direct and indirect costs. These costs <br />will, of course, be estimates since final costs can only be <br />determined after vendor proposals are received in Phase III. <br />Phase II also includes an analysis of the benefits of each <br />alternative. In each case this will include the tangible <br />benefits such as direct cost savings and the intangible benefits <br />that result from providing better information to the right people <br />at the right time. These include such as things as the ability <br />to handle larger transaction volumes with the same staff, more <br />