How can I explain this to a user? 5

[BeckahC]

Here's the dilema:

I administer/program/support a SQL Server 7.0 DB with an ASP front end that was developed here, in company. I have been with it since the beginning. It has many ways in which it can be changed, expanded, etc., but everytime I put in to start a project that will do that, I get put off by IT management. The users are discussing going to an outside vendor to get the additional functionality needed and replacing the current app with something they would have to pay for and continue paying licencing fees for.

I am trying to explain to them that all of that functionality could be theirs without buying anything extra, all they need to do is get management to approve a project, or a few projects, to improve what we have. For some reason, they seem to think they would have better luck with getting the outside software.

There has got to be a way that I can get it across that paying for what they can get practically for free is not a good idea!

Oh yes... I think part of why they might not be hearing me is that if they go ahead with the outside software, my days here would likely be numbered, as that is my primary job function.

BeckahC

 

[mrdenny]

Sounds like your going to need to write up a cost analyse. It's hard to argue with hard numbers. Just be sure to be able to back up the figures that you state. The inital cost of purchasing this software is X dollars. With annual costs of Y dollars for the next Z year. This will get us features A, C, D, and F. While the inhouse solution will cost ~X dollars of employee salary annualy, and will get us features A, B, C, D, E, F, and G. When putting in the inhouse cost, figure the number of hours annualy you will need to put into it, as well as the number of hours that IT will put into suporting it, and mulpiply by an average hourly wage for your part of the country/world.

I've had to write a few of these. As long as your figures are there, and you can back them up you should be able to make your case to managment. Once the dollar figures are involved it's very hard for people to go we want to buy it, cause it's cooler.

Denny

--Anything is possible. All it takes is a little research. (Me)

 

[CajunCenturion]

What management may be considering is the short-term/long-term costs vs short term/long term gain.

Whether or not they buy from the outside, or perform the work inside, it costs money. What would be the actual costs of approving this project or several projects, and what would be the time-frames involved? Let's take one project for example. (Only you know the real numbers)
Option 1: Buy from the outside ($1000) and have you do the necessary integration and such which will take, let's say 1 month. Initial cost is then ($1000 + your salary).
Option 2: Have you make the necessary changes which will take you 1 month. Total cost is your salary.

So for the first month, it's costs them an additional $1000 to buy from the outside.

Assuming worst case scenario, what are the costs in the 2nd month? For option 1, it's only the monthly license cost. For option 2, it's your salary. Now which is more appealing? and how long will it take to recoup the initial $1000 investment cost of the 1st month with your salary no longer being a cost to the company?

What I suggest that you do, is to look at the total costs, over a long period of time, keeping in mind, that your salary is an integral part of the costs equation as long as you're on the payroll. Prepare a report, which shows that over the long term, it will actually cost more to buy from the third party, even if you're not part of the equation.

Good Luck
--------------
As a circle of light increases so does the circumference of darkness around it. - Albert Einstein

 

[SQLSister]

I prefer to use a tool called decion Analysis rather than just a cost analysis. In this you rate each possible solution against the factors which are important to the users and a apply a weighting value as determined by the decions makers. THis allows you to show factors which are not easy to quantify by cost alone.

So suppose the factors which are important are:
Cost
Speed of development
Future Support

Which have rating factors (Scale 1-5 with 5 being the most important) of
3
5
2
Respectively

now you have the follwing ratings per factor
FActor Do in-house Contract Out
Cost 5 2
Speed 4 3
Future 4 1

Multiply each by the rating factor and sum

INhouse Contract out
3*5 = 15 3*2 = 6
5*4 = 20 5*3 = 15
2*4 = 8 2*1 = 2
Total 43 23


In house is the clear winner here. What makes this tool so effective in selling your ideas is that management sets the factors and the values they give to them. It makes it very difficult for them to argue with your conclusion even though you assign the rating for each factor for each solution. Of course, especially for the cost item, you will want to have backup data to support your rating. I have never yet failed to get an idea approved when using this method.

 

[CasperTFG]

Hey BeckahC

In my own experience, there have been many projects that I could have completed in no time at all, but the company has outsourced. Only to have me fix and in some cases re-do the entire project.

What it sounds like to me with as you say, projects always being rejected. It's not that they don't trust you to do it, they have already made up their mind to go outside.

For this the only thing you can do is try to make them think that your way is the best. It's like trying to convince someone that a red car is better than a blue car. You have to sell it.

Craig

"I feel sorry for people who don't drink. When they wake up in the morning, that's as good as they're going to feel all day."
~Frank Sinatra

 

[SF0751]

You stated that "...but everytime I put in to start a project that will do that, I get put off by IT management." Perhaps the users are talking about going with an outside vendor, not because of cost, but because that's the only way they feel that their requests and changes will be accomplished.

Susan
_{You have all the characteristics of a popular politician: a horrible voice, bad breeding, and a vulgar manner.}
^{Aristophanes, 424 B.C.
Lex clavatoris designati rescindenda est.}

 

[Onyxpurr]

There are a lot of things involved with this decision as some of the other people have said here. Costs is just a small portion.

Cost: Buying an app vs your salary and beneits
Time: Installed a pre-packaged app vs your time to produce, test, document, implement, train
Future Support: How long is the contract to support and how much compared to how many people they have in huose to support (maybe only you?) the cost of your time, and how long will you be around to fix?
Scalability: Perhaps they have built their program to be scalable, won't cost that much to upgrade?, vs your time to fix or change your program
Politics?: Sometimes this comes into play. Perhaps your manager have bigger things for you to work on, maybe the appp will support the entire company and your manager only wants to to suport certain divisions

There are a lot of factors. There are a few things at my company I would love to implement, however I must admit it is nice when they bring in outside apps because it frees up my time to dedicate in other areas.

Good luck!

 

[BeckahC]

Thanks everyone!

I will have to get more details on the info related to the software they are looking at before I could really do a cost comparison at all... I am not usually involved at all when it comes to costs - that's usually left to the managers, and I like it like that.

Unfortunately, since the majority of my job is this app they might be looking to replace at some point this year... they might either decide they don't need me, or ask me to stay on and do mainframe programming (natural) which I do not really enjoy very much. I like working with the software I work with and hope to continue, for a while anyway.

I doubt anything will happen for a while, since there is a major project relating to replacing other software with a new package (both out-sourced) and they want to do one at a time.

All of your ideas are really great and I am going to start my side of the analysis right away, so when I get the info on the other software I have less to do before bringing it to the management.

Thanks again!

BeckahC

 

[CajunCenturion]

Good luck

Good Luck
--------------
As a circle of light increases so does the circumference of darkness around it. - Albert Einstein

 

[TheRambler]

Hi,

When you have the time maybe you can buy this book:

How to Work for an Idiot:
Survive and Thrive ... Without Killing Your Boss:
by Dr. John Hoover

I didn't get it yet, but the comments I read are good.

It offers hope for the spirit and strategy for the mind to help you deal with your work place situation.

 

[BeckahC]

I wish I'd heard of it sooner! Thanks, I'll try and pick it up this weekend!

BeckahC

 

[TomKane]

Could part of it be to do with specific in-house software vs an off the shelf solution? There are pros and cons to each but one of the pros of an off the shelf solution is that its tried and tested and working at a number of different sites and there may be functionality in there that you can switch on and off to suit your companys needs.

We find with payments systems and SWIFT that there are changes to the message formats every year - rather than having to tie up an in house persons time in fixing up some bespoke software we just get an upgraded version of the software.

Do you really think that your days would be numbered with an off the shelf solution? We have an off the shelf software package but we're constantly writing reports or providing data extracts to one of the many many (many) other systems in other parts of our organisations. There's nothing like having a bit of product knowledge on site when the system isn't working outside of office hours.

The system - be it in house or off the shelf will still need on site support by a good IT person such as yourself and a single (?) point of contact between your company and the vendor.

If you have the "donkey work" taken care of by someone else then maybe your time will be freed up in order to look at other parts of the company and how technology can be brought in or enhanced to improve operations, etc....

 

[Onyxpurr]

TomKane makes a great point!

Perhaps instead of offering to build the application, you could offer to guide the purchasing process and be the in-house support for it.

I have a mix of things I do at my company, and being part of the vendor selection process and reporting from that source are some of my responsibilities. I take great pride in my boss's trust and respect in this area enough to ask me whether or not I think an outside app would benefit us.

 

[carp]

One of the problems with "home grown" solutions is that when the person who created the solution goes away, there's nobody left who can really support it anymore. At least with a COTS solution, you are supported as long as the product is alive (although some product support is not as good as others!).
I would go with Onyxpurr - if you cannot build a persuasive argument for going with the in-house solution, then position yourself to be the COTS guru.

 

[BeckahC]

You've made good points. I likely would be the support person for the software package if they decide to go with it.

Right now, for our system we use now, I am the only programmer working on it. It's my resposibility to see that it stays up and running and works well. An outside system, anyone can get training on... perhaps I am a little worried about being replaced or eliminated? For me, it's been like having a tiny bit of job security in a place where they've done massive cuts every so often for the past few years.

Oh well, what will be, will be, right?

BeckahC

 

[Onyxpurr]

I think if you weigh the pros and cons of either solution and then discuss it with your boss, you'll be presenting yourself very professionally and will work to your advantage in the long run. You'll be showing a management style of thinking that can only work to your benefit.

I'm sorry about your worries, but I have personally felt this crunch and have found out no matter how irreplaceable I think I am, I am.

To work on that aspect of it, I suggest to anyone regardless of situation, that you keep your resume up to date and your interviewing skills. Expect the best, but plan for the worst, no matter what.

Good luck!!!

 

[BeckahC]

Onyxpurr -
That's very true. I don't think I would ever go to management with anything less than an impartial analysis, regardless of my personal feelings about it.

And you are right... as much as I could fool myself into thinking my jobv was a little safe... I know it's pretty much anything goes.

I make a point of updating my resume yearly, sometimes more often, depending on how my reviews go! ;-)

Thanks!

BeckahC

 

[TomKane]

>An outside system, anyone can get training on... perhaps I am a little worried about being replaced or eliminated?

The flip side of that is that if you become proficient in the app then you may be able to move to another company that uses that app.

I used to support an application for the vendor - times were hard for the company and there was a bit of cost cutting, etc, but because of my product knowledge I was able to move to a company that used that app

 

[BeckahC]

Very true, that is definitely marketable knowledge! Thanks

BeckahC