SLA- service level agreement

stipulations; .We want 99% up time all have to be in the SLA; and if something doesn't work out
we wont pay the bill for this month.
If they violate the terms for more than an certain amount of time (2) then we can void the
contract anytime.

1099 contract- employee have job security and benefits (85k + 1/3% for benefits)
Consultant gets paid a bit more but has no benefits/job security (employee of a consultant
company; or contractor you should make more money b/c your only hired to work on one project,
no benefits, & pay own taxes & short term.)

SAP is the best ERP system (Beat of Breed) (http://www.health-infosys-dir.com/select_0800.htm)

Big Bang- All or nothing.

Disadvantages
• Outsourcing companies have been high failure rate so may be risky
• Outsourcing may bnot use current techonology so may lose competitive advantage
• maintaining relationship with outsourcing company very challenging
• Disclosing company information
• Loss of Control over company functions

Best of Breed?

• Go out and find vendors who are best at what they do SAP,EXCEL, ETC ETC

Gap Analysis

• Requirements of Organiation, Functions of System ie (Fitter Snacker in-house building of

sap/rrfid implementation)

Sean (Sometimes we have a negative included in the contract, if service level is not met) ie (97%
uptime requirement not met) Go-Daddy example

Wenesday April 14, 2010

Contracts Types

Time and Materials Vendors like this, Risky from client perspective, because of overruns on
projects.
Fixed Price Clients like this, Risky from Vendors perspective, Vendors jack up the price,
contingency budget

Unit Price contracts

Time Box

Value-Added - example SAP implementation Deloitte. with Deloitte acting as the Value Added
Reseller VAR

Understand figure 12-2 who benefits on FINAL. Contract types versus each other

More notes from 4/14 (Dan)

4/14/10

• Make sure contracts are legally binding

• Response to RFP is essentially a contract

• Another item that exists between organizations that acts as contract

o Master Service Agreement – Master binding contract between you and your
client

o i.e. paid on expenses, hourly, when is client expected to pay, etc.

o Umbrella agreement for everything you work on with that client

o Definitely want it reviewed by a lawyer

• Time & materials

o Benefits vendor

• Fixed price

o Price outlined up front, if cost runs over, vendor has to pay difference

o Predictable

§ Client probably is overpaying, but it is a safe move because it is usually

the only money available to fund the project

• Unit price

o Break project into phases and charge client for each phase
 o Disadvantage to vendor

§ Do not have client locked in to pay for all phases at once

• Time box

o Same as unit, but it’s a set date as anything that is done by that date must be
paid for

• Value-added

o Little risk to client

o Have to share profits with company that buys and implements system

o Outsourcer gets % of completed system’s benefits

4/16 Notes

Response to RFP

• 2 things to understand

o All comes from risk presentation

o Includes assumption and scope statement

o Deliverables and scope statement go hand in hand

Scope Statement

• Do in table

o 2 columns

§ In scope

• For most things in scope, there is something out of scope

§ Out of scope

o Specify length of training and who gets trained

§ Be very clear

§ Will there be a test involved to show completed training?

 § Who trains new employees?

o Licensing

§ 3 years of license

• What kind of license (site license? Per seat license?)

• Out of scope

o After year 3 we are willing to provide license on a fee

basis or it can procured directly through the vendor

o Data migration

§ In scope will be data file from access or excel that meets file layout we
describe

• Define how many times you will do this

o Procure HW/SW

o Procure Tags

Assumptions

• Come right out of risk section for most part

• Basic assumptions

o Contingency budget

o Have users who are available to be part of JAD sessions, planning, analysis,
who will participate in user testing

§ If we do not have these people, project will fail

§ MAKE SURE THIS IS ARTICULATED IN ASSUMPTION

§ What level of users? (IT? warehouse staff?)

o Make sure to look at SOW that Cindy wrote for client

o Make sure users respond back to you

o Business sponsor will respond to queries within a set number of hours or days

§ Enforced by documentation

• Weekly reports
 • Use project plan to say how much it will cost every day or hour
that question is not answered

• Costs time as well

• Typically two working days is reasonable

• Also say that somebody should be available in case of business

sponsor absence

o Explicitly state it is assumed that users are computer literate on a very basic
level

o If doing SAP bolt on

§ Say that third party will interface with SAP so vendor does not get stuck
with it if third party goes under

o State that all relationships outside what agreed upon (such as using Comcast
internet) will be handled by Fitter Snacker and third party

§ i.e. Comcast internet down in area

DO NOT DO DELIVERABLE SECTION, IN CLASS TODAY CINDY SAID

TO JUST SUBMIT ASSUMPTIONS AND SCOPE

April 19
Unit Testing- tested by developers; Q-A test own code when you build something;
Intergration Testing- make sure that dans widget works with jen;s widget. does his button load up
on jens website? have outside people test your work fresh eyes.
System Testing - see if little pieces fit together (display databases correctly when called/ pressed
a btn) possibly developers test; mostly Testers/ people hired to test to try and break the program.
Test script- automated, to see if things fails; or list of steps to see if things runs properly. create
test scripts
check to see if the datas are correct before you implement; run a age distribution; remember 80-
20 rule test the most used portions vigorously; Look for weird combination in the data-- ie look
for ages, depths of the teeth, how many pockets, how many teeth a person has. (Tester tests it)
Test plan, write step by step what you want a tester to do, and specify what the results should
be.

UAT- involve them early on so they see everything. the only thing they should find in UAT is small
goofy stuff. - will they like it?? once they sign off on it; you can move on to the next project.
Alpha- madeup data
beta- real data- loading data in 2 times; entering it into old & new