Ethical Principles - 1049 Words

Henrietta Lacks, a woman that died of cervical cancer in 1951, single handedly changed the field of science. Not long before she passed away, a doctor took a sample of her cancer cells, the cells from her cervix were later on named HeLa cells, and these cells helped pave the way to numerous experiments and research all over the world. Even though HeLa brought along many achievements with its discovery, it also brought disappointments to some researchers, and pain for her family. You see, she nor her family consented to her cells being sampled, or the amounts of experiments and research that occurred after. Her family was never aware that such actions even took place. Even so, on February 1st, 1951, the day Henrietta Lacks walked in to John†¦show more content†¦Henrietta Lacks’ cervical tissue was taken without her consent, with no intentions of using them to benefit her in any way. In my opinion, all that were involved were in violation of the ethics code of conduct. Mary Kubicek and Dr. Gey, as well as the Dr. that allowed them to collect the sample were all in violation, simply because Henrietta Lacks did not consent to her tissue being used for cancer research. While Henrietta soon passed away from an aggressive form of cervical cancer, all others involved benefited from her cells. Her family knew nothing about the research, they knew nothing about her cells being collected, and it was not until 1976, when geneticists went looking for them (Films for the Humanities Sciences, 2012); believing that the cure to cancer was embedded in DNA. Dr. Gey, along with many other researchers, had been trying to grow human cells in vitro for many years. That was until Henrietta Lacks walked in to John Hopkins Hospital. Once HeLa cells were discovered, it made it possible for just about anything to be tested on them. As the HeLa cells continued to grow, so did the opportunity for many more experiments. During this time, the polio epidemic broke out; HeLa ce lls made it possible for the discovery of the polio vaccine. Leonard Hayflick, a Cell Biologist, had other plans in mind for cell line development. He established a cell line from the amnion of his daughter on theShow MoreRelatedThe Ethical Principles Of Respect For Autonomy984 Words   |  4 Pagesnurse to administer blood despite Mark’s refusal. This situation presents an ethical dilemma to the health professionals involved in Mark’s care. The ethical dilemma is whether to uphold his decision not to receive the blood and therefore risk his life or give him the blood to save his life despite knowing his religious status and beliefs. There are several ethical principles involved in this scenario. The ethical principles of respect for Autonomy, Beneficence, Non-maleficence, Veracity and FidelityRead MoreDomestic Surveillance And Ethical Principles1859 Words   |  8 PagesDomestic Surveillance and Ethical Principles Why do we neglect any ethical principles? According to the basics of utilitarianism, human deeds focus on common welfare. When we turn into spy’s and follow our family members, we hope that it will work in favor of our family welfare and common utility. We can compare home spying with domestic surveillance to show how ethical principles work in this area. â€Å"As a matter of fact, domestic surveillance focuses on potential crime prevention. On the other handRead MorePrinciples That Build The Foundation For Ethical Leadership761 Words   |  4 PagesThere are five principles that build the foundation for ethical leadership: respects others, serves others, shows justice, manifests honesty, and builds community (Northouse, 2016, p. 341). Treating others with respect means treating each person as if they are your goal, rather than just a means for a leader to achieve their goal (Northouse, 2016, p. 342). Respect also means allowing others to do what they do best; they are par t of the company for a reason, trying to pigeonhole them into doingRead MoreEthical Principles1475 Words   |  6 PagesAn Analysis of Ethical Principles in The Evaluation The term ‘ethical’, as I have come to apprehend it, is not just conforming to putative standards of conduct, but dealing with what is good or bad and with moral duty and obligation. Thomas A. Schwandt, a professor at the University of Illinois, notes that â€Å"while we can live in a world without standards and guidelines, we cannot live in a world without ethics.† Although, standards and guidelines have become prominent and are important guides inRead MoreEthical Principles3652 Words   |  15 PagesThe National Association for the Education of Young Children (NAEYC) is a nonprofit corporation dedicated to act on behalf of the interests of young children. The NAEYC Code of Ethical Conduct offers guidelines for responsible behavior and sets forth a common basis for resolving the principal ethical dilemmas encountered in early childhood care and education promoting a commitment to integrity, veracity, fairness, and human dignity at all levels; nevertheless, furth er research and/or developmentsRead MoreEthical Principles1161 Words   |  5 PagesEthical Principles Paper Nadia Brown University of Phoenix Ethical Principles Paper Henrietta Lacks was born on August 1, 1920, in Roanoke, Virginia and she died due to complications of cervical cancer on October 4, 1951.She had been receiving treatment at the Johns Hopkins Hospital in Baltimore, Maryland. At the hospital she was treated with radium tube inserts, which is said to be the standard treatment for cervical cancer in 1951. As a matter of routine, samples of her cervix were removedRead MoreThe Importance of Self-Awareness in Counselling2351 Words   |  10 PagesSaunders (2011). First Steps in Counselling. Ross-on-Wye: PCCS BOOKS. P36) Ethics can be defined as a set of moral principles or rules of conduct. Ethical principles and stand points play a major role in the decisions and angles that counsellors make and take in order to give the best possible help to a client. Counselling and psychotherapy practices are governed by a set of ethical principles developed by the British Association for Counselling and Psychotherapy (BACP). They are as follows: Fidelity:Read MoreEthical Principles, Decision And Principle1792 Words   |  8 PagesIn making ethical principles, decision and applying them in this case study scenarios; there are approaches to ethical analysis in addition to ethical systems and principles that will need to be considered especially where power and authority become the main issue and principle. John Rawls (1957) presented an abstract procedure for deciding moral issues. He stated that â€Å"moral principles can be developed through inductive logic which is through moral judgments such as common sense, open mind, personalRead MoreThe Diet Of A Baby Girl Named IIce1825 Words   |  8 Pages IIce was well nourished and was beginning to develop more than normally. However, IIce suffered from permanent neurological damage due to prematurity and malnutrition. Ethical Principles The ethical principles involved include: Autonomy, Finality, Justice, Non-maleficence, Utility, Tolerance and Rationality. These principles can be applied to the case as a whole or to specific events that unfolded. In respect to IIce, non-maleficence was violated when she was in the care of her parents. Her parentsRead MoreAn Ethical Framework And Ethical Principles3227 Words   |  13 Pagestreatment for the patient whilst adhering to the applicable legal and ethical frameworks imposed. In order to achieve this the assignment will commence by critically analysing how an ethical framework and ethical principles can and should be applied to both the above scenario and more generally in paramedic practice. From this understanding of the underlying principles the assignment will next examine both the legal and ethical standpoints surrounding capacity and consent and analyse how these should

The Stock Market Crash and The Great Depression in the US

Stock Market Crash 25 billion dollars lost in 1 day, roughly 25% of the nations population was without a job, and the suicide rate skyrocketed. These are just a few factors that turned the Stock Market Crash of 1929 into the Great Depression, one of the longest and worst economic downturns of that time, according to History.com. 16 million shares were lost at the New York Stock Exchange, eliminating thousands of investors on October 29th, 1929. The Stock Market Crash impacted the United States by putting Millions of people out of jobs, and putting America in one of the deepest financial and economical holes of that time. Today, Americans are still worried it could happen again, which is causing some people to not trust banks, or†¦show more content†¦The â€Å"Bear Market† is a market that seems to be in a long term decline, this occurs when the economy enters a recession. The â€Å"Bull Market† is when the market seems to be in a long-term incline. Therefore the stock prices wil l continue to rise to high numbers. On Thursday October 24th, 1929; Richard Whitney, who was the vice-president of the New York Stock Exchange and the broker for the House of Morgan made an attempt to calm things down. Brokers with more money got together, and bought stock above the current market. It worked for quite some time, but on Tuesday October 29th, the stock market fell apart. The value of stocks declined rapidly, and money was lost almost instantly. The Ignorance caused lots of panicking and unneeded stress. People started to get worried, and this lead into the â€Å"Great Depression† of 1929. This financial breakdown affected every aspect of life as an American. Those hurting during the â€Å"Great Depression† were more surprised and shocked than mad. Many Americans sank into deep depression because they were unable to find jobs, therefore they could not support their families. 7 to 8 percent of the population owned stocks. John Jakob Raskob, a rich industr ialist spoke about how easy it was for americans to become rich, All you had to do was invest in stocks. The Federal Reserve System did pretty much nothing to keep track of how much money someone could take out, and use for aShow MoreRelatedThe Stock Market Crash Of 19291590 Words   |  7 PagesThe cause of the crash in the stock market in 1929, was an incident that occurred on October 29, which was called Black Tuesday. Investors traded 16 million dollar of shares toward the New York Stock Exchange in a day, upon that billions of dollars were lost and investors lost their business or their jobs. one of the major reason why was that car and other factory produced certain quota of cars. during the great depression people who were rich is now poor and the poor and the poorer. people wereRead MoreJim Braddock and The Great Depression1154 Words   |  5 PagesFranklin Roosevelt said, â€Å"When you come to the end of your rope, tie a knot and hang on,† and it directly relates to the Great Depression. People thought that because of this huge downturn that they would not survive but they had to â€Å"tie a knot in their rope,† and continue to try and survive. The great depression was a time of horror and failure. The giant Stock Market crashes of the 1930’s triggered this major blow to the nations economy. This major devastation also leads many families intoRead MoreThe Great Depression Essay1390 Words   |  6 PagesIntroduction: The world had faced two main economic problems. The first one was the Great Depression in the early of 20th Century. The second was the recent international financial crisis in 2008. The United States and Europe suffered severely for a long time from the great depression. The great depression was a great step and changed completely the economic policy making and the economic thoughts. It was not only an economic situation bit it was also miserable making, made people more attentionRead MoreThe Great Depression By Franklin D. Roosevelt s New Deal Legislation1115 Words   |  5 PagesWhat do you think about when you hear The Great Depression? Some might say the worst economic time in the United States of America. The Great Depression was one of the longest and innermost economic downturn in the world of history between the years of 1929 and 1939. Also, The Great Depression led to the Federal Government having a more involved role in America s economy, this was done through the creatio n of Franklin D. Roosevelt s New Deal Legislation, which turned out to be effective becauseRead MoreWill Mcclellan3/5/17. Herbert Hoover. Herbert Herbert Is874 Words   |  4 Pagestimes such as the stock market crash of 1929 and the Great Depression. These were tough tasks for a president and since the Great Depression lasted so long, I don’t believe that he handled them very well so I believe that Herbert Hoover belongs in the hall of shame. Hoover became President in March, 1929. The stock market crash occurred in October, 1929 and lasted for four days. The stock market lost more than 25% of its value over those four days and is considered the worst crash in the historyRead MoreThe Crisis Of The 1929 Stock Market Crash1378 Words   |  6 PagesJuly 2007, the United States were kicked off by the subprime mortgage crisis, emphasized by the banking and financial crisis of 2008. The global economic crisis called the Great Recession followed in 2008. It has been famously regarded as preventable by the memory of the Great Depression in the late twenties. The stock market crash of â€Å"Black Thursday† on the 24th of October 1929 marked the end of the â€Å"Roaring Twenties†, temporary period of prosperity and endless hope in the United States. But this hopeRead MoreGreat Depression And The Great Recession864 Words   |  4 PagesThe â€Å"Great Depression† and the â€Å"Great Recession† are two of the darkest times in American history. There is much debate about the cause of the Great Depression and how it differed from the cause of the Great Recession. Many people believe that the stock market crash of 1929 played a major role the Great Depression. On the other hand, the stock market crash of 2008 drove America into the Great Recession. The causes of stock market crashes are often unforeseen, but many have detectable indicators.Read MoreThe Great Depression : The Fall Of A Nation1701 Words   |  7 PagesThe Great Depression: The Fall of a Nation The Great Depression was a hard time for America. The name fits like a glove because it was, in fact a depression. The Great Depression was crucial to American history because it changed every aspect of American life, revealed how big a power America was, and it established multiple government agencies around the world to make sure something like it never happens again. The economy was at a highpoint in 1929. It was easier for people to buy stock (â€Å"StockRead MoreThe Stock Market Crash of 19291289 Words   |  6 Pagesat home or in the bank into the stock market. People migrated to the prosperous cities with the hopes of finding much better life. In the 1920s, the stock market reputation did not appear to be a risky investment, until 1929.First noticeable in 1925, the stock market prices began to rise as more people invested their money. During 1925 and 1926, the stock prices vacillated but in 1927, it had an upward trend. The stock market boom had started by 1928. The stock market was no longer a long-term investmentRead MorePresident Herbert Hoover : The Legacy Of The Great Depression1156 Words   |  5 PagesHoover’s lack of action that brought America to its knees before the Great Depression. Should Herbert Hoover be defined as the ineffective president accountable for the aftermath of the Stock Market Crash of 1929 or did he ac tually play an important role in alleviating the economic turmoil, but simply went unrecognized for his heroic contributions? Although he is known to be an excellent businessman, the prevention of the Stock Market Crash of 1929 was an impossible feat for even someone as educated as

Business Stakeholders Knowledge Management System

Question: Discuss about the Report for Business Stakeholders of Knowledge Management System. Answer: Stakeholder refers to any person that has interest in the proposed information or knowledge management system. It is extremely important to research on the stakeholder requirement for these systems to understand the stake of the various technical and non-technical workers and also to determine the influence of the stakeholder on the activities associated with the project. Assignment of roles and responsibilities can also be efficiently done only after understanding the stakeholder requirement (Pouloudi, 2016). There are a number of methods to collect information from the stakeholders that include one-on-one discussions with the stakeholder, group discussions, and conduction of collaborative workshops along with conference calls and surveys. It is suggested to record the outcomes of any of these methods in a formal manner (Abudi, 2010). Stakeholder management and assessment is an important activity in a project and the steps in providing information to the external stakeholders should be managed well. The main objectives of the system are: To provide the information to the external stakeholders without compromising on the information confidentiality, integrity and security. To provide the information to the external stakeholders as per the project schedule The following strategy must be followed while training the external users: A training plan must be developed and shared with the trainer and the trainees before the training. Resources necessary for the training that is a facilitator, trainer or group of trainers and trainees willing to attend the training must be identified. Method of training shall be finalized on mutual consent. For a web based training, audio/video conferencing details along with the schedule must be shared with all the members and in case of an in-person training session, venue details must be shared and booked in advance. The documents that will be followed during the training must be circulated in advance. The success of the training activity can be judged on the basis of the feedback form comprising of a list of questions about the training material, schedule, trainer interaction level and likewise. The form must be filled and sent back to the facilitator by all the trainees. The system can be promoted to the external users by arranging the introductory and training sessions for them that will provide a brief on the features of the same and the steps to use the same. User manuals and guides highlighting the advanced features and benefits must also be circulated. The system integrity while providing access to external users can be maintained by following strict access control measures along with the user authentication and authorization methods. Also, the information and data present on the system must be encrypted to avoid any security risks. An automated sales management information system must be installed to keep the sales information maintained and secure at the same time. In case of the loss of sales report from the customer management system, the back-end team must be contacted for assistance to provide the same from the back-up and recovery database. To avoid the data loss in case of a crash, effective back-up strategies must be adopted along with the disaster recovery for recovering the data as and when required. Customer Relationship Management (CRM) software must be used by the organization to improve customer interaction and associated activities. In case of erroneous information sent to the supplier, the information must be reverted and replaced with the corrected piece of the same. Order processing and inventory control systems must be installed to streamline the orders that are received from the customers and to avoid the issues of shipment delays and backorders. Transaction Processing Information Systems are the systems which are used to manage the transactions at the operational level. These systems perform the task of validating, sorting, listing, merging, calculating and updating the information to provide detailed reports and lists. Some of the examples of transaction processing information systems include payroll systems, order processing systems, stock control systems and reservation systems (Al-Mamary, Shamsuddin, Aziati, 2016). Strengths: These systems can handle several thousand transactions simultaneously without causing errors which is otherwise not possible through manual operations. This leads to saving of a lot of time and effort. These systems also enable the customers from all across the globe to access a system at any time as these are always available. Weaknesses The biggest weakness of these systems is the security threats that these are exposed to. There is also hardware and network requirement that needs to be fulfilled to implement and use these systems. The maintenance that these systems ask for also adds to the weakness of the transaction processing systems (Fitzpatrick, 2016). SWOT Analysis stands for the determination of an organizations strengths, weaknesses, opportunities and threats. It is a strategic planning tool for the organization to understand the internal (strengths and weaknesses) and external (opportunities and threats) factors that may affect the performance. SWOT Analysis can be used to determine the effectiveness of an information management system as it can easily evaluate the success or failure of the same. It also gives information on the features that distinguish the system from the rest which make it distinguished from the competitors (Chand, 2014). The information system that has been chosen for assessment is the Transaction Processing System. The system has been found to be extremely effective and usable for the employees to perform operational transactions. It has also emerged as an essential component in the information systems that are installed in the organization. The assessment procedure that was followed to come up to the conclusion stated above is described as follows: A monitoring and evaluation plan was designed to perform the assessment of the system Monitoring of the system was done by collecting the information through on-site visits, review of the data and examination of the reports. Data was collected in the form of reports, records, indicators and formats Evaluation to assess the performance was done by determining the achievements, impact, cost effectiveness and sustainability of the system (www.pathfinder.org, 2016). The major drawbacks that were received while assessing the transaction processing information systems were in terms of the security. Security threats and risks are on an ever increasing pace in the world of information systems and the same has impacted the transaction processing systems as well. The same can be approved by using stronger security mechanisms such as improved access control, use of latest anti-virus and internet security along with the installation of firewalls in the system. Other employees that were involved in assessing the system and suggesting the improvements were the network engineers that determined the network security attacks affecting the system, internal and external users that use the system and the maintenance staff that provides assistance and support. Assessment Report Objective The objective of the report is to analyze the effectiveness and performance of transaction processing information system in the organization. Stakeholders The stakeholders that are involved during the assessment of the system are the system engineers, network engineers, maintenance team and end-users. Assessment Procedure A checking and assessment arrangement was intended to play out the evaluation of the framework Checking of the framework was finished by gathering the data through on location visits, audit of the information and examination of the reports Information was gathered as reports, records, markers and configurations Assessment to evaluate the execution was finished by deciding the accomplishments, sway, cost viability and maintainability of the framework Assessment Result The system has been observed to be to a great degree compelling and usable for the workers to perform operational exchanges. It has additionally risen as a key part in the data systems that are introduced in the association. Recommendations The real disadvantages that were gotten while evaluating the transaction processing data systems were as far as the security. Security dangers and dangers are on a perpetually expanding pace in the realm of data systems and the same has affected the transaction processing systems too. The same can be endorsed by utilizing more grounded security instruments, for example, enhanced access control, utilization of most recent tools against viruses and web attacks alongside the establishment of firewalls in the system. References Abudi, G. (2010). Best Practices for Gathering Requirements from Your Stakeholders - Gina Abudi. Gina Abudi. Retrieved 4 August 2016, from https://www.ginaabudi.com/best-practices-for-gathering-requirements-from-your-stakeholders/ Al-Mamary, Y., Shamsuddin, A., Aziati, N. (2016). The Role of Different Types of Information Systems In Business Organizations : A Review. Retrieved 4 August 2016, from https://paul-hadrien.info/The%20Role%20of%20Different%20Types%20of%20Information.pdf Chand, S. (2014). SWOT Analysis: Meaning and Importance of SWOT Analysis | Management. YourArticleLibrary.com: The Next Generation Library. Retrieved 4 August 2016, from https://www.yourarticlelibrary.com/management/swot-analysis-meaning-and-importance-of-swot-analysis-management/25826/ Fitzpatrick, M. Fitzpatrick, M. (2016). The Advantage Disadvantage of Transaction Processing Systems | eHow. eHow. Retrieved 4 August 2016, from https://www.ehow.com/info_8708023_advantage-disadvantage-transaction-processing-systems.html Pouloudi, A. (2016). Aspects of the Stakeholder Concept and their Implications for Information Systems Development. Retrieved 4 August 2016, from https://www.computer.org/csdl/proceedings/hicss/1999/0001/07/00017030.pdf www.pathfinder.org,. (2016). Monitoring and Evaluation and Management Information Systems (MIS). Retrieved 4 August 2016, from https://www.pathfinder.org/publications-tools/pdfs/Strengthening-You-Organization-A-Series-of-Modules-and-Reference-Materials-for-NGO-and-CBO-Managers-and-Policy-Makers-Monitoring-and-Evaluation-and-MIS.pdf

Learning Chapters on Project Procurement Management Essay Example

Learning Chapters on Project Procurement Management Paper After reading this chapter, you will b understand the Importance of prop Increasing use of outsourcing for info Describe the work involved in planning determining the proper type of contract t management plan, statement of work, so buy analysis Discuss what is involved in conducting obtaining seller responses, selects Understand the process of admit meet relationships and monitor Describe the process of closing Discuss types of software avail management Marie McBride could not believe how much money her company was paying for outside consultants to help the company finish an important operating system conversion project. The consulting companys proposal said it would provide experienced professionals who had completed similar conversions, and that the Job would be finished in six months or less with four consultants working full time. Nine months later her company was still paying high consulting fees, and half of the original consultants on the project had been replaced with new people. One new consultant had graduated from college only two months before and had extremely poor communications skills. Marries internal staff complained that they were wasting time training some of these experienced professionals. Marie talked to her companys purchasing manager about the contract, fees, and special clauses that might be relevant to the problems they were experiencing. Marie was dismayed at how difficult it was to interpret the contract. It was very long and obviously written by someone with a legal background. We will write a custom essay sample on Learning Chapters on Project Procurement Management specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Learning Chapters on Project Procurement Management specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Learning Chapters on Project Procurement Management specifically for you FOR ONLY $16.38 $13.9/page Hire Writer When she asked what her company could do since the consulting firm was not following Its proposal, the purchasing manager stated that the proposal was not part of the official contract. Marries company was paying for time and materials, not specific deliverables. There was no clause stating the minimum experience level required for the consultants, nor were there penalty clauses for not completing the work on time. There was a termination clause, however, meaning the company could terminate the contract. Marble wondered why her company had signed such a poor contract. Was there a better way to deal with procuring services from outside the company? Although global outsourcing displaces some IT workers, total employment In the united States increases, according to IOTA, as the benefits ripple through the economy. I en Incremental economic actual TTY Tanat Tools outscore II outsourcing creates over 257,000 net new Jobs in 2005 and is expected to create over 337,000 net new Jobs by 462 P oliticians debate on whether offshore outsourcing helps their own country or not. Andy Boor, chief operating officer of a computer network support service provider, describes outsourcing as an essential part of a healthy business diet. He describes good vs.. Bad outsourcing as something like good vs.. Bad cholesterol. He says that most people view offshore outsourcing as being bad because it takes Jobs away from domestic workers. However, many companies are realizing that they can use offshore outsourcing and create more Jobs at home. For example, Atlanta-based Delta Air Lines created 1,000 call-center Jobs in India in 2003, saving $25 million, which enabled it to add 1,200 Job positions for reservations and sales agents in the United States. 2 Other companies, like Wall-Mart, successfully manage the majority of their information technology projects in-house with very little commercial software and no outsourcing at all. (See the Suggested Reading on the companion Web site on Wall- Marts Way. ) Deciding whether to outsource, what to outsource, and how to outsource are important topics for many organizations throughout the world. In a 2008 survey, 74 percent of 600 global procurement executives believed that procurement issues are a high priority for their companies. About half of respondents also said that their companies focus too much on cost reduction instead of value creation. They also believe they are missing opportunities by not focusing on using technology to improve procurement processes. For example, 72 percent of respondents have less than 10 percent of their spend channeled through procurement and sourcing applications. 3 Most organizations use some form of outsourcing to meet their information technology needs, spending most money within their own country. A 2008 report on IT outsourcing trends in the U. S. And Canada revealed the following: Application development is the most popular form of IT outsourcing and was used by 53 percent of organizations surveyed. Of the surveyed organizations, 44 percent outsourced application maintenance, 40 percent outsourced Web site or e-commerce systems, and 37 percent outsourced disaster recovery services. The IT function with the largest percentage of work outsourced is assister recovery services, accounting for 50 percent of total IT outsourcing. Mortifications see the benefit in having an outside party perform offset storage or maintenance of a recovery facility. Desktop support is the second most outsourced IT function (48 percent), followed closely by data center operations and help desk (47 percent each) and Web site or e-commerce systems (46 percent). IT security is at the bottom of the list, with only 29 percent of the work being outsourced. Even though application development and maintenance are frequently outsourced, they are a low percentage of the amount of total IT work outsourced. Application development and maintenance are often outsourced selectively since most organizations choose to do many projects in-house. 4 Procurement means acquiring goods and/or services from an outside source. The term procurement is Widely used in government; many private companies use the terms purchasing and outsourcing. Organizations or individuals who provide procurement services are referred to as suppliers, vendors, contractors, subcontractors, or sellers, with suppliers being the most widely used term. Many information technology projects involve the use of goods and services from outside he organization. As described in Chapter 2, outsourcing has become a hot topic for research and debate, especially the implication of outsourcing to other countries, referred to as offspring. The outsourcing statistics below are from an Information Technology Association of America (IOTA)-sponsored report: Spending for global sources of computer software and services is expected to grow at a compound annual rate of about 20 percent, increasing from about $1 5 billion in 2005 to $38 billion in 2010. Total savings from offshore resources diddling the same time period are estimated to grow from $8. Billion to $20. 4 billion. The cost savings and use of offshore resources lower inflation, increase productivity, and lower interest rates, which boosts business and consumer spending and increases economic activity. Chapter 12 Project Procurement Management Because outsourcing is a growing area, it is important for project managers to understand project procurement management. Many organizations are turning to outsourcing to: Reduce betrothed and recurrent costs. Outsourcing suppliers are often able to use economies of scale that may not be available to the client alone, especially for hardware and software. It can also be less expensive to outsource some labor costs to other organizations in the same country or offshore. Companies can also use outsourcing to reduce labor costs on projects by avoiding the costs of hiring, firing, and reassigning people to projects or paying their salaries when they are between projects. Allow the client organization to focus on its core business. Most organizations are not in business to provide information technology services, yet many have spent valuable time and resources on information technology functions when they should have focused on core competencies such as marketing, customer arrive, and new product design. By outsourcing many information technology functions, employees can focus on Jobs that are critical to the success of the organization. Access skills and technologies. Organizations can gain access to specific skills and technologies when they are required by using outside resources. For example, a project may require an expert in a particular field or require the use of expensive hardware or software for one particular month on a project. Planning for this procurement ensure that the needed skills or technology will be available for the project. Provide flexibility. Outsourcing to provide extra staff during periods of peak workloads can be much more economical than trying to staff entire projects with internal resources. Many companies cite quicker flexibility in staffing as a key reason for outsourcing. Increase accountability. A well-written contract-a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them-can clarify responsibilities and sharpen focus on key deliverables of a project. Because contracts are legally binding, there is more accountability for delivering the work as stated in the contract. In December 2002, who organ Chase announced a sieving to MOM, both companies en- year, $5 billion deal too bragged that the contract w TTS med like a win-win situational would make money an gang Chase could push for innovation. The contract less than two years However, in September 200 egger fit with Comparing Chaises busting its existence because the pro news strategy. According to Austin rumination officer at Comparing Chi couture is best for the long-term gar We believe managing our own techno and success of our company as well a railroaders. However, IBM said he can contract was simply a result of Comparing Chaises merger earlier that year with Bank It tried to shrug off the loss of a large business deal. The combined firm found its an abundance of IT assets, IBM spokesperson James Icicles said. This decision w other business decisions related to the merger. 6 Outsourcing can also cause problems in other areas for companies and nations as a whole. For example, many people in Aus tralia are concerned about outsourcing software development. The Australian Computer Society says sending work offshore may lower ten under AT students entering II courses, deplete ten mummer AT Skilled IT professionals, and diminish the nations strategic technology capability. Another issue is security, which encompasses the protection of intellectual property, integrity of data, and the reliability of infrastructure in offshore locations. 7 The success of many information technology projects that use outside resources is often due to good project procurement management. Project procurement management includes the processes required to acquire goods and services for a project from outside the performing organization. Organizations can be either the buyer or the seller of products or services under a contract. There are four main processes in project procurement management: Organizations must also consider reasons they might not want to outsource. When an organization outsource work, it often does not have as much monitor over those aspects of projects that suppliers carry out. In addition, an organization could become too dependent on particular suppliers. If those suppliers went out of business or lost key personnel, it could cause great damage to a project. Organizations must also be careful to protect strategic information that could become vulnerable in the hands of suppliers. According to Scott McNealy, CEO of Sun Microsystems, Inc. , What you want to handle in-house is the stuff that gives you an edge over your competition-your core competencies. I call it your secret sauce. If youre on Wall Street and you have your own program for tracking and analyzing the market, youll hang onto that. At Sun, we have a complex program for testing microprocessor designs, and well keep it. 5 Project teams must think carefully about procurement issues and make wise decisions based on the unique needs of their projects and organizations. They can also change their minds on outsourcing as business conditions change. . 3. Planning procurements involves determining what to procure, when, and how. In procurement planning, one must decide what to outsource, determine the type of contract, and describe the work for potential sellers. Sellers are contractors, suppliers, or providers who provide goods and services to other organizations. Outputs of this process include a procurement management plan, statements of work, make-or-buy decisions, procurement documents, source selection criteria, and change requests. Conducting procurements involves obtaining seller responses, selecting sellers, and awarding contracts. Outputs include selected sellers, procurement contract awards, resource calendars, change requests, and updates to the project management plan and other project documents. Administering procurements involves managing relationships with sellers, monitoring contract performance, and malting changes as needed. The main outputs of this process Include procurement documents talon, organizational 4. Process asset updates, change requests, and project management plan updates. Closing procurements involves completion and settlement of each contract, including resolution of any open items. Outputs include closed procurements and organizational process asset updates. Figure 12-1 summarizes these processes and outputs, showing when they occur in a typical project. Planning Process: Plan procurements Outputs: Procurement management plan, procurement statements of work, make-or-buy decisions, procurement documents, source selection criteria, and change requests 466 Executing Process: Conduct procurements Outputs: Selected sellers, procurement contract award, resource calendars, change requests, project management plan updates, project document updates Monitoring and Controlling Process: Administer procurements Outputs: Procurement communication, organizational process asset updates, change requests, project management plan updates Closing Process: Close procurements Outputs: Closed procurements, organizational process asset updates Project Start Project Finish FIGURE 121 Project procurement management summary The Boots Company PLY, a Nottingham, England, outsourced its information t Tiber 2002. The Boots Company signed a ten-year d expected to save $203. 9 million over that period com systems itself. IBM managed and developed The Boots Comma cou ture from the mainframes to the tills in our 1,400 stores, to the co , said spokesperson Francis Thomas. More than 400 Boots employees we Vims payroll but continued to work at Boots head office, with extra IBM s n as needed. Thomas added, The great thing about this is that if IBM has an expert in Singapore and [if} we need that expertise, we can tap Into It Tort tender months. It Keeps our costs on an even Keel. 8 is not uncommon moon for long contracts to be renegotiated, becoming either shorter or longer in length. May 2006, Boots and IBM began discussing amendments to their contract because m of Boots IT infrastructure renewal program (including a new pharmacy system and roll) was complete. A Boots spokesman said that the many achieved its goal much quicker than planned. In contrast, in 2005 Boots renegotiated its EYE million, seven-yea IT contract it initially signed in 2002 with Sans, extending it for another two years to 2011 in a EYE million deal. 9 It is also not uncommon to take advantage of competition the changing marketplace for major procurements. In 2008, Boots announced that I have up to six different suppliers competing to supply its IT products and services ova next year. The company is keeping its business system management team and service management in-house? including helpless and project management. 10 Properly planning purchases and acquisitions and writing good contracts can also save organizations millions of dollars. Many companies centralize purchasing for products, such as personal computers, software, and printers, to earn special pricing discounts. For example, in the mid-asses the U. S. Air Force awarded a five-year, multimillion-dollar contract to automate 15 Air Force Systems Command bases. The project manager and contracting officer decided to allow for a unit pricing strategy for some items required in the contract, such as the workstations and printers. By not requiring everything to be negotiated at a fixed cost, the winning supplier lowered its final bid y more than $40 million. II Planning procurements involves identifying which project needs can best be met by using products or services outside the organization. It involves deciding whether to procure, how to procure, what to procure, how much to procure, and when to procure. An important output of this process is the make-or-buy decision. A make-or- buy decision is one in which an organization decides if it is in its best interests to make certain products or perform certain services inside the organization, or if it is better to buy them from an outside organization. If there is no need to buy any reduces or services from outside the organization, then there is no need to perform any of the other procurement management processes. For many projects, properly outsourcing some information technology functions can be a great investment, as shown in the following examples of What Went Right. Inputs needed for planning procurements include the scope baseline, requirements documentation, teaming agreements, the risk register, risk-related contract decisions, activity resource requirements, the project schedule, activity cost estimates, the cost performance baseline, enterprise environmental factors, and organizational process assets. For example, a large clothing company might consider outsourcing the delivery of, maintenance of, and basic user training and support for laptops supplied to its international sales and marketing force. If there were suppliers who could provide this service well at a reasonable price, it would make sense to outsource, because this could reduce fixed and recurring costs for the clothing company and let them focus on their core business of selling clothes. It is important to understand why a company would want to procure goods or services Ana want Inputs are anemia to plan purchases and acquisitions. In the opening case, Marries company hired outside consultants to help complete an operating system conversion project because it needed people with specialized skills for a short period of time. This is a common occurrence in many information technology projects. It can be more effective to hire skilled consultants to perform specific tasks for a short period of time than to hire or keep employees on staff full time. However, it is also important to define clearly the scope of the project, the products, services, or results required, market conditions, and constraints and assumptions. In Marries case, the scope of the reject and services required were relatively clear, but her company may not have adequately discussed or documented the market conditions or constraints and assumptions involved in using the outside consultants. Were there many companies that provided consultants to do operating conversion projects similar to theirs? Did the project team investigate the background of the company that provided the consultants? Did they list important constraints and assumptions for using the consultants, such as limiting the time that the consultants had to complete the conversion project or the minimum years of experience for any consultant assigned o the project? It is very important to answer these types of questions before going into an outsourcing agreement. Dividing both sides by $400, you get: which means that the purchase cost equals the lease cost in 30 days. So, if you need the equipment for less than 30 days, it would be more economical to lease it. If you need the equipment for more than 30 days, you should purchase it. In general, leasing is often cheaper for meeting short-term needs, but more expensive for long- term needs. Expert Judgment Tools and Techniques for Planning Procurements There are several tools and techniques to help project managers and their teams in landing procurements, including make-or-buy analysis, expert Judgment, and contract types. Make-or-Buy Analysis Make-or-buy analysis is a general management technique used to determine whether an organization should make or perform a particular product or service inside the organization or buy from someone else. This form of analysis involves estimating the internal costs of providing a product or service and comparing that estimate to the cost of outsourcing. Consider a company that has 1,000 international salespeople with laptops. Using make-or-buy analysis, the company would compare en cost AT provoking tense services using Internal resources to ten cost AT Dulling those services from an outside source. If supplier quotes were less than its internal estimates, the company should definitely consider outsourcing the training and user support services. Another common make-or-buy decision, though more complex, is whether a company should develop an application itself or purchase software from an outside source and customize it to the companys needs. Many organizations also use make-or-buy analysis to decide if they should either purchase or lease items for a particular project. For example, suppose you need a piece of equipment for a project that has a purchase price of $12,000. Assume it also had a daily operational cost of $400. Suppose you could lease the same piece of equipment for $800 per day, including the operational costs. You can set up an equation in which the purchase cost equals the lease cost to determine when it makes sense financially to lease or buy the equipment. In this example, d = the number of days you need the piece of equipment. The equation would then be: Experts inside an organization and outside an organization could provide excellent advice in planning purchases and acquisitions. Project teams often need to consult experts within their organization as part of good business practice. Internal experts might suggest that the company in the above example could not provide quality training and user support for the 1,000 laptop users since the service involves so many people with different skill levels in so many different locations. Experts in the company might also know that most of their competitors outsource this type of work and know who the qualified outside suppliers are. It is also important to consult legal experts since contracts for outsourced work are legal agreements. Experts outside the company, including potential suppliers themselves, can also provide expert judgment. For example, suppliers might suggest an option for salespeople to purchase the laptops themselves at a reduced cost. This option would solve problems during employee turnover-exiting employees would own their laptops and new employees would purchase a laptop through the program. An internal expert might then suggest that employees receive a technology bonus to help offset what they might view as an added expense. Expert Judgment, both internal and external, is an asset in making many procurement decisions. Types of Contracts $80th = $12,000 + $40th Subtracting $40th from both sides, you get: $40th = $12,000 Contract type is an important consideration. Different types of contracts can be used in different situations. Three broad categories of contracts are fixed price or lump sum, cost reimbursable, and time and material. A single contract can actually include all three of these categories, if it makes sense for that particular procurement. For example, you could have a contract with a seller that includes purchasing specific hardware for a fixed price or lump sum, some services that are provided on a cost lampshades Dados, Ana-eaten services Tanat are approver on a tale Ana material basis. Project managers and their teams must understand and decide which approaches to use to meet their particular project needs. It is also important to understand when and how you can take advantage of unit pricing in contracts. Fixed- price or lump-sum contracts involve a fixed total price for a well-defined product or service. The buyer incurs little risk in this situation since the price is predetermined. The sellers often pad their estimate somewhat to reduce their risk, realizing their rice must still be competitive. For example, a company could award a fixed-price contract to purchase 100 laser printers with a certain print resolution and print speed to be delivered to one location within two months.