A Briefing on the Process of Selecting an Information System
By: Anthony S. Gregorio
HCS/483 Ins: Howard Gregory

What is the most effective process for selecting and acquiring an information system and how to incorporate it into a healthcare organization? “Large software systems are built by using components developed by others (commercial or open source), therefore an increasing need appears to select the right system, the appropriate components in a systematic, factual, objective, and cost efficient manner” (Fitsilis, Kameas, & viglas, 2011, p. ). When attempting to determine what factors should be included in selection, these are on the top priority list: business strategy (financial gains), numerous functional and non-functional requirements, operating priorities, and availability of resources (Fitsilis, Kameas, & viglas, 2011). A process called Multi-Criteria Decision Making is used in the selection process for an IT system. It is abbreviated as MCDM. “Assessing literature reviews on evaluating software products suggest that users and decision makers can receive a lot of support, if they decide to adopt an MCDM method” (Fitsilis, Kameas, & viglas, 2011, p). There is also a process known as the Analytic Hierarchy Process, AHP, which has recently been widely used for evaluating several types of software packages by considering a given set of qualitative and quantitative criteria and using the information results to formulate a report. This report can be added to other information and be combined to the MCDM method which can then be eventually used to make a selection for an IT system. There are three levels of hierarchy which are typically achieved when utilizing an AHP. This selection process will result in the leveling of the selection criteria. “The upper hierarchy level is the goal of the decision process, the next level defines the selection criteria which can be further subdivided into subcriteria at lower hierarchy levels and finally, the bottom level presents the alternative decisions to be evaluated” (Fitsilis, Kameas, & viglas, 2011, p). The final decision process should encompass the context of business strategy. Here, a Balanced Scorecard Method is applied, aka BSC. “BSC is considered a performance measurement framework that provides an integrated look at the business performance of an organization by a set of both financial and non-financial objectives” (Fitsilis, Kameas, & viglas, 2011, p). In regards to the organization’s goals and how they drive the selection process, financial gains sits near the top of the list. “… Net Present Value (NPV) is defined as the total Present Value (PV) of a time series of cash flows. It is a standard method for using the time value of money to appraise long-term projects” (Fitsilis, Kameas, & viglas, 2011, p). A Return on Investment, ROI, plays quite an important role. This basically is a model that shows cash flow and defines the initial investment and determines the cost of the application of the new IT system and if the investment adds overall value to the business. If the NPV is positive then the investment adds value to the business, the project is profitable and therefore the IT system being tested should be purchased or developed, then applied. There are many goals of an organization when trying to purchase new software. Goals may include but certainly are not limited to g questions: What is the overall information technology strategy? What is needed and why is it needed, what system functionality is needed? What results must be accomplished with this effort? What work processes must be changed through this selection and what should the new processes look like? What are the business drivers for the new system, how does this system support the overall needs of the business? Once these goals are decided, then all the people who are affected by the new software, their needs and expectations, must be considered. “Management and staff commitment to a project is critical for its overall success” (Eley, 2005). Senior management needs to maintain a clear understanding of the financial requirements of the project and the staffing resources required to define requirements, identify potential vendors, evaluate products, and implement the new system (Eley, 2005). Just as important as staff commitment is support for the acquisition of a new management information system. The level of support acquired is a vital key to an organization's capability to select and implement a new information system successfully. Acquiring staff support requires 100% participation by key stakeholders in defining functional requirements, developing the implementation schedule, and actually selecting the system (Eley, 2005). A “core workgroup” is a small group of personnel who are involved in virtually every stage of the selection process. The “steering committee” is made up a larger group of diversified stakeholders who are responsible for reviewing a summary of the project and help with identifying roadblocks and other concerns that may be a nuisance for the project’s success. Lastly, the “context expert workgroup is a group of “ participants who ensure that people who will be directly involved with the system have specific input to its definition and selection” (Eley, 2005). Essentially, anyone and everyone who can and will be affected by the implementation of the new information system software should be involved in the selection process. Be it through letters or surveys or other ways of gathering input. It is important to follow steps when making this selection. These steps are considered basic and necessary amongst all types of businesses from basic accounting firms, for example, to international healthcare organizations.

Eley, D. (2005, April). Strategies for selecting a behavioral health information system . Beahavioral Healthcare Tomorrow, 14(2), 111.
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Fitsilis, P., Kameas, A., & viglas, K. (2011, May). An integrated approach for selecting information systems: a case study. Technology and Investment, 2(2), 142. doi:http://dx.doi.org.ezproxy.apollolibrary.com/10.4236/ti.2011.22015