Child Care Administrator’s Improper Payments Information Technology Guide

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C. Identifying and Evaluating Alternatives (continued)

Once a strategic analysis is complete and alternatives identified, States may wish to conduct an alternatives analysis. An alternatives analysis can include a number of criteria, and States may wish to develop their own list of criteria based on their needs and priorities. A list of possible criteria and an explanation for each follows. Typically, a team performs an alternatives analysis. The team typically consists of staff members that possess program knowledge, financial analysis skills, and those qualified to offer legal opinions related to system ownership and implementation. States should consider additional team members with the knowledge and skills to perform the analyses listed below.

A decision matrix with alternatives on the left column and key evaluation criteria across the top can be a helpful tool to summarize and visualize the results of these many analyses. A sample decision matrix is contained in Appendix 3.

a. Legal Analysis

It may be prudent for States to ensure that the approach meets all legal requirements, for example, using appropriate measures to safeguard personally identifiable information and complying with software ownership regulations related to the use of public funds for software development.

b. Political Feasibility and Executive Sponsorship

Many technically successful projects fail because they do not meet the needs of key stakeholders or diverge from the stated direction of Agency leadership. Including key stakeholders–senior management and end users–in the alternatives analysis helps States avoid this mistake.

c. Technical Analysis

A State must assess whether it can implement the technical approach within the Agency’s current technical architecture (hardware, software, and staff skills) and whether the approach is consistent with the planned future technical architecture. For example, if the State chooses to adopt online card technology for all its State-sponsored services (e.g., Food Stamps, WIC, or TANF), can a smart-card solution to track time and attendance for the subsidized child care be included?

d. Usability Assessment

Usability refers to the ease with which users interface with the system. A user interface that is clear and simple can facilitate system adoption and contribute to its long-term success. A usability assessment typically includes a combination of comparing a system to specified design standards and then having end users interact with the system and offer their assessment.

e. Feasibility Analysis

Assessing feasibility at the beginning of the project enables States to make prudent decisions. A typical feasibility analysis includes:

• Identifying Constraints - Assessing whether a solution fits within the known constraints is an important component of a feasibility analysis. The most common constraints are cost, time, and scope. Cost constraints refer to the available resources for system development and maintenance. For example, a great data-mining product that can profile cases and determine which are at greatest risk for resulting in an improper payment may be available, but the Agency must have adequate funds for its acquisition. Agencies also may have specific time constraints stemming from requirements related to State or Federal legislation or from decisions made by Agency leadership. For example, an Agency may be able to develop a solution or integrate a system that meets the stated user requirements, but the timeframe for this development may exceed a requirement set forth in legislation. Solutions also must meet the stated scope of a project. In some instances, a COTS product may meet many but not all of the stated requirements. In these cases, Agencies need to decide whether the solution is acceptable.
• Assessing Cost-Effectiveness - This assessment includes estimating direct costs, quantifying benefits, and evaluating the impact on existing systems and business process. This kind of assessment typically includes one-time costs (e.g., hardware, software, and data conversion) and recurring costs for enhancements and customer support.
• Performing a Risk Analysis - This analysis includes assessing available human resources to ensure that the appropriate skills and experience are in place, determining whether the user requirements are thorough and well constructed, assessing the efficacy of the project management procedures, determining whether the project includes a realistic estimate of cost and schedule, and identifying the existence of contingency plans.
• Calculating Return on Investment (ROI) over a system’s life cycle - An ROI calculation includes costs, savings, benefits, and the ability to meet strategic objectives. This kind of assessment also includes one-time costs (e.g., hardware, software, and data conversion) and recurring costs for enhancements and customer support. An ROI calculation also should include benefits such as reduced staff time for performing a particular work function(s); cost savings from fewer improper payments; and other benefits that are not easily quantifiable, such as an increase in public trust and an increase in customer satisfaction.