Total Cost of Ownership2002-1-24 22:28:19【作者】 畅享网 【进入论坛】
Total Cost of Ownership
The hidden costs of
technology
A small nonprofit decides to develop a Web site.
Ten thousand dollars later, with the site up and running, the organization
realizes that it has neglected to allot funding for the editing software,
high-speed Internet access, and staff time and training to update the
site.
Unfortunately this organization has not fully considered
all of the critical elements of operating the Web site. This scenario
reflects a common challenge when planning and budgeting for technology of
any kind--including the many different components (see list below) of
owning and operating technology. How do you determine the total cost of
ownership (TCO)? Think of the components as a whole unit and plan to move
on all TCO areas rather than concentrating on one. Smaller steps taken in
all the TCO areas simultaneously will have a more sustained and positive
impact on your organization's technology culture than major advances in
one. Moving in one area assertively, like buying lots of new hardware or
instituting a major training initiative, may generate a burst of
enthusiasm but cause problems if other areas are out of sync.
The Components of Owning and Operating Technology
Strategic Planning for Technology--Technology integration
is complex and requires investments to plan for the alignment of
technology initiatives with your mission. Start by getting stakeholders
involved in assessing your current technology status and then strategize
on what steps to take. You might need to hire a facilitator to assist you,
and count on spending time discussing your assessment results and plotting
an action plan for future technology actions. In the above scenario, if
the nonprofit spent time planning strategically for its Web site
development, it would have been better prepared for the full range of
management challenges that go along with launching a Web site.
Training--Budget time for staff training, but make sure
that training is task-specific and has immediate on-the-job application.
Short, 15 to 30 minute mini-lessons are more valuable than hours of
software training. Also, consider identifying staff members who are
interested in being mentors for other personnel, perhaps even paying them
a stipend for their services. Our scenario would read much differently if
at least one staff member had been trained in editing Web pages.
Hardware technical support--Assume that machines you buy
will work, but budget for network and PC support in case they don't. Don't
be surprised if you have to spend close to $300-$500 per year per PC on
the network. You can secure a contract with a PC repair service or vendor
that charges by the hour or charges a flat annual fee. For example, some
national vendors such as Dell and Gateway offer extended service packages
on new hardware purchases. Either way, hardware technical support should
appear as a line item in your technology budget.
Software--If you have lots of different software running on
different computers, incompatibility will cost you time and money in
constant upgrades. If you have standardized software running throughout
the organization your upgrades will be easier to facilitate and save you
time. You will still have to spend money occasionally to upgrade and to
have a technical expert customize and test the software, but uniformity
will generally lead to quicker and cheaper problem solving. When you buy
new computers, if they come with preinstalled software, make sure to
choose older versions that are compatible with your existing computers.
Returning to our example, having the correct editing software would reduce
the time and effort of updating Web site content.
Replacements--Computers don't last forever. Count on replacing them
every three or four years. Prices these days range from $700 to $1,000 for
a network ready PC. Getting on a hardware cycling schedule will also help
reduce hardware technical support costs since your PCs will never be more
than four years old.
Connectivity--You can realize the
power of computing when your PCs are networked in-house or through the
Internet. The number of connections and the speed are two key things to
consider here. When you do any wiring or purchase any network hardware,
think ahead and assume that you'll have more people on the network in the
future. The up-front expense of using high-speed networking (100 million
bits per second--mbps) and Internet (DSL or cable) connections will always
save you money in the end. Again, in terms of the investment of staff time
and effort, the nonprofit in our scenario would benefit from a faster
Internet connection when uploading documents to their Web site.
In
sum, the best way to avoid mistakes in technology implementation is to
consider the total cost of ownership and plan accordingly. In addition, it
is important to assess the value that technology can have for your
internal operations and programs. Combining the financial and human
resources necessary in each of the categories listed above will give you a
sense of the TCO in a particular technology tool or strategy.
Adapted by the Summit Consulting Collaborative from Taking
TCO to the Classroom, Consortium for School Networking.
Additional Resources
For additional technology planning
resources, see the Summit Consulting Collaborative site.
Dempsey,
Jed, Robert E. Dvorak, Endre Holen, David Mark, and William F. Meehan III.
1998. "A Hard and Soft Look at IT Investments." McKinsey
Quarterly 1: 126-137.
The Consortium for
School Networking has a section on TCO.
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