Total Cost of Ownership (TCO) Matrix
Hard and Soft
Costs - Managed VS. Unmanaged
(Followed with
sample real-world responses) |
|
Hard Cost |
Unmanaged |
Result |
Managed |
Result |
|
PC purchase and/or lease expenses |
Multiple sourcing |
Increased maintenance and support
coordination |
Single sourcing |
One-call maintenance; no time wasting "tech
support shuffle" |
|
When this is a problem: "Vendor A say's
it's vendor B, and Vendor C won't answer my calls...I have no idea who
to call now." |
|
Hard Cost |
Unmanaged |
Result |
Managed |
Result |
|
PC purchase and/or lease expenses |
Price driven buying |
unpredictable lifecycle/ROI results: Often
increased maintenance and support costs |
Task-at-hand assessment w/ Industry
standards based purchasing |
Longest productive life; lowest overall
maintenance costs |
|
When this is a problem:
" We didn't get that...it's not upgradeable...who knew we would ever
need this? |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Research and Advisory |
Unimplemented Purchases |
losses to competition; antiquated systems |
State-of-the-art advisory w/critical
implementation assistance |
Up-to-date, competitive systems |
|
When this is a problem:
"We know it's old. We know it doesn't do that. We're working in it, but
there are still too many questions we need answers to." |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Research and Advisory |
Inappropriate or unworkable technology
purchase |
Expensive re-assessment and re-purchase of
correct system |
Research, advisory, suitability to task
based on complete ROI from start |
Best case return based on industry
standards the first time. |
|
When this is a problem:
"Ok, after all that, it doesn't do what we thought it would, the way it
was supposed to - now what's it going to cost to fix it so it does?" |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Technical Support |
Co-worker Support |
loss of 2nd worker, often critical to
operations. sometimes perpetuates incorrect solution |
Internal point of contact designate advised
on when to work with fellow worker or call PCSS |
Maximum effective use of internal and
external resources for tech support. |
|
When this is a problem:
"She's been working on the problem all morning for me, but now she says
she's got other work to do, and I'm still down!" |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Technical Support |
Manufacturer support |
Lost time on hold for support, often
inconclusive, or wrong identification of problem. Long series of steps
to acquaint tech with current environment |
rapid identification and resolution of
problem based on prior knowledge and expertise |
costs reduced by PCSS knowledge of customer
system, and expertise. User productive faster. |
|
When this is a problem:
"I tried everything they told me to, and then another tech tried with
me. but I had to take a call...Now I have to start whole thing over, I
guess." |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Maintenance and repair |
no plans or regular maintenance or
procedures for systems |
unexpected crashes, failures of
hardware/software, downtime |
periodic checkups on hardware, software and
procedures |
minimizes lost productivity and/or
performance from systems. anticipates need for replacement, upgrade,
etc. |
|
When this is a problem:
"It had been making these strange noises, but it always seemed to
work...until now." |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Maintenance and Repair |
Systems repaired by user or management |
Steep learning curve, long periods of lost
worker productivity for non-recurring knowledge |
Leverage expertise of professional when
work is beyond scope of regular business |
reduces downtime costs and lost
productivity despite cost of service |
|
When This is a Problem:
"No, I didn't get that done yet...I spent the whole day fixing the
computer!" |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Security-Data |
Non-existant, Unaudited or outdated data
backup and disaster plan |
From lost files to company-wide disaster,
depending on crisis |
Audited plan based on risk managed
criteria, tested with hardware and software, and procedures. |
Minimal impact for data loss under all
circumstances. |
|
When This is a Problem:
"I thought we had a backup, but apparently there was a problem some
months ago...What will it take to re-create the data?" |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Security- Internet |
Users decide on virus protection,
firewalls, passwords, etc. |
inconsistent to disastrous results; unknown
security holes in applications or prcedures |
Security audited by professionals for all
access points and procedures |
Eliminates downtime from viruses and
secures access to sensitive data. |
|
When This is a Problem:
" I was just reading my e-mail, and my system started doing funny
things, then everybody's system was doing it. We re-booted, and then it
just got worse. Now, everyone's locking up all the time!" |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Training - New |
System orientation for new worker |
loss of productivity, often for 2nd worker,
too. Incomplete analysis of specific tasks at hand for that worker |
Orientation based on overall knowledge of
businesses objectives, systems, and workers specific tasks |
maximizes user familiarity w/systems and
trains in correct methodology, based on user job. Non-biased advisory to
management on results. |
|
When this is a problem:
"I've tried to sit with him and go over things, but I keep getting
interupted with work. Frankly, I don't have time for this." |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Training - Continuing |
Upgrade or new systems implemented without
orientation |
disrupts flow of regular operation;
unexpected problems and conflicts go unresolved |
Impact on all users assessed and
proactively accounted for. |
Smooth transition to new system or
procedures |
|
When this is a problem:
"I want the old system back. This new one is too confusing - there are
too many choices." |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Documentation - Hardware |
Disks and Manuals often lost on delivery,
or disappear shortly afterwards |
wasted time when loading and re-loading
operating systems, drivers, software, etc. - often leading to
repurchase, or time consuming technical search |
Complete set of documentation and disks for
every system component at site and with provider |
Timely upgrades, re-loads, moving, etc.
Users up and productive in best possible time. |
|
When this is a problem:
" We don't have a copy of windows...I don't know if we ever got one.
Like everything else around here, it seemed to get legs and walk away!" |
|
Soft Cost |
Unmanaged |
Result |
Managed |
Result |
|
Documentation - Service |
No cohesive records exist of changes,
upgrades, service, etc. |
efforts often duplicated, special
situations and exceptions not noted. History misinturpreted |
Complete records of all services performed
for customer to refer to, |
understanding of system via history leads
to faster resolution of current problems |
|
When this is a problem:
"What was done on this system when the guy came in here last year?"
"Which guy? all we got are bills that say say labor and hours on them." |
