At the heart of every technology investment decision is one question: "What's the ROI?" But, the real value of tech goes beyond dollars and cents; it's in the experience it offers to the users.
What is User-Based Cost Analysis? and Why is it Important to me?
User-based cost analysis considers the unit cost of technology the unit being a user. We can group users by the devices they use or their individual technology needs. Why its important is it allows businesses to get a granular understanding of their technology spending and make quick decisions.
Why User-Based Cost Analysis?
Traditional cost analysis often overlooks the varied user experiences, focusing solely on total cost metrics. A user-based approach, however, considers:
The Users: Users come in all shapes and sizes. Power Users, Mobile Users, Administrators Etc and each group has their own technical and functional requirements a per-user model would assist in understanding the varied hard and soft expenses of each type of user.
Productivity enhancement: Does the technology streamline tasks and reduce user effort? If so, what is the expected improvement in each day/week/month?
Total User Cost: A solution-based pricing model allows organisations to quickly interpret and validate the variable costs for their business as they can understand the total technology cost including software and hardware.
Informed Decision Making
When cost analysis revolves around the user, decisions are better informed:
Uncovering hidden costs: are assets being underutilised, do team members have software suites installed that they don’t use?
Prioritizing value over price: Sometimes, ongoing investment can result in superior user satisfaction and efficiency. In real terms a solution that is backed by OEM next business day warranty offers peace of mind. Increased reliability and around-the-clock technical support may cost more initially but mitigates risk. Saving money over time by reducing outages and downtime.
Understanding you are paying for the services the device can render and not the device itself, as with any technology the utility diminishes over time and although it may function, it is not optimised.
Efficient Resource Utilisation
By understanding user needs and experiences:
Resources aren't wasted on flashy but non-functional features. Furthermore understanding the latent economic value of your device after 2-3 years may enable a systematic approach to refreshing IT assets in a cyclical manner through our Zeal Tilt program.
A per-user model generally involves utilising a lease or rental model to allow proper governance of the assets. This easily enables businesses to attribute a per-user per month cost to ensure team members have all the tools they need to be productive. Capital Investments that are nearing the end of life can still inject value into your business through our Zeal Tech Half-Life program which can inject capital into your business based off the existing value in your technology assets the business may consider retiring.
Space and Power - Furthermore newer technology is generally smaller and more energy efficient. Over time this efficiency results in reduced energy consumption, reduced space requirement and benefits the environment.
Conclusion
Adopting a user-based cost-understanding approach isn't just a strategy; it's a paradigm shift. In a world where user experience dictates success, it's a perspective that businesses can't afford to overlook.
If you are interested in learning more about a user-driven IT model, please reach out to info@zealconsult.com.au.
Stay tuned for more insights and opportunities with Zeal!
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