Session PM-4Cost Justifying A Handheld

Computing StrategyDon Sorcinelli

BostonPocketPC.com

Agenda

• Introduction• Initial Observations• Notes/Caveats• Developing and Planning a Complete

Handheld Strategy• Identifying Direct ROI/Cost Savings• Identifying and Quantifying “Soft Dollar”

Benefits• Presenting a “Total Solution”

Introduction

• I have been involved with PDAs for over 5 years– End-user– Consultant

• PDA Deployments

• PDA Application Development

Initial Observations

• From an IT perspective, handhelds are “just another technology”– Needs assessment– Planning– Cost Justification

• In today’s IT world, cost justification is more important than ever before

• Developing a complete business plan is essential for approval

Notes/Caveats

• Notes– Handheld =

• Handheld PC• PDA• Smartphone

• Caveats– Every project is different

• While general rules can be applied, there is no “one size fits all” solution

– This is a 45-minute presentation• The goal – “Food for Thought”

Developing and Planning a Complete Handheld

Strategy

• Setting Business Objectives

• Identifying Needs

Setting Business Goals

• Goals for a handheld deployment project must be specific– HINT – “Because users want them”

probably will not work

• Goals should be as quantifiable as possible

Identifying Needs

• A complete needs assessment can potentially save on initial costs

• Considerations:– Will handhelds replace notebook computers?

– Can less expensive handhelds meet needs?

– Can existing handhelds with upgraded hardware/software suffice?

– Can implementation be phased in?

Identifying Direct ROI/Cost Savings

• Determining Fixed Costs

• Types of Implementations and Impact

Determining Fixed Costs

• Strategies and costs– “In place of” implementations– “In addition to” implementations

• The type of strategy implemented can affect short and long-term ROI

“In Place Of” Implementations

• The handheld device will be deployed in place of a notebook computer– Typically used for workers who already

use a desktop computer, but require some mobility (either in or outside the office)

• The initial costs for hardware are typically less

• The long-term Total Cost of Ownership (“TCO”) is typically less

“In Place Of” Implementations (Cont.)

Proposed Solution Average Notebook Cost

New Hardware (and accessory) Cost

Cost Savings

Pocket PC replacing notebook

$2000 USD Pocket PC - $750 USD

$1250 USD

Pocket PC and desktop computer replacing notebook

$2000 USD Pocket PC - $750 USD

Desktop - $1000 USD

$250 USD

Cost Savings Scenario

“In Place Of” Implementations (Cont.)

• On average, PDA TCO is typically 25% of notebook TCO

• Annual Average TCO– Notebook = $2,500– PDA = $10,000

“In Addition To” Implementations

• The handheld device will be deployed in addition to other mobile hardware– Notebook– Cellular

• By comparison to “In Place Of” implementations, greater emphasis will need to be placed on ROI beyond implementation

Identifying and Quantifying “Soft Dollar”

Benefits

• Processes for quantifying productivity

• Applying cost savings in productivity to ROI

Processes for Quantifying Productivity

• The Basic Premise– Increased productivity results in time

savings– Capturing the time saved results provides

a means of quantifying dollars saved

• There are any of a number of ways of capturing and calculating the benefits– You may already have the processes in

place

Quantifying Productivity Example

• Employee Annual Salary = $50,000– Hourly Salary = $24.04

• Goals– Provide access to critical business

information in a timely fashion– Provide access to training information

Quantifying Productivity Example (Cont.)

Activity Old Process Time and Cost

New Process Time and Cost

Difference

Determine customer balance

Contact person at home office

10 min. - $4.00

Look at spreadsheet synchronized daily to Pocket PC

30 seconds - $0.20

$3.80 per occurrence

Retrieve latest pricing

Contact person at home office

10 min - $4.00

Look at PDF file synchronized daily to Pocket PC

1 minute - $0.40

$3.60 per occurrence

Access latest sales training presentation

Read hardcopy of presentation slides/notesContact others for more information

1 hour - $24.04

Watch RealOne or Windows Media version of the presentation with audio

25 minutes - $10.02

$14.02 per occurrence

Presenting A “Total Solution”

• Treat the presentation of a handheld deployment project with the same respect as any other IT project

• The more data, the better– Business Case– Project Plans– Schedules

Summary

• Cost justifying a handheld deployment is not impossible– It can be time-consuming– It is worth the effort when the project is

approved

• Due diligence and research can usually provide all the necessary information

Questions?

Thank You

Reminder:

• Please be sure to complete your session evaluation forms and place them in the box outside the room. We appreciate your feedback.