IT Strategy often sounds a daunting phrase. This is whether it is considered for a large enterprise or small business. Depending on the nature of your business, this subject can mean many different things but in essence there is a core element to be considered by all. The purpose of this document is to discuss the core areas for any small business to understand, it is designed to assist you in decision making and forward planning from not just an IT standpoint but a financial one. When making IT decisions, it is imperative to consider the total cost of ownership of anything bought. Whether it be software or Hardware, there is always additional costs both obvious and hidden that need to be considered.
The Three key elements for Consideration
There are three main areas to consider from the outset when considering your IT requirements; these are Hardware, Software and Service / Support. By hardware we mean any physical piece of equipment associated with your IT, this could be the obvious things such as desktops or servers or something like a network switch, router or Uninterruptable Power Supply (UPS).
Next on the list for consideration is Software, examples of this can be the Operating system (e.g. Windows, Linux), some standard applications such as web browser, office applications or media player and some more business based examples such as Customer databases or complex design applications.
Finally at this point you should understand support and service. We can break down this area into many factors which will be discussed in more detail later however, the simple explanation of support is the maintenance / work required to setup your systems, keep them working and at the end of the lifetime, decommissioning them.
Understanding the different Service and Support Options
Types of support include:-
· Hardware manufacturer warranties.
· Local break fix IT support companies usually concentrating on reactive IT maintenance.
· Software manufacturer support
· Fully Managed Service
The importance of understanding these elements is to work out what hidden costs could be incurred from using a certain option. For example, if you take out a support agreement on your hardware with a 24 hour turnaround, what will the user do if their machine goes wrong, wait for an engineer.
It is possible to use a mix of the above service and support options, the key is to understand what the implications of each are and where to spend your money. In some instances it is also possible to get a service level agreement. This is important when attempting to calculate possible hidden costs.
Understanding the basic IT Life cycle
Now we have itemised the three core areas associated with any IT decision it is possible to draw up a flow diagram to show the full life cycle of any piece of IT hardware or Software. This diagram designed to show this in its simplest form.
Purchase and Finance
The initial point when you purchase a new piece of hardware or software. Also included in this area is whether this piece of hardware is to be bought outright or leased over a specific period of time
Install
Actually getting the hardware or software installed in working order
Ongoing Management
Ongoing management of hardware and software items – both proactive and reactive
Decommission and Recycle
It is important to consider what happens when a piece of hardware or software reaches the end of its life. Considerations such as the WEEE directive on disposal of IT hardware need to be considered
Understanding Hidden Costs
There are also areas for consideration which are effectively hidden, by hidden I mean that they do not have a bottom line figure or price assigned to them. There is no exact formula for working these elements but it is often the case that they can be affected by the level and standard of your support and service.
Downtime
If a user is unable to work for any reason, this can be deemed as downtime. Downtime can be localised to a single user (hardware or software not working) or spread across a whole network Server failure or Internet outage). Downtime will often be scheduled but also in most instances is unscheduled (otherwise it probably wouldn’t have happened in the middle of a working day). The measurement of downtime should be made on a per user basis and can be easily calculated based on the operational costs and salary for that user.
Distraction
By distraction we mean the time incurred for a member of non it staff trying to get a fix to a problem. This could be a user calling a helpdesk or an MD or FD talking to their IT supplier once a month and querying invoices. There is also the instance where certain users can be considered internally as “super users” whether this is by job role or just because they happen to be proficient with IT, it is time out of their daily work.
User Instigated Issues
People tend to tinker with their work computers in the same way as they do their home machines. Changing fonts, adding desktop pictures, installing funky applications can waste time. In some instances it can also instigate a helpdesk call which in turn reduces workers efficiency. Also in this area we should consider the use of a desktop for non business reasons such as browsing the web for a new holiday or sending personal emails.
Understanding the different Service and Support Options Available
Types of support include:-
· Hardware manufacturer warranties.
· Local break fix IT support companies usually concentrating on reactive IT maintenance.
· Software manufacturer support
· Fully Managed Service
The importance of understanding these elements is to work out what hidden costs could be incurred from using a certain option. For example, if you take out a support agreement on your hardware with a 24 hour turnaround, what will the user do if their machine goes wrong, wait for an engineer.
It is possible to use a mix of the above service and support options, the key is to understand what the implications of each are and where to spend your money. In some instances it is also possible to get a service level agreement. This is important when attempting to calculate possible hidden costs.
Part 2 coming soon....... or see more at http://www.virtualit.biz/