1. Why does the TCO approach allow Troon management to refresh its hardware at the optimal cost level?
Answer : TCO approach allows management to understand the total cost associated with implementing an IT system. When a manager evaluate the total cost of ownership by considering initial capital investment, maintenance cost and other operation cost they will be able to clearly visualize and compare best investment numbers with financial return numbers. Managers are not willing to replace the existing hardware /software due to dollar spent in implementation. Due to innovation in technology new hardware and soft ware are becoming cheap and comes with higher functionality and efficiency. Some time new technology gives an opportunity to reduce …show more content…
Why, in your opinion, were IT expenses spiraling out of control before the TCO system? What are examples of the hidden costs of operating and maintaining the hardware?
Answer : In Troon golf the management has considered only hardware, software, network and data cost as a onetime cost/investment during IT implementation. They might have considered the maintenance cost along with initial during business case preparation, but ignored the other hidden cost associated with implementation of the IT. In case of Troon Golf, they are maintaining 197 golf course worldwide. IT expenses spiraling out of control because wide spread operation around the globe and hidden cost necessary to successfully implement the Information system was not accounted during decision making of IT investment.
In order to operate and maintain a hardware, organization have to spend on the technical support, administration, informal support and training of users and IT staff. Organizations generally ignore these hidden cost associated with the operation. Hidden cost associated with Technical support include hardware phone support , in person hardware trouble shooting, hardware hot swaps and physical hardware repair. Cost associated with Hardware setup, Hardware update/modifications and new hardware evaluation comes under hidden administration cost. New employee training and ongoing administrator training cost is associated with hidden cost of
Answer : TCO approach allows management to understand the total cost associated with implementing an IT system. When a manager evaluate the total cost of ownership by considering initial capital investment, maintenance cost and other operation cost they will be able to clearly visualize and compare best investment numbers with financial return numbers. Managers are not willing to replace the existing hardware /software due to dollar spent in implementation. Due to innovation in technology new hardware and soft ware are becoming cheap and comes with higher functionality and efficiency. Some time new technology gives an opportunity to reduce …show more content…
Why, in your opinion, were IT expenses spiraling out of control before the TCO system? What are examples of the hidden costs of operating and maintaining the hardware?
Answer : In Troon golf the management has considered only hardware, software, network and data cost as a onetime cost/investment during IT implementation. They might have considered the maintenance cost along with initial during business case preparation, but ignored the other hidden cost associated with implementation of the IT. In case of Troon Golf, they are maintaining 197 golf course worldwide. IT expenses spiraling out of control because wide spread operation around the globe and hidden cost necessary to successfully implement the Information system was not accounted during decision making of IT investment.
In order to operate and maintain a hardware, organization have to spend on the technical support, administration, informal support and training of users and IT staff. Organizations generally ignore these hidden cost associated with the operation. Hidden cost associated with Technical support include hardware phone support , in person hardware trouble shooting, hardware hot swaps and physical hardware repair. Cost associated with Hardware setup, Hardware update/modifications and new hardware evaluation comes under hidden administration cost. New employee training and ongoing administrator training cost is associated with hidden cost of