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Wireless Networking Handbook
(Publisher: Macmillan Computer Publishing)
Author(s): Jim Geier
ISBN: 156205631x
Publication Date: 09/01/96

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Recognizing Applicable Feasibility Elements

Figure 7.2 identifies the elements you should consider when building a business case. The goal is to decide which elements apply to the implementation you are undergoing and then to assign costs and savings for each element. Some elements are tangible and some are not. Modification costs, such as the purchase of hardware and software, results in real dollars spent. In addition, increases in productivity result in labor savings or increases in revenue. The computerized image a wireless system brings to a company, however, offers intangible benefits. In the eyes of the customers, for example, a company having a state-of-the-art wireless order-entry system might appear to be superior over other companies with older systems. This does not relate to tangible savings; however, in addition to other factors, it might increase the company’s level of business.


Figure 7.2  Elements to consider when building a business case.

Identifying Costs

When identifying costs, be sure to include everything that the project will require for the implementation and operational support of the system. Do not forget that sustaining the system after it becomes operational will require some funding. Organizations commonly do not include all costs for operational support, such as training and periodic maintenance.

The best format for identifying costs is to utilize a spreadsheet, such as Microsoft Excel, and layout all cost categories and the prices of each. For the cost elements that apply to your project, determine their associated costs, as shown in the following sections.

Hardware and Software Costs

The cost of hardware and software components is one of the largest expenses when implementing a system. These costs include wireless adapters, access points, ethernet boards, network operating systems, application software, cabling, and other components.

Project Costs

Project costs comprise another large percentage of total expenses. Project costs include the labor and materials necessary to complete each phase of the project. These expenses fall into the following categories:

  Planning
  Requirements analysis
  Network design
  Software development
  Operational support preparations
  Installation
  Testing
  Documentation
  Training
  User inactivity

Planning includes costs for scheduling the modification, establishing an implementation team, and periodically revising plans. Software development, if the modification requires it, will consist of the cost of programmers and possibly the purchase of compilers or software development kits. Installation and testing expenses are primarily the cost of technicians and testers, but the team also might need to purchase special tools, such as spectrum analyzers and cable testers, to accomplish their jobs. Documentation is part of every stage of the modification process; therefore, include the price of creating requirement documents, design specifications, schematics, user manuals, and so on. If users are disrupted during the installation of the system, be sure to factor in the cost of their inactivity.

Operational Costs

Once the system is operational, it will cost money to keep it running properly; therefore, include operational expenses over the time period you are basing the business case on. Figure 7.3 illustrates the costs associated with operating the system.


Figure 7.3  Costs associated with operating the system.

  Electricity Costs. The electronic devices within the system, such as computers, network interface cards, servers, and specialized cooling equipment, require electricity; therefore, include a projected cost for the electricity over the applicable time period.
  System Administration Costs. The operational support of the system might require one or more system administrators. These people are needed to maintain user names and passwords, as well as configure printers and back up the files on the server.
  Maintenance Costs. An effective system maintenance organization consists of an adequate set of spare components, documentation, employees, and a facility for the maintenance staff.
  Training Costs. The system might require both initial and recurring training for users and support staff. This results in tuition and possibly travel expenses.
  Ramp-up Costs. In addition to training costs, include other costs associated with migrating to the new system. Initially, user productivity might be low because users normally experience a learning curve when first using the new system. A staff of accountants, for example, might be accustomed to keeping figures on paper and in spreadsheets. A wireless system may utilize a centralized database, allowing the accountants to input and output data directly from a PC. This changes the way that they manage their information, causing a loss in productivity as the they get used to the new system. Over time, employees will become more productive using the database than they were with pencil and paper, but be sure to include the time lost as a cost.


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