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To access the contents, click the chapter and section titles.
Wireless Networking Handbook
(Publisher: Macmillan Computer Publishing)
Author(s): Jim Geier
ISBN: 156205631x
Publication Date: 09/01/96
Identifying System Benefits (Savings)
The objective of identifying system benefits is to show how the new system will reduce or avoid costs and increase revenue. Figure 7.4 identifies several areas to focus the analysis of system benefits. Some of these benefits result from lower costs in operating the system, an increase in productivity, faster service, lower maintenance costs, fewer changes to network cabling, improved corporate image, and employee job satisfaction. Other elements deal with the implementation itself, such as less expensive installation in difficult-to-wire areas and reduced installation time.
Figure 7.4 Areas to focus the analysis of system benefits.
Chapter 1, Introduction to Wireless Networking, describes several benefits of wireless networks, such as mobility, the ability to install in difficult-to-wire areas, reduced installation times, and fewer changes to network cabling. These benefits convert to cost savings when comparing wireless solutions with ethernet or other wireline approaches. Review these benefits in Chapter 1, and use them as a basis for comparison.
The following paragraphs further describe general networking benefits and associated cost savings.
- Increased Productivity. Applications such as file transfer, e-mail, printer sharing, electronic calendaring, networked fax machines, and mobile access to centralized databases and network services enable users to get their tasks done faster, resulting in lower labor costs and higher profits. Increases in productivity equate to lower task completion times, resulting in cost savings based on lower labor hours needed to complete the tasks.
You can easily calculate the cost savings based on an increase in user productivity. Start by determining the amount of time an individual can save by using the new system and multiply this time by the persons pay rate. This equals the cost savings for that individual. An aggregate cost savings can be calculated by adding the savings from all users.
- Lower Software Upgrade Costs. With a network, software upgrades become much faster and less expensive because of the centralized storage of applications. Imagine having 300 stand-alone PCs, and assume someone decides to upgrade an application from one version to another. You could have the users install their own software, but some would not waste their time, others would perform the installation and have trouble, and a few would perform the installation flawlessly. Instead, the best method in this case would be for the system administrator to install the new version of software on all 300 PCs. Assuming an average time of 15 minutes to install the software on each computer, it would probably take this person a couple weeks to install the upgrade. Upgrading software via networked computers is less expensive and less time consuming. In a network, the installer simply installs the new version of software on the server, allowing everyone immediate access to the new upgrade. This only takes 15 minutes, which allows the installer to spend his time working on more important items. To calculate this type of savings, estimate the number of software upgrades that might occur over the applicable period of time and figure the amount of time and dollar savings based on the rate you pay people to install software.
- Qualitative Benefits. Qualitative benefits are based on elements that cannot be assigned specific dollar values. These types of benefits are very importantthey often provide an extra incentive to implement a system. A company that develops software, for example, would want to maintain a good corporate image and retain employees by implementing a state-of-the-art network. Otherwise, clients might not consider the company to be a credible software developer. Also, customers of a retail store seeing store staff use wireless terminals to update prices leaves a good impression on the customer.
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