Home

About Us

IT Services

Understanding IT

News & Events

Blog

Support

Contact Us

(702) 720-1700

Blog
  • Register

Agilitec IT Blog

How to Balance Your IT’s Value Against the Cost

How to Balance Your IT’s Value Against the Cost

No matter how you look at it, technology is expensive. You’ll rarely look at your IT invoices without cringing a little on the inside. However, it’s important that you take a glance at these every once in a while to understand just what you’re getting from your technology budget. Ultimately, you want to ensure that your IT purchases are yielding a positive return on investment, and therefore, providing value for your organization.

Analyzing the Costs
While most users will understand cost in its literal term, it’s critical that you consider the other factors that make up cost. By definition, cost is what you give up in order to attain something else. Cost primarily focuses on what you’re giving up instead of what you get, so it tends to look at concepts such as pricing or other manners of investment. Cost can also include factors other than monetary value, including time, effort, or other resources. Analyzing cost can help you optimize the way that your assets are applied, thus reducing the amount of waste and ensuring the desired outcome for your organization. That being said, the cost of an item is only half the battle.

Analyzing Value
If cost is what you give up in order to receive something, then value is what you get out of something. Value can be inherently based on financial gain, but many times value is actually the total yield versus the total investment. One of the best examples is starting off communications with a new client, as one good action could create a considerably more valuable relationship with them as time goes on.

An example where we can see the difference between cost and value for technology would be purchasing a new workstation. It’s one thing to look at the price tag, but this doesn’t give you the whole picture. Your old workstation hasn’t cost you much financially because you paid it off a long time ago, whereas a new computer is of considerable cost. However, your old workstation might suffer from issues related to outdated operating systems or components, making it a difficult piece of technology to work with from. The value in this case is saved time and enhanced productivity.

Calculating Your IT’s Value
If you ever need to calculate how much a certain action or decision will cost your company in terms of value, you can try to compare it mathematically. After all, numbers don’t lie. This helps you keep track of what you’ve invested, as well as how much you’re getting in return for your investment. To determine the value of something, you can use a simple “x=y” equation. In this case, the invested cost is “x,” while the result (the value) is “y.”

Now, let’s try out an example. You need to determine if your business’ technology investment actually equals productivity. In this case, you can use a simple ratio method. Let’s say you invest $25 into a workstation and increase productivity by 10%, when investing an extra $30 will improve efficiency by 17%. If investing $31 only raises productivity by 16%, instead of investing more in something else, you just narrow down the cost until you have achieved the maximum value per dollar.

Agilitec IT can help your organization get more value out of its technology. To learn more, reach out to us at (702) 720-1700.

What Effect Does Available Streaming Have on Your ...
Automating Maintenance Saves Organizations More th...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Sunday, January 20, 2019

Captcha Image

Mobile? Grab this Article!

QR-Code dieser Seite

Tag Cloud

Tip of the Week Network Security Technology Security Internet Privacy Tech Term Communications Malware IT Support Best Practices Data Backup Data Recovery Mobile Devices Internet of Things Productivity Efficiency VoIp Browser User Tips Email Business Management BDR Business Windows 10 Cybersecurity Small Business Hackers Saving Money Google Data Managed IT Services Hardware Collaboration Router IT Services Outsourced IT Business Computing Smartphones Information Phishing Managed IT services Upgrade Backup Communication Redundancy Managed Service Innovation Users Software Cost Management Bring Your Own Device Devices Automation Networking Workplace Tips Cloud MSP Vulnerability Network Data Breach Computer Spam Passwords Project Management Mobile Device Cybercrime Maintenance Jun 27 2018 11:00 AM Pacific Disaster Recovery Smartphone Virtualization Hyperlink Operating System Conferencing Antivirus Wireless Technology Content Filter Applications Big Data Server O 365 versions Budget Remote Computing Instant Messaging Flexibility Computing Vendor Two-factor Authentication Printing Hybrid Cloud WannaCry Wireless Internet Amazon Spyware Touchscreen Charger Monitoring SaaS Analysis Excel Alert backup files Projects IoT Chromebook Unified Communications WPA3 Employee-Employer Relationship Apps Workers Education Updates App Gamification Virtual Assistant Display Wireless Charging Management Software as a Service Blockchain Hosted Solutions Office Online eWaste Smart Tech File Storage intranet Android Google Assistant Business Technology Testing Law Enforcement Students Office 365 Cloud Computing OneNote Alexa for Business Co-Managed Services Marketing Money Bandwidth team chat Scam History Connectivity Microsoft Microsoft Office Data loss Microsoft Word Value Camera Update Data Privacy The Internet of Things Ransomware Holiday Mobile Device Management Cleaning Evernote Windows Telephone Cortana Social Media Financial Technology Best Practice Travel Windows 7 Streaming Media Managed Service Provider Augmented Reality Twitter Quick Tips Employer-Employee Relationship Social Engineering App store Gadgets Remote Monitoring IT budget Computer Forensics Hard Drive Data Security Mobile Security Artificial Intelligence Edge Patch Management Proactive Company Culture Identity Legal Data Theft Wi-Fi Managing Stress Gmail Printers Language Business Continuity Identities Regulation Ciminal Safety Thank You Tech Support Application Risk Management Vendor Management Wasting Money Data Protection Compliance Congratulations Memory Fraud Websites Financial PowerPoint Device Security Virus

Latest News & Events

Join Us On July 25, 2018 At 11AM Pacific Time For A Free 30-Minute Educational Webinar On How To Reduce The Number Of Meetings You Have And Make The Meetings You Do Have Much More Effective.  AgendaIntroMicrosoft Teams and Office ...

Contact Us

Learn more about what Agilitec IT can do for your business.

Call Us Today
Call us today
(702) 720-1700

5215 Ponderosa Way
Suite D

Las Vegas, Nevada 89118