1. Session PM-4 Cost Justifying A Handheld Computing Strategy Don Sorcinelli BostonPocketPC.com

2. Agenda Introduction Initial Observations Notes/Caveats Developing and Planning a Complete Handheld Strategy Identifying Direct ROI/Cost Savings Identifying and Quantifying “Soft Dollar” Benefits Presenting a “Total Solution”

3. Introduction I have been involved with PDAs for over 5 years –End-user –Consultant PDA Deployments PDA Application Development

4. Initial Observations From an IT perspective, handhelds are “just another technology” –Needs assessment –Planning –Cost Justification In today’s IT world, cost justification is more important than ever before Developing a complete business plan is essential for approval

5. Notes/Caveats Notes –Handheld = Handheld PC PDA Smartphone Caveats –Every project is different While general rules can be applied, there is no “one size fits all” solution –This is a 45-minute presentation The goal – “Food for Thought”

6. Developing and Planning a Complete Handheld Strategy Setting Business Objectives Identifying Needs

7. Setting Business Goals Goals for a handheld deployment project must be specific –HINT – “Because users want them” probably will not work Goals should be as quantifiable as possible

8. Identifying Needs A complete needs assessment can potentially save on initial costs Considerations: –Will handhelds replace notebook computers? –Can less expensive handhelds meet needs? –Can existing handhelds with upgraded hardware/software suffice? –Can implementation be phased in?

9. Identifying Direct ROI/Cost Savings Determining Fixed Costs Types of Implementations and Impact

10. Determining Fixed Costs Strategies and costs –“In place of” implementations –“In addition to” implementations The type of strategy implemented can affect short and long-term ROI

11. “In Place Of” Implementations The handheld device will be deployed in place of a notebook computer –Typically used for workers who already use a desktop computer, but require some mobility (either in or outside the office) The initial costs for hardware are typically less The long-term Total Cost of Ownership (“TCO”) is typically less

12. “In Place Of” Implementations (Cont.) Proposed SolutionAverage Notebook Cost New Hardware (and accessory) Cost Cost Savings Pocket PC replacing notebook $2000 USD  Pocket PC - $750 USD $1250 USD Pocket PC and desktop computer replacing notebook $2000 USD  Pocket PC - $750 USD  Desktop - $1000 USD $250 USD Cost Savings Scenario

13. “In Place Of” Implementations (Cont.) On average, PDA TCO is typically 25% of notebook TCO Annual Average TCO –Notebook = $2,500 –PDA = $10,000

14. “In Addition To” Implementations The handheld device will be deployed in addition to other mobile hardware –Notebook –Cellular By comparison to “In Place Of” implementations, greater emphasis will need to be placed on ROI beyond implementation

15. Identifying and Quantifying “Soft Dollar” Benefits Processes for quantifying productivity Applying cost savings in productivity to ROI

16. Processes for Quantifying Productivity The Basic Premise –Increased productivity results in time savings –Capturing the time saved results provides a means of quantifying dollars saved There are any of a number of ways of capturing and calculating the benefits –You may already have the processes in place

17. Quantifying Productivity Example Employee Annual Salary = $50,000 –Hourly Salary = $24.04 Goals –Provide access to critical business information in a timely fashion –Provide access to training information

18. Quantifying Productivity Example (Cont.) ActivityOld ProcessTime and Cost New ProcessTime and Cost Difference Determine customer balance Contact person at home office 10 min. - $4.00 Look at spreadsheet synchronized daily to Pocket PC 30 seconds - $0.20 $3.80 per occurrence Retrieve latest pricing Contact person at home office 10 min - $4.00 Look at PDF file synchronized daily to Pocket PC 1 minute - $0.40 $3.60 per occurrence Access latest sales training presentation  Read hardcopy of presentation slides/notes  Contact others for more information 1 hour - $24.04 Watch RealOne or Windows Media version of the presentation with audio 25 minutes - $10.02 $14.02 per occurrence

19. Presenting A “Total Solution” Treat the presentation of a handheld deployment project with the same respect as any other IT project The more data, the better –Business Case –Project Plans –Schedules

20. Summary Cost justifying a handheld deployment is not impossible –It can be time-consuming –It is worth the effort when the project is approved Due diligence and research can usually provide all the necessary information

21. Questions?

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