Identifying System Benefits (Savings)

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. Base the benefits of the system on the following factors:
• Increases in productivity
• Faster service
• Better accuracy
• Lower maintenance costs
• Improved corporate image
• Employee job satisfaction
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.
Chapter 1, “Introduction to Wireless Networks,” describes several benefits of wireless networks,
such as mobility, the capability 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 list further describe general networking benefits and associated cost savings that
you can also use in justifying a wireless system:
• Increased productivity—Applications such as file transfer, email, 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 person’s 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 standalone PCs, and assume that 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 takes only 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 that 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 important—they 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 who see store staff use wireless
terminals to update prices leave with a good impression of accuracy.