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
Thursday, November 22, 2018

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

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