631-905-9617    Get SUPPORT

Suffolk Computer Consultants Blog

Suffolk Computer Consultants has been serving the Speonk area since 2013, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses.

Why You Need to Know the Difference Between “Value” and “Cost”

Why You Need to Know the Difference Between “Value” and “Cost”

There’s no denying that the numbers on an IT invoice can be intimidating, to say the least. However, when making important decisions about your IT, you need to also look deeper than the numbers, to what you are actually going to gain by making one investment over another. This is the difference between comparing cost and comparing value.

Analyzing Cost

The word ‘cost’ is one that is familiar to most. In essence, it is what you have to give up in order to receive something else. While it is perhaps most familiar in the financial sense, cost can also refer to time, effort, or any other finite resource. By analyzing cost, you are directly focusing on how much less of one of these resources you will have, in the exchange for more of another.

Don’t get us wrong, it is important to factor in your costs as you evaluate your business’ plans. The problem comes into play when cost is the only factor that is considered, as cost only tells half of the story.

By its nature, analyzing cost strictly focuses on what you lose. What resources will you be sacrificing to do this? How much money will doing that put you back? What will you be unable to do if you take this course of action?

In order to properly make a fully informed business decision (or any decision, for that matter), you have to also consider the other half of the story as well: that decision’s inherent value.

Analyzing Value
Counter to the analysis of costs, analyzing the value that a decision will bring you can help you determine what you gain. While again, it is perhaps most often seen in the financial sense (“Is this purchase worth it?”), value can take many different forms. Sometimes, making a particular decision will boost your standing with a prospective client, or will open you up to more opportunities down the line.

So, rather than focusing on what a new workstation will cost you financially, compare that cost to the potential benefits that the new and improved workstation will be able to bring to your business. Will it increase your productivity? Will you have access to improved solutions that ultimately translate into improved employee satisfaction, and therefore, greater talent retention? Will you be able to better serve your market, fostering loyalty in new and existing clients?

Calculating Your IT’s Value
In order to establish how much value a certain endeavor or initiative has brought your company, it helps to compare it mathematically. Not only will this help you to track what you have invested into a given initiative, it will also help you to calculate the optimal outlay for maximum value.

To calculate this, it may take a little trial-and-error, with some simple tracking of the results. Using a simple “x=y” equation, insert your invested cost for “x” and the result for “y.”

Let’s assume you’re determining how much time to spend on a particular initiative. If, for example, you figure out that your investment into your technology increases productivity, you can track the ratio of productivity-to-investment until the benefit tops out and starts to fall again. Let’s further assume that you observe that investing $25 extra into a workstation increases productivity by 10% and investing $30 extra will increase it by 17%. If investing $31 only increases productivity by 16%, you’ll be able to narrow down your optimal spend to between $25 and $30, maximizing your value.

Suffolk Computer Consultants can offer you the solutions that can provide you with maximum value. Reach out to us at 631-905-9617 for more information.

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Saturday, 26 May 2018
If you'd like to register, please fill in the username, password and name fields.

Captcha Image

Mobile? Grab this Article!

QR-Code dieser Seite

Tag Cloud

Tip of the Week Security Best Practices Cloud Privacy Business Computing Technology Cybersecurity Malware Managed IT Services Backup Communications Hardware Network Security Ransomware Business Outsourced IT Microsoft Hackers Email Android Wi-Fi Passwords Software Save Money Business Management Smartphones Alert Hosted Solutions Small Business Twitter Smartphone VoIP Internet Applications Productivity Router Mobile Devices Data Breach Settings Password Government Employer-Employee Relationship Data Backup Miscellaneous Google Data Management Bandwidth Social Media Windows 10 Phishing Cloud Computing Computer Vulnerability Communication Microsoft Office IT Services Office Excel VoIP WiFi Data Protection Business Intelligence Cybercrime Windows Data Battery Blockchain Apps Productivity VPN App Computers Remote Computing Internet of Things Tip of the week Gadgets Virus Browser Innovation Word User Tips Cost Management Politics Automation Virtualization How To Wireless Holiday Tech Terms Physical Security Patch Management Business Continuity Scam BDR Efficiency Managed IT Services Cortana Retail Hacking IT Support Chrome Workers Access Control Office 365 Website Paperless Office IT Support Remote Monitoring Saving Money Law Enforcement Spam Data Recovery Analytics Wireless Charging Mobile Device Management Mobile Security Printing Laptop Gmail Two-factor Authentication Live Streaming Gadget Data loss Lead Generation Google Maps File Sharing Facebook Telephone Systems Operating System Printer Server Paper User Tip Tech Support Disaster Recovery Dark Web WhatsApp Cleaning Shortcut Staff Spotify Virtual Assistant Safety WannaCry User Security Remote Control Environment Printers Ink Hiring/Firing CrashOverride Websites HIPAA Business Technology Big Data Spam Blocking e-waste Education PowerPoint IT budget Telecommuting Smart Technology News Networking Hard Drive Sales Email Management disposal Sports Botnet IT Management Millennials Telephone System Dongle Processors Tablet Value Staffing Connectivity Server Managed IT Service Tech Term Spyware Knowledge Information Technology Entertainment Network Attached Storage Telephony Files Remote Support Recovery Collaboration Technology Tips Database HP Comparison Maintenance Google Drive Biometrics Marketing Server Management Voice over IP Hosted Solution Backup and Disaster Recovery Tactics Document Management Specifications Antivirus Access Artificial Intelligence Work/Life Balance eCommerce Apple Copy SSD Internet Explorer Digital Conferencing Company Culture Multi-Factor Security BYOD Phone System Managed IT Machine Learning Online Shopping Licensing iPhone Paste Automobile Inventory Office Tips Threat Edge Hard Drives Content Filtering Travel Telecommute Public Speaking Credit Cards Emoji Mobile Device HaaS Vendor Management Lithium-ion battery Augmented Reality Unified Threat Management Scheduling The Internet of Things Current Events Samsung Budget Competition Computer Care Instagram Fun Net Neutrality Users Gaming Console Freedom of Information Upgrade Video Games Search Windows 10 Worker Yahoo Television Presentation Printer Streaming Media Autocorrect 5G Wireless Technology Avoiding Downtime Dark Data Managed Service Provider IBM Leadership Downloads Hacker DDoS Customer Relationship Management Personal Information Trends Money IP Address Emergency Network Employer Employee Relationship Customer Service SaaS Mobile Office Domains Scalability Synergy IaaS Encryption

Newsletter Sign Up