Enterprises automate their operations to increase efﬁciency and maintain competitiveness. The decision to do so is usually precluded by extensive analysis that compares the systems, procedures, expenses and other factors against the costs and beneﬁts of the incoming systems. This analysis is done to assure the purchase makes good ﬁnancial sense illustrating an RIO period that suits the company’s business model. Upper management reviews and approves the decision based upon this analysis and moves forward with the implementation.
But what happens years later can be very different. A capital purchase decision such as a system implementation moves to a maintenance and expense line item in the budget. These do not require the same level of analysis and review. Moreover, visibility to the true maintenance costs is often lost in the hectic pace of daily business. These factors can lead to a misconceived idea that maintenance of existing equipment is saving an enterprise money when replacement may provide greater savings. This is more commonly the case after equipment has been in use for 3-5 years, at which point changes in technology and expiring warranties have an impact.
This white paper identiﬁes factors to consider when mulling over a repair or replace decision. It is important to explore the criteria and become aware of the hidden costs or missed opportunities associated with handheld computers that are over three years old.