2005/012 - Total cost of ownership: issues around reducing cost of support in a manufacturing organization case
- Stefania Castellani,Antonietta Grasso,Jacki O'Neill,Peter Tolmie
IEEE International Workshop on Business Transformation: Towards a theory of business agility, Munich, Germany, July 19, 2005.
Then notion of total cost of ownership has become a particular focus of interest across a wide range of commercial and academic cimmunities in recent years, because of the way it enlarges the understanding of what the real cost of technology amounts to, beside purchase cost. The dominant conception of TCO derives form a model created by Gartner Group that considers hard and soft costs that are distributed across three prime categories of acquisition costs, control costs; and operational costs. In order to measure those, the so far proposed TCO metrics tend to be based upon conventional, abstract categories of cost as defined by acounting and management literatures. These categories rarely attend to what might be understood as a cost in the thick of the everyday work of the actual members of an organisation that such categories might be applied to. Our own research presented in this paper augments the field primarily by focusing upon break-fix costs, but also by relating these to the wider issues in TCO. The goal within this has been to not just take costs for granted but rather to try to understand what something like break-fix amounts to in organisational life. This has been pursued by looking at the details of how costs arise and are reasoned about in actual working practice. From this we have then sought to understand what current barries exist to the implementation of a successful break-fix strategy and what kinds of technologies might be designed to facilitate that success.