The world turns to mobile. “Enjoying the moment” has gradually turned into capturing the moment and then sharing it. Mobile devices play a major role in everyday life, and they’re also becoming increasingly important for enterprise organizations.
Companies have many reasons for incorporating mobile devices into their operations:
- Improving mobile worker productivity (the #1 reason by a wide margin);
- Enhancing consumer experience and increasing engagement;
- Obtaining better insights into operational performance;
- Reducing mobile computing costs.
When our Managed Mobility solution experts kick off initial meetings with enterprise clients, the conversation typically focuses on a couple critical topics: What does it take to keep devices with multiple users up and running 24/7 in an enterprise environment? What is the role of Mobile Device Management and how does Business Intelligence factor into prevention management? Our new clients are often surprised to hear that the upfront cost of purchasing a mobile device is only a small fraction of the total cost of ownership (TCO).
Know Your TCO
The TCO of a mobile device in an enterprise environment is divided into three parts:
- Hard costs: the acquisition of hardware, software and tools;
- Support costs: costs to maintain devices and solve problems that occur when working with devices;
- Soft costs: productivity loss due to system failure and data usage.
Source: TCO Models for Mobile Computing and Communications Platforms, VDC Research
Looking at these percentages, the three cost components are placed in a wider context. When it comes to tablets, the ratios are even more striking: A recent study into the use of tablets in an enterprise environment revealed that support and soft costs make up 89% of the total costs, which means the procurement cost of the devices is just 11% of the TCO. Both studies show that the biggest expense does not come from the acquisition of the devices, but rather from the costs that follow.
Optimize Your ROI
When you decide to invest in any kind of mobile equipment, the real return on investment (ROI) is not only the benefit of having access to connected devices, but the value a mobile device can have for your business. Qualitative and quantitative measurements must both be considered when calculating your ROI in order to obtain a clear view of the costs and the benefits of mobile technology.
There are multiple ways to optimize the ROI of your mobile devices. The first has a big influence on the TCO. Multiple studies show a significant reduction of the TCO when purchasing ruggedized devices. These devices have a longer replacement cycle and are less prone to breaking down (which, of course, leads to loss of productivity). This results in a significant TCO advantage.
The downside of this approach is the higher acquisition cost of ruggedized devices and the fact that hard costs make up just a third of the TCO. Therefore, it’s imperative that enterprise mobility managers continue to focus on the other two thirds—support and soft costs—of the equation for a truly optimized ROI.
Diebold Nixdorf AllConnect Managed Mobility Services℠ (MMS) tackles the largest component of the TCO: the 73% of the total costs resulting from ongoing usage, whether that’s software malfunctions, hardware malfunctions or the associated costs of device downtime. MMS is also designed to resolve the challenges that come with working in a mobile device environment.
Find out more about how MMS could optimize your ROI and drive down your mobile TCO:
Do you have the full picture of how ongoing mobile device management costs are affecting your bottom line? Let’s discuss your current and future-state mobility challenges.