Total Cost Of Ownership or TCO
Imagine you were on one of the initial moon-shots; you would have been dependent on computing power roughly equivalent to a modern iPhone. Today, if you’re an astronaut, you probably have several apps you use without even thinking about it. Some of them will have been developed by major corporations, others, by the kid down the street.
How Far Will Apps Go?
If you’re a business interested in developing mobile applications to support your business, Total Cost of Ownership or TCO will be of primary concern to you. But how can you figure out your TCO?
First, you would need a TCO framework to build a cost model with. A TCO framework for Mobile Apps includes defining:
- Scale
- Scope
- Complexity factors
- # Processes
- # Mobile Objects
- # Systems of Record
- # User types
- # Devices
- # Skills
- Cost components
- Sunk costs,
- Support costs,
- Operating costs
What are some of the methods and techniques you can use to control and manage each of these TCO Cost Elements?
Manage people who are on the go.
- Develop a use case-need the device/app matrix
- Develop a Portfolio of Apps approach to accomplish tasks
Decide on Application Development Tools
- Application types-native vs HTML5 vs hybrid
- Mobile process patterns
Acquire Appropriate Tools
- Process visualization tools, app visualization tools, (did you know you can use keynote to develop complete wireframe models?)
- Define a testing approach, how will you test apps - big bang, incremental, automated
Operations Management Approach
- Data and device management approach defined including BYOD or Bring Your Own Device
Now that you have a TCO framework, what sort of KPIs can you use to manage and influence your TCO?
First, as a mobile app "Best Practice", you need to ensure KPIs are “enabling” metrics, “measurable,” and have the ability to be costed/valued.
They include but aren’t limited too:
- Increase Productivity
- Increase Collaboration
- Improve work-life balance (actually this is a major retention issue)
- Improve Employee Satisfaction
- Cost Avoidance
- Cost Reduction
- Revenue Generation
- Increased Security
- Improve User Response Time
- Competitive Differentiator
Some mistakes to avoid during early adoption include:
- Picking the wrong user group for pilots or scaled rollouts
- Being the first to try new technologies or vendor platform
- Selecting the wrong mobile device
- Compromising on usability, connectivity, or data
- Settling on a hardcoded/customized solution
- Planning a tight project plan with no learning curve (SCRUM?)
- Creating an inconsistent mobile environment (DEV + sustain)
- Expecting too much out of technology
- Forgetting the big picture
- Leaving security to the end
- Unknown policies and ability to govern them
Some great ideas ‘To Do”
- Hold a contest to identify new app opportunities
- Have a Mobile COE (Center of Expertise) with a sponsor
- Start with Web apps, then expand
- Use a visual modeling tool
- Address policy management “up front” (BYOD?)
- Define a strategy and roadmap
- Do focus groups on all apps
- Confine BYOD to a narrow set of devices and base configurations
- Define a basket of mobile objects that you can leverage
- Pilot with IT developers, then do a controlled deployment
- Globalize your apps; scale helps drive ROI
Finally, some great general design guidelines include:
- Balance your mobile “act” with designs that get results
- The 10 “musts” for mobile are proven techniques, but try not to use them all. Be selective/strategic.
- Mobile ROI Framework is a structured approach that forces discipline and planning. Don’t cut corners.
- Start small, think big, have a release plan
- Cost planning is as important as value planning
- KPIs need to be enabling. Who are the owners that support them?
- Learn from others – evaluate consumer and app store design
Have you rolled out any corporate apps yet? If not, ready to start your first Mobile Application Development project?
More reading:
8 Secrets to SAP Enabled Spend Performance Management
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