Philips LCD Monitors manual TCO of an LCD monitor, Acquisition phase

White Paper October 2005 When LCD Monitors can reduce TCO 5

Each of these phases has different cost implications, and their relative importance varies from equipment to equipment. For example, the costs of evaluating and selecting new technology such as wireless LAN are typically higher than those related to desktop PCs.

Also, note that TCO measures costs, and not the return on investment or value derived from the investment. For example, TCO will determine the cost of owning an LCD monitor - but not the added value and direct user benefi ts of a new 19” monitor with ‘Perfect Panel’ specifi cations and outstanding display performance.

4. The TCO of an LCD monitor

Companies consider the purchase of new LCD monitors to replace old CRT models or to upgrade their installed base with state-of-the art technology. The reason for doing this is often driven by the need to standardize on a higher screen size or to help end-users work more productively. Reducing TCO is often not considered. This section explains why companies should put TCO high on their list of purchasing criteria for LCD monitors. For each life-cycle phase, a number of recom- mendations are given for minimizing TCO. These recommendations are by no means exhaustive, the focus is on TCO-related issues. Figure 5 shows the specifi c cost-relevant activities involved in each life-cycle phase.

Acquisition

•identify needs

•select suppliers

•evaluate samples

•plan deployment

•purchase selected monitors

Deployment		Operation		Retirement
• stock received order prior	•	support end-users	•	track installed park
deployment	• handle defects and manage		•	determine monitor quality
• deliver on-site and unpack		warranty claims		status
• install and confi gure	• cater for hardware theft		• select monitors for extended
• validate functionality	• register moves & changes			usage
• handle ‘dead on arrivals’	•	manage power bill	• register moves & changes
• register in asset mgt. tool	•	update asset data	• remove and dispose monitors
• store or dispose
packaging material

Figure 5: Typical activities during the life-time of a LCD monitor

4.1 Acquisition phase

The identifi cation, comparison, selection and purchase of new LCD monitors that best meet all a company’s needs right through the life cycle can be a time-consuming task. Valuable time and effort can be saved by choosing a display vendor with the right processes in place to simplify all the steps during the acquisition phase.

•Product information should be easy to fi nd and complete, preferably on-line. This applies not only to spec. sheets, but also to approval certifi cates, user guides, technical drawings, warranty statements and compatibility overviews

•The vendor should actively support the evaluation process with, for example, test samples, testimonials, benchmark data, review reports and white papers

•Product pricing should be unambiguous and where necessary transparent

Information about the vendor should be provided on request, supported by fi nancial data, organization structure, long-term strategy, global presence and related pricing, warranty and supply conditions, sustainability policy etc.

•The product should be available through the customer’s preferred reseller or system integrator. Simple, effec- tive procedures should be in place to allow such third-party companies to check availability and place orders