Philips LCD Monitors manual Significant TCO saving with Philips monitors

White Paper October 2005 When LCD Monitors can reduce TCO 14

Related to Philips SmartManage and smart TCO LCD monitors:

•Deployment time saving: 25%

•Energy saving: 80%

•Reduced theft rate: 80%

7.Significant TCO saving with Philips monitors

As described earlier, awareness in user organizations of the importance of monitors in the Total Cost of Ownership picture is often limited. In many cases administrators cannot even be sure of the locations of their monitor assets, and these devices – despite their important cost contribu- tion – are often treated more like ‘consumable’ accessories. As this white paper shows, Total Cost of Ownership is complex and involves many individual elements extending through all the life- cycle phases of an asset. It is much more than simply a question of low initial cost. The initial cost contribution of monitors may be relatively low, but like other assets with multiyear useful lives the initial investment is often relatively insignifi cant compared with all the other costs arising through the life cycle. This is why it is important to consider the total life-cycle costs when considering the purchase of new monitors.

Philips aims to address all cost-relevant factors in its LCD monitors, providing enterprise users with effective, process-based solutions to control and reduce their life-cycle costs on a structural basis. As calculated in section 6, Philips LCD monitors together with Philips SmartManage provides a saving of more than 12,5% on annual basis compared with industry average monitors. This saving is illustrated in figure 11. The latter also shows that the relatively modest initial investment required to purchase and deploy SmartManage is quickly recovered in practice.

C350,000.00

Industry average

C 300,000.00 Acquisition Deployment

Philips

C250,000.00

Operation Retirement

C200,000.00

C150,000.00

C100,000.00

C50,000.00

C0.00

Figure 11: TCO cost savings with a Philips monitor solution

Philips is constantly working with suppliers, customers and regulatory authorities on a continuous improvement basis to ensure that its monitors provide optimum-cost solutions to the needs of both end-users and the enterprises in which they work.