Technology issues: avoid the IT cash crunch

Black Enterprise, Nov, 1998 by Rebecca Frances Rohan, Tariq K. Muhammad

No matter what kind of business you're in, information technology is likely to be an important part of your operation. Fax machines, computers and even lowly telephones are the stuff of life for anyone who competes in today's business environment. Most businesses couldn't stay afloat without these tools, but would gladly trade in their high maintenance costs. Besides the expense of the initial purchase, service and support have probably become permanent fixtures of your budget. Here are some ways to minimize the cash crunch:

* Standardize everyone in the enterprise on the same hardware and software. It's cheaper for the Information Technology (IT) staff to roll out a single model of a PC or single version of an office suite, and train everyone with a single, well-scripted class. Beyond rollout and training, you'll save in support costs. Neighbors are more likely to be able to help each other, rather than standing around "considering" the problem while waiting for tech support to arrive -- often drawing more and more people away from productive work.

Standardization ensures that your technical support staff has only one technological paradigm to learn, and is therefore likely to have a greater percentage of answers and fixes, spending less time on each incident. Another benefit is the ability to leverage large purchases of identical PCs and software licenses to get volume discounts. If your vendor says no, it's time to find another vendor.

Buy an extra system and components such as hard drives and RAM (memory) if you can afford them. This creates less downtime due to computer failure in your organization. If you've invested in an employee and his or her PC, you want them both running. If a machine, or part of it, bites the dust, spare parts can have your employees back in full stride within minutes instead of hours or days. The extra parts and machines in the swap pool push up the number of systems to bargain with for that volume discount.

* Don't buy service contracts you don't need -- drop unneeded ones. Evaluate service contracts carefully. Consider the following: if you have swappable machines and parts, and warranties to repair broken equipment at your leisure, do you need a service contract? What would it cost to buy parts off the shelf when the warranty expires? Will you be upgrading by then anyway? Is the warranty period for parts and labor at least two years, and inexpensive to deploy? Do you have people on hand who can replace a hard drive or add RAM themselves? Is that something to consider when hiring?

* Buy standard equipment. Don't become a hostage to vendors of proprietary hardware or software and their service contracts. For instance, why have a custom accounting program deployed when your needs can be satisfied by a program like Intuit's Quickbooks? Off-the-shelf software and hardware will save money and cause fewer support headaches. Proprietary systems mean new employees have to be trained from the ground up. Your IT people may offer some valuable alternatives. Perhaps a proprietary solution was the only answer 10 years ago, but there might be a more cost-effective answer in the local computer store or in those ubiquitous PC catalogs.

* Cut your business long-distance bill. Drop a dime -- not a quarter. Call your long-distance carrier and find out if you're getting the best deal you can. Chances are they'll go out of their way to make sure they keep your business. Ask other carriers for their best offers, and get your carrier to meet it or hit the road. Savvy callers check residential rates and get adjustments to keep up with current promotions -- imagine what you can negotiate with a business account. If you'd rather let your computer handle the comparison shopping, MediaCom's MegaMiser Is a good alternative.

MegaMiser is an intelligent telephone router that serves as a fully automated gateway between your existing business phone system and the numerous service providers. The product searches for the best rate for each local toll call, long-distance and international call. As each phone call or fax is dialed, MegaMiser selects the carrier offering the lowest cost and automatically routes the call through the carrier. The unit also includes a call-accounting package, which details incoming and outgoing calls as well as the carrier used and the savings obtained on every call. The savings should make the multiple bills you'll receive from the various providers a minor annoyance at best. The basic MegaMiser model accommodates up to four telephone lines and is available through most telecom equipment dealers for $400. Contact: www.phonemiser.com; 781-276-8400.

* Use the Net to get better deals on professional services. Because the Internet extends your access to service providers all over the planet, you're not limited to the professionals down the street or the quasi-professionals in the next city. You can reach out to providers who deliver national-class services with no cost surprises.

For example, if you've ever signed a contract with a PR firm, your first bill may have been a real surprise. The firm may charge high hourly rates for every junior account executive who sips lattes in meetings about your company. That may be perfectly legitimate, but it's expensive. Some PR firms offer specific services, such as press releases, at fixed rates. Check the Web, then talk to the Better Business Bureau and follow up on references for alternative service providers. Just because they're far away doesn't mean they're not better and cheaper.