Wednesday, August 25, 2010

In Mac vs PC Cost Comparison- Downtime Statistics Key

There's a long running debate, or argument depending on your point of view, concerning the cost of an Apple Computer vs that of a Windows PC. It really isn't much of a debate if the only measurement is how much does it cost to walk out of the store with an Apple vs. a PC. And its more of an apple to orange comparison, because it can be difficult to decide which Mac to compare to which PC. In order to be fair, the models were chosen based on similar hardware specifications.

The Contenders

The 13" MacBook Pro vs 14" HP EliteBook 8440 with the same or similar processor, memory and hard drive. The Mac comes in at $1199. The HP sells for $1053. So you save $150 by walking out the door with the HP. In case you are wondering, I picked the best selling laptop off the CDW website. If you still want to pick another data point, the comparable Dell Vostro 3400 is $718. And while I would wonder why PC users are selecting the HP over the Dell and paying a premium - for sake of this comparison, the out of the store difference between Mac vs PC is $500 (yep, rounded up).

Now check this quote out concerning how the sagging economy is motivating midsize companies to find ways to save money:

"In a recent report by IDC, an impressive number of midsize companies migrating to Windows 7 say they realized a full return on their investment in just seven months. The migration also helped significantly reduce the time help desks spend dealing with malware, downtime and reboots by replacing Windows XP and Windows Vista."

Read it again. What the report finds is that the support requirements of  Windows Vista and XP are so great that the cost of migration to Windows 7 can be justified in reduced support cost alone. By the way the report was sponsored by Microsoft.

So how much was the support cost reduced?

End users spent considerably less time dealing with malware, downtime, and reboots when using Windows 7 compared with previous Windows products. In fact, when 14 categories of common end-user activities related to keeping Windows PCs operational are considered, the savings result in 43 additional hours of productivity per year per user when using Windows 7. That amounts to in excess of one full work week per year of productive time.

So if you're doing a good job of following along, what we have learned is that if you switch from Windows Vista/XP to Windows 7 you will pick up an extra 43 hours of productive time. Now at a labor rate of $25/hour you just saved over $1000/year. And over the 3 year life of the PC, you saved $3000. All because Windows 7 is better than Vista or XP.

Okay you Mac users out there, I know what you're saying "we knew Vista was a piece of crap and no doubt the geniuses at Microsoft improved Windows 7, but that only means its a little less crappy.  How does this relate to the Mac vs. PC cost equation?".

The data shows Windows 7 to be a 42% improvement over Vista/XP when measured by downtime. According to the report, a Windows 7 PC will have 57.6 hours of downtime a year. At $25/hour that's $1440/year. If the Mac is only twice as good as the PC (no snickering out there) it saves you $720/year, which multiplied by 3 years for the service life of the Mac, results in a total savings of $2160. Since we paid $500 more for the Mac, the 3 year net savings of using a Mac vs PC is $1660

Using data to support migrating from one Windows version to another, it is easily shown that the Mac is clearly the better financial decision, based just on comparative downtime!

The only thing left to support is whether the Mac has half the downtime as a PC. While I wish that I could point you to a study on Mac downtime, I couldn't find one. Google "mac downtime statistics" - zero hits. Must be why there is that long line at the Apple store. If anyone finds Apple downtime data, please pass it along.

So go tell your boss you want a Mac because its cheaper - of course that means you'll end up working one more week a year!

Tuesday, August 17, 2010

B-Schools using Open Source ERP to Teach Business Processes

For years, there has been a need for teaching students about business process integration. The use of ERP systems has been proposed as a mechanism to meet this need. Yet, in the midst of a recent economic crisis, it is difficult to find funding for the acquisition and implementation of an ERP system for teaching purpose. While it is recognized that the use of ERP systems might provide a variety of benefits in a business school curriculum, how could business schools overcome the limited resources in order to bring in and integrate ERP systems into their business core classes?

Thursday, July 29, 2010

When will Business realize the approaching wave of Apple users has arrived?

We want a Mac!
Starting a couple of years ago the first wave of college graduates entered the business world that had never used a Windows machine. Right now I'm looking over the 15 or so people gather in the local coffee shop - all on their computers, and only one using a Windows machine.

Being a Business Management Software guy - I struck up a conversation with her and asked about her Windows usage. Yep - because that's what her company uses. She has a Mac and an iPad at home (I don't even have one!), and hates having to use Windows - I told her to change jobs - she asked me for one. Well maybe, because she currently sells software and I'm guessing pretty good at it. Even with the Windows handicap!

Friday, July 9, 2010

Family Business Continuity Planning and Enterprise Management Systems

Let's discuss enterprise software and why it should be important to a family business looking to insure that the business can successfully transition from one generation to the next.

Simply put, an organized, well run business following a consistent set of business rules is easier to hand off to the next generation. Business management software is an integrated systemic approach to managing all the data about a business, its finances, sales, inventory, etc.; resulting in an operational culture that shares information, eliminates silos and promotes best practices across the organization. The successful implementation of a first rate enterprise system, one that allows for the flexibility of your unique business, can be that key ingredient to a successful transition of a family business from one generation to the next.

First, what exactly is enterprise software, also known as ERP (Enterprise Resource Planning)? Basically it is an integrated business management system that connects users and information, enhances communication, identifies bottlenecks and standardizes business practices. A good ERP system, properly implemented, can bring about massive improvements to operational efficiency, shine a bright light on hidden organizational costs, and strengthen relationships with customers and suppliers. All of that translates into real growth - often exponential growth - even in a challenging economic climate.There are many different forms and types of ERP, but for purposes of this discussion it is those solutions that include functionality for accounting, sales, purchasing, inventory, supply chain management, production planning and CRM. Additionally, the system should utilizes an accessible relational database and custom report writer.