Troon Golf Case

Troon Golf uses the TCO approach to refresh its hardware at optimal cost level by first calculating the total cost of hardware by including in the hardware cost the cost of technical support, user productivity loss, downtime loss, and any associated data quality loss. This calculation enables Troon Golf to refresh its aging hardware at the optimal cost level. TCO allows the company to determine when maintenance costs on older technology are less cost effective than replacing the hardware. TCO helps to determine operational life expectancy of technology. TCO is an important concept. Considering only the initial investment in IT expenditures does not give a true indication of what those expenditures will cost the company in the long term. Although obtaining the information necessary to implement TCO may be a significant expense in itself, the benefits of the system on a large scale should more than make up for that.

Upgrading technology seems expensive, but it can actually save the company money and increase productivity if done at the right time. Hidden costs can include technical support, decreased productivity, and decreased quality of information resources. I think that TCO is a very good way to increase efficiency by reducing overall spending on IT implementation. TCO gives a better picture of overall IT costs than purchase price alone, but is only as good as the metrics that are used to evaluate the TCO. It is important to factor in the less obvious costs associated with a technology. More obvious costs include things like deployment costs, support and service, and energy usage, but some costs are often overlooked such as differences in user training, and how the technology will integrate with other future technology changes. TCO also does not provide data on ROI (Return on Investment), so although TCO can be useful in selecting between technology options and provide data on optimal upgrade timing, it is not the only metric to be used in financial evaluation of technology upgrades. In my opinion IT expenses were increasing very fast and adding to the operating cost before the TCO system. The examples of hidden costs of operating and maintaining hardware can be the crashing of the system because of hard-disk problem, lack of connectivity because of non-functioning Ethernet connection, and malfunctioning of the computer requiring motherboard replacement. Each of these examples can lead to costly repairs and can increase the IT