White Paper | October 2005 When LCD Monitors can reduce TCO
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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.
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
• support end-users
• handle defects and manage
warranty claims
• cater for hardware theft
• register moves & changes
• manage power bill
• update asset data
Acquisition Deployment Operation
Retirement
Figure 5: Typical activities during the life-time of a LCD monitor
• identify needs
• select suppliers
• evaluate samples
• plan deployment
• purchase selected
monitors
• stock received order prior
deployment
• deliver on-site and unpack
• install and confi gure
• validate functionality
• handle ‘dead on arrivals’
• register in asset mgt. tool
• store or dispose
packaging material
• track installed park
• determine monitor quality
status
• select monitors for extended
usage
• register moves & changes
• remove and dispose monitors
