In the coming weeks, we will cover the concept of total cost of ownership (TCO). We have driven some reflections around this notion for years. Indeed, in our business it should be a key factor to consider when we buy off-the-shelf components. It touches actually both our purchasing activities and our selling activities. When we are speaking with potential provider of components for our digitizers, the price is far from the unique weight in the decision process to buy or not to buy. On the other side we want to insure as well that we are offering at least a same level of quality, service, support to our customers than we get from our suppliers. If not higher.
So what is the total cost of ownership? How can we define it? How can we measure it? Why is it so important to consider it? These are all the questions we will try to answer. We are not the first to cover the matter. However, we will concentrate first on the TCO of OEM components which is also one of our key market and secondly on the elements that would compose the TCO of high-speed digitizers for OEM. In a third time, we will try to define how we can measure the TCO of high-speed digitizers.
As mentioned, the total cost of ownership is used across the industries. The basic idea lays in the fact that the selling price of a product is just one part of the total cost of ownership the one that is visible. In our industry the second visible part are the banner specifications. So how can we differentiate one product from the other since we tend to see a generalization of the specifications offer? Isn’t the TCO now a key differentiator? It seems to become more and more the case.
Here is a list of articles that we found to familiarize or deepen your reflection on TCO for OEM:http://www.procustomer.com/blog/category/blog/total-cost-of-ownership/ http://reliabilityweb.com/index.php/articles/oem_or_non_oem_parts/ http://www.networkallies.com/_blog/Blog/post/Reducing_Total_Cost_of_Ownership_for_OEMs/
Please let us know if you would like to learn more on our point of view on TCO. We have a nice visual than can show you how we see it. Contact us.
Tags: OEM share TCO