Friday, May 29, 2009

Technology Challenges II: Determining Value

In my last post, I discussed implementing and improving an IT strategy. I briefly overviewed the three parts of this strategy, which consist of obtaining:

1. A reliable hardware vendor with 24-hour onsite replacement extended warranties.
2. A good hardware specialist to handle hardware setup, wiring, and ongoing hardware issues.
3. A versatile software expert to resolve the wide range of software issues

Parts one and two are straightforward and not too difficult. Part three is a bear. It is difficult to find the right solution.

Entrepreneurs have spent thousands of dollars to resolve relatively simple software issues. The problem is that it is difficult to tell if an issue is simple or complex, since either can crash a system and create lingering problems.

The following story illustrates this concept:

An entrepreneur made an investment to install a state-of-the-art computer system, including the installation of a proprietary software program. After the system was implemented, it worked great--for two days. Then it crashed.

In a panic, he called the computer expert who had installed the system. He demanded that the technician get to the office immediately to get the system back up and running. Being down and offline was costing the business a lot of money.

The technician arrived in less than an hour. After walking into the office, he went straight to the computer department and walked around for a few minutes. He listened intently to the whir of the computers. He logged on to the network and checked the system configuration. Finally, he walked over to the server, listened to it and kicked it.

Immediately, the entire system jumped back to life.

Everything was working again. The entrepreneur thanked him and the computer technician left. Problem solved.

A few days later, the invoice came from the technician for services rendered. The detail for the service was as follows:

May 28, 2009

Description of Services:

Service call on computer network system $1,000.00

Payable on receipt.

When the entrepreneur reviewed the invoice, he was livid. He picked up the phone and called the computer expert and ranted, “What in the hell is going on here? You were at my office for five minutes and all you did was kick the server. I don’t think a kick is worth $1000!”

“Yes, you are right,” The technician replied. “The kick was $1.00. Knowing where to kick is $999.00.”

Often, when technicians repair or solve a problem, the issues may be relatively easy to resolve. However, because these technicians have more technical knowledge than you, it is difficult to know if you are getting value or being taken advantage of.

This is very much like an auto repair shop telling you that the noise is a $3,000 repair when in reality it is a minor part replacement. The mechanic says he can fix it for $2,000 now, but if you wait and it gets worse it will be $3,000 to replace the entire assembly. After you have paid the lesser fee, the noise is gone and you are grateful to have gotten off easy. Boy, are you glad to have a mechanic that is looking out for you! However, in reality, it was a $100 part and labor fix.

What do you do?

Recently, I had a software issue on my laptop. Having computer problems and trying to fix them yourself can be a waste of a lot of time and money. I had an $125 per hour ($45 per hour travel time) computer specialist on call. No question, he is good and has always resolved most (not all, as you will see) problems that I have had--for a price, and generally a big one.

In my next post, I will share with you how I got these issues resolved.

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