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PKF Texas – The Entrepreneur’s Playbook™:Keeping Systems Simple

by | Oct 24, 2008 | PKF Texas - The Entrepreneur's Playbook®

Note: Running Fridays in FromGregsHead.comis a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the Entrepreneur’s Playbook page of the PKF Texas website.

With almost everything in life, complexity is usually not a good thing and simplicity is better. In software, complexity sometimes means both higher costs and less ability to keep the system up to meeting the ever-changing needs of the business. Total Cost of Ownership (TCO) can be a measure of complexity in your IT area.

No business stays the same. You face challenges including, customers demanding new ways of doing business. Challenges include governments setting new regulations. Challenges include companies changing to gain competitive advantage. As is often said, the only constant in business is change. When systems are complex, it means that the company is less able to respond to these challenges. “Systems are often an obstacle to change”, says Olin Thompson of Lawson Software.

A direct benefit of a lower TCO is the pure economic benefit of spending less. Actually, that dollar could be used more effectively elsewhere in the business, for a purpose that offers a higher rate of return.

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