Total Cost of Ownership (TCO) For Marketing Customer Communications Management

In developing a business case for Customer andcarefully at this as long term cost of ownership
Marketing Communications Management, therecould rise significantly if the software requires.
are some significant consideration in developingCustomer Communications Management
the overall Total Cost of Ownership elements ofApplication Component Re-Usability
the business case. There are many aspect to a13. Service Oriented Architecture. One of the key
customer communications solution that will needfeatures of advanced service oriented
measuring in different ways.architecture based platforms is the ability to
A full implementation of Customerre-use components across multiple applications in
Communications Management will demandpotentially widely different environments. The
hardware, software and human resource. Theability for software to integrate effectively into a
differential in costs could be significant betweenService Oriented Architecture model and leverage
the various vendors.existing organisational components whilst
There is no single vendor that can deliver everycontributing valuable new components will have a
aspect of your Customer Communicationssignificant bearing on overall lifetime cost of
Management infrastructure although there are oneownership.
or two that get fairly close. In designing you14. Marketing Communications Vendor Technology
implementation strategy you will need to thinkTrial. You may want to consider a 'bake-off'
about whether a best of breed approach withscenario once you have a vendor shortlist.
integration is better or, a minimal vendor approachEstablish a set of tasks that test the speed at
is desirable.which an application environment can be brought
Lets take a look at some of the key focal pointslive - make it challenging but not over complicated.
for you customer communications managementThe vendor will likely put their best resources on
infrastructure:this and it will not only be a test of the software
Customer Communications Management Supportbut, a test of the vendors ability to deliver skilled
& Maintenance for Software, Printers andhuman resource when required. Give each vendor
Inserters.a level playing field.
Support and maintenance contracts with vendorsCost of Customer Communications Management
will apply across the full spectrum of products.Integration
Within the software arena, It is likely that vendorsFor Customer Communications Management to
will offer similar contracts terms and terms ofserve the Marketing function effectively, ease of
service. But do check the terms of service. If theintegration is a key factory. Look at the vendors
business is a 24hr operation, you are going toexperience here.
need 24hr support. Also examine the level of15. Data Integration. Can the data ETL and
support offered in the regions in which you mayanalysis tool-set integrate easily with your existing
install the software systems. If you are based insystems. Look at the breadth of systems that
France and all support operations are based outyou are likely to want to integrate with in the
of the US, how quickly can people be on site tofuture. How easily can the system talk to
support you if matters go critical?systems across multiple platforms that may
The software elements of the Customerrange from z/os to SAP to Siebel to a wide
Communications Management infrastructure shouldvariety of other applications.
also be examined. Will major upgrades come freeIt is not just the vendors components that are
of charge, or will there be an expectation thatimportant, how open are systems containing vital
more money is spent to stay on the upgradedata? Can you get this data out of them easily?
path?16. Marketing and Customer Communications
Also, the upgrade policy should be examined inDesign and Authoring Integration. How does you
context with the development plans of thecompany do this today? What tools are used and,
vendor. Does the vendor guarantee backwardwill they integrate easily with the Customer
compatibility between point releases of theCommunications Infrastructure that you have or,
software or will the document applications have towill a change to a proprietary vendor design and
be re-written to cope with the upgrade? Thisauthoring environment become necessary?. Will
could be a very significant cost if you run athe vendors design environment meet the needs,
number of document applications. If yourgoals and objectives of your design and authoring
company is not able to swallow this, are youteams and what will the cost of change be?
comfortable being left with a technology that willPerhaps fundamentally will it be possible to push
ultimately stagnate over a period of a few years?design and authoring out to the business
There are at least two significant hardwarecommunity? This is a fundamental tenet of
components within a customer communicationscustomer communications management but some
management infrastructure. These are highvendors still won't be able to do this very well.
volume printers and the mail finishing devices orPushing the responsibility back to IT will
inserters. Both of these items will have significantsignificantly raise costs and will reduce business
capital outlay and will require regular servicing. Youand marketing agility massively.
will need to ensure that engineers are availableAlso look at work-flows, many companies have
locally and quickly.deployed standardised work-flow environments.
1. Hardware vendor service contracts. LookWill your vendors solution be able to integrate
carefully at service contracts between vendors,here? All these factors have a bearing on cost.
as they can vary significantly.Customer Communications Management Vendor
2. Printer and Inserter Replacement ComponentLicensing policy
Costs. Also look at the cost of components if17. Customer Communications Management
they need to be replaced. How do they compareSoftware Environments.
between vendors?This is a big one and there are differentials
3. Print and Inserter Servicing. Are their chargesbetween vendors. As a minimum, you will need
for out of normal hours servicing?development and test environment and a
4. Print and Inserter Component Inventory. Toproduction environment. What are the vendors
guarantee normal operations, it may be valuablepolicies for development licences.
to hold an inventory of hardware components at18. Multi Site Licence. The other key factor that
your own document production facility. What doesmay affect you is multi site licensing. If you
the manufacturer recommend that you hold, andoperate in different places around the world, what
what are the costs of holding and maintaining thisare the costs of rolling out mirror environments
inventory?to new sites? Examine carefully the vendors
5. Printer and Inserter Power Consumption. Highpolicy here.
speed colour printers and inserters are power19. Cost per seat. What is the cost per seat for
hungry devices. What is that power likely to costthe elements of the customer communications
the company?management infrastructure? Does the vendor of
6. Building Environment Costs -A few printersbulk purchase discounts. Are the number of seats
require specialised working environments. Theylikely to grow over time?
may require climate controlled environments.20. Operating System. Some vendors charge
What are the costs of the space to provide thisdifferent prices depending upon the operating
environment. What are the costs of adapting asystem in use. How do vendors compare?
building to deliver this climate managed21. Additional non-vendor components - Here we
environment. What are the acquisition and runningmight be looking at factors such as obtaining mail
costs of the climate control equipment.compliance databases, Websphere components or
7. Headcount Requirements - Realistically, howother factors. What additional software
many people are going to be required to operatecomponents may you need to source to deliver
the inserters and the printers? Take alongthe application that your business needs?
experienced document production managers whenManagement of Legacy Applications
assessing the hardware equipment required and22. Leveraging new and old. Some document
be pragmatic in this assessment.applications may not justify redevelopment.
8. Growth in document output volumes. CarefullyHowever, what is the cost of integrating the
consider current and future ouput volumes. If youlegacy into the environment to obtain say
anticipate a growth in output volumes, then planproduction integrity benefits? Can this be done
this. Will the equipment that you buy today beeasily or are you going to be running some
able to meet those volumes? Will you need toapplications out of scope of the customer
invest in extra printers or inserters in thecommunications environment?
foreseeable future? Will the space you have beCustomer Communications Management Server
able to accommodate any growth in capitaland Desktop Hardware costs -
equipments.23. Server Requirements. Don't forget your going
9. Printer and Inserter Replacement costs. Unliketo need servers to run this all on. Consult with the
software, machines will eventually becomevendor carefully in respect of the required
ineffective and unproductive to maintain andhardware configuration and get costs from your
operate. How long does the hardware vendorhardware vendor early. There will be a difference
anticipate the equipment will last under yourdepending upon the operating system you are
production loads? What is the anticipatedrunning. Is the desktop configuration suitable? Will
replacement costs in the future? Take theseyou need upgrade licences for the desktop?
figures, build in some contingency and plan for this.Business and Technical Training Costs
10. Leveraging legacy equipment. You may already24. Training Considerations in Customer
have printers and inserters that may be suitableCommunications Management - At the very least,
for much of the output that you plan toyou will require administrators, some level of
undertake. What are the costs of getting thisapplication development capability and training for
equipment suitable for participation in the processend users.
and how old is the equipment? Is it worthWhat are the vendor training costs and, do they
upgrading?offer 'train the trainer' courses to help you reduce
Speed of Customer Communications Managementoverall education costs? What are machine
Software Installation, Configuration andoperator training requirements going to be? What
Developmentlevel of skills are you going to need across the
Not all software products are borne equal.infrastructure, and what is this going to cost?
Whether we are looking at data, authoring,Production Mail Health and Safety
composition, channel distribution, print25. You will need to ensure health and safety
management or print stream engineering thecompliant environments for the physical print and
products differ. Some products are built uponmail elements of the Customer Communications
ageing platforms whilst others utilise the latestManagement infrastructure. What are the costs
technologies focused upon speed of deploymentand training implications. Will you need to adapt the
and overall cost of ownership. The differencesbuilding to meet health and safety guidelines?
can affect Total Cost of Ownership in a numberAs can be seen, there are many factors to be
of ways.considered in developing the Total Cost of
11. Development Costs. Development and / orOwnership equation for Customer
configuration of some kind will need to take placeCommunications Management. The multi-point
across all of the software components beingnature of Customer Communications Management
installed. Document Composition comes with itsmeans that there is much to be considered and
own development environment and data productsderiving truly accurate figures is likely to be a near
will require detailed configuration and embeddingunachievable goal. However ball park understanding
into the environment. Applications will also need tois achievable.
be developed if you plan on using print streamWhat should be clear from this is that in
engineering technology.developing the business case arguments for the
12. Skill Levels. Depending upon the vendor, someimplementation of a Marketing and Customer
applications may still require heavy IT skill toCommunications Management infrastructure Total
develop within whereas others will offer a strongCost of Ownership should not be ignored as it is a
GUI (Graphical User Interface) environment thatsignificant element of the overall budget and
take much of the rough work out of developingperhaps over a period of a few years, far more
applications and linking systems together. Looksignificant than the initial capital outlay.