Why Does the Tco Approach Allow Troon Management to Refresh Its Hardware at the Optimal Cost Level?
Case Study 2
Topic: Troon Golf
Submitted To
Prof. Dr. Charlie Shao
By
Chetan Kongle
- Why does the TCO approach allow Troon management to refresh its hardware at the optimal cost level?
Answer
Troon Golf is one of the largest leading luxury golf course spot. The TCO application for the organization is benefitting in many ways. Firstly, it gives the managers with both the indirect and direct costs related to a product which means it gives the detailed analysis of the demands in the market and costs. The complete cost includes the hidden costs like maintenance marketing; cost for training etc. costs can be measured on the basis of the kind of user and his usage of components. After the usage of TCO, Troon the managers are capable of analyzing the life cycle cost of the technology, the replacing and maintenance of the technology. Cary Westmark, the Vice President of Troon decided to approach for TCO technique when they realized that their IT infrastructure is getting too high out of what they expected to be.
- Why, in your opinion, were IT expenses spiraling out of control before the TCO system? What are examples of the hidden costs of operating and maintaining the hardware?
Answer
Troon management could see that for their vast available resources like the hotels, resorts and other establishments of the Troon, they were solely looking at the upfront costs related to their IT infrastructure. In order to solve this problem Troon has to use the best of technology and integrate all of its components in all possible ways. Due to rapid growth of information and data, the cost on a regular basis increases.This results in increase in infra-structure and the number of employees. Hence this cost is out of control.