Comments on: Make sure you understand TCO (total cost of ownership) https://effectivedatabase.com/make-sure-you-understand-tco-total-cost-of-ownership/ Making data management a revenue generator Tue, 28 Apr 2020 19:42:47 +0000 hourly 1 By: Wes Trochlil https://effectivedatabase.com/make-sure-you-understand-tco-total-cost-of-ownership/#comment-1110 Thu, 20 Jan 2011 19:24:23 +0000 http://effectivedatabase.com/?p=979#comment-1110 Very good point, Joshua. Comparing TCO implies that you’re actually comparing similar products. In the process I typically use with clients, TCO comparison only comes once we’ve narrowed the choices down to feasible systems.

]]> By: Joshua Paul https://effectivedatabase.com/make-sure-you-understand-tco-total-cost-of-ownership/#comment-1109 Thu, 20 Jan 2011 18:37:38 +0000 http://effectivedatabase.com/?p=979#comment-1109 Wes, excellent point that is often missed or confused! I want to add that this analysis works well when you have identified the 2 or 3 systems that most closely meet your organization’s needs and will be able to provide similar levels value to your association. For this reason, the total-cost-of-ownership analysis should occur later in the selection process.

Comparing all of the AMS providers using TCO from the start bypasses the important process of finding solutions that fit your association. In the same way you can’t arrive at a meaningful the TCO comparison between a BMW X5 and a Toyota Corolla, a TCO analysis between two strong, but very different, AMS systems like MemberClicks and Aptify would not yield much assistance in your decision making, and could derail or delay the selection process.

Since not all systems are the same and not all organizations are the same, the variable that is plays a large part in this equation is value. Associations measure value differently. Some are looking for membership growth or retention; others are after staff-efficiency and cost control; while others place a premium on member-satisfaction and engagement.

Just as you do with you clients, Wes, once you have identified a couple systems that provide a similar level of value to that specific organization, then clear TCO figures are critical.

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