The muscle of a modern small business
If
it's true that the backbone of any small business is its employees,
then I believe it's fair to say that the muscle of many small businesses
would have to be their computers. Plain and simple, business today is
performed electronically. Whether it's a day-trader trading stocks over
the internet, a lawyer, physician or other professional looking up data,
or a shopkeeper tracking prices and sales, computers are often an
essential "tool of their trades".In fact, in the majority of
professions where a computer is used, it is often not possible to
effectively perform the job role without it. Sure the day-trader could
continuously call their broker every five minutes for stock quotes, but
in practical terms their business is reduced to a standstill. An analogy
would be a carpenter trying to work without his hammer.
However,
when you consider complexity, comparing a PC to a hammer is kind of like
comparing a space shuttle to a bicycle. The average computer is a
marvel of complexity. In fact, when we break it down, we're not even
talking about a single device. Computer systems are made up of a
collection of hardware and software components, usually made by
different manufacturers, working together for a common purpose. And it
follows simple logic; the more complex the system, the more that can go
wrong. All it often takes for a business to come grinding to a halt is
for one of those components to malfunction.
Computer downtime can
result from numerous circumstances. Viruses and spyware are waiting to
infect your PC through the internet, email and even commonly used
applications. Internet hacking, identity theft and other cyber crimes
are all on the rise. Compatibility issues and missing or corrupt drivers
plague both hardware and software alike. And problems with the
installation and use of everyday programs can cause no end of headaches.
While
the above points can raise a number of questions in the average small
businesspersons mind around the costs associated with these downtimes
and what can be done to minimize them, straight answers are often not
easily found. In this article, we will attempt to analyze these
questions and determine the best approach for professionals and small
businesses to take in dealing with computer downtime.
Options for dealing with downtime
Questions
surrounding downtime related costs have become such a hot topic on the
Internet that an online calculator has been developed by NTA Monitor
Ltd. to assist individuals and companies in determining the cost of
computer downtime (You can try it out at http://www.nta-monitor.com/services/downtimecalc.htm).
While this calculator can be quite handy, it is often not readily
apparent what numbers to use for "total downtime" or "labor costs". So
lets just do some calculations of our own to determine the total overall
costs that a professional or small business faces due to downtime and
see if we can determine the best approach to resolving downtime related
incidents.
The first and hardest question to answer is "how long
is an average downtime incident for a small business?" Well, I'm afraid
that there is no easy answer to this. While the average time is
completely dependent on the nature of the problem, for this example we
can piece together a typical scenario of events to create our timeframe.
When
a typical computer issue or problem arises, there are a number of
avenues that a small business owner can take to see it resolved. As most
small businesses can obviously not afford to pay for a full or even
part-time IT staff, the "do it yourself" method is often first employed.
Resources such as friends, family and the internet are consulted for
answers and some trial and error approaches, such as using generic "fix
all" programs, are tried. That failing, a local computer service shops
can be called for on-site or drop-off support. Or as a new and
increasingly popular alternative, a remote service provider can be used.
Depending
on the user's knowledge of computers, the "do it yourself" approach can
sometimes work and considering the time spent doing research, trial and
error fixes, etc. the average issue can be resolved in as little a an
hour or two. But sadly, more often than not, the time spent does not
result in a solution and it is added to the overall incident time. So to
make our calculations simpler, let's deduce that on average the amount
of self help time spent saves as much time as it looses and instead we
will focus on three remaining options; on-site, drop-off and remote
support. We will base our calculations on an eight hour work day.
While
being a more expensive option, on-site services can often result in a
quicker resolution time than drop-off service. Usually a technician can
be scheduled for "same day" or "next day" service. On average this
results in a total downtime of around eight hours.
A small
business can save some money on the hourly rate it is charged by
choosing to drop off their PC for service instead of having a technician
come to them. While some service depots have longer waiting lists that
result in the business owner losing their PC for numerous days or even
weeks, shopping around for service usually results in an average turn
around time of two to three days. Factoring in the time spent
disconnecting and reconnecting your system, as well as the time spent
dropping it off and picking it up, it's reasonable to say that the
average downtime for drop-off service is in the neighborhood of 24
business hours.
Finally, there is a lesser known option for small
businesses that has grown out of advances in "desktop sharing"
technologies. Professional remote computer service and support
technicians can access computers directly through their internet
connections to resolve computer issues.
Michael Hovila, the owner
of AdvanceServe Remote PC Services ([http://www.remotepcservices.com])
informs us that "remote computer repair and support services are
available to any computer that is connected to the Internet, anywhere in
North America; It can be from home or business, a hotel suite or while
telecommuting, or even through local wireless 'hotspots'. We can even
connect though your home or corporate firewall... Then just sit back and
watch as our remote technician controls your mouse and keyboard to
diagnose and fix your computer problems or to demonstrate how to use or
configure common applications."
The hourly rate for remote support
usually falls somewhere between that of local drop off and onsite
service rates, while the downtime is reduced to an average of two hours
per incident as a result of not having to wait for service. However, not
all issues can be resolved remotely. Physical problems such as hardware
failures still need to be dealt with by a "hands on" technician.
Calculating the costs
So
which option is best for the small business owner? Let's do some quick
and simple math to find out. Based on average "resolution time" claims
from numerous sources, I have decided to use two hours as the mean
resolution time for these calculations.
For onsite service, rates
are charged either on a "per hour" or "per incident" basis. Since we are
calculating "per hour", I compared the rates of four leading national
on-site service providers and worked out an average of $100 US/hour for
onsite support. So the total cost for a two hour service call ends up
being $200.
Next we examine the cost of the drop-off service
option. Prices in this category vary a little more depending on the
service provider but a comparison of two national providers and two "mom
and pop" local service depots resulted in an average hourly rate of $60
US per hour. Based on our two hour resolution time the labor cost for
this option is $120.
Finally there is the remote support option.
An average comparison of four trusted national providers resulted in a
rate of $80 per hour. For a two hour resolution time the total cost is
$160.
But we're not done yet. Now we have to factor in the loss of
wages that has resulted from the down time. 2003 Bureau of Labor
statistics suggest that individuals who use computers for a living make
an average of $36.20 an hour in wages and benefits. So using that figure
as the "per hour" loss due to downtime for a single computer, we can
calculate and compare the total cost of downtime for each of our three
timelines.
Option One - Onsite Service
Total Downtime: 8 hours
Lost wages: $36.20x8=$289.60
Cost of Service: $200
Total Cost of Downtime: $489.60 per PC
Option Two - Drop Off Service
Total Downtime: 20 hours
Lost Wages: $36.20x20=$724
Cost of Service: $120
Total Cost of Downtime: $844 per PC
Option Three - Remote Service
Total Downtime: 2 hours
Lost Wages: $36.20x2=$72.40
Cost of Service: $160
Total Cost of Downtime: $232.40 per PC
Well,
based on total costs the hands down choice appears to be "Remote
Computer Support". However, there are a couple additional factors that
should be examined a little closer before making a final decision. As
mentioned earlier, remote support has its limitations. The primary two
being, the issue cannot be fixed remotely if it is a result of a
physical problem with a component, and the computer being serviced must
have working internet access.
To determine how the first
limitation factors in, we need to determine what percentage of computer
problems are hardware vs. software related. Vendor data shows that
software issues are actually 40 times more common than hardware issues.
Therefore, in theory, when the computer can still boot up and access the
internet, around 97% of problems can be solved remotely.
The best approach
I
now believe we have enough data to make a well rounded decision
regarding the best approach for professionals and small businesses when
dealing with computer downtime.
Step Zero: The reason I've added a
"step zero" is that an age old saying still applies to modern problems;
an ounce of prevention is worth a pound of cure. Take the time to have
routine computer maintenance performed on your PC. There are a number of
great "self help" guides to keeping your PC running smoothly. Or
consider signing up for a routine maintenance plan by a professional
remote provider if you are either not comfortable with, or do not have
the time to maintain your own computers. But no amount of maintenance
can prevent the inevitable, so when downtime does occure...
Step
one: If you are reasonably knowledgeable in computers and you can still
access the internet, it can't hurt to take a few minutes to search
online or with your peers for answers. If the answer is not apparent
within fifteen minutes of searching, there is a good chance the solution
is not simple enough for the average computer user to solve and
professional assistance should be considered.
Step two: To save
time and money, your next best step is to try a remote service provider.
They can often resolve your issue quickly and get you back to making
money instead of spending it. Even though they cannot resolve physical
problems, you will still come out much farther ahead on average by
trying a remote technician first.
Step three: In the few cases
where the issue ends up being hardware related, your next best choice
would be the onsite provider. Many remote providers have local
affiliates who they can recommend you to and can provide you with
diagnostic information to pass on to the local technician, which may
reduce the required support time.
Addendum: Since this article was
first published, I have received a number of emails asking for my
recommendations on the best choice for computer support providers in
each of the areas I covered. So as requested, here are my choices for
the top national providers. Please note that the following choices are
simply based on my own research and experience:
Recommended Remote Provider:
AdvanceServe Remote PC Services
[http://www.remotepcservices.com]
1-877-87SERVE
Recommended On-Site Provider:
CompUSA Technical Services
http://www.compusa.com/tech_services/techknowledgist_mobile.asp
1-800-COMPUSA
Recommended Drop-Off Provider:
CompUSA Technical Services
http://www.compusa.com/tech_services/instore_services.asp
1-800-COMPUSA
From downtime to uptime
Computers
are an essential part of most modern small businesses but when problems
occur, the costs associated with them can quickly spiral out of
control. However, a quick and well thought out response to computer
downtime can save a small business hundreds or even thousands of
dollars. I hope this guide will help you to be better prepared when your
downtime comes because it's not a matter of if; it's a matter of when.
Aidan McDermott has a Degree in Information Systems and runs a
small computer consulting firm. He enjoys writing technology based
freelance articles in his spare time.