More and More companies buying T&M equipment and Services are getting Finance Savy in making these decisions.These criterion are being driven by the prevaling Recessionary conditions as well as the competitive activity thrown up due to liberalisations in their industries.
Traditionally the criterion of buying T&M Capex was to consider the Capital cost of acquisition and Total Cost of ownership TCO.Government buyers,or Public Sector Units were safely attached to the Lowest Cost L1 syndrome,a safer option with the Decision Making Unit of the Purchaser.However nowadays the Private players will look with a microscope any Capital Expenditure!
Today more and more companies are trying to link the Financial impact with the Technical features of these Test Instruments/Services.They consider the TCO along with the RoA (Return on Assets).RoA and in some cases the Growth of RoA becomes the more important consideration for the CFO before approval to buy is given.The trick is therefore to present solution which helps in reducing the Assets (by sharing or virtualisation of some sort) and making higher Return Ratio!
For the T&M Professional Seller, this becomes the trickier part.Selling Professionals need to use the combination of Technical Knowledge,Financial Skills and Customer application understanding.For Example if he is selling a Power Supply of 100 Watt in $ 1000 ,he has to start thinking his sales price as $10 per Watt.If his tester reduces Testing time by 10 minute per sub-assemby,the return on Productivity will have to be quantified accordingly.
In India too several Telecomm Service Providers and other companies are squeezing better and better RoA when they purchase T&M.T&M Professionals need to Position their Equipment and Services in a way it can help Telecomm companies becoming Assetlight.
On a personal note today,Nov 1, 2009 I am recalling my Professional journey started 38 years ago in this Indian Silicon Valley- Bangalore, while I joined a batch of Engineers at BEL.My work involved designing Microwave Components/Systems for the Defense equipment then.Our first brush with the T&M industry was as an user then.Thanks and Greetings to Bangaloreans and Karnataka today-the Kannada Rajyotsava day.
At Bangalore, vishnu_goel@yahoo.com +91 98 101 01238
Sunday, November 1, 2009
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agreed..
ReplyDeletehowever, I always think that T&M tends to play catch up with other industries in terms of trends and best practices from the seller and buyer side.. the focus on TCO is an example. Most other industries have had a focus on TCO while purchasing since ages.