I recently wrote an article for Fixed Ops Magazine discussing how dealerships can deploy mobile technology in the service bay with the lowest total cost of ownership (TCO). Dealers looking to purchase mobile computers must consider TCO and return on investment (ROI) to get the most out their investment.

When selecting a device, key factors to consider include: workflow, device reliability, environmental use (grease, oil, solvents) and feature set. Wireless connectivity and integrated features can significantly increase technician efficiency, allowing access to critical information and data capture right at the vehicle. However, without a notebook rugged enough to withstand the harsh environment of the service bay, dealerships will waste time and money.

True TCO analysis includes planned product lifecycles and the impact of failure. Indirect costs, such as lost productivity, must also be taken into account during the selection process. Deploying a reliable mobile technology solution with the right features will enable technicians to repair more vehicles and get your customer on the road faster.

You can read my article, “Deploying Mobile Technology,” and view the full December issue of Fixed Ops Magazine online here.

You might also want to read this case study highlighting how Nissan uses Toughbook mobile computers in its service bays around the world.

A recent PC Magazine article highlighted the embarrassingly high number of business laptops that require repair each year.   According to the publication’s 2009 report, industry-wide, an average of 22 percent of business laptops require repair on an annual basis.  Oddly enough, brands that have recently touted their heightened durability seem to be at the top of the list – with Dell showing a 26 percent failure rate, Lenovo a 25 percent failure rate and HP at 22 percent.  These numbers show little improvement from previous years (this is the 5^th straight year where the average fell between 22 and 24%) and are consistent with data found in reports from major analyst firms.

Even more unnerving, the Dell, Lenovo and HP laptops are likely failing in device-friendly environments. They are being challenged only by the rigors of going from the office to the conference room, or from the airport to the hotel.

What I can’t understand is why so many people have come to view these high failure rates as acceptable.  There is a lot of technology we rely on every day – our cars, cell phones, televisions.  Would you buy a cell phone if you knew that 26% of those sold would need repair every year?  Probably not.  Yet, many major corporations invest in these high-failure laptops because the focus is on the upfront acquisition cost versus long-term value of the investments.  This focus comes with significant consequences to the bottom-line.

A recent VDC report showed that a whopping 70% of mobile device costs come after the acquisition.  CFOs with mobile workforces and an eye on profitability need to start taking a much closer look at the TCO for mobile technology, and not just the acquisition price.

Fortunately, there is hope on this front.  A recent “Cash-for-Clunkers” story on Economist.com had this to say on the topic of TCO in America:

“Car dealers are now advertising the ‘total cost of ownership’ of vehicles, not just the purchase price, drawing the attention of consumers to differences in fuel efficiency between vehicles and estimating how much it would cost to fill them up with gas each year. This has long been a part of European and Japanese car culture…but until now Americans have never looked beyond the sticker price.”

People need to apply this TCO mentality to mobile technology, especially considering the critical role it plays in profitability, employee satisfaction and productivity.

At Panasonic, we have our failure rates audited by an independent third party, publish the information on our website and make it available to both existing and potential customers.  Across our entire Toughbook product line – a line that is designed to work in much harsher conditions than those our competitors are failing in – we show an average failure rate of under 2.5%.  This low failure helps to increase the return on investment and deliver a low TCO.

Why don’t you know about the lack of laptop reliability?  Well, laptop manufacturers don’t want you to know.  Obviously, they know. This is information they need in order to run their businesses.  As someone that has been in the industry for decades, I can say that this information is so closely guarded that often even the sales force is not allowed to know it.  Ignorance is bliss; until it costs you far more than you bargained for!

We challenge individuals and corporations to think about TCO and to demand third-party verified failure rate numbers when making mobile computer purchases.

As for our competitors and their “ruggedized” and “more reliable” mobile computers, we would like to suggest a new category of rugged – “Marketing Rugged”.  PT Barnum would be proud.

A critical element of the TCO/ROI equation is failure rates. A 2008 PC Magazine reader survey reported that 24 percent of business laptops had some form of hardware failure last year. This means that companies investing in mobile computers need to have more devices in inventory to replace failures and a larger IT staff to support these devices. Failures also equate to down time and lost business, negating the value of having a mobile workforce.

Warranties are another key consideration, with the average laptop accompanied by a single year warranty with the option of upgrading to a multi year contract. Even with the high failure rates of most business grade laptops, most companies are not deploying for a single year, so the one year warranty does not cut it. It is important to look for devices that offer a warranty that is in line with the deployment cycle of the product and that will provide support until the device has paid for itself. Three years is a good time frame to consider, although many Panasonic customers maintain our solutions for upwards of five years; significantly driving down TCO and increasing ROI.

There are other considerations to make as well, including battery life, integrated versus external mobile broadband solutions, shock mounted hard drives and spill resistant keyboards. If you are trying to get the most out of your mobile technology investment and minimize support costs, durability, connectivity, financing options and battery life should be key considerations.

Companies evaluating mobile devices need to clearly look at the price versus cost question, factoring in the costs associated with the device through the entire deployment.  As a result, your mobile employees will be happier and more productive, your IT department will be less strained and your bottom line will absolutely see the difference.

With reliable, long deployments, low single digit failure rates, industry leading wireless solutions, exceptional battery life, three year standard warranties and attractive financing options, Toughbook mobile computers are a good solution for companies taking a serious look at both TCO and ROI.