Study finds hidden costs of computing

Article Abstract:

A survey of ten large US companies conducted by Nolan, Norton and Co indicated that the time taken by some microcomputer users in a company to tutor other users costs companies $6,000 to $15,000 each year per microcomputer, a higher amount than is normally budgeted for purchasing and supporting the computer systems. The survey asked users in the companies to estimate the amount of time they spend helping other users with microcomputers. Some respondents said that they spend half their time tutoring other users, and only 20 percent said they spend no time on such activities. The reason for the survey results seems to be that companies have certain personnel who know more about microcomputers and so become volunteer gurus. After looking at the survey results, one of the respondents, Harvard University, has said it may try to reduce wasted employee time by offering computer education materials to employees.

Management consulting services, Surveys, Economics of Computing, User Survey, Hidden Costs, Nolan, Norton and Co., Cost of Operation

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Data switch; PC networks begin to oust mainframes in some companies; small machines and software that operates them are cheaper and often better; still work for the big systems

Article Abstract:

Microcomputers that are connected in local area networks are replacing mainframe computers in business because the are less expensive, easier to maintain and perform certain tasks better than mainframes. Microcomputers have gotten faster and more powerful in recent years without becoming expensive Top-of-the-line microcomputers selling for $10,000 can handle up to eight million instructions per second (mips), the same speed a bottom-of-the-line $800,000 mainframe computer. The Computer and Business Equipment Manufacturers Association predicts the sale of microcomputers to rise at 14.5 percent from 1990 to 1998 while it predicts the sale of mainframe computers will rise only 2.6 percent during that period. Downsizing systems is still resisted by skeptical EDP managers and chief executives, accustomed to the mainframe environment, who do not want to cut staffs.

Forecasts and trends, Mainframe computers, Local area networks, LAN, Computer system conversion, Computer Systems, Mainframe Computer, System Conversion, Management of EDP, Computer and Business Equipment Manufacturers Association

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More market researchers swear by PCs

Article Abstract:

Market researchers are enthusiastic about using microcomputers in their work. Computers allow marketers and product developers to change plans in midstream. Interviewers for Mervyn's Department Stores use pen-based computers instead of clipboards and long forms; the results can be quickly compiled. PC World magazine uses Cardiff Software to read faxed-in reader-comments forms. Sawtooth Software Inc makes a $3,000 program that performs conjoint, that is, determine consumer tradeoffs between quality and price. IdeaMap is a software program from marketing consultants Moskowitz, Jacobs Inc that uses statistical concepts such as variable-regression analysis and optimization. Market researchers have found that people are more willing to give personal information to a computer than to a live interviewer.

Information management, Marketing research, Market research, Automation

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