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White Paper | October 2005 When LCD Monitors can reduce TCO
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Related to Philips SmartManage and smart TCO LCD monitors:
Deployment time saving: 25%
Energy saving: 80%
Reduced theft rate: 80%
7. Signifi cant TCO saving with Philips monitors
As described earlier, awareness in user organizations of the importance of monitors in the Total
Cost of Ownership picture is often limited. In many cases administrators cannot even be sure of
the locations of their monitor assets, and these devices – despite their important cost contribu-
tion – are often treated more like ‘consumable’ accessories. As this white paper shows, Total Cost
of Ownership is complex and involves many individual elements extending through all the life-
cycle phases of an asset. It is much more than simply a question of low initial cost. The initial cost
contribution of monitors may be relatively low, but like other assets with multiyear useful lives the
initial investment is often relatively insignifi cant compared with all the other costs arising through
the life cycle. This is why it is important to consider the total life-cycle costs when considering the
purchase of new monitors.
Philips aims to address all cost-relevant factors in its LCD monitors, providing enterprise users with
effective, process-based solutions to control and reduce their life-cycle costs on a structural basis.
As calculated in section 6, Philips LCD monitors together with Philips SmartManage provides a
saving of more than 12,5% on annual basis compared with industry average monitors. This saving is
illustrated in fi gure 11. The latter also shows that the relatively modest initial investment required
to purchase and deploy SmartManage is quickly recovered in practice.
Figure 11: TCO cost savings with a Philips monitor solution
C 350,000.00
C 300,000.00
C 250,000.00
C 200,000.00
C 150,000.00
C 100,000.00
C 50,000.00
C 0.00
Acquisition
Acquisition
Deployment
Deployment
Operation
Operation
Retirement
Retirement
Industry average
Philips
Philips is constantly working with suppliers, customers and regulatory authorities on a continuous
improvement basis to ensure that its monitors provide optimum-cost solutions to the needs of
both end-users and the enterprises in which they work.