Posted by: Maswawan
CAPEX, CTO, Dynamic Resources Allocation, IT Services, OPEX, Resource Pooling
Background : ” I was asked, How can the organizations get benefits from your IT/IS/MIS Department? “
As part of the process of achieving the organization vision, mission and objectives, MIS Department understands that all expenditures shall be rightly justifiable and accountable.
In order to provide a high quality of services, MIS department requires adequate financial investment and operational cost. MIS department always carefully and conservatively analyzes and evaluates both capital expenditure and operational expenditure during the study and implementation of all it services to facilitate and support organization business and administration process and to achieve its business’ or organization’s objectives.
CAPEX (Capital Expenditure) – Initial investment for providing IT services
from wikipedia :http://en.wikipedia.org/wiki/CAPEX
Capital expenditures (CAPEX or capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the taxable year. Capex are used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings. In accounting, a capital expenditure is added to an asset account (“capitalized”), thus increasing the asset’s basis (the cost or value of an asset as adjusted for tax purposes).
But I will simply say ” initial investment for providing IT Services ”
Investment in IT resources and IT infrastructure to provide IT services, we strategically implement the approach of a right cost and a right time. By doing this MIS Department while developing and filling out the OS (organization structured) efficiently and in timely manner also reduce and minimize the initial investment of the project.
1. Investing on human resources required prior to project start, while at the same time filling out the OS
2. Reducing and Omitting the professional and consulting services from the implementation as MIS staff handles the professional and implementation themselves instead from the vendors.
3. Right cost of choosing the product and technology as the preliminary study and evaluation is done using in house professionals.
4. Right Application and Solution selected to achieve the organization objective is interest free from the vendor.
5. So Adding resources is inline with the filling out the OS and implementing the Project.
OPEX (Operational Expenditure) – Operating cost for managing, operating and maintaining IT services
from wikipedia : http://en.wikipedia.org/wiki/Operating_expense
An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is an ongoing cost for running a product, business, or system.
But I will simply say ” Operating cost for managing, operating and maintaining IT services ”
To efficiently reduce the OPEX and justify the right cost of CAPEX, we strategically implement the resources pool and dynamic resources allocation approach. By doing this resources can be efficiently used and allocated to provide services within a minimal cost at the right time across the user. Resources can be anything from internet services, application services to support business process, human resources, power electricity resources, space availability, building, cooling requirements, software, hardware, applications, operating system, storage, computing process, memory etc.
1. Pooling Resources and Dynamic Resources Allocation of Internet Connection/ Services (Centralized Internet Project)
2. Pooling Resources and Dynamic Resources Allocation of Business Process Application to support the business (ERP Project)
3. Pooling Resources and Dynamic Resources Allocation of Space, Building, Power Consumption, Computing Facility, IT Facility Management (Data Center Project)
4. Pooling Resources and Dynamic Resources Allocation of IT services, Application, Telephony, Monitoring and Control, Business Application etc. to all related entity (All-Play Private Network Project)
By practicing both approaches, MIS Department strongly believes that financial allocation invested for IT services is at its right cost and right time while minimizing the overall operational cost by implementing efficient resources pooling and dynamic resources allocation approach to support more efficient and effective business and administration process to achieve the organization objectives.