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Execution-MiH ENCYCLOPEDIA →
Execution Making-it-Happen →
SECTION - 'Value' management →
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CHAPTER -
| Infrastructure Value-Maximization |
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An organizations infrastructure includes most of the operating assets, and the facilities. The infrastructure maximization includes building variability in the capacity, infrastructure consolidation, exceeding the formal capacity and to extend the longevity of infrastructure. Apart from the capacity variability, one can also work on making the features & facilities of infrastructure variable.
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Topics
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Capacity Variability
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Infrastructure essentially means fundamental capacity to operate. This includes offices, buildings, communication networks, desktops, manufacturing sites and transportation. One needs to have as much variability in the infrastructure capacity, so that you have to spend only in the capacity that you need. This may not be always possible, but one has to maximize this variability. The level of variability you seek should also be dependent upon the level of confidence you have on your business assumptions, as capacity variability may carry a higher cost per unit over medium or long term.
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Virtual and not physical infrastructure firewalling
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Gone are the days when companies could afford separate offices, distribution centres, manufacturing facilities for different lines of business because the fundamentals of businesses & management methods were varied. One can have the same sales offices for multiple businesses, same roof for manufacturing facilities and same forwarding & packing agents.
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Infrastructure back-bone and plug-in
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By standardizing and centralizing the design, procurement and delivery of infrastructure elements, an organization can achieve an economy of scale. It can also make the building-up of infrastructure at various locations easier and faster. It does not mean that one should not make the best use of the local availability and low-cost. The idea is to have a central management. A central management not only helps in providing the infrastructure, but also works on using it optimally.
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Formal Capacity vs. Possible Capacity
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An enterprise needs to be creative, when it comes to using infrastructure. One has to push the boundaries of the capacity utilization of the current infrastructure. One needs to look at the opportunities of reducing the size of the cabin & workstations, have shared workstations for field population, have hot-desking concept, look at using large data-exchanges in the non-peak hours if possible, use compression methods for data-exchange to reduce network cost, etc....
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Infrastructure Tenure Maximization
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An enterprise needs to constantly look at how it can extend the life of an asset, as long as the cost of maintaining the asset does not exceed the cost of buying a new one. This has various elements, which include finding creative ways to live within the limited features of an old asset, doing disciplined maintenance, undertaking longer-term support contracts and extended warranties and not to be tempted by the latest-toys on the shelf.
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Infrastructure Feature Variability
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Apart from capacity and tenure, one also can look at the opportunity of the features which you should buy for an infrastructure element. Your desktops may need to have a low local disk memory as most data should be residing centrally. There is no need for having DVD burners in a business laptop. There may not be a need for creating glazed finish wooden floorings, etc.....The point to keep in mind is that a small saving in an infrastructure element can achieve huge saving as they give multiplier impact for an organization with hundreds of locations and thousands of workstations.
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All Chapters in "'Value' management ." Section
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