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A drive for change

A few years back my situation changed drastically and I had to buy a means of motor transportation. I wasn’t exactly rolling in money, so I ended up spending around $1000 and a fine bottle of Cognac on an old Toyota Carina that my friend was getting rid of. It got me from A to B (most of the time), but I wasn’t exactly worry free as long as I relied on it.

Now, as we all surely know; buying a car is not only about the immediate investment up front but also the money spent over time keeping it on the road. Bad battery? Buy a new one. Fender bender? Repair it. Bulbs gone out? Replace them. Add gas consumption, service costs, emissions testing and inspection, registration, toll tag, insurance, AAA membership etc. - the overall cost quickly grows without you grasping it because you are treating it as a series of individual costs and not looking at the whole.

I mean, what would you consider to be the smarter choice; a smaller investment up front with a relatively substantial shifting amount spent monthly or yearly on things like the ones listed above, or a larger sum spent initially with a smaller more predictable periodic cost attached to it? A new car would most likely have a more efficient engine saving you money on gas, and is likely to have less issues mechanically – plus you would be covered by warranty, too!

If you at the same time are depending on your car in order to create income, the calculation becomes very clear. Net Income = Revenue – Expenses. If you as a taxi driver could increase your bottom line revenue by replacing your vehicle with a newer one that is more reliable and cost effective, wouldn’t you do it?

Sure, you might have bought what you drive brand new 30 years ago when it was top of the line, and it is still making you money. But will it run tomorrow? You bought a Porsche back then, but it might perform like a VW Beetle today, and as reliably. Can you throw money at it, replace parts and make it brand new again? And will doing so make it as good as a new Porsche, or will you end up with a hybrid, morphed thing with bolts sticking out of its neck?

Upgrading and modernizing your things like phone, laptop or car regularly makes sense in the ordinary world because we accept that things have a finite lifespan, and we can see how the new technology will solve problems for us and be more reliable.
When it comes to modernizing your DCS or SIS, however – now THAT is a completely different story.

What is your take on the subject of modernization – what is the tipping factor that drives you to modernize instead of sticking to the repair/upgrade approach?

 

Emerson has great experience with modernizations, from aiding to justify the need and finding the best return of investment, to executing the project and implementing solutions. Let us show you where and how we can help you improve.

Joel Galmor

Modernization Consultant