TECHNOLOGY REPLACEMENT COST ESTIMATION USING ENVIRONMENTAL COST CONSIDERATIONS

• US 20110035243A1
• Filed: 08/10/2009
• Published: 02/10/2011
• Est. Priority Date: 08/10/2009
• Status: Active Grant

• Current Assignee: Hewlett Packard Enterprise Development LP (Hewlett-Packard Enterprise Company)
• Original Assignee: Hewlett-Packard Development Company, L.P. (HP Inc.)
• Inventors: Shah, Amip J., Bash, Cullen E., Patel, Chandrakant
• Granted Patent: US 8,452,626 B2
• Time in Patent Office: Days
• US Class Current: 705/7
• CPC Class Codes: G06Q 10/00 Administration; Management
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

In a method of estimating a replacement cost associated with an existing technology performed by a processor, one or more costs associated with implementing the existing technology are obtained, in which the one or more costs include an environmental cost and a utility cost associated with implementing the existing technology. In addition, an existing net benefit of continuing implementation of the existing technology based upon the obtained one or more costs are calculated.

Claims

1. A method of estimating a replacement cost associated with an existing technology, said method comprising steps performed by a processor of:

obtaining one or more costs associated with implementing the existing technology, wherein the one or more costs include an environmental cost and a utility cost associated with implementing the existing technology; and

calculating an existing net benefit of continuing implementation of the existing technology based upon the obtained one or more costs.

2. The method according to claim 1, further comprising:

identifying a length of time that the existing technology is predicted to have remaining to perform useful work and wherein calculating the existing net benefit further comprises calculating a total useful work that the existing technology is predicted to have remaining in the identified length of time.

3. The method according to claim 2, wherein calculating the total useful work that the existing technology is predicted to have remaining further comprises calculating the total useful work as a function of the identified length of time, the useful work produced by the existing technology over a predetermined period of time, and a first weighting coefficient that is selected as a function of operation policy.

4. The method according to claim 3, further comprising:

identifying a direct operational cost of the existing technology per unit time; and

wherein calculating the existing net benefit further comprises calculating a cost of operation of the existing technology as a function of the identified length of time, the direct operational cost of the existing technology, and a second weighting coefficient for cost that is selected as a function of operation policy.

5. The method according to claim 4, wherein calculating the existing net benefit further comprises calculating the existing net benefit as a function of the calculated total useful work, the cost of operation of the existing technology, and a third weighting coefficient that is selected as a function of operation policy.

6. The method according to claim 5, further comprising:

determining whether the identified length of time that the existing technology is predicted to have remaining results in an optimized existing net benefit calculation;

in response to a determination that the identified length of time that the existing technology is predicted to have remaining fails to result in an optimized existing net benefit calculation, performing one or more iterations to identify an optimized length of time that results in the optimized existing net benefit; and

calculating the existing net benefit using the optimized length of time.

7. The method according to claim 6, further comprising:

calculating a new net benefit of at least one of procuring and implementing a new technology to replace the existing technology;

determining whether the new net benefit exceeds the existing net benefit; and

selecting to replace the existing technology at the optimized length of time in response to the existing net benefit exceeding the new net benefit.

8. The method according to claim 7, further comprising:

determining whether the new technology results in an optimized new net benefit calculation;

in response to a determination that the new technology fails to result in an optimized new net benefit calculation, performing one or more iterations to identify an alternative new technology results in the optimized new net benefit; and

determining whether the optimized new net benefit exceeds the existing net benefit; and

selecting one of the existing technology and the new technology that resulted in the optimized new net benefit based upon the determination of whether the optimized new net benefit exceeds the existing net benefit.

9. The method according to claim 7, further comprising:

identifying an alternative new technology in response to a determination that an alternative new technology is available;

obtaining one or more costs associated with at least one of procuring and implementing the alternative new technology;

calculating an alternative new net benefit of at least one of procuring and implementing the alternative new technology based upon the obtained one or more costs;

determining whether the alternative new net benefit exceeds the existing net benefit; and

selecting one of the existing technology and another alternative new technology based upon the determination of whether the alternative new net benefit exceeds the existing net benefit.

10. The method according to claim 1, further comprising:

obtaining one or more costs associated with at least one of procuring and implementing a new technology to replace the existing technology, wherein the one or more costs include an environmental cost and a utility cost associated with at least one of procuring and implementing the new technology;

calculating a new net benefit of at least one of procuring and implementing the new technology based upon the obtained one or more costs associated with at least one of procuring and implementing a new technology;

determining whether the existing net benefit exceeds the new net benefit; and

determining whether to replace the existing technology with the new technology based upon whether the existing net benefit exceeds the new net benefit.

11. The method according to claim 10, further comprising:

identifying a length of time predicted to be required in obtaining the new technology, wherein obtaining the one or more costs further comprises identifying a length of time that the existing technology is predicted to have remaining to perform useful work, and wherein calculating the new net benefit further comprises calculating a total useful work that the new technology is predicted to have over the identified length of time that the existing technology is predicted to have remaining to perform the useful work.

12. The method according to claim 11, further comprising:

identifying a cost of implementing the new technology;

identifying a cost of operation of the new technology in performing the total useful work;

identifying a disposal cost associated with disposing the existing technology; and

wherein calculating the new net benefit further comprises calculating a total cost of at least one procuring and implementing the new technology as a function of the identified cost of implementing the new technology, the identified cost of operation of the new technology in performing the total useful work, the identified disposal cost associated with disposing the existing technology, and the length of time that the existing technology is predicted to have remaining to perform useful work.

13. The method according to claim 12, wherein calculating the new net benefit further comprises calculating the new net benefit as a function of the calculated total useful work, the cost of operation of the new technology, and at least one weighting coefficient that is selected as a function of operation policy.

14. A computing apparatus comprising:

a replacement cost estimating module configured to estimate a replacement cost associated with an existing technology;

an existing technology obtaining module configured to obtain one or more costs associated with implementing the existing technology, wherein the one or more costs include an environmental cost and a utility cost associated with implementing the existing technology;

an existing net benefit calculating module configured to calculate an existing net benefit of continuing implementation of the existing technology based upon the obtained one or more costs; and

a controller configured to implement the replacement cost estimating module, the existing technology cost obtaining module, and the existing net benefit calculating module to estimate a replacement cost associated with the existing technology.

15. The computing apparatus according to claim 14, wherein the controller is further configured to implement the existing net benefit calculating module to identify a length of time that the existing technology is predicted to have remaining to perform useful work and to calculate a total useful work that the existing technology is predicted to have remaining in the identified length of time.

16. The computing apparatus according to claim 15, wherein the controller is further configured to implement the existing technology cost obtaining module to identify a direct operational cost of the existing technology and to implement the existing net benefit calculating module to calculate a cost of operation of the existing technology as a function of the identified length of time and the direct operational cost of the existing technology, and wherein the controller is further configured to implement the existing net benefit calculating module to calculate the existing net benefit as a function of the calculated total useful work and the cost of operation of the existing technology.

17. The computing apparatus according to claim 16, wherein the controller is further configured to implement the existing technology cost obtaining module and the existing net benefit calculating module to identify a length of time that the existing technology is predicted to have remaining to perform useful work that results in an optimized existing net benefit calculation.

18. The computing apparatus according to claim 14, further comprising:

a new technology cost obtaining module configured to obtain one or more costs associated with at least one of procuring and implementing the new technology, wherein at least one of the one or more costs includes an environmental cost associated with at least one of procuring and implementing the new technology; and

a new net benefit calculating module configured to calculate a new net benefit of at least one of procuring and implementing the new technology based upon the obtained one or more costs associated with at least one of procuring and implementing the new technology;

wherein the controller is further configured to implement the new net benefit calculating module to calculate a new net benefit of at least one of procuring and implementing the new technology and to implement the replacement cost estimating module to determine whether the existing net benefit exceeds the new net benefit and to determine whether to replace the existing technology with the new technology based upon whether the existing net benefit exceeds the new net benefit.

19. The computing apparatus according to claim 18, wherein the controller is further configured to implement the new technology cost obtaining module to obtain one or more costs associated with an alternative new technology, to implement the new net benefit calculating module to calculate an alternative new net benefit of at least one of procuring and implementing the alternative new technology based upon the obtained one or more costs, to implement the replacement cost estimating module to determine whether the alternative new net benefit exceeds the existing net benefit and to select one of the existing technology and the alternative new technology based upon a determination of whether the alternative new net benefit exceeds the existing net benefit in response to the existing net benefit exceeding the new net benefit.

20. A computer readable storage medium on which is embedded one or more computer programs, said one or more computer programs implementing a method of estimating a replacement cost associated with an existing technology, said one or more computer programs comprising a set of instructions for:

obtaining one or more costs associated with implementing the existing technology, wherein the one or more costs include an environmental cost and a utility cost associated with implementing the existing technology;

calculating an existing net benefit of continuing implementation of the existing technology based upon the obtained one or more costs;

obtaining one or more costs associated with at least one of procuring and implementing a new technology to replace the existing technology, wherein the one or more costs include an environmental cost and a utility cost associated with at least one of procuring and implementing the new technology;

calculating a new net benefit of at least one of procuring and implementing the new technology based upon the obtained one or more costs associated with at least one of procuring and implementing a new technology;

determining whether the existing net benefit exceeds the new net benefit; and

determining whether to replace the existing technology with the new technology based upon whether the existing net benefit exceeds the new net benefit.