The Hidden Costs of Patent Docketing Software
Posted by Lecorpio Client Services on Sat, Jan 01, 2011
Unfortunately, a number of patent docketing software vendors do not always reveal the overall cost of ownership required to deploy their systems and it is only after the product is purchased that complications related to configuration, data migration, integration and training become clear. So begins the spiral into the hidden-cost trap.
The patent department needs to have an analytical, result-oriented thought process when evaluating patent docketing services and software to support intellectual property (IP) management functions. However, even the savviest professionals are often misguided by the low-cost appeal of software packages and too frequently fall victim to the high upkeep and maintenance costs of these types of tools.
Before you know it, the "lowest cost" docketing vendor that promised the world to you, is now costing hundreds of thousands more in deployment. Now, you will be told that your data migration did not work, because you have bad data and you need to get your team attend their 5 day training program, adding huge "opportunity costs" and losing hundreds of hours of productivity.
What's more, these docketing tools are not flexible, and hard to configure causing frustration among your users and aggravate the already bad situation of excessive costs and wasted time.
The U.S. Department of Commerce study shows that software purchase expenditures account for only approximately 30 percent of the total. The biggest hidden cost is represented by labor expenditures ranging from 37 percent for support and 33 percent related to software getting the software up and running. The numbers translate to a ratio of 1:2, software license to management/labor costs; and 1:1 license fee to implementation.
IDC recently reported that "Many companies underestimate the cost of managing applications. When you consider the annual costs of administering the applications and the cost of managing issues around performance, changes and availability, it is most likely significantly greater than the application purchase price.<
Understanding the cost of patent docketing software means tracking all related expenditures across its life cycle: purchase/lease, implementation, training, support, maintenance and all subsequent upgrades. It is simpler said than done.
For many patent departments, the patent docketing software implementation is the first time they have been involved in a software project, and therefore are sometimes not aware of these challenges.
Patent Docketing Software implementation projects tend to have many hidden costs that you need to ensure are captured as part of you business case, and managed during the project. Example hidden costs are:
* Loss of productivity during implementation, such as re-training.
* Loss of productivity through poor user support.
* Opportunity cost of management.
* Pilot costs.
* Internal resources working on the project.
* Excessive training requirement.
* Change management.
* Data conversion/Data cleansing costs.
* Internal technical resource costs.
* User support for both technical and business issues.
* Ongoing software and hardware maintenance.
Nailing down all of these costs will be difficult and sometime nearly impossible prior to procurement. However, making the effort to identify and estimate as many othese hidden costs will be well worth the exercise. Besides, no one likes iceberg surprises or hidden supplier hooks after the purchasing decision.
Lecorpio has an excellent track record of successful patent docketing software project implementations. Lecorpio's professional services use a powerful combination of strategic insight and superior execution to optimize the cost and efficiency of our client's IP operations. Feel free to contact us if you need more information on best practices for Intellectual asset management project implementation.
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