Opportunity Cost of Time
Time is “a nonspatial continuum that is measured in terms of events which succeed one another from past through present to future.” Merria
Noemi Greyzdorf
Published on July 6, 2021

Time is “a nonspatial continuum that is measured in terms of events which succeed one another from past through present to future.” Merriam-Webster Dictionary

Have you noticed that everything we do is measured in increments of time? The time it takes to drive to the office, the time it took to prepare a meal, or the time it will take to make a decision. Time is an ever-present variable in calculations of costs, revenue, and losses. Yet, time is the one resources that is wasted most.     "Time is the most extravagant and costly of all expenses."      Theophrastus                                                           

Many calculations of Total Cost of Ownership do not include the cost of time lost or the revenues of time gained. The formula typically includes the cost of purchase, the dollar cost of maintenance, and sometimes the soft costs of personnel. Is that really the TOTAL cost of a solution?  "Lost time is never found again." Benjamin Franklin

What is my Opportunity Cost of Time?

  • Productivity is always a factor of a TCO. If both solution A and B get you the desired results equally well, but solution A makes it happen 30 minutes faster. What are these 30 minutes worth? If you are an animation studio, 30 minutes across 60 animators will cost you at least $400K per year in productivity. Maybe that that doesn’t seem like a lot in the grand scheme of things, but if we consider that the time it takes for animators to complete their job directly affects the next step in the creative process, then 30 minutes are not just the cost of animator’s time but cascade all the way to the end of a project.

 

  • If you are in construction, your bid on a project includes a well-defined set of deliverables. The price of the project also includes the cost of materials and labor. If the project takes longer than what was calculated for the bid, the company loses profits.  If the project takes less time than specified, the company gains profits. The total cost of ownership must account for potential profit losses or gains depending on the effect of time.

 

  • TCO never accounts for unrealized revenue potential. Pharmaceutical companies are very aware of how time affects their revenue potentials. It was explicitly demonstrated during the race to a COVID-19 vaccine. Those who were able to deliver an approved vaccine to market earlier, benefited from greater revenues. It is akin to a lemonade stand on a hot day. If lemonade stand A and B show up at the same time, but A can deliver each serving of the lemonade twice as fast as B, A will reap greater revenues in the same amount of time as B. It is even worse if lemonade consumers have a limited amount of time to get their serving.

 

  • On average, a less severe heart attack costs $760,000, according to CBS News. If a patient at risk for a heart attack could be monitored using at home or implantable devices, data collected multiple times each day could be analyzed to determine if the patient is at an increased risk, providing actions to take to mitigate either the severity of the heart attack or its occurrence. Reducing time between patient evaluation could not only save their life but reduce the associated costs.

"It’s not that we have little time, but more that we waste a good deal of it."          Seneca

The first step in getting time to work for you is to understand all the different ways time affects costs, revenues, and losses. This is called Access Time Objective™, when does time start affecting business outcomes.  Understanding the role time plays will frame the way we evaluate solutions and make decisions.   "Time waits for no one."     English Proverb

Vcinity developed its patented technology to address the time challenge. Reducing time required to achieve business objectives creates a value generating opportunity.

How does Vcinity do that…

Vcinity enables real-time access to data without having to move it. Eliminating the necessity to move data adds time as a resource.  It is common to hear, “If only there was more time”. Using Vcinity, enterprises now have more time; time that can be used to innovate, increase productivity, and reduce waste.

There is time to gain insights based on data and then there is data preservation time requirement. It is cumbersome to maintain chunks of data in multiple locations; it is not taking advantage of economies of scale or scope and burdening operations with maintaining proper levels of security. It is more effective to consolidate data that must be preserved into a single, resilient repository. It doesn’t matter where the repository is; what is important is the time required to move all this data to its primary storage space. Sometimes network bandwidth is limited; sometimes there is more data to be moved than the bandwidth can support.