How Much Should You Invest In Technology?
by Nora Fuerstein, Director, Pacific Region, Omega

For most companies, the cost of new technology purchases have to be justified before any purchase orders are issued. To do this, you have to weigh the benefits to your business over the cost of the technology - a process that varies from company to company.

It's first important to take into account the total cost of ownership, since this cost impacts a company's return on investment (ROI) as well as its bottom line. You have to ask yourself how much the system will cost to maintain over the next five years. The cost of training employees on a new point of sale (POS) system, for example, should be factored into the cost of ownership. Other factors to consider include ongoing maintenance fees, upgrades to hardware and software, and the cost of financing the technology purchase.

Some technology projects are imperative, and do not require cost justification, such as preparing systems for the year 2000. These results may not be measurable from an ROI standpoint. In addition, measuring the ROI of an Internet application may also be difficult because there may not be historical data available for a comparative analysis.

When evaluating how new technology impacts the bottom line, it's important to consider where all the cost savings come from. Measuring the ROI of a new technology begins before the hardware and software are installed. By following a step-by-step plan, and working closely with your solution provider, you'll find the quickest route to a cost-effective, painless way to make your technology purchases.

Do you have a tale of terror or of humor involving selling to any government agencies? We are compiling stories to be used in for teaching purposes, please contact us with your story. If you want confidentiality- just let us know.

Call Nora Feuerstein at Omega, phone 531-6201, fax 596-7939 or send e-mail to: nora@interserv.com.

Response to Oahu Industrial Zones at Risk

by Walter C. Decker Decker Land Co., Kona, Hawaii

This is in response to William Liggett's guest commentary in the August, 1998 SB News. I totally disagree with his comments. He is completely off base.

If Liggett is so concerned about higher costs, why doesn't he go after the real culprits, such as Bishop Estate. In ongoing lease rent re-negotiations in the Kaneohe (Heeia) Industrial Park, Bishop Estate is demanding new ground lease rent increases from 5¢ per square foot (equated into building size) to 50¢ per square foot per month. This is more than half what the current market will allow a landlord to charge his tenants for building and land.

If he is concerned about safety in industrial parks, why doesn't he try to reduce the following currently approved uses in industrial parks: Automobile sales, rentals and service stations, bars, nightclubs, taverns, catering and eating establishments, financial institutions, home improvement centers, hotels, neighborhood grocery stores, vocational technical and trade schools? They all are activities used by large volumes of people.

Thank goodness the City's Administration is finally hearing the cries on the small business community by allowing wider use of I-1 and I-2 industrial zoned lands on Oahu. These new uses would include cabarets-existing permitted uses include bars, nightclubs, taverns, catering and eating establishments.

Other new uses would allow amusements and meeting places. Amusement enterprises would include health gyms, spas, exercise activities and dance studios. Meeting places includes churches and church groups. The City apparently doesn't feel that churches are big enough or important enough to have its own category.

In other words, opening up non-heavy use heavily vacant warehouse space in under used light industrial parks to people oriented activities. I thought that was one of the main purposes of a community-to provide facilities for the people who live in the surrounding areas.

If every type of nightclub, except for cabarets, is already allowed, why not add cabarets? Most industrial type activities are conducted five days a week during daylight hours. Why not allow more recreational activities in industrial zones that principally meet at night and in locations that are not normally next to residential areas, hence, capable of handling a little extra noise created by most recreational activities?

Allowing meeting places, such as churches, in industrial parks where the activities are also held at nights and on the weekends certainly makes a lot of sense in the extremely expensive land-short island of Oahu.

How could anyone not welcome church groups in existing industrial parks? We have hundreds, if not thousands, of lost souls here on Oahu, whose only chance to cling to a possibility of being gainfully employed, tax paying, community oriented, dedicated family members as provided by these many under funded, dedicated, God fearing ministers and churches. For years now the city's inspectors have been hell-bent on throwing all these people back onto the streets because of their non-compliance activities in industrial warehouses. Isn't it about time that we had some compassion and legalize their activities?

And dance studios-who also normally meet at night or over the weekends-why aren't they presently allowed in industrial areas? Did you know that almost every single Hawaiian halau in Oahu currently located as non-allowed, non-compliance, non-legal activities in industrial parks? Are we to throw them out onto the streets along with the church groups?

The Heeia Industrial Park in Kaneohe, where we own property, is and has been in a recession for seven years now. This park continues to have about a twenty percent vacancy factor. Rents are down thirty percent. Bishop Estates is trying to raise everyone's ground rent about 800 percent. We would welcome with open arms all these new activities. None of which can afford the outrageous commercial rents now being demanded, mainly because of extreme, unfair and unsustainable ground rents being charged simply because fee simple land is not available.

To state that allowing such new activities legally into industrial areas where dozens have been doing business for years already, is going to drive up costs sounds like the same people who advocate raising taxes when the economy is weak. Filling up vacant warehouses, putting more people to work, creating new businesses and jobs is the only way to sustain higher gross income and the payment of more taxes over a longer period of time.

Please inform your Neighborhood Board, contact your City Council member and let Mayor Harris' office know that you stand for 1) helping your neighbors have a more meaningful life 2) more private sector jobs 3) no tax increases and 4) a better, more robust economy.

We desperately need to allow more amusement, recreational and people meeting places on Oahu. Passing the bill now making it's way through the Honolulu City Council is the way to do it.

When Hawaii is the only State out of 50 that is still in a economic recession, it is not hard to understand why if we have more Liggett's out there working against recovery. This type of mentality will ensure the continuing demise of Hawaii's economy. Let's hope it doesn't prevail.

The Last Voter in America

By Ken Schoolland Schoolland International Partnership

REPORTER: Welcome ladies and gentlemen to "You Are There!"‹today's amazing on-the-spot interview with people in the headlines. As you know, the nation's voting record has been declining for years. The number of eligible voters who actually go to the polls has finally dropped to one. That's right, one voter remaining. And we are here at the voting booth to give you that first interview with the last voter in America. Here she comes. Ma'am! Ma'am! Why do you vote?

VOTER: Oh, thank you for asking. I consider it my duty to vote. The state runs these ads telling me so. They say, "It doesn't matter who you vote for, so long as you vote."

R: Do you believe the campaign promises of the politicians?

V: Of course, I believe. I always believe. Why else would I vote?

R: Are you aware that public opinion polls show that you are the only person in America who still believes campaign promises?

V: Yes, I've seen those polls. I believe them, too. I believe everything.

R: And did the politicians ever fail you before?

V: Oh sure. They've always failed on their promises. Time and time again. But I stand by my representative no matter what. I will forever.

R: Why?

V: I believe that they're good at heart. I believe they can change. I believe that down deep they really care about me. They're just misunderstood.

R: Some say that your family wants you to join Voters Anonymous.

V: Voters Anonymous is for people with a problem. I don't have a problem. Do you think I have a problem?

R: Well, some say that abused voters always keep returning to their abusers‹no matter how much the abuse.

V: I don't have a problem. I stand by my rep.

R: And now we return to your regular programming. This has been your on-the-spot reporter for "You Are There!"

Bureaucracy

By Tracy Ryan, Libertarian Party of Hawaii

There are two ways to manage. In the private market sector the management and evaluation of personal is dependent on an understanding of economic calculation. The performance of each component of a firm can be measured in terms of it's contribution to overall profit or loss. Profit and loss are real data dictated by consumers. Although most businesses can't accurately gage the profit added to their firm by each component the underlying fact remains that economic calculations related to market data is the method of management. Prices and wages are set by market conditions rather than arbitrary standards. A regional sales manager who under performs his peers will not last in his position.

In the government sector the profit and loss information needed to make accurate valuations of performance is missing. Their is no profit involved in running the police department for example. It's funding is not related to market data so an economic evaluation can't be made. In the government sector arbitrary standards and controls must be established to replace the market data that is not available there.

Just think how government agency would run if the department head could hire or fire anyone he liked. His departments money comes from the tax payers, not from consumers free to choose or not choose the service it provides. Soon the department would be filled with his friends and relatives making high salaries for doing nothing. The cumbersome rules of bureaucratic management were developed to prevent that from happening. Employees and departments have arbitrary standards, tests, etc. to meet. Disbursements of funds may have to be approved by several different people. This is not as efficient as private sector management, but there is no other way to run a tax funded agency.

Often we hear politicians saying they will bring business methods to government, making it more responsive and efficient. This would merely be dressing up a pig. Bureaucracies are not inefficient because the people running them are bad managers. In many cases they are very good managers. Bureaucracies are inefficient for the reasons I've explained above. The answer is not a reform of government methods, but a reduction in the number of departments and services it provides. If these services are really wanted the private sector will provide them.

Modern Medicine Needs Customers
By Richard O. Rowland Rowland & Alameida

A recent (Sunday, July 19) Honolulu Advertiser article carried a touching article by Esme M. Infante entitled, "Modern Medicine Needs More of the Human Touch" which centered around her father's care and treatment during his stay in hospitals during a major illness. She extended well-deserved praise to several persons by name, a nice gesture, and deeply appreciated by them, I'm sure.

But there is a lot more wrong with our medical treatment delivery system than the lack of a human touch. Growing callousness of those involved is a symptom of the larger problem - government control and interference with the entire process.

First, the state government eliminates personal choice and accountability via the Hawaii Prepaid Health Care Act and other meddling. Next, the Federal government fiddles and diddles with doctors, hospitals and staffs in an endless confusing, mindless cascade of rules and regulations, some incomprehensible even to those who enforce them. Then, the media and so-called "public interest" groups unleash a torrent of abuse against "fat cat" doctors and administrators who are trying to cope with this entire morass. The persons Esme - cited are indeed heroes and a tribute to individual human strength and ingenuity. But most will burn out eventually as the irrational, impersonal demands increase. To quote an English proverb: "In a thousand pounds of law, there's not an ounce of love."

There is only one solution to this problem and it does not lie in more intrusive legislation. No, it centers in the restoration of the concept, "the customer is king," Today the "customer" is not the patient. It is instead the government or government controlled insurance company. They pay the bills and create rules enforced by government and thus become the kings. The patient becomes a pawn or serf instead of a customer.

If you don't believe me, visit a Cuban medical facility, owned and operated by government. That's where we are headed unless we change course. We already pay about double what we should for medical care, the quality of which is declining space along with increasing callousness and carelessness.

Let's return to a separation of medicine from state, a concept embodied in the U.S. Constitution and The Bill of Rights. Then you and I are once again sovereign customers and the human touch returns, controlled as if by an "invisible hand."

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