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MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 1
Total Cost of Ownership
Consumer vs. Enterprise Device Decision
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 2
Getting Started
“A mobile field service solution ensures your
company is set to better serve your customers, but make no
mistake—to optimize you need to approach the transition smartly and with a plan”
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 3
Two Main Device Types -Consumer and Enterprise Grade Devices
Most TCO analysis places greatest emphasis on upfront system acquisition, deployment and training costs-in other words, hard costs. However….
VDC’s research reveals that the soft costs associated with mobile computing solutions – device failure and downtime, productivity loss and maintenance/support costs- represent the most significant contribution to overall TCO. VDC Research
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 4
Increased Dependency of Mobile Applications/Devices
The impact of a non-working device in the field means lost revenue opportunities.
Mobile device end users lost an average of 75 minutes of productivity each time the device failed.
With the average device failing as much as 20 times per year, that can translate into as much as $4,000 in lost revenues per employee per yearVDC Research
Nearly 50% of mobile computing operating costs are associated with worker productivity downtime when the device fails.
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 5
64%
24%18%
12% 10% 10% 8% 8%
Water/liquidexposure
Excessiveheat/cold
temperatureexposure
EMI exposure Droppingdevice
Dustparticulates
exposure
Excessivevibrationexposure
Excessivevibrationexposure
Intentionaldamage
Primary Causes of Device Failure
Water/liquid, excessive temperatures and EMI exposures were cited as the primary causes of device failure.
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 6
3.5 3.64.0 3.9
2.5 2.4
Overall Fully Rugged Rugged Durable ConsumerGrade
Smartphone
Typical Replacement Timeframe
While consumer grade initial cost is lower, the overall total cost of ownership is higher
Q: “On average, what is the typical timeframe that your organization replaces its mobile devices?”
(Yea
rs)
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 7
Source: 2009 VDC Research Group, Inc.Mobile and Wireless Practice
Annual & Five Year TCO (in USD)
• Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage:
• Small Form Factor: 34% savings
• Large Form Factor: 59% savings
• Productivity loss represents a significant portion of TCO – especially for non-rugged devices
• Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness.
• For the applications evaluated – typically mission critical applications involving frontline workers – rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors
TCO – Rugged vs. Commercial Grade
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 8
ABI Blackberry White Paper against Rugged released 2009
In 2009 ABI Research released a white paper “Mobilizing Field Forces on Smartphones Sponsored by RIM
Primary argument was:• Smartphones cost as much as 8x less than rugged devices,• Claimed this was primary driver for lower TCO• Are always connected vs rugged (old argument since we have all WWAN• Device management tools (weak and false argument - which Motorola uses MSP and
similar products)• Replaceable at local retail location• Water damage usually not covered any time
Failed To Consider• They fail to mention that full replacement cost on 2nd units and beyond• Failed to calculate for IT management time, imaging, redeploying, and full
replacement cost for device if damaged before contract expires• Difficulties of model changes changing apps and images adjusting for new screens,
buttons, OS upgrades
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 9
Blackberry Arguments• Always Connected• Low Initial Costs $5-600
subsidized costs• Low Replacement Costs• Retail replacement model,
spares• Form Factor, smaller, more
likely to carry all the time• Add on peripherals• Put in a case and it
ruggedizes the phone
Motorola Arguments Yes, all carriers, and LWAN,
PAN ES400 and MC55 address this Not so, usually pay full price
for replacements, water damage not
Advanced Services, exchange in air
ES400 addresses with size Source of failure, batteries,
charges to support Most damage is with water
damage and screen, BodyGlove type cases do not address
Blackberry Arguments Against Durable Devices
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 10
Select the right mobile devices
Environmental Conditions
• Know your environment and user culture before you choose a device
• Rugged vs Non-Rugged
• Integrated Bar Code Scanners
• Screen - durability and brightness
• Keyboard - Numeric, QWERTY, Soft keyboard
• Downtime and Maintenance
Prioritize real-time data vs. non-real-time data
• WWAN/WLAN - Wireless Wide Area/ Local Area Network
• Location Based Services, GPS
Mobile Payment Needed?
Support and Operations
• IT support – help desk
• Platform Life span Roadmap
• Hardware and accessories, RFID, Video,
• Software OS and APP and Device Mgmt
ScanningCredit Card Swipe
•Durable• Multiple Cell Carrier• Long Life Support
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 11
Converging “Consumer Style” with Enterprise-Class Performance: ES400
True enterprise-class device offers all the features mobile workers need to act right on the spot:
• Mobile computer for rich application access
• 3.5G world cell phone, User Programmable Carrier Choice
• High resolution 3.2 MP color camera to capture:
- Photos/videos
- 1D/2D bar codes
- Signatures
- Documents
• GPS for geo-stamping, navigation, geo-fencing and more
Turns ‘action item’ into ‘action taken’.
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 12
Additional Resources
•Motorola White Paper: Look Beyond Acquisition
•Motorola White Paper Survival Guide Implementing A Mobile Field Service Solution with Mobile Payment
•VDC Research 12-2009 update
•John Pomerleau’s compass site, Industry Updates Click here for addl info on Moto Field Service Stuff!
•http://compass.mot.com/go/237912063
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 13
“A mobile field service solution ensures your company is set to better serve your
customers, but make no mistake —to optimize you need to approach the transition smartly
and with a plan”
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. PAGE 14
Questions
?