Concepts Presented to: TheWhereBusienss

San Jose, CA22-23 September 2009

Stephen Ulanoski+1.612.309.7514

Stephen.Ulanoski@gmail.com

Strategy and Innovation Business Transformation Through

Technology and DataMobile Data/Analytics

2 /09/18/09

Background:• Not a Scientist, Mathematician or Actuary

• Business / Marketing “guy” who thinks, applies and understands the future value of data….new models…

• Focus on the “business-side” of data, location and spatial relationship – the value

• Strategy Development

• The business value of variety of heterogeneous data sources multiple databases, ERP’s, data marts, etc…

• Usefulness of data sources relevant in the success of future business models and growth platforms CEO and CFO…revenue and net income

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RFID Tags – 30 Billion – 2012 IBM

Machine-to-Machine – 50 billion machines - 2013Future World Consultancy, RSA

Wireless In-HomeAssisted Living – 450% growth in next 6-10 yearsGE Healthcare

Telematics and MRM will grow at a 26% CAGR in next 5 yearsAberdeen Group 2009, GE Commercial Finance

Managing Business Data – Top 5 Issues for IT Organzations in next 3 years Sandhill.com

Mobile Handset and Smart Phones (GPS enabled) – 350 Million Globally 2010 CTIA

Why we are here…

4

Cultural ChallengesCIO or Analytics Driving Revenue Growth? • Do your business partners see you as revenue or cost?

• Are you driving strategy, product management and marketing...?

• Segmentation or management – is that it?

Increased need of differentiation... • Cost effective approaches to growth.

• Create significant data value in 90-120 days?

• Using technology, data and analytics to drive revenue.

• Impact: Ops, Product Management, Marketing, Sales?

Increased need for upgrades...• No “data as a business” domain knowledge

• Cloud computing, Relational Data (non), ERP, SAAS.

• Your own application software will need to be upgraded?

Competitive positioning -

New leaders post recession…?

“Tics” - Unaligned & Non-Strategic

Informatics - is the science of information, the practice of information processing, and the engineering of information systems.

Prognostics - is an engineering discipline focused on predicting the future condition of a component and/or system of components.

Analytics “simplest definition…the science of analysis,“ defined by mathematical modeling.

Repeatable ROI or Meet the Users Emotional Value Proposition

Or You Can “Delete The Data/Information to Save Space…”

6 /09/18/09

Disparate Data RepositoriesDemand

ManagementPlanning

Applications

LegacyApplications /Data Sources

CorporateDatabases

GlobalData

Warehouse

Collaboration

CustomerOrder

Fulfillment

ManufacturingExecution

Procurement

DemandManagement

PlanningApplications

LegacyApplications /Data Sources

CorporateDatabases

GlobalData

Warehouse

Collaboration

CustomerOrder

Fulfillment

ManufacturingExecution

Procurement

• Value Intersect?

• Does your business understand?

• Do your clients get it?

• Can you articulate the Value?

• So What…?

Does the business understand the gold

mine?

7 /09/18/09

Telematics/MRM EvolutionWhat was before: What is now:

A hardware device generating large volumes of data,few stakeholders

engaged, data use underutilized

A solution that turns data into business

intelligence to improve safety, compliance

and operational efficiencies

8 /09/18/09

What is happening?Why is it happening?

New Stakeholders…

Source: Competing on Analytics Harvard Business School Press

Stakeholders:Commercial

CMOCOOCFO

Product ManagersMarketing

SalesSourcing / Pricing

Customers

…engaging a broad set of stakeholdersC

om

pet

itiv

e A

dva

nta

ge

Degree of Intelligence

Competitiveness

Business Intellig

enceInsight

Optimizatio

n

What needs to change?Who needs to change?

Awareness

Strategy

Differentia

tion

Capabilities - M

arket

ROI - Differentiation?Revenue – New Markets?

Awareness Insight Optimization

Low (Data clean-up, report customization)

High(Business modeling, Predictive)

“Analytics” Continuum

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Methodology - Example

AnalyticsMGPP

Marketing

Product Management

ROI

Annual Sales

ROI – customer, business, creating new value and new revenue opptys

Expand product offering, appeal, enable adjacencies

VOC

Behavior

Segment

Market

Performance

Integrated

Real Time VOC, agile messaging and positioning

Behaviors, interrelationships, selling channels, tools, at risk customers

Filtered by SIC Code and Segment Coding - messaging

Actual Usage vs. market prediction

Product performance and actual use – accountability

Integrated product teams, IT, Prod Mgt, MKT, Ops

Cultural evolution to create demand, differentiation and product performance…analytics and data as a driver. Creating Organizational Understanding.

ITInformation

Db

Ability to manage and combine real-time data, BI and meta-data

DB, ERP, CRM, Performance, SOA – design and sizing…

10 /09/18/09

Challenges

IT

Strategy

Micro-blogging

Intellectual Property

Product Management

Marketing “Hard data” combined with “fluffy data”

SOA, Cloud, Terabytes/Data…design/focus

Create & Protect…social networking issue!

Rapid NPI, Multiple MGPPs, Analytics

Protect your strategy and IP…

Create new/parallel strategies for growth

Nim

ble

an

d A

gile

“Gro

wth

Orie

nte

d”

Bu

sin

ess

Org

anizatio

ns

Immediate Impacts – Groups

Predictive Modeling Integration into business processes

Cultural and Strategy Changes Lead by ?

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Conclusion:

• Cultural Change – understanding across the org (existing businesses)

• Not just product, a strategy – apps & processes meet customer

objectives and “ways of doing business…the way they live”

• Articulate Business Value – revenue , relationship (CRM) &

commoditization

• Demystify – translate value into “business speak”

• Not an NPI – has to be part of the “new” growth strategy…New Growth

Platform (NGP).

12 /09/18/09

New Businesses - New Business Models

Examples of Using Data and Analytics:

Strategy and Business Models

GEO Spatial Social Networking

EHR, MRM, Architecture as a Strategy

Wireless Home Assisted Living

Reference for Bridging the Communication Gap with your Business Teams:

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Case Studies

• Business Models – Different Way of Seeing the Same Market

• Location, Spatial Relationship, Real-Time Information – Changing Existing Businesses

• Creation of New Models…

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Dynamic Capacity ManagementConcept Premise

Fleets and Customers need:

Using optimization technologies, same

capacity is provisioned with

fewer vehicles/labor

Resources aligned to meet projected

demand

Customers lease capacity, not vehicles

•Establish baseline

•Customer agrees to operate using tools

•Lessor provisions to agreed capacity levels

•Capacity to increase deliveries and fulfill orders

•Freedom from managing the cost elements to create capacity

Today: Future:

Rem ove Prior To Presentation

15 /09/18/09

Case Study 1Delivery Fleet - 275 UnitsTotal Fleet 2200

Annual Fleet Spend (275 Vehicles) =$ 1,122,000Annual Labor Spend (275 Technicians) = $ 12,100,000

Annual Savings Opportunity Entire Fleet = $ 4,275, 712Annual Telematics Cost Entire Fleet = $ 297,00013.4 x Return on Investment = $ 3,978,172

32%

Annual Savings Opportunity(pilot fleet – 275)

Seek beyond the obvious or initial requirements – drive ROI impact and differentiation…

16 /09/18/09

LiveHelp Advisor

• Caregiver selects parameters for alerts and thresholds for activity or, in-activity (bedroom, kitchen, bathroom, living room/or entrance)

• Motion sensors detect activity in the home based on parameters (predictive models)

• Sensor data captured and transmitted wirelessly through panel

• Caregiver, Family can be alerted via e-mail, phone

• If emergency-related, then alert is immediately passed through to 911

• Real Time “real use” drug testing and monitoring. How the drugs are “really used”

Wireless Assisted Living72% product appeal for

“Wellness monitoring and alert dispatch for caregivers”*

• Prof. Caregiver

• Family member• Friend

Alerts

Location: • Assisted Living• Independent Living• Private Homes

Rem ove Prior To Presentation

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Appendix

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Additional Background – Stephen N. Ulanoski

Web Profile• Linkedin – http://www.linkedin.com/in/stephenulanoski

Business Awards – award winning solutions

• Technology as a Service Award (Tekne) – http://www.telematics.info/news/1041/GE-Fleet-Services-Receives-2008-Tekne-Award.html

Speeches/Industry Representation• 2009 MetaPlaces/TheWhereBusiness –

http://www.thewherebusiness.com/metaplaces/agenda.shtml

• Telematics Update 2009 – http://www.telematicsupdate.com/detroit/conference_commercial.shtml

• Logistics & Fleet Management Systems USA 2008 – http://www.telematicsupdate.com/lfms08usa/agenda.shtml

• NAFA 2008 – http://www.nafa.org/Content/NavigationMenu/IandE/Welcome/Attendee_Information/Detailed_Program/2009AP_Monday.pdf

Board Membership• Board Membership Minnesota High

Tech Association (MHTA) – http://www.mhta.org/board_staff.php http://www.fleetfinancials.com/News/Story/2009/01/GE-Fleet-Services-Names-Ulanoski-to-Minnesota-High-Tech-Association-Board-of-Directors.aspx

Patents• Patents (Mobile Service Delivery) –

http://www.faqs.org/patents/app/20090093236

(USPTO # 20090093236)

Press Releases• Telematics/MRM Canada Launch –

http://www.genewscenter.com/Content/Detail.asp?ReleaseID=5420&NewsAreaID=2&MenuSearchCategoryID=

• Logistics Presentations – http://www.automotive-fleet.com/Channel/GPS-Telematics/News/Story/2008/11/GE-Fleet-Services-Presents-at-Logistics-Fleet-Management-Systems-Conference.aspx?interstitial=1

• Telematics Awards – http://www.fleetfinancials.com/News/Story/2008/09/GE-Fleet-Services-Telematics-Solution-Selected-as-Tekne-Award-Finalist.aspx

19 /09/18/09

Traditional Fleet Costs

Avg. Costs related to Mobile Resources for Commercial Customers

Sources: Automotive Fleet 2007, Aberdeen Group 2007,

Potential Savings

Without TelematicsWith Telematics(Monitor/Optimize)

Fleet Savings

~5-10%~15-20%

Labor Savings

N/A~15-25%

Total Savings

1-2%10-17%

Data – Analytics Solutions Drive ROI Value

20 /09/18/09

Transformational Business Strategy Evolving a Commercial Finance Business

Rem ove Prior To Presentation

21 /09/18/09

Business Intelligence is the strategyDrive growth via real-time business intelligence/data management

Source: Competing on Analytics Harvard Business School Press

What is happening?

Why is it happening?

How do I improve it?

Increasing Competitiveness

Increasing Business Intelligence

Average Windshield Time by Customer - May 2008

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

502 552 586 588 589 646 502b 502c 552d 552e 588B 588CCust. 1 Cust.2 Cust 3 Cust. 4 Cust. 5 Cust.6 . …………………………………………………………………………………………………..Cust. N

Avg.

Win

dshi

eld

Tim

e (M

inut

es)

Average Windshield Time by Customer - May 2008

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

502 552 586 588 589 646 502b 502c 552d 552e 588B 588CCust. 1 Cust.2 Cust 3 Cust. 4 Cust. 5 Cust.6 . …………………………………………………………………………………………………..Cust. N

Average Windshield Time by Customer - May 2008

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

502 552 586 588 589 646 502b 502c 552d 552e 588B 588CCust. 1 Cust.2 Cust 3 Cust. 4 Cust. 5 Cust.6 . …………………………………………………………………………………………………..Cust. N

Avg.

Win

dshi

eld

Tim

e (M

inut

es)

Baseline(as run)

Re-sequenceexisting routes

Re-sequence Routes +Re-assign deliveries

to different drivers

Re-sequence Routes+ Re-assign deliveries+ Reduce One truck

11121212Trucks

21.521.927.036.5Drive Time

7407509901,300Miles

124124124124Jobs

11121212Trucks

21.521.927.036.5Drive Time

7407509901,300Miles

124124124124Jobs

Customer Strategy• Asset/Resource use…?• Productivity…?• Non-Vehicle Asset

costs…?

• Routing – non-linear• Dispatch – real-time• Efficient “windshield time”• Cost - per customer• Capacity Planning - asset

• Asset Allocation - people, vehicles, stuff…

• Fuel, Time & Productivity• Net Operating Costs

Visibility

Competitive Advantage

Knowledge

• Software /Data as a Service (SAAS) – Telematics

• Business Intelligence – Competitive Intelligence

• Partnership – integrated into their operations

• Understanding – insight into actual cost drivers

• Loyalty & Retention

Source: Competing on Analytics - Harvard Business School Press

Rem ove Prior To Presentation