Amateur Hour is Over-- Using GPS and Wireless to Manage Field Service Workers --
Jeanine Sterling, Senior Industry Analyst
Mobile and Wireless
September 17, 2008
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Focus Points
• Next-Gen MRM: Changing the Business Model
• MRM Evolution: Stage III
• Evolving Trends and Issues
• Market Consolidation Scenarios
• Stakeholder Challenges: Preparing for the Shake-Out
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Typical Field Scenario: Minimal Visibility
• Management team is working in the dark – no/low visibility into field employee activity
• Worker tethered by periodic cell phone calls or text messaging
• Self-reporting on location, breaks, etc.
4
MRM’s Changing Business Model
TRADITIONAL
• Truck tracking
• In-vehicle, hard-mounted devices
• Satellite tracking
• Dedicated servers
• Per-seat licensing
• High upfront investment
NEXT-GENERATION
• Focus on individual worker and task
• GPS-enabled mobile handhelds
• Web-based tracking systems
• Hosted, per-user per-month pricing
• Lower entry cost
Mobile Resource Management
Business solutions that use wireless and location technologies to maximize the productivity of mobile workforces – by more effectively locating, tracking, and managing mobile workers, mobile tasks, and
mobile assets
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Today’s MRM
• Worker track, locate, monitor
• Geo-fencing and exception alerts
• Mapping and navigation
• Messaging
• Workforce management (time cards)
• Scheduling, dispatch, and event confirmation
• Data collection (signature/image capture, barcode scanning, wireless forms)
• Back-office data integration
• Work order status
Next-Gen MRM Capabilities
Reduced operating costs
Increased productivity
Enhanced relationship with customers
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Evolution of North American Location-Aware Services (U.S.), 2002-2010+
Stage IPre-2006
E911 Priority
Long Term Technology Planning
Trial of Early Adopters
Entry of Competitors
Few Commercially Deployed Location-
based Services
Enterprise Applications (iDEN)
Stage II2006-08
Leverage E911 Investments
More Aggressive Marketing of
Commercial Services
Handsets Gain Critical Mass with A-GPS
Enterprise and Consumer
Applications (CDMA)
Stage III2008-10
Growing Traction
Increased Location Accuracy
Shakeout of Weakest Competitors
Competitive Advantage Drives
Enterprise Adoption
Enterprise and Consumer
Applications (GSM)
Stage IV2010+
Platforms Replace “Silo” Apps
End-to-End Offerings
Sophisticated, Integrated
Deployments
Mobile Advertising + Location
Location Interoperability
between Networks
LocationLocationLocationLocation----based Customer Adoption Over Timebased Customer Adoption Over Timebased Customer Adoption Over Timebased Customer Adoption Over Time
Source: Frost & Sullivan
MRM Evolution: Growing Traction
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Current MRM Ecosystem – Still at Early Adoption
Device Mfrs
WirelessCarriers
ISVsPlatform Vendors
Systems Integrators
MotorolaNokiaRIM
Sony Ericsson
AirClicDexterraSybaseSyclo
Vaultus
ActsoftAgilis Systems
CorrigoGearworks
ADPIntuit
OracleSalesforce.com
AccentureCapGemini
CSC
AT&TSprint
Verizon WirelessAlltel
Market Development
Market Maturity
Market Decline
MRM Adoption Lifecycle
MRM
MRM
TeleNavTrimbleVettroXora
Regional Systems
Integrators
ApplicationDevelopers
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Market Drivers (2008 - 2013)
• High, hard-dollar ROI
• More affordable hardware, software, network services
• Supports Wireless Carrier focus on long-term value creation
• Major ISVs see value in mobilizing their traditional business software
• A major avenue for carriers to recoup E911 investment
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Market Restraints (2008 – 2013)
• Limited customer awareness
• Wireless carriers’ ability to sell MRM is uneven
• Challenges with back-office integration
• Limited GSM device options
• High TCO – Hardware and integration expense can be prohibitive
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Steadily Expanding Sales
Location-based MRM Revenue and
Subscriber Forecasts (U.S.), 2006 - 2013
$-
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
$1,600.0
$1,800.0
Mil
lio
n
0
2
4
6
8
10
12
Business LBS Revenues Business LBS Subs
Business LBS Revenues $92.04 $154.06 $235.15 $378.00 $593.36 $921.00 $1,299.78 $1,696.32
Business LBS Subs 0.59 0.98 1.54 2.50 3.94 6.14 8.70 11.40
2006 2007 2008 2009 2010 2011 2012 2013
Source: Frost & Sullivan
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Application Trends
• More robust capabilities, as handsets become more powerful and user-friendly
• SaaS approach vs. per-seat licensing
• Must have: Integration and customization capability
• 24/7 support + SLAs
• Increased assistance with managing “data spigot”
• Intensifying focus on verticals
• Standardization of Packaging/Pricing
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Increasing Offer Standardization
GPS location trackingMappingGeo-fencingException alertsStandard reports
Timecard reportingText messaging Mileage trackingBasic dispatch/schedulingData captureWork order statusBasic back-office integrationWireless formsText navigationGPS location trackingMappingGeo-fencingException alertsStandard reports
Richer dispatchRicher integration optionsEvent confirmation/notificationAudible navigationTimecard reportingText messaging Mileage trackingBasic dispatch/schedulingData captureWork order statusBasic back-office integrationWireless formsText navigationGPS location trackingMappingGeo-fencingException alertsStandard reports
Entry-Level~$10/user/month
Mid-Tier Package~$15/user/month
Top-Tier Package~$20/user/month
Good-Better-Best Packaging
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Ongoing Issues
• Partnering up – Picking the winners
• Channels: Level of dependence on wireless carriers
• Refining location determination accuracy
• Brand loyalty – Is there any?
• Identifying enterprise decision-maker
• Vertical solutions/messaging
• Platform vs. point
• Enhancing end-user experience
• Choosing a target: Large Enterprise or SMB?
• Breaking out of the pack
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Future Industry Consolidation: A Possible Template
Market Leader
IntellisyncIntellisyncIntellisyncIntellisync
NOKIA
Acquired by:
Good TechnologyGood TechnologyGood TechnologyGood Technology Acquired by
Large Enterprise Play Hosted SMB-Carrier Play
Remains
Autonomous
Remains
Autonomous
Large Enterprise = 1,000+ EmployeesSMB = <1,000 Employees
(Medium, Small, SOHO)
Mobile Business Application: Mobile Office Email/PIM
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Future Industry Consolidation: The Navigation Angle
• The Navigation piece is critical to MRM success.
• A Possible Merger/Acquisition: MRM + Navigation Partner
Navigation
capability is
in-house
+ +
OROROROR
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MRM
.Building portfolio with unique value-add
.Improving internal sales capability
.Implementing optimal position determination technologiesWireless Carriers
Application Developers
.Breaking out of the pack
.Creating partnerships
.Resolving marketing/ positioning issues
.Promoting platform over point
.Prioritizing sales opportunities
.Reaching the enterprise purchase decision-maker
.Establishing Systems Integrator relationships
Platform/MW Vendors
ISVs
.Becoming familiar with carrier business model
.Making “create or partner” decision
.Teaming with best-in-class application/platform vendors
Systems Integrators
.Determining how to monetize MRM
.Structuring internally to address client needs
.Predicting application winners
Device Manufacturers
.Monitoring customer needs
.Improving MRM user experience
Going Forward: Key Stakeholder Challenges
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Stage III Takeaways
• Current handset-based MRM market is very under-penetrated and very fragmented.
• Market drivers include: An attractive hard-dollar ROI; Affordable entry level pricing; Improved ARPU and stickiness for carriers.
• Key challenges to widespread adoption include: Lack of customer awareness; Wireless carriers’ ability to sell more sophisticated applications; Limited GSM device options.
• Upcoming 18-24 months promise to be a period of continued transition as:
• Wireless carriers delve further into the MRM sector
• Application developers and middleware vendors fight to increase share
• ISVs and Systems Integrators – under pressure to jump in and partner up –determine how best to approach this newest mobilization opportunity
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