Innovation and solutions for the Enterprise on the Move
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1 Fernando García-Yáñez Alba Mobile Trender 2011 October 2011 Innovation and solutions for the Enterprise on the Move Motorola Solutions Global Carriers Business Unit PAGE 1
2 ECONOMIC INDICATORS PAINT A MIXED PICTURE 2011 GDP Growth ($) High (4+%) Moderate (2-3.9%) Slow (0-1.9%) Recession (0%-) 2011 GDP GROWTH UK/Ire : +1.1% 2011, long term +1.7% South Europe: +0.8%, long term +1.4% Central Eur: +2.3%, long term + 2.2% East Europe: 3.4%, long term +3.6% MEA: 4.4%, long term +4.9% 2011 IT SPRND GROWTH UK/Ire : +2.8% 2011, long term +3.1% South Europe: +2%, long term +2.3% Central Europe: +2 %, long term + 2% East Europe: +5%, long term +7% MEA: +8%, long term +6.5% Source: EIU (Economist Intelligence Unit), Gartner PAGE 2
3 Long Mid Short EMEA: TECHNOLOGY TRENDS NEW TRENDS IMPLICATIONS Consumerization /Mass market 1. Smartphone / Tablets 2. Low Tier 3. Payment growth rugged opportinity Low end as entry point Payment solutions Cost/complexity reduction 1. Cloud computing 2. Virtualization Service opportunitiy Application portability Mobility/Networking 1. Web Portability Mobile phone reading apps Importance of application partners PAGE 3
4 And Mobile workforce growth strong Source: MOT Market_Outlook_Report_-_February_2011_-_Mobile_Workforce Mobile Device are notebooks, tablets, vehicle mounted devices, smartphones, handheld/pda devices and wearable devices used by mobile workers. Large Form Factor covers notebooks, tablets and vehicle mounted devices. Small Form Factor covers smartphones, handheld/pda devices and wearable devices 4 PAGE 4
5 Enterprise market growth is strong due to new product categories, technology migration, increased penetration Market 2011 growth forecast EMEA yearly growth EMEA Mobile Computers +10% +14% RFID +20% +33% Scanners +10% +11% E-WLAN +23% +17 Mobile Computers & RFID New categories: Enterprise rugged Smartphone, PSS, tablet Migration/ increased penetration (postal tendering, field mobility ) Increased penetration: Item level RFID for Retail Scanners New categories: Mobile phone reading apps, bi-optics Migration: Laser to imaging WLAN New categories: VoWLAN, video Technology migration: n migration Increased penetration: Smartphone, tablets drive demand PAGE 5
6 CAGR A DEEPER OVERVIEW INTO SEGMENTS: IT HW SPEND OUTLOOK 6% Banking and Securities 4% Com., Media and Services 2% 0% IT Services* Spend $ 249B in 2011 Transportation Wholesale Trade Retail Manufacturing and Natural Res. Healthcare Providers Governments Utilities Education Insurance 2011 IT Spend: $17B $7B $5B *IT services include product support (software support and hardware maintenance and support) and professional services (consulting, development and integration; IT management; and process management Source: Gartner, April 2011 PAGE 6
7 CONCLUSION Enterprise markets are very strong at the moment Regions & segments vary, but positive trend overall New categories together with technology migration & replacement phase supporting growth Core businesses supports healthy growth New product categories bring high growth potential Balance of regions & segments required to benefit from trends PAGE 7
8 PAGE 8
9 WORLD WIDE CUSTOMER BASE PAGE 9
10 WORLD CLASS PARTNERS Alliances Distributors Business Partners System Integrators ISVs / VARs PAGE 10
11 THERE S NO PLACE IN WORKPLACE 3 KEY TRENDS CHANGING THE DYNAMICS OF ENTERPRISE OPERATIONS RISE OF THE MOBILE WORKER ADVANCEMENTS IN TRACKING WELCOME TO PERPETUAL INVENTORY EVOLVING CUSTOMER BEHAVIORS INTRODUCING THE SMARTER CUSTOMER PAGE 11
12 THERES NO PLACE IN WORKPLACE RISE OF THE MOBILE WORKER Employees expect instant information and communications Front line workers increasingly used to up-sell services and collect user data Lower staffing levels requires flexible, mobilized employees MOBILE WORKER POPULATION WILL GROW FROM 920M TO 1.19 BILLION BY 2013 ENTERING THE ERA OF THE MOBILE WORKER 36% OF WORKING POPULATION WILL BE MOBILE WORKERS BY 2013 Source: IDC June 2010 PAGE 12
13 FROM THE DATA CREATION AND COLLECTION POINTS OVER SECURE TRANSPORT AND DELIVERY NETWORKS PLANNED INTERACTIONS, AUTOMATED INTELLIGENCE TO ADVANCED COLLABORATING DEVICES WITH RICH INTERACTIONS ACROSS THE PLATFORM TO DELIVER UNPRECEDENTED ENTERPRISE CAPABILITIES PAGE 13
14 KEY TRENDS ABOUT MOBILITY Key funtions: customer, service and asset management, reverse logistics management, mobile workforce management, fleet management and telematics One in four organizations have either deployed field sales solutions or are evaluating Accessing customer records and supporting field based transactions remain the primary applications Companies start to invest in mobilizing other resources: eg. collaboration suites and corporate portals On average, organizations are reporting an increase of 20-25% in sales revenues through the investment in mobile field sales solutions. PAGE 14
15 COMMON FM REQUIREMENTS FOR BEST IN CLASS COMPANIES Close Out Service Tickets Access Customer Information Barcode Scanning of Parts and Equipment Access serviceable equipment Information Capture Proof of Service 63% 54% 46% 43% 43% Source: Aberdeen PAGE 15
16 TRANSFORMATIONAL APPLICATIONS Mobile Payment Voice-driven applications Voice directed Recording Voice Notes Annotating Pictures Mobile Payment Pictures GEOCODE U-Box PAGE 16
17 MOBILE PAYMENT GETS POPULAR E.g. Google wallet... (prelaunch) Integrate all your credit and debit cards as well as loyalty cards on your phone NFC contactless payment Pay as you go all bills up to 25 Pay pass Started in UK, Germany and other major markets PAGE 17
18 MOBILE PAYMENT ROI Improved Cash Flow Dramatically shorter billing cycle with on-site credit/debit processing Fewer invoicing tag games with field techs trying to get corrected service tickets Ability to process more invoices/payments with same staff Field technicians spend more time with customers Increased Sales KPI No copying down the credit card # and getting back to the office and finding you have the wrong number, no exp date, no PIN, or rejected card Increased accuracy of invoicing/billing and payment. Secure credit card data transfer Keeps customer information safe Reduced office staff support requirements PAGE 18
19 TELEMATICS AND VEHICLE TRACKING Telematics will grow as the biggest onboard technology trend Automotive Fleet Traditionally proprietary point solution Bundled hardware and software Black box between engine databus and display Limited intelligence, little scope for driver interface or applications Data often stored in data houses or proprietary servers Little or no scope to manage deployed devices Market trends Interest in open platforms leverage application investment Direct store delivery, proof of delivery, field service Scope for expansion, customisation and enterprise integration Need for remote device management and configuration PAGE 19
20 DOCUMENT CAPTURE Imager Based Document Capture Highly visible Laser Aiming Pattern Intuitive and rapid aiming of the document Low-resolution Grey-scale Image Camera Based Document Capture 2 or 3 Mpxl Autofocus color camera Flash illumination Display Aimer with reticule High resolution Color Image Motorola Document Capture Image capture Image improvement De-skewing, Sharpening, Both Imager and Camera based solution have been deployed to more than 10,000 Mobile terminals in POD applications! Bar-code decoding TRK# Reference # Image compression Doc Scan PAGE 20
21 DOCUMENT CAPTURE TYPES Pure document Capture «type from image» applications Archiving application Machine readable information OCR Barcode OMR Check boxes Segmentation/ Zone of Interest Signature Rubber stamp PAGE 21
22 THINK ABOUT: Pest control (Restaurants, meat production, farmers,...) Finance (Loan checking, ) Insurances (picture annotation, inspections,...) Veterinary Inspections Hospitality (Room cleaning, asset management,...) Asset Management Service Inspectors (Human service,...) Housing Companies Telematics (Trucks, Road assistance,...) Sensors (Security, chemical, hazardous,...)... PAGE 22
23 Return On Investment for Field Service Operational Improvements Average Change Since Mobile Deployment Financial Improvements Average Change Since Mobile Deployment Mean Time to Repair -21% Overtime Costs -13% First-time Fix 20% Inventory Carrying Costs -19% Workforce Productivity 22% Call Center Support Costs -17% Ticket Close out Times -24% Total Service Costs -16% Service Profitability 17% PAGE 23
24 Total Cost of Ownership for Mobile Computers 70% of the costs of owning a mobility solution come after the initial purchase Non rugged devices field failure rates are higher than on rugged devices Leading Sources of failure: Display / Keyboard / Radio / Accessories Leading Causes of failure: Dropping device / Water/liquid exposure / SW Excessive Temperature exposure / Dust Exposure Productivity loss represents as much as 41% of a mobile device s TCO. Soft Costs outweigh Hard costs for Mobile computing investments Source: TCO Models - Enterprise and Government Mobility Applications VDC Research, December 2009 PAGE 24
25 TCO Rugged vs. Commercial Grade Annual & Five Year TCO (in USD) Annual and five year TCO of mobile devices varies considerably by form factor and level of ruggedness. For the applications under evaluation typically mission critical applications involving frontline workers rugged solutions had a more favorable TCO in comparison to commercial grade solutions with similar form factors Ruggedized mobile computer TCO was more favorable than commercial grade TCO by a considerable percentage: Small Form Factor: 34% premium Large Form Factor: 59% premium Source: 2009 VDC Research Group, Inc. Mobile and Wireless Practice PAGE 25
26 TCO Cost Breakdown Productivity loss represents a significant proportion of TCO especially for non-rugged devices Lost productivity as a result of mobile device failure was a leading contributor to TCO. On average mobile workers lost minutes of productivity when their mobile device failed. Five Year TCO by Form Factor and Key Contributor Productivity Loss as a Percent of TCO Source: 2009 VDC Research Group, Inc, Mobile and Wireless Practice PAGE 26
27 THANKS PAGE 27
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