Benefits of Field Service Automation

1

• Benefits of Field Service Automation
• September 15, 2005

2
Presentation Overview

• Introduction
• What is Field Service
• Why Automate?
• Weighing Costs vs. Benefits
• Which Solution is Best?
• Application
• Device
• Wireless Network
• Trends
• Field Service Case Studies
• Conclusion

3
Introduction

• Goal Present an objective view of benefits of
  Field Service Automation
• My Perspective
• Actively engaged in Field Service Automation
  marketplace last 4½ years selling Intermec
  solutions
• Interface with all sizes of end users and
  solution providers
• Intermecs main solution may be ruggedized WM2003
  device I compete with multiple form factors and
  Operating Systems
• To a degree, they all work!
• Intermec Technologies Corporation
• Manufacturer of Ruggedized Mobile Computing
  Hardware and Systems
• Based in Everett, WA Canadian HQ is Mississauga
• Founded 1966
• 850,000,000 Revenue (USD)
• NYSEUNA

4

• What is Field Service Automation?

5
What is Field Service Automation?

• Extension of the Enterprise to the Field
  Technician.
• Access to customer records during a service call
  means having the information they need to
  complete a jobwithout calling HQ and taxing
  resources.
• Each step of the service process can be tracked,
  reporting it back to HQ (often in real-time via a
  wireless connection) and even producing invoices
  and collecting for services rendered at the
  point of contact.
• Investing in IT for field service workers
  improves communications for more accurate
  dispatching and work order completion.
• Field service organization as profit centre.
  Customers will pay for services not previously
  offered, or for services that previously were
  not billed.

6
Field Service Areas of Automation

• Warehouse
• Truck Stock
• Customer Stock
• Third Party

Parts Logistics
Technician Communication
Front-EndCRM, Dispatch
Customer
ROI can touch all application areas in the
service chain!
ERP CRM Inventory

• Service Customer
• Work Orders
• Surveys/Inspections
• Trouble Shooting
• Parts Order/Return
• Invoice/Collections

Enterprise Integration
Warranty Return
Repair Depot
Vehicle Management
7
Service Chain
8
Field Service Market Segments
Services (Revenue-Driven)
Break/Fix Repair (Revenue-Driven)
Asset Maint. (Cost-Avoidance)

• Advanced schedule driven with some same day
  response
• No parts but may have consumables
• May have returns
• Little need for technical documentation or
  service history
• Driving Directions
• Invoicing/receipts

• P.M. and uptime
• Inventory asset control
• Fast response in emergency
• May be WLAN or WWAN
• Need for technical documents varies
• Utilities often require full screen for maps

• Same day response
• Dispatching (WWAN wireless comms)
• Parts logistics, RMA, inventory management
• Technical Documents
• Service History
• Entitlement (warranty/contract)
• Resolution notes
• Scheduling/Routing
• Driving Directions

Ex Property Manag. Facilities Maint. Utilities,
Telco, Cable Government inspectors
Ex Insurance Adjusters Lawn/Pest Control, Waste
Management, Recyclers
Ex Industrial/CPG Mfr, 3rd party Service
9
Mobile Field Automation
RFID Barcodes for asset tracking, service
history
GPS for driving directions, Vehicle Location (AVL)
Wide Area Communications
Software Application
Color PocketPC/Blackberry/Handset for
multi-function computing, schematics, scanner for
truck inventory, voice data WWAN Bluetooth
TabletXP/laptop for full screen applications
Portable receipt printing / card swipe for mobile
POS
Applications for Work Order Management, Wireless
Credit Card Payments, Speech-to-Text
10

• Why Automate?

11
Current Process?
Slide Courtesy Of Field Centrix
Time from start to finish 2 days to 2 weeks
CSR takes call, types in information
Call Slip Printed
Dispatcher picks up Call Slip
Tech availability manually updated
Tech calls in to say is if he/she is available
Dispatcher pre-assigns tech and puts on big map /
Board
Dispatcher pages tech or calls on cell phones
Tech goes to site
Tech calls in for PO if parts are needed
Tech performs service
Tech handwrites service ticket
Dispatcher calls customer
Tech calls in to provide status, compete ticket
Call slip closed ready to print invoice
Paperwork re-typed into billing system
Tech drops paperwork off at office or may fax by
week end
Dispatcher types info into current dispatch
software
1 2 days
2 - 10 days
12
Proposed Process
Time from start to finish near real-time
CSR takes call types in information
Tech receives work order wirelessly on mobile
device
Call slip closed. Sent wirelessly to the office
ready to invoice
Tech performs service
Tech goes to site
Tech prints professional service ticket or
generates email ticket request
13
Field Service Same Tech, Tougher Job
Business Problems
Productivity Demands

• Industry moving from product focus to customer
  focus
• Growing consumer power
• Regulatory requirements
• Service moving from cost center to profit center
• Parts logistics are a growing concern
• New technician workforce

• More calls per day
• Responsible to manage vehicle parts inventory
• Must reduce drive time and vehicle expense
• Include A/R collections in daily routine
• Drive consistent procedures/processes across all
  technicians
• Complexity of equipment being serviced has
  increased dramatically
• Product life cycle much shorter continuous flow
  of new products

?
?
?
?
?
Critical Service Functions

• Scheduling
• Dispatch
• Call Management
• Help Desk
• Parts Logistics
• Mapping/GIS
• Tech Assistance Center
• Asset Management

• High technician turnover
• Unable to maintain or recruit
• new customers
• Costs too high margins eroding

14
Why Automate? Key (Hard) Value Analysis Points

• Reduce data entry by (80)
• Increase calls per day (20)
• Decrease parts stock (30)
• Increase billing accuracy (15)
• Decrease cash collection cycle (15-90)
• Decrease staff required to maintain work level
  (or increase work with out adding staff)
  savings on training, benefits, trucks, etc.
• Improve SLM (Service Lifecycle Management)
  compliance, avoid penalty

15
Why Automate? Key (Hard) Value Analysis Points
(contd)

• Consolidate call centers
• Increase first time fix ratio better parts
  management, dispatch correct technician, more
  information available to technician
• Wireless data reduces cell phone/pager usage
• Reduce paper filing (labor, storage)
• Reduce scanning/microfiche for archival
• Improve asset tracking (keep the books accurate!)

16
Why Automate? Key (Soft) Value Analysis

• Increase consistency across organization
• Improve customer satisfaction
• Increase professionalism
• Increase competitive service level
• Enable technicians to cross/up-sell
• Gather competitive intelligence or market data
• Extension of ERP/CRM improves back-office ROI on
  that system
• Decrease legal liability for non-compliance
• Signatures decrease contested bills

17
Why Automate?Service Is Critical to
Manufacturers!

• Service contributes 45 of profits from only 26
  of sales

Source AMR Research, 2003
18

• Which Solution is Best?

19
FSA Can be Complex
WirelessTechEnabler
Wireless NetworkProvider
Systems Integrator
Apps S/W Provider
Backend Systems
End User
O/S Supplier
Device Mfg
20
Field Service Market Trends to Consider

• Machine-2-Machine (M2M) automation increasing
• System health warnings
• Remote diagnostics
• On-site diagnostics and programming
• Parts logistics and inventory management
• Huge waste in supply chain
• Parts availability is significant cause of repeat
  calls
• TRUCK inventory is greatest area need for
  visibility
• Tighter Service Level Agreements (SLAs)
• Increase value of wireless
• Increase value of paperless work orders
• Increase importance of parts management

21
Field Service Market Trends to Consider

• Changes in Service Practices (capital goods)
• Increasing use of computerized technology in
  equipment
• Manufacturers are designing for field
  replaceable units (FRU)
• Greater demand for equipment diagnostics (M2M)
• Changes in Worker Skill Sets
• FRU design reduce skill set of field worker
• Tech services more types of equipment need more
  documentation
• Gap as new workers replace older workforce
• New technology obsoletes troubleshooting skills
• Greater demand for decision tree support tools
• Creates new need for mobile technology with
  intelligent applications able to interact with
  the machines

22
Intermec FS2003 Survey

• Highlights
• 79 attendees
• 49 companies
• 41 Director/VP level
• 17 of the Intermec Field Service Top 100
• 100 rated event good or better
• 50 completed survey
• Over 30,000 units identified

23
FS2003 Survey Results Ideal Device

• Industrial Design
• Preferred Form Factor
• 12 of 35 (34) gave multiple answers
• Laptop 34
• PocketPC 69
• TabletPC 31
• Phone 11
• Conclusions
• Expect customers to request multiple form factors
  based on workers role

24
FS2003 Survey Results

• Industrial Design
• High rated features (scale 1-5, scored 4)
• User ergonomics (85)
• Microsoft OS (89)
• Integrated WWAN, voice and data (70)
• Full line of accessories (68)
• Environmental/rugged specs (72-85)
• Repairable (vs. replacement) (74)
• Conclusions
• Multi-function Integration and extensibility are
  key
• Response reflects value on environmental/rugged
  specs buyer behavior does not necessarily support
  this
• Preference for repairable

25
FS2003 Survey Results - TCO

• Total Cost of Ownership
• 69 consider TCO in initial purchase decision
  (28 somewhat)
• 58 calculate cost of downtime in TCO analysis
  (17 too difficult, 17 no)
• Conclusions
• Tier 1 accounts often have Six Sigma practices
  where TCO is considered (less common in smaller
  businesses)
• TCO analysis should favor verticalized over
  consumer devices
• Encourage TCO analysis - Be proactive in
  identifying potential downtime costs, use
  industry references

26
Measuring Total Cost of Ownership

• Initial acquisition cost 25
• On-going airtime service
• Warranty and repair
• Product replacement rate
• Application development
• Downtime has productivity impact on IT and field
  worker
• Downtime results in missed commitments/opportuniti
  es
• Remote device management
• Comprehensive SDK
• Training
• Help desk support

Total Cost of OwnershipCost over life of project
Costs
1
2
3
4
5
Purchasedate
Months
27
FS2003 Survey Results

• Battery Management
• Power/Fuel Cells
• 87 felt 8-12 hours was required operational time
  for battery life
• 76 would not trade a device size for battery
  life
• Conclusions
• Battery life is a key differentiator in device
  selection process
• Consider head to head tests with more than one
  device
• Batteries are the limiting factor in mobile
  computing design

28
DevicesConsumer vs. Ruggedized

• Gartner predicts TCO for mobile deployments to
  rise by at least 30 due to device diversity
• Average consumer device production life is 11
  months.
• Devices from carriers are often exclusive and
  cannot be used on multiple networks.
• Verticalized devices average production life is
  3-5 years with 5 years of service after last
  date sold.
• Verticalized devices are certified on all the
  major wireless carrier networks globally,
  providing a single device solution for the life
  of your project.

Intermec TCO white paper available
29
Do You Need Wireless?...Not Necessarily!
2002 2007
Source VDC Research
30
Field Service Customer References
31
Aecon Civil and Utilities

• Canada's largest publicly traded construction and
  infrastructure development company
• The Utilities group builds the most advanced
  utility distribution systems in the industry
  (i.e. natural gas, telecom, electricity)
• Deployed Field based labour tracking solution
• Empowers field personnel to access data from
  field operations
• Eliminates duplicate data entry
• Reduces human error
• Uploaded to Host system dailyused to take
  several days
• Data automatically forwarded to largest customer
  back office 50,000 work orders are received
  automatically online
• Deployed to 175 crews data transferred via
  Ethernet connection

32
Toronto Star

• Torontos 1 Daily Newspaper
• Have automated 150 trucks in GTA to track single
  copy sales (newsstand circulation) of daily
  newspapers
• Using Rogers Wireless GSM/GPRS
• The Star now has complete visibility to their
  single-copy sales on a daily basis, giving them a
  steady stream of data from which to maximize
  single-copy sales.
• Prior to automation, up to 2 weeks would pass
  before trends were recognized. TorStar had no
  gauge to measure individual box performance.
• Now Know in real time how each box is
  performing will adjust distribution accordingly
• Other Benefits
• Improved delivery and return timelines
• Up to date billing
• Reduce hard copy processing
• Sam day returns reporting

Compared to what I had, its like day and night.
The newspaper business is a unique business of
any product out there for sale our shelf life is
probably the shortest. So its very critical that
we make timely decisions to maximize sales. Bob
Boudreau, single-copy operations manager for The
Toronto Star
33
Safety Kleen

• North Americas leading industrial waste
  management parts cleaner and oil
  recycling/refining company
• Automated 200 trucks in Canada
• Part of business transformation to SAP ERP system
• Safety Kleen is growing its business with
  existing workforce because
• Reduced cash cycle improved invoice accuracy.
• More stops per day through route optimization and
  using computers for collecting and processing
  service data and receipts
• Back Office Efficiencies due to no more end of
  day reconciliation and extra data processing

The system will help revolutionize our business.
Our people will have accurate information on all
aspects of our product lines in real time while
they are meeting with the customer. Our
employees and customers will have the simple and
accurate information they need to make timely
business decisions.
34
Thank you!

• Sean McGuire
• Solution Sales - Field Service
• Intermec Technologies Canada Ltd.
• 905-673-9333 x-113
• Sean.mcguire_at_intermec.com