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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