When Automating Your Field Force, Consider the Total Cost of Ownership
More and more companies are automating their mobile workforce. hey want workers in the field to have access to corporate databases and applications such as customer relationship management (CRM) software, as well as the ability to update customer records wherever the work occurs. Gartner research indicates that “through 2005, more than 65 percent of the Fortune 2000 companies will adopt mobile applications.”
These companies realize that linking the mobile workforce with the enterprise and its data resources is key to enhancing productivity, accuracy, profitability and, ultimately, customer satisfaction.
This is true for any mobile business application, whether the workers provide field repair services, deliver products such as chips, soda or beer, dispense pest control chemicals or pickup and deliver packages. But for some, choosing the right devices can be a real challenge.
The most knowledgeable companies are carefully selecting their mobile computers for durability, compatibility and minimum impact on the information technology (IT) department. In fact, Gartner as recommended that “enterprises should consider industrial forms of handhelds whenever application conditions involve the potential mistreatment of units. Failure to follow this best practice will lead to failure rates in excess of 20 percent per year.” 2 These and other buying considerations such as required functionality, wired or wireless connectivity and system integration and management all need to be taken into account as part of the total cost of ownership (TCO). Selecting mobile hardware relatively early in the automation process so that company data needs, field user and environmental requirements, and IT support issues are all adequately considered can help minimize TCO. It can also help you realize return on investment (ROI) sooner rather than later.
Many organizations base their mobile workforce automationdecision solely on the expected ROI from taking their existing processes paperless but there are other benefits that can be achieved by enabling new processes. On-site invoicing and collections can reduce customer payment cycles by 30 to 45 days. Bar code scanning of inventory or parts eliminates the errors of manual data entry and can improve visibility to millions of dollars of unrecognized or unaccounted assets. Determining the True Cost of Ownership
Ruggedized industrial mobile computers sell for as little as $1,000. They can be configured to do specific types of data collection and communicate in either a wireless or batch (connecting to the server once a day via dock or modem) mode without changing out components. They can be ordered with built-in bar code scanners, wireless radios, interfaces to lightweight, wearable printers, magnetic stripe/smart card readers, or GPS that all work together. Their batteries can last for 8 to 20 hours, and can be hot swapped. If you drop this type of device, you can simply pick it up and get back to work.
Industrial devices that are Ethernet ready can eliminate the need to send data through a PC before it gets to the server. In fact, the PC can be taken out of the equation completely. That can result in major cost savings, depending on the number of mobile devices in the organization.
Industrial-strength devices are capable of running Windows CE or PocketPC for a high level of compatibility with many enterprise programs that are operating today, and they can perform multiple tasks at the same time. Industrial units often have a solid-state storage media that protects the data should the units lose power for any reason. Industrial units can easily be expected to remain on the job for 2.5 to 3 years, with many customers actually getting double or triple that, so the amortized hardware cost could easily be around $500 to $700 per year, per unit.
Basic consumer mobile devices usually sell for $300 to $700 right out of the box without peripherals. They operate on either Windows CE or Palm operating systems. These units are not rugged. If you drop one four feet to the concrete the odds are fairly high that you will lose both your data and your device.
Some consumer devices have expansion slots and some do not. Normally, the expansion slot can be used for one card or function at a time. For example, if you are using a wireless radio, you must remove it to use the GPS device. Each add-on is sold separately. A fully loaded, wireless enabled Compaq iPAQ™, for instance, might run close to $2,000. In the field, the units might last for a year if they are pampered and carefully looked after.
While industrial mobile computers may initially appear more expensive, they’re longer in-field life and lower IT and administrative costs can actually make them more cost effective. In addition, when you are building your business based on automated field workers, the downtime from damaged devices or loss of data can quickly have a bigger impact than the cost to replace the device.
The Rugged Case that Prevailed
When Mockler Beverage Company decided to automate its sales and delivery process, it didn’t realize how important a rugged mobile computing device would be. As the exclusive Anheuser- Busch distributor in Baton Rouge, La., and eight surrounding parishes, heavy cases and kegs made ruggedness a factor when choosing a mobile computer.
“The drivers’ working conditions are pretty tough and it benefits both the customer and us to know that they can concentrate on the task at hand instead of worrying about the abuse their mobile computer is taking,” said Mary Lewis, information systems manager at Mockler. “It all boils down to better customer service.”
Part of providing exceptional service is getting the order right, even when unexpected setbacks occur. That’s what happened to Mockler when one of their trucks backed over an Intermec mobile computer. “The salesman called me ahead of time to warn me,” said Lewis. “When I got the unit it was a mess – I never thought I’d be able to salvage the data.”
When Lewis saw the crushed unit she began thinking of ways to recreate the orders. First, she thought they could re-build the orders off of the receipts, which the driver printed on an Intermec portable printer. “We’d have to re-key the data and hope the discrepancies were minimal,” Lewis said.
Fortunately, none of that was necessary. “We began looking closer at the handheld and realized we could remove the data card,” Lewis said. “We took needle-nosed pliers, pulled it out and examined it. It seemed in good condition.”
In fact, it was. Lewis inserted the data card into a different handheld and began pulling up the day’s records. “I was amazed and relieved,” Lewis said. “It only took me five minutes to recover the data.”
Automating Mission Critical Business Processes
Many first-time mobile applications tend to focus on getting rid of paper by automating a business process. In short order however, the automated process often becomes mission critical to the company’s ongoing success and device or system performance can have a significant impact when there is no paper back-up. Initial mobile implementations usually are targeted for high priority business processes that are either important to decision-making or to the distribution of labor or other assets. Even if your company’s approach is to simply “try out mobile computing” you must plan for reliability and quality or face problems that could force you back to the old paper systems.
Choosing Wisely - Eight Steps For Going Mobile
Presented here are eight steps to help you gather facts you need to review your options for going mobile.
1. Start with clear goals.
Identify current processes and what you want to improve. You may want to start by choosing a business process that would greatly benefit by moving from manual to automated data collection anddata entry.
Begin by asking yourself:
• Which data collection processes, if done at least daily without reentering or re-keying data, would improve productivity, maximize resources or lead to much quicker decision-making?
2. Determine your data requirements.
Based on your business needs, answer the following questions:
• How often will data need to be transferred between the field and the corporate office?
• Is once a day (typically at the end of the day) enough?
• Will your mobile equipment need to operate in a disconnected environment? If so, the device must be capable of supporting an intelligent application, local processing and data storage (processor, RAM and storage media.)
• Is real-time access to information required? If so, you must investigate the availability and accessibility of wireless data networks and the costs associated with transmitting data between the field and the office or vice versa. Some industrial mobile units are not only rugged, but also offer a variety of options, including integrated wireless cards, Ethernet cards, or can be linked to a wireless data network via a cellular phone. Be careful to validate that the hard benefits outweigh the technology, inconvenience and costs.
Consider the cost of wireless and whether your enterprise can truly use the data in real time. Not only consider application designs that allow time-critical information such as messages, new jobs, and status to be sent in real time, but also allow queuing of other transaction data, such as parts used, inspection reports, or invoices to be sent at the end of the day using a less costly method such as dial-up, Ethernet or 802.11 at the service center. These decisions will impact your device selection, software requirements, and communication management functionality. Some companies such as Mockler Beverage have found that when data is “batched” or stored for transmission at the end of day, it becomes more important to store it on a solid state card rather than RAM to prevent data loss in the event something happens to the device itself.
• Do you need GPS (global positioning system) to track your workers and their locations?
Be realistic about your requirements. If your travel times are less than 45 minutes between locations, it may be more cost effective and useful to your enterprise to automatically send updates as the technician changes status (departs for a job, arrives, starts and finishes his work) without adding additional GPS hardware. With location-based services becoming available from wireless carriers and the time and date stamps provided by most professional-level software and hardware products, you can create a sufficient audit trail with less investment.