Mobile Solutions Depend On Low TCO, Flexibility

When it is time to tighten belts, there is always increased scrutiny on the cost of an IT installation. However, mobile computing vendors say that more companies are looking at the initial cost, the total cost, and how a mobile solution may improve efficiency within the walls of their businesses as well as in the field when they choose a field service or other mobility solution. When I talked with two vendors in the mobility space — Panasonic Computer Solutions Company, which specializes in rugged wireless computers, and Zebra Technologies, a software and hardware mobile products provider — they both identified plenty of sales opportunities for VARs willing to hone their value and total cost of ownership (TCO) propositions.

Growth in the mobile computing industry is evolving in a couple of directions. Sheila O’Neil, VP of channel sales for Panasonic, says the field service and route accounting markets have started to show an interest in the rugged ultramobile PC (UMPC) category. “Because those workers need a light, handheld device with full-shift battery life and the durability needed to work in any environment, rugged UMPCs offer the perfect mix of handheld mobility and laptop functionality,” explains O’Neil. She says the value propositions for the rugged UMPC include low failure rates, ease of deployment, and integration with legacy systems. Plus, because the devices run a full Windows OS versus Windows Mobile, CE, or DOS, there are more applications available and development of custom applications is much simpler. “Integration is another important part of the value proposition of rugged UMPCs,” she adds. “In the past, field workers would often carry some sort of mobile computer, a peripheral bar code scanner, maybe a camera, and other devices required to complete the job. These small, lightweight devices have cameras, GPS, bar code scanners, RFID [radio frequency identification], fingerprint readers, QWERTY keyboards, and other features.”

Marty Johnson, product marketing manager for Zebra, says he has seen two trends, the first of which is the movement of mobile technology from outside the four walls of an organization to inside the four walls of a facility. “We are seeing warehouses, distribution centers, and other facilities that use stationary computers and printers beginning to mobilize their operations in order to gain process efficiencies,” says Johnson. “Taking computing and printing technology to the point of use within a facility can have a dramatic impact on overall accuracy, productivity, and efficiency of an operation.” He says a VAR should consider the impact of such a solution as part of a sales strategy. Zebra also has noticed a demand for smart phones that can be used for field service tasks. “In addition to supporting hundreds of different applications, smart phones can be extremely rugged and capable of withstanding the rigors of harsh environments,” explains Johnson.

Value Remains Reliability, Efficiency
“For any mobile devices, the primary value proposition is always reliability,” notes O’Neil. “Without reliability, it is impossible to achieve an attractive ROI.” Plus, with studies showing significant productivity gains can be achieved when mobile workers are “connected,” more businesses are looking for a way to keep communication and data access open between workers in the field and those in the office. “Wireless technology has increased the overall effectiveness and productivity of field-based workers by allowing them to access information and applications while in the field,” says Johnson. “This allows organizations to enhance the customer experience and increase overall customer satisfaction.”

Even with those solid value propositions, VARs must evolve their sales pitches to accommodate the new economic reality. While initial costs have always been the major part of the IT decision process, CIOs are now looking more closely at the TCO and ROI. “In the past, it was common for a customer to consider only the initial purchase price, but now we are seeing increased receptivity to the ‘total cost’ message,” says O’Neil. One way to offset initial concerns about prices is to offer flexible financing options, such as 0% leasing, step payments, flexible payments, and deferral and leaseback programs. Johnson agrees that companies are looking at long-term costs even more closely. “They are aggressively looking for ways to cut costs, but they are also searching out ways to increase operational and customer efficiency,” he says. “In field service, you can create efficiencies that enable workers to make an additional stop or an additional service call per shift. That may be the difference between profit and loss for an organization, so the expense of a mobile solution can easily be justified.” Both agree a VAR must illustrate real ROI to customers. And, Johnson cautions that the ROI for a customer depends greatly on the organization’s size and the application, and it can vary widely based upon the mobile solution components and how much they impact efficiency. For example, if a customer is already using automation in its workflow, the ROI may be different for that customer than with a customer that needs to replace a pen-and-paper solution by automating its workflow from one end to the other. “The greater the technology leap, the greater the efficiency,” says Johnson. He adds that the same goes for TCO; a solutions provider must consider every aspect of the installation, including internal support costs, hardware service costs, printer media, etc.

Cost is not the only objection a VAR may face when working with mobile solutions in the field. Some customers may resist moving from a paper-based system to a mobile solution because of the organizational disruption. “This objection is quickly and easily overcome when the VAR can show the value realized by other organizations with similar challenges,” says Johnson. Another common objection revolves around the workforce. “Employees who have used one system for a long period of time may be reluctant to change because of the learning curve; however, presenting a detailed implementation and training plan can ease those concerns.”