Magazine Article | October 16, 2006

Sell Mobile Solutions To Multiple Verticals

This integrator is projecting $14 million in growth by providing customized, best-of-breed wireless solutions to aviation, oil and gas, and transportation customers.

Business Solutions, November 2006

You have to wonder how mobile computing integrators such as Paradigm System Solutions, Inc. (Paradigm), which was founded in 2006 following an acquisition of an existing VAR, do it. By “it,” I mean create 175% projected sales revenue growth — well beyond what a typical hardware reseller will experience this year — or any year for that matter. Darin White, the VP of sales at Paradigm, isn’t ready to give away all of his company’s secrets, but he was kind enough to give me some of the ingredients that make up Paradigm’s success. The first thing he wants you to know is selling hardware isn’t where it’s at, even though a quick look at the integrator’s Web site might lead you to believe otherwise. “VARs that sell only hardware are lucky to earn minimal profits on a sale,” he says. The real differentiator, White explains, is selling customized wireless mobile computing solutions to emerging vertical markets. Does that advice sound familiar? I understand it’s easier to talk about selling customized wireless mobile solutions than actually doing it, but Paradigm’s examples will help you take steps in the right direction.


Find Emerging Markets Ripe For Mobile Computing

Even if you have the most innovative and inexpensive wireless mobile computing solution around, your sales efforts will be in vain if you’re not getting in front of an audience that actually needs what you’re selling. Paradigm knows that every vertical market needs mobile computing solutions, but not all markets are at the same place on the adoption curve. For example, telecommunications and utility companies were early adopters of mobile computing solutions. On the other hand, Paradigm has found markets such as aviation, oil and gas, and transportation are just beginning to adopt wireless mobile computing solutions.

After researching the aforementioned markets, Paradigm discovered a common need for real-time access to data in the field. The challenge, however, was that customers need different kinds of wireless connectivity to achieve different goals. For example, aviation maintenance workers need wireless access to the Internet from mobile computers so they can access repair diagrams and complete work orders. Transportation companies need RFID (radio frequency identification) to achieve real-time inventory management. Oil and gas companies need vehicles equipped with Wi-Fi and broadband wireless backhauls that serve as mobile network hubs.


Always-On Connectivity In High Demand

Early in 2006, White met with a wireless communications vendor (Paradigm was not willing to release the vendor’s name) that manufactures an onboard wireless connectivity appliance. Paradigm immediately saw a fit for companies within the markets it was researching. Shortly after checking the vendor’s references, Paradigm formed a partnership to sell and install the wireless communications vendor’s products. “The flagship product features multiple wireless radios that provide Wi-Fi, RFID, GPS [global positioning system], and a broadband wireless antenna booster that enables connectivity up to 35 miles away from the nearest cell tower,” says White. “The appliance can be customized to offer one, two, or all of the aforementioned services, depending on the customer’s needs.” An install can cost customers anywhere from $500 to $2,500, depending on how many services the customer requires. Paradigm earns recurring revenue selling central command and control center software application subscriptions. The integrator boosts its revenue further by complementing the wireless connectivity with rugged mobile computing devices from Panasonic, vehicle mounts from LEDCO and Gamber Johnson, and mobile computing accessories such as Pentax PocketJet mobile printers (see sidebar on this page). The integrator also works with software developers to bundle route optimization, vehicle location/mapping, onboard vehicle diagnostics, dispatching, and workforce optimization applications with its proprietary wireless connectivity solution.


Put Yourself In Your Mobile Customer’s Position

The first two ingredients to Paradigm’s success were: 1. finding vertical markets that were ready to adopt mobile computing solutions, and 2. selling wireless mobile computing hardware, software, services and accessories. With enough research and persistence every VAR can do that, right? Well, how about the third ingredient: a free consultation services offering? Paradigm outdoes many of its competitors in this category by not just engaging with the buying decision makers, who are typically VP-level executives and IT directors, but putting its salespeople and technicians where the mobile computers are used. Often, this entails doing all-day ride-alongs with field workers to understand their job demands. This is where Paradigm gathers information that allows it to provide real value to its customers, says White. One example that illustrates this concept is a large Midwest transportation customer. The customer told Paradigm it was interested in a mobile dispatching solution with GPS and RFID functionality so it could track drivers’ locations, dispatch the closest driver for a pick-up, and automatically verify pickups and deliveries. Additionally, it wanted to be able to capture several metrics on its drivers and trucks, such as how fast drivers were going at any time, how often and how long workers took breaks, and how well the trucks’ engines were performing. Finally, the customer had concerns that the mobile computers would be lost or stolen. “After conducting the ride-along, we realized the customer’s needs were primarily on the administrative side of the business, which meant a full-blown mobile PC wasn’t necessary,” says White. “We recommended a Panasonic CF-08, which is a 10.4-inch, thin-client rugged display screen that can be mounted in a vehicle and costs a fraction of the price of a Toughbook notebook that has capabilities not needed for the application. Plus, there is no data that resides on the device, which eliminates any security concerns.”

In another situation, Paradigm engaged a company in the oil and gas industry that had previously purchased 50 rugged mobile computers for its field workers, but was still unsatisfied with the overall performance of the devices due to a lack of connectivity in remote areas. After conducting an all-day on-site visit with the customer’s field workers, Paradigm identified three key issues: 1. field workers needed access to schematics and pipeline drawings, but the information could not be stored on the mobile computers for security reasons; 2. wireless access to the schematics and drawings was sketchy at best and was especially poor inside the workers’ vehicles; and 3. workers had a hard time inputting data into the devices while in their vehicles. Paradigm was able to resolve its customer’s frustrations by installing a wireless appliance in the vehicles and using its proprietary wireless appliance’s cell antenna booster to create reliable wireless access. Also, Paradigm installed rugged LEDCO mounts in the vehicles to improve security and make it easier for workers to input data.

One of the challenges Paradigm faces is a wide range of comfort with using mobile computers within the top markets it sells to. For example, some companies are still stuck in the paper and clipboard era and are reluctant to change processes that have worked in the past. At the other end of the spectrum, several younger companies think everyone should be using notebooks and be connected to the Internet, and they don’t assess the costs, practicality, and security implications of doing so. White says the key to reaching customers comes back to Paradigm’s presales consulting strategy, which is to spend the day with the people using the technology and then talk about the time-saving and productivity improvement benefits of a wireless mobile computing solution. “Once we understand a customer’s needs and show it the benefits of mobile computing, the customer will typically come up with its own ROI model and sell itself,” says White.