managed services: rfid's newest business model?

Managed Services: RFID’ N B i M d l?RFID’s Newest Business Model?

Webcast Presentation – September 23, 2009

What Are Managed Services?

"The practice of transferring day-to-day related management ibilit t t i th d f i d ff ti d ffi i tresponsibility as a strategic method for improved, effective and efficient

operations. The person or organization who owns or has direct oversight of the organization or system being managed is referred to as the offerer, client or customer. The person or organization that accepts and

id th d i i d d th i idprovides the managed service is regarded as the service provider. Typically, the offerer remains accountable for the functionality and performance of managed service and does not relinquish the overall management responsibility of the organization or system."

-Wikipedia

1 – VDC Research Group, Inc.

What Are Managed Services For RFID?

SaaSSaaS• Device/ equipment management• Line-of-business applications• Database/ data management

OutsourcingLeasing/ OutsourcingServices

Leasing/Financing

Hybrid Deployments• Software


• Bundled hardware • Transponders

Managed Services as an Managed Services as an Information Delivery ModelAsif Ghias DirectorAsif Ghias, DirectorSolutions and InnovationSavi Group, a Lockheed Martin Company

VDC Research Webinar

Sept. 23, 2009

More Than Just Visibility. SaviMore Than Just Visibility. Savi

Savi OverviewMarket Leadership

• Complete AIDC supply chain information solutions and intelligence services

– Global Visibility, Security, Management and OptimizationOptimization

– Asset, Shipment, Inventory and Distribution– Largest RFID Network (35,000 conveyances daily,

+4,000 locations)– Collaborative Network for NATO and Allies– HPH Joint Venture Intermodal Intelligence Service – HPH Joint Venture Intermodal Intelligence Service

with GPS/GPRS Coverage in +180 countries– Backed by Global Technology/Security Leader –

Lockheed Martin

• Prime contractor for USTRANSCOM/DLA Info Platform (IGC)

– Converge and futurize supply and distribution info systems

– Systems Integration, IT Architecture and Process Improvement

Copyright © 2008 Savi Technology4

Savi VisionAutomated, Actionable Knowledge

“Internet of Things” to Connect People with Objects“Internet of Things” to Connect People with ObjectsEverything Will be Wirelessly Tracked in 10 YearsEverything Will be Wirelessly Tracked in 10 YearsConvergence of Wireless Data TechnologiesConvergence of Wireless Data TechnologiesCollaborative Networks of Sensors, Bar Codes, Collaborative Networks of Sensors, Bar Codes, Passive/Active RFID, GPS, Passive/Active RFID, GPS, SatComSatCom, Cellular, Cellular

Single Version of the TruthSingle Version of the TruthIntegrated Complete Solutions, Services and AppsIntegrated Complete Solutions, Services and AppsInformation Automation to Enhance the EnvironmentInformation Automation to Enhance the Environment

Dynamic Execution Management and OptimizationDynamic Execution Management and Optimization

Smarter Supply Chains, Energy, Healthcare, Industrial, Smarter Supply Chains, Energy, Healthcare, Industrial, Construction and Home UsesConstruction and Home Uses

Dynamic Execution, Management and OptimizationDynamic Execution, Management and OptimizationRealReal‐‐Time Data Turns into Knowledge into ActionTime Data Turns into Knowledge into ActionOptimized Optimized Process Visibility, Control and EfficiencyProcess Visibility, Control and EfficiencyEnhanced environment and quality of lifeEnhanced environment and quality of life


Value Delivery Models

OUTCOMESPerformance Based Logistics

Service Level Agreements

OUTCOMESPerformance Based Logistics

Service Level Agreements

MANAGED SERVICESTransaction Pricing

Subscription Services

MANAGED SERVICESTransaction Pricing

Subscription ServicesSubscription ServicesSubscription Services

SOLUTIONSTurnkey Solutions, Customer Owned

SOLUTIONSTurnkey Solutions, Customer Owned

PRODUCTSCertified Asset Tracking Hardware, Supply

PRODUCTSCertified Asset Tracking Hardware, Supply

y ,y ,

Chain Management ApplicationsChain Management Applications

T D t I t K l d A d K l d I t A tiT D t I t K l d A d K l d I t A ti


Turn Data Into Knowledge, And Knowledge Into ActionTurn Data Into Knowledge, And Knowledge Into Action

The Business Case for Managed Services

Problems with Large Legacy Enterprise Systems•CapEx investment

Ri k h ld d b th t•Risk shouldered by the customer•Costly infrastructure, integration, and support fees•ROI has plateau-ed•Huge stovepiped, IT Investments – diminishing returns•Time-consuming implementations outdated and inaccurate •Time consuming implementations, outdated and inaccurate

information

Advantages of Managed Services•OpEx investment

Ri k d i f f d i id•Risk and infrastructure transferred to service provider• Variety of service cost models e.g. pay-by-the-drink, subscription or

hybrid•Support and upgrades generally included in the service cost with no

“surprise” feesp•Maintenance performed remotely with no in-house disruptions•Easy, web-based access with no extra client software•SOA architecture enriches and tailors service with best-of-breed

solutions with right information at the right timeRFID and other AIDC enablers bring “ground truth” accurate real


•RFID and other AIDC enablers bring “ground truth” -- accurate, real-time information

Sampling of Savi Group Customers…

U.S. Public Sector International Commercial

Denmark

+ 30 Major U.S.

DefenseSuppliers

Australia

Sweden

Spain

United Kingdom

Poland


Canada

GlobeRanger OverviewGlobeRanger Overview

GlobeRanger – A SnapshotGlobeRanger – A Snapshot

• Vision - Automated data collection technologies (bar codes RFIDVision Automated data collection technologies (bar codes, RFID, sensors, location technologies) have created a new frontier for information technology – the Enterprise Edge. There is economic and competitive advantage to be gained from harnessing the Edge.p g g g g

• Founded in 1999; privately held

• Leading iMotion software platform and solutions in the RFID industry

• Primarily focused on Government & Aerospace

• De facto passive RFID standard for U.S. Dept. of Defense

• Foundation of some of the largest RFID deployments around the world

• Single-source capability and top tier partnerships

GlobeRanger Confidential10

Solution FocusAutomating Supply Chain LogisticsSolution FocusAutomating Supply Chain Logisticsg pp y gg pp y g

The U.S. alone spent $1.3 trillion on SC logistics in 2008 CSCMP’s 20th Annual State of Logistics Report

Transportation

Manufacturing StockCarrier/3PL DistributionStock Carrier/3PLSupplier g

Inbound OutboundEnterprise

Shipping/Receiving

StockSupplier

Shipping/Receiving Yard ManagementWIP Tracking/JIT Mfg. Inventory Management Tool Tracking

These operations can be made faster,more accurate, and more efficient withRFID technology

GlobeRanger Confidential

Tool TrackingWarehouse Operations Asset Tracking

11

RFID technology.

GlobeRanger Provides a Unified FoundationGlobeRanger Provides a Unified Foundation

HQLogistics Operations

Corporate

Manufacturing

Finance

ERPWMS

OMS

HQBranch

Branch

Logistics Operations Manufacturing

CustomGR LIVE GR MAKEGR AWARE

BusinessRules

Visibility

Solution Accelerator 1 Solution Accelerator 2 Solution Accelerator 3

C t C t C t C t C t

Custom SolutionsGR-LIVE

LogisticsGR-MAKE

ManufacturingGR-AWARE

Asset Tracking

iMotion

Components Components Components Components Components

12Vendor X Vendor Y GPS Passive Active

GlobeRanger – A SnapshotGlobeRanger – A Snapshot

• Vision - Automated data collection technologies (bar codes RFIDVision Automated data collection technologies (bar codes, RFID, sensors, location technologies) have created a new frontier for information technology – the Enterprise Edge. There is economic and competitive advantage to be gained from harnessing the Edge.p g g g g

• Founded in 1999; privately held

• Leading iMotion software platform and solutions in the RFID industry

• Primarily focused on Government & Aerospace

• De facto passive RFID standard for U.S. Dept. of Defense

• Foundation of some of the largest RFID deployments around the world

• Single-source capability and top tier partnerships

GlobeRanger Confidential13

Solution FocusAutomating Supply Chain LogisticsSolution FocusAutomating Supply Chain Logisticsg pp y gg pp y g

The U.S. alone spent $1.3 trillion on SC logistics in 2008 CSCMP’s 20th Annual State of Logistics Report

Transportation

Manufacturing StockCarrier/3PL DistributionStock Carrier/3PLSupplier g

Inbound OutboundEnterprise

Shipping/Receiving

StockSupplier

Shipping/Receiving Yard ManagementWIP Tracking/JIT Mfg. Inventory Management Tool Tracking

These operations can be made faster,more accurate, and more efficient withRFID technology

GlobeRanger Confidential

Tool TrackingWarehouse Operations Asset Tracking

14

RFID technology.

GlobeRanger Provides a Unified FoundationGlobeRanger Provides a Unified Foundation

HQLogistics Operations

Corporate

Manufacturing

Finance

ERPWMS

OMS

HQBranch

Branch

Logistics Operations Manufacturing

CustomGR LIVE GR MAKEGR AWARE

BusinessRules

Visibility

Solution Accelerator 1 Solution Accelerator 2 Solution Accelerator 3

C t C t C t C t C t

Custom SolutionsGR-LIVE

LogisticsGR-MAKE

ManufacturingGR-AWARE

Asset Tracking

iMotion

Components Components Components Components Components

15Vendor X Vendor Y GPS Passive Active

The RFID Solution Factory

September 2009

1616

RFID is all we do

Benchmarking

EngineeringSupport

PlanningDeployment g

Design

Deployment

1717

250+ paid RFID Projects

1818

Pre-Packaged Solutions

1919

Hosted or Installed

►Application Features►Edge Device Control►Remote Monitoring►Remote Monitoring

2020

What is your experience with, and perspective on, Managed Services, or hosted deployment methods for RFID solutions?


What are the primary benefits and barriers to adoption for MS/hosted deployment models in RFID as your recent market

experience informs you?p y


Are these drivers/ barriers persistent? Transient? How do you see the MS/ hosted opportunities/ requirements evolving during

the next 6-12 months?


What regions, markets, and/or applications do you perceive pioneering this business model? Why?


RFID Managed Services: Research Objectives

• Global geographic coverageGlobal geographic coverage• Enterprise-user analysis• RFID supplier, managed services partner, channel analysis

RFID solution provider capabilities and position analysis• RFID solution provider capabilities and position analysis• Definition of managed services offerings for RFID solutions and

analysis of currently available offerings.

Study Publication Date Founding Sponsorship Period

Dec 2009 Through September 30, 2009


Q&A Session

Thank You for Attending this VDC Webcast

For more information about VDC Research’s coverage of the global markets for RFID technologies – including the Managed Services – RFID Solutions: 2009 Market Requirements and Opportunity Analysis pleaseSolutions: 2009 Market Requirements and Opportunity Analysis – please contact:

Drew NathansonAutoID & Transaction Automation Practice

email: [email protected]: 508-653-9000 ext. 148

//web: http://www.vdcresearch.com
