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THE HIDDEN COSTS OF UN-ADAPTABLE MOBILE TECHNOLOGY White Paper HIDDEN COSTS OF UN-ADAPTABLE MOBILE TECHNOLOGY

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Page 1: The hidden CosTs of Un-adapTable Mobile TeChnology · 1 Mobile Device TCO Models for Line of Business Solutions, VDC Research, February 2013. 2 Field Service Mobility Survey, Aberdeen

The hidden CosTs of Un-adapTable Mobile TeChnology

White Paperhidden CosTs of Un-adapTable Mobile TeChnology

Page 2: The hidden CosTs of Un-adapTable Mobile TeChnology · 1 Mobile Device TCO Models for Line of Business Solutions, VDC Research, February 2013. 2 Field Service Mobility Survey, Aberdeen

Thanks to an increasing focus on efficient operation, greater accuracy and more nimble service, mobile computing technology is becoming a must-have for many businesses. While there are many solutions to choose from, the majority of devices on the market are un-adaptable. In other words, they cannot evolve as business needs change or new technology/capabilities become available.

Un-adapTable Mobile TeChnology

White Paperhidden CosTs of Un-adapTable Mobile TeChnology

Page 3: The hidden CosTs of Un-adapTable Mobile TeChnology · 1 Mobile Device TCO Models for Line of Business Solutions, VDC Research, February 2013. 2 Field Service Mobility Survey, Aberdeen

White Paperhidden CosTs of Un-adapTable Mobile TeChnology

advanTages of “going Mobile”

With almost 500 million mobile devices expected to be used by enterprise mobile workers by 2015, demands for robust enterprise mobile management solutions are increasing1. Organizations that have deployed handheld computing technology enjoy:

• Increased throughput• Decreased errors during the exchange

of business-critical information • Immediate access to real-time data• On-the-go productivity and improved

response times• Enhanced situational awareness• Increased efficiency and accountability

This report will explore some of the unanticipated costs of implementing un-adaptable technology, including:

• Rapid device obsolescence

• The need to purchase unnecessary capabilities

• Potential downtime• And moreWe will also examine the advantages of mobile technology that can adapt — through customizability, modular design and field repair.

Competition and demands for faster service and delivery are driving businesses to strive for more dynamic, real-time, event-driven customer response. The use of handheld computing devices has become an invaluable tool toward increasing productivity, efficiency and accuracy.

In a 2011 study performed by the Aberdeen Group, field service industry respondents said that mobility of technology was deemed “very important” in increasing productivity and efficiency. In addition, the survey found that this technology was vital in reducing errors and, ultimately, in boosting service profitability2. Research also revealed that 70 percent of top industry performers in field service operations have a mobile application in use3.

Propelled by the need for accurate product tracing and reduced delivery times, logistics and warehousing industries are also turning to handheld mobile technology. According to research by the Aberdeen group, more than 80 percent of companies already have RF and barcodes deployed. Many have systems that can operate interactively with mobile devices4.

Choosing The RighT ToolsIt is not simply the implementation of mobile tools that ensures peak performance. Selecting the right devices for your operation’s requirements also has a significant impact

— not only on ensuring customer service needs are met, but on the subsequent costs associated with implementing and maintaining the technology. When a mobile technology solution is chosen, a significant investment is required — in the devices themselves and the training required to use them. Any business integration needs, such as new software tools, should also be a consideration.

Choose poorly and there can be unforeseen cost consequences. In addition to being stuck with devices that do not meet their needs, organizations may encounter higher-than-necessary ownership costs, potential service lapses and lost revenue due to those lapses. These problems can be exacerbated by evolving business needs that demand new and/or different tools. For instance, today, a company’s devices may be required to read a barcode from a distance of 20 feet. However, future requirements may necessitate the ability to read more complex 2-D symbologies such as QR codes. Finally, the speed at which technology changes make most devices obsolete within 18 months, on average5. Few companies can afford to replace their mobile devices at this rate.

Page 4: The hidden CosTs of Un-adapTable Mobile TeChnology · 1 Mobile Device TCO Models for Line of Business Solutions, VDC Research, February 2013. 2 Field Service Mobility Survey, Aberdeen

Another downside to most mobile computing solutions is that the devices are designed based on a one-size-fits-all philosophy. The prepackaged functionality and features allow few customization options — if any. With devices designed for replacement over repair, many mobile technology providers make repair a complicated, lengthy process. Even more troubling: Short device lifespan means that upgrades are extremely limited or nonexistent.

The result is that businesses are beholden to technology that is un-adaptable. In other words, the devices and technology don’t grow and adapt as the needs of the business evolve and the technology changes. This un-adaptable technology has many hidden expenses — including the costs of unnecessary capabilities, rapid obsolescence and potential downtime.

CosT CenTeRs…exposedseleCTable deviCe CapabiliTiesAs most devices are designed on a one-size-fits-all mentality, businesses may be forced to adopt features that are not necessary for their operation. Consider a device with both radio communication technology, barcode reading and RFID. Even if your organization only requires one of these capabilities, the costs associated with building all of them into the device remain — and they are passed on to you.

On the other hand, the rapid evolution of technology also creates challenges. Imagine the release of a new operating platform that

could deliver game-changing capabilities. With a fleet of un-adaptable devices, your business is still stuck — this time, unable to add on features that could improve their productivity, efficiency and accuracy.

By opting for adaptable technology, companies can exercise greater control over the features they want. That’s because adaptable devices are typically engineered with customizability in mind. For example, manufacturers may encourage the open and collaborative development of software or hardware. This yields a robust selection of apps and programs, which can help companies tailor device functionality to meet their needs.

aCCess To The newesT TeChnologiesMost devices are not designed for add-ons or upgrades as the technology evolves.

White Paperhidden CosTs of Un-adapTable Mobile TeChnology

iMagine Two waRehoUses, idenTiCal in viRTUally eveRy way, exCepT ThaT waRehoUse a has aRMed iT’s paCking sTaff wiTh adapTable handheld CoMpUTing deviCes, and waRehoUse b has eqUipped TheiR woRkeRs wiTh Un-adapTable Mobile CoMpUTeRs fRoM CoMpany x.• This week in each warehouse, a careless worker ran over one of their handhelds with a forklift.• Both Device A and Device B get a huge crack in their screen, making the devices unusable.• Both warehouses begin the repair process to get their device up and running:

Depot ships deviceback to the warehouse

overnight

Operations receives the repaired device, and gives device back to worker

4-6days

Packages and ships the broken device.

~20 minDevice ships to depot for repair

overnight

Device is received by depot and repaired

3 days

B

Worker alerts the operations staff responsible for equipment that a device has broken

1-2 hrs

Operations gets a return materials authorization through their equipment service contract

~10 min

Gives the device back to the worker

<3hours

Removes the six screws and replaces the cracked screen with the new spare one.

~20 min

Replaces the six screws

~1 min

Tests the new screen

~2 min

A B

Worker alerts the operations staff responsible for equipment that a device has broken

1-2 hrs

Operations gets a new screen from their spare parts pool

~5 min

Warehouse A: Adaptable tech Warehouse B: No Adaptable Tech

total

down timetotal

down time

Page 5: The hidden CosTs of Un-adapTable Mobile TeChnology · 1 Mobile Device TCO Models for Line of Business Solutions, VDC Research, February 2013. 2 Field Service Mobility Survey, Aberdeen

Essentially, a company is stuck with its current devices until they wear out — due to the substantial financial and time investments involved. As a result, companies may have to completely scrap their old systems and start from scratch when the old technology becomes obsolete or devices become unusable after years of normal wear and tear. Also added to the bottom line are the costs of worker training to ensure new tools are used properly.

With adaptable technology, modularity is often a key design criteria. When a device is modular, components can easily be swapped in and out, allowing new features to be integrated into the device you already own. At the same time, operator training is minimized because employees are simply getting an upgrade to a device they already know how to use.

RedUCing downTiMeBroken or worn out devices are a fact of life. No matter how carefully one handles a device in the field, it is very likely that it will need to be serviced at some point, especially in rugged environments. And if that means shipping the unit back to the manufacturer, there are significant costs and potential headaches — like employees being left without a critical business tool.

To circumvent the potential downtime, some companies choose to stock extra devices. Unfortunately, those extra devices require a fairly substantial cost investment, as well.

A better solution: Adaptable technology based on a modular design. Often, with just a few extra parts, a broken unit can be fixed on site in matter of hours. Take a faulty keypad, for example. A modular device allows this part to simply be removed and replaced with a spare. This results in significant cost savings — by eliminating a return to the manufacturer, decreasing worker downtime and avoiding an investment in spare devices. In fact, commonly used spare parts can be stocked for just a fraction of the cost of backup devices.

evolve wiTh adapTable TeChnologySo how do businesses avoid these hidden costs? By choosing adaptable technology from the start.

Psion understands this. As a leading manufacturer of rugged handheld computing solutions, we design our products to be highly modular, customizable and field reparable. Our solutions incorporate modular chassis with mix-and-match peripheral components, open-source hardware development, extreme ruggedness to extend wear life and highly flexible service packages. That lets businesses design their own “perfect-fit” solutions, while controlling costs.

Choosing un-adaptable mobile technology can waste resources, hinder productivity and lessen a firm’s competitive advantage. The marketplace is continually evolving — and so should your technology. Psion’s dynamic solutions grow with business needs to help empower workers and avoid hidden costs associated with static technology.

White Paperhidden CosTs of Un-adapTable Mobile TeChnology

see yoUR savings poTenTialUse oUR Roi CalCUlaToR To esTiMaTe how iMpleMenTing a waRehoUse MobiliTy sTRaTegy Can MaxiMize yoUR savings and pRofiTs.

1 Mobile Device TCO Models for Line of Business Solutions, VDC Research, February 2013.

2 Field Service Mobility Survey, Aberdeen Group, May 2011.3 Field Service 2011: Mobility and the Extension of the

Service Enterprise, Aberdeen Group. 4 Fulfillment Excellence and Dynamic Event Warehousing

Come of Age, Aberdeen Group, 2011.5 Source: ZDnet, “What is the Ultimate Ruggedized Mobile

Device?” April 2011.

Page 6: The hidden CosTs of Un-adapTable Mobile TeChnology · 1 Mobile Device TCO Models for Line of Business Solutions, VDC Research, February 2013. 2 Field Service Mobility Survey, Aberdeen

ConTaCT psion aT [email protected] or call 866-230-6625 to take the first step toward greater flexibility, productivity and profitability.