5 strategies to lower your costs & improve service

8/6/2019 5 Strategies to Lower Your Costs & Improve Service

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5 Strategies to Lower Your

Costs & Improve ServiceWhile mobile deployments are becoming increasingly

ubiquitous in today’s retail market, the hard truth is that over

70% of the cost of owning a mobility solution can come after

the initial purchase, according to a recent study conducted by

the VDC Research Group, a research company that

specializes in providing technology executives with the market

intelligence they need to make critical business decisions with

condence.

Although there are many benets to implementing a mobile

solutions infrastructure--including the ability to speed up

efciency and improve customer service—most companiesnd that the large scale investments are in the “soft” costs,

which can be anything from maintenance expenses to

productivity losses due to worker downtime and device

failure.Sponsored By



However, the irony is that in today’s

challenging economy an astounding

68.4% of these companies are more

likely to make a mobile investment

based on upfront “hard” costs instead

of looking down the road at the

long-term total cost of ownership

(TCO), according to a July 2007

report published by VDC entitled,

TCO Models For Mobile Computing

and Communications Platforms.

These facts illustrate why it is more

important than ever for mobileusers to be armed with the proper

knowledge of all costs associated

with a mobile solutions infrastructure

before making an informed business

investment.

By exploring innovative ways to

extend the life of their equipment,

evaluating their workforce

environment, improving service

levels, aligning with a mobile services

provider, and taking a prudent

approach to battery management,

this white paper will illustrate 5 ways

mobile users can improve their ROI

and TCO before investing in new

mobile equipment.

1. Extend the Life of

Your Equipment

Industry standards show that the

average retailer gets 5-7 years out

of their initial purchase of mobile

deployments, which, over the lifetime

of the device, will eventually represent

only 1/3 of the TCO. More specically

for rugged handheld devices used

in retail environments, the average

lifespan is approximately 5-6 years,

according to David Krebs, Director

of Mobile and Wireless Practice at

VDC Research Group. “This has

trended up recently as organizations

have extended the life cycle [or their

equipment] in response to the weak

economy,” he adds. A statistic that

many industry experts feel highlights

the importance of aligning with an

independent service provider (ISP)

whose main focus is extending the life

cycle of mobile equipment.

In a recent study conducted by The

Aberdeen Group, 129 mobile users

were surveyed between July and

August 2009 to reveal Best-in-Class

methods and techniques to ensure

maximum longevity of a mobility

infrastructure in 21st century retail.For 52% of Best-in-Class mobile

users, the larger issue is the need to

ensure timely application upgrades to

their mobility solutions.

To that end, industry analysts stress

2s A Retail TouchPoints White Paper 2010

“Some of the most difcult to track, yet

potentially some of the most signicant

costs, relate to soft costs associated with

device failure. This is especially true for

non-rugged devices being deployed inenvironments that are more suitable for

rugged solutions.”

- David Krebs, VDC Research Group



the importance of considering

broadband wireless functionality,

security, ongoing serviceability,

and future application needs when

upgrading your current mobile

infrastructure, in order to avoid

needless upgrades.

“I think it is important for [mobile

users] to let the application drive the

product selection,” says Krebs. “In

addition, as many rugged devices

will be used for 5 years or more, it is

important to also anticipate some of

the future application requirements.

This could impact integrated wireless

options, I/O options (such as imaging,

RFID, bar code scanning, voice, etc.),

display size, etc.”

2. Evaluate the Workplace

Environment

According to VDC, it is not

uncommon for the annual mobile

computer failure rates to exceed30% these days.

“Some of the most difcult to track,

yet potentially some of the most

signicant costs, relate to soft costs

associated with device failure,”

according to Krebs. “This is especially

true for non-rugged devices being

deployed in environments that are

more suitable for rugged solutions,”

he adds.

Statistics show that approximately

35% of consumer-grade devices

are replaced within the rst two

years of implementation when used

in an industrial environment, so the

importance of considering where

the mobile deployments will be

getting the most mileage should

not be underestimated. Having

this knowledge can provide mobile

users with insight into the degree of

wear-and-tear the equipment could

potentially endure, ultimately giving

them an idea as to what types of

failure rates they might experience

and how often they will occur.

“Companies [should] review how the

equipment is being used every day

to determine if there are ways the

equipment can be better protected

against damage,” advises David Marin

of BCS Solutions, a data collections

and mobility solutions provider that

helps transform enterprises into

streamlined, efcient and productive

businesses.

Marin also suggests some ways toextend the life of your equipment

by evaluating the workplace

environment. “If the terminals are

not in holders/holsters they should

be as holsters or other cases that

will protect a terminal in the event


Another key to extending the life cycle of

mobile deployments is to understand the life

of your battery. VDC’s research indicates that

accessories represent approximately 15-

20% of the hardware costs of a mobile solu-tion.



of a drop. It is also wise to assign

a terminal to an individual, as that

person is more likely to take care of it

rather than just letting it be common

property.”

3. Improve Battery Management

Another key to extending the

life cycle of mobile deployments

is to understand the life of your

battery. VDC’s research indicates

that accessories represent

approximately 15-20% of the

hardware costs of a mobile

solution. “One of the most

signicant contributors is the battery,”

emphasizes Krebs.

“Beyond the actual performance of

the batteries, end users also want an

effective way to manage their battery

inventory (i.e. easily identifying which

batteries are charged/need charging;

understanding when to replace abattery, and also the ability to share

batteries among different devices),”

he adds.

One way to do this is by writing the

installation date on them, suggests

Mark Kling, Senior Product Manager

at Scan Again Inc. Kling is also

quick to stress the importance of

understanding that 1 battery life cycle

= 1 charge of the battery, whether it’s

depleted or not.

“The average mobile computer

battery is only good for 500 life

cycles [or 500 charges], which is

equal to about 2 years,” says Kling.

Without having a good understanding

of the battery life cycle, he explains,

“… equipment could wind up with

‘failures’ that aren’t actual ‘failures’ —

leading to more time and resources

spent on processing and repair.”

What’s more, according to VDC’s

2007 research, mobile device

end users lost an average of 75

minutes of productivity each time a

device failed. “Being diligent in battery

management can provide real cost

savings,” adds Kling.

4. Improve Service Levels

For many organizations, having a

managed services vendor provides

deployment exibility and pricing

variability over today’s largely xed

cost capital investment models,

according to VDC research.

Additional benets include low upfrontcosts and outsourced IT services and

infrastructure, which can take the

pressure off of the initial investment.

Furthermore, according to an August

2009 study conducted by The


According to VDC’s 2007 research, mo-

bile device end users lost an average of

75 minutes of productivity each time a

device failed. “Being diligent in battery

management can provide real cost sav-

ings.”- Mark Kling, Scain Again Inc.



Aberdeen Group entitled, Mobile

Field Workforce in Retail: Strategies

to Reduce Total Cost of Ownership,

“the services component [for Laggard

mobile users intent on extending

the life of their current equipment]

is vital to the overall deployment

of mobility devices to ensure

adequate maintenance and prompt

replacement of devices in case ‘lost

or broken’ issues crop up.”

Industry experts add that original

equipment manufacturers (OEM) may

push to obsolete equipment in order

to keep moving new products, so

it’s extremely important to be leery

of having your equipment deemed

non-repairable right off the cuff. One

option that could increase ROI is to

deal with and ISP, which will help

ensure the longevity of the original

device.

5. Find a Partner

Obviously, multiple service vendors

= multiple service costs, so having

one vendor to meet all of your mobile


needs has benets. But how else can

having a partner affect the TCO of a

mobile solutions infrastructure?

“In our case, the operating cost is

budgeted through a yearly contract.

Repairs and shipping to and from

the stores is included so there are no

surprises,” explains one executive

from a large software company.

However, other experts point to the

following guidelines to keep in mind

when evaluating service vendors:

• Self-service web portals

-- According to a recent report by

the Aberdeen Group, 45% of Best-

in-Class companies lowered their

support costs with self-service web

portals. Self-service web portals can

provide 24-7 support while freeing up

the help desk staff for more critical

support. An Internet service portal

also allows a way for companies to

track the progress of repairs and

manage service activities.

• Experts in the eld –

Aligning with a vendor that has the in-

house capability to handle all mobile

repairs down to the component level

is crucial when it comes to eliminating

downtime.

• Fast repair turnaround –

Fast turnaround time has the potentiato provide companies with substantia

cost savings by eliminating the need

to stock up on spare equipment.

“Repair time varies quite a bit

depending on the expertise and parts

For Laggard mobile users intent on ex-

tending the life of their current equipment]

is vital to the overall deployment of mobil-

ity devices to ensure adequate mainte-

nance and prompt replacement of devicesin case ‘lost or broken’ issues crop up.”

- August 2009 Aberdeen Group Study, “Mobile Field Workforce

in Retail: Strategies to Reduce Total Cost of Ownership



inventory of the service providers,”

explains Marin. “The goal would be

to get repairs done in three days;”

-- a turnaround which typically out

performs most OEM’s.

Additionally, vendors who maintain

cross-border facilities can aid mobile

users in reducing cross-border

shipment costs, as well as any

downtime incurred when shipments

are tied up in customs.

• Customized service

programs – Customized service

programs like “hot swaps” are key

in reducing signicant costs that

can be lost in the event of downtime

by effortlessly replacing broken

equipment without shutting down the

system.

“When [a] client has a breakdown,

either he or the client help desk (after

vetting) will request a unit(s) be sent

out immediately from the pool. When


the broken units are returned, they

are repaired and placed [back into]

the pool,” explains James Luck, EVP,

Scan Again Inc.

Along with the hot swap repair

service, clients can also track the

progress of their defective equipment

by utilizing Scan Again’s self service

web portal, adds Kling.

“Customer’s can simply log in [to the

web site] enter a serial number, failure

description and contact info, and just

ship [the defective equipment] andwe’ll be able to service and return it

within 3-5 days,” he says.

Statistics show that approximately

35% of consumer-grade devices are

replaced within the rst two years

of implementation when used in an

industrial environment



Conclusion

Mobile devices can help make workforces more productive and helpful to custom-

ers, but rolling out these devices across a large enterprise can add up to a sig-

nicant investment. Especially in today’s challenging economic environment, it isessential for mobile users to better manage their ROI and reduce the TCO of their

mobile equipment.

By taking into account all of the costs associated with a mobile infrastructure – hard

(direct) costs, as well as soft (indirect) costs — companies can enable themselves to

make better business investments and extend the life of their existing equipment.

Additionally, aligning with experts in the mobility space, such as an ISP, can help

avoid unnecessary upgrades. Furthermore, ISP’s can aid mobile users by providing

guidance on matching the right product for the right environment, ultimately reduc-

ing ongoing expenses tied to maintenance, worker downtime or device failure, and

signicantly extend the life of your equipment.

5 Strategies to Lower Your

Costs & Improve Service



About Scan Again

Scan Again Inc. was created eight years ago to offer an alternative for repair

and sales of equipment and accessories to North American customers that feel

that they are under serviced. This in particular on the legacy equipment which

they have in use, in their environment.

The business has been built on a model designed to offer superior quality repair

at a reasonable rate with a consistent turn around time. Manufacturer trained

technicians and state of the art test equipment enable SAl to x equipment

other companies may deem un-repairable. This, in itself, allows us to cut cost

ensuring our customers receive the best possible service. At SAl our techni-

cians are trained to repair customer equipment down to board level, effectively

reducing cost. SAI does not believe in replacing entire circuit boards if an inex-

pensive component will x the problem. Maintaining adequate inventory levels

of parts ensures all repairs performed are returned to our clients without delay.

About Retail TouchPoints

Retail TouchPoints is an online publishing network for retail executives, with con-

tent focussed on optimizing the customer experience across all channels. Tap-

ping into the power of the Web 2.0 environment, the Retail TouchPoints network

is made up of a weekly e-newsletter, category-specic blogs, twice-monthly Spe-

cial Reports, web seminars, benchmark research, virtual events and a content-

rich website at www.retailtouchpoints.com.

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5 strategies to lower your costs & improve service

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